   
  
G/STR/Q1/TPKM/4  
 
24 April 2024 
(24-3383) Page: 1/2 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
REPLIES TO QUESTIONS FROM THE EUROPEAN UNION1 
REGARDING THE NEW AND FULL NOTIFICATION OF THE SEPARATE CUSTOMS TERRITORY OF 
TAIWAN, PENGHU,  KINMEN AND MATSU2 
The following communication, dated and received on 24 April 2024, is being circulated at the request 
of the delegation of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu . 
 
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Question 1  
The AFA purchases a portion of the r ice paddies to serve as food security stock. According 
to table  III of the notification: 358.1 (1,000 Mt) for 2021 and 365.6 (1,000 Mt) for 2022 
were purchased by AFA. Could Chinese Taipei please provide further information on w hat 
the price at which the rice was purchased in 2021 and 2022 was, and on what the market 
price  of the rice for the same two years  was? 
Reply : 
1. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has maintained a 
guaranteed price purchase mechanism for paddy rice to ensure sufficient public stocks. There 
are three market price support measures: the "planned purchase " measure aims to  increase 
farmers' income, the "supplementary purchase" measure aims to stabilize the market price, 
and the "additional purchase " measure aims to prevent the market price from becoming 
lower than production cost. In 2021 and 2022, our guaranteed price for planned purchase 
was 26  TWD/kg, for supplementary purchase was 23 TWD/kg, and for additional purchase 
was 21.6 TWD/kg. 
2. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 's market price for 
paddy rice in 2021 was an average of 22.16 TWD/kg; in 2022, it was an average of 
22.65  TWD/kg. 
Question 2  
How are the rice stocks released into the domestic market, and  does  this ha ve an  impact 
on trade?  
Reply : 
1. To ensure national food security, the government annually purchases rice from farmers at 
guaranteed prices. Additionally, in accordance with WTO commitments, the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu imports 94,068 tons of brown rice 
per year to replenish the public stock.  
 
1 G/STR/Q1/TPKM/3 . 
2 G/STR/N/20/TPKM . G/STR/Q1/TPKM/4  
 
- 2 - 
 
  2. In order to implement safe storage, the public  stock for one -year storage period is released 
to the military and prisons for consumption. It is also released to the market when there are 
natural disasters and abnormal price fluctuations in the market. The public stock which has 
been stored for more th an one -year storage period is used for brewing or processing. If the 
storage period exceeds a certain duration or if the quality is not suitable for human 
consumption, the rice would be allocated for animal feed. The release of public stock does 
not affect  trade.  
 
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