Japan to put rice stocks on the market to combat rising prices

The Japanese government plans to put rice stocks on the market as soon as possible for the first time to counter the ongoing price rise, the volume and price will be determined as early as next week, Kyodo news agency reported citing the country’s Agriculture Minister Taku Eto.

“If the price rises further, consumers will stop choosing rice,” the agency quoted the minister as saying.

If the measure is implemented, it will be the first time state reserves will be used to alleviate the problem of rice distribution to consumers and rising prices. The use of reserve rice, which the country stores in accordance with the law, has previously been limited to cases of significant production cuts, Kyodo explained.

In 2024, amid crop failure and a string of natural disasters, prices of rice – a staple of Japanese people’s diets – soared by about 60% from 2023 levels. The price hike was the sharpest since 1971, when statistics began to be kept in their current form.

Although about 180 thousand tons more rice was harvested for the 2024 calendar year than for 2023, the actual amount of rice accumulated by the National Federation of Agricultural Cooperatives by the end of December for subsequent deliveries to consumers fell by 210 thousand tons. In this regard, experts at Japan’s Ministry of Agriculture do not rule out that farmers and rice trading companies may hold on to rice in anticipation of higher rice prices.

The Japanese authorities hope that the release of state stocks of rice will increase the supply of this commodity to end consumers and reduce the price of rice in stores. At the same time, since overproduction of rice may cause a price collapse, the government intends to buy back the same amount within one year.

Tags: rice, Japan