The government and the ruling People Power Party(PPP) have agreed to purchase a record 450-thousand tons of rice this year in a bid to stabilize plunging prices.

The Ministry of Agriculture, Food and Rural Affairs announced that the prescribed purchase amount includes 350-thousand tons of excess production from this year and last year's surplus inventory. One trillion won, or about 700 million U.S. dollars, is estimated to be needed for the purchase.

The move comes as the price of rice has hit a 45-year low, with the producer price for 20 kilograms of rice coming in at roughly 40-thousand won, down 25 percent from a year earlier. 

The government says it will also expand its annual reserves to bring its total stockpile to 900-thousand tons, amounting to about a quarter of this year's rice production.

The main opposition Democratic Party(DP), which had pushed to revise laws on the government’s purchase of surplus rice every year, criticized the ruling camp's decision as being insufficient.