Will Soaring Rice Prices Stabilize?... Japan to Release 'Half-Price Stockpiled Rice'

Minister of Agriculture Announces Release via Negotiated Contracts
Targeting Large Retailers Handling Over 10,000 Tons of Rice Annually

The Japanese government is recruiting retailers to purchase government stockpiled rice through negotiated contracts in an effort to lower rice prices, which doubled last year.

According to Kyodo News, NHK, and other sources on May 26, Minister of Agriculture, Forestry and Fisheries Shinjiro Koizumi officially announced that the government will release stockpiled rice via negotiated contracts instead of the traditional bidding method, and disclosed specific sales volumes and methods.

Rice stockpiled in a warehouse in Kanagawa Prefecture, Japan. Photo by AFP

The Japanese government will sell a total of 300,000 tons?200,000 tons of 2022-harvested rice and 100,000 tons of 2021-harvested rice?at a price of 10,700 yen (approximately 102,000 won) per 60 kilograms. This is almost half the price compared to previous bidding sales. Including tax, the price becomes 11,556 yen (about 110,000 won). The government will deliver the stockpiled rice to the location requested by the retailer; however, milling costs must be borne by the retailer.

Additionally, the Japanese government has removed the requirement for businesses that win the stockpiled rice to return the same amount to the government within five years, thereby reducing the purchasing burden on businesses.

The Ministry of Agriculture, Forestry and Fisheries will accept purchase applications daily starting today, with sales on a first-come, first-served basis. Eligible buyers are large retailers that handle more than 10,000 tons of rice annually. To ensure nationwide distribution, the government also plans to sell to online retailers.

The Nihon Keizai Shimbun (Nikkei) reported that if applications to purchase stockpiled rice exceed 300,000 tons, the government plans to increase the amount released. Through this new method of releasing stockpiled rice, the Japanese government aims to enable consumers to buy 5 kilograms of stockpiled rice at supermarkets for 2,160 yen (about 20,000 won) including tax as early as early next month.

This is roughly half the average retail price of 4,268 yen (about 40,100 won) for 5 kilograms of rice sold at supermarkets nationwide between May 5 and May 11. The Ministry of Agriculture, Forestry and Fisheries has also formed a team to focus on addressing rice issues in order to curb soaring rice prices. Minister Koizumi emphasized, "We will dispel public anxiety with a stronger sense of urgency and speed."

This content was produced with the assistance of AI translation services.