The direct payment programme for rice farmers was adopted last year. The 85% of difference between target and market price should be financed by the government. The payment is composed of fixed payment and variable payment. The variable payment should be payed within AMS. But the direct payment programme and the rice procurement programme are competitive in using the AMS. So it is inevitable to abolish the rice procurement programme and introduce the rice public stockholding programme for food security. The reasonable volume of rice stockholding programme for solely food security is 803 thousand tons at the end of grain year. The volume can be adjusted to reflect the trend of rice consumption reduction. The reserved rice could be domestic. That is the way to consist with the management rule of imported rice. It was suggested to buy the rice for public stockholding by the contract in the short run and by the auction in the mid- and long-run. The surveyed price from October to December is applied to buy the rice. In terms of administering stockholdings, the revolving way is more efficient than the reserving method.
The suggested programme was designed to consist the WTO regulations. The volume such stocks correspond to predetermined targets related solely to food security. Rice purchases by the government shall be made at current market prices and sales from food security stocks shall be made at the market.