SEOUL (Dow Jones)--The South Korean government plans to release 50,000 metric tons of rice from state reserves in April via public auction to help stabilize high rice prices, the agriculture ministry said Wednesday.

  The Ministry for Food, Agriculture, Forestry and Fisheries said the government can sell about 140,000 tons of rice through public auctions this year.

  If prices continue to rise after the auction in April, the government will auction an additional 90,000 tons, the ministry said in a statement.

Domestic rice prices have been rising due to low government inventories at the end of last year, a fall in production and higher global grain prices.

  The government expects rice supplies this year to reach 5.37 million tons and demand 4.64 million tons, leading to a year-end inventory of about 730,000 tons.

  Rice is one of the 52 items the government has selected for close monitoring in order to curb fast-rising inflation. 

(Dow Jones Newswires)