Japan plans to release another 200,000 tons of rice from government stockpiles through direct contracts with retailers, farm minister Shinjiro Koizumi said Tuesday, in the latest effort to curb elevated prices of the staple food.
The released rice will consist of 100,000 tons each from the 2020 and 2021 harvests. Koizumi said he expects the 2020 rice to be sold in stores at 1,700 yen per 5 kilograms.
The move will leave the country with a rice reserve of around 100,000 tons, down from about 910,000 tons before the government began releasing stocks through auctions in March and April.
A sharp decline in stockpiles has raised concerns that the government's rice reserves could fall short in an emergency. Koizumi has expressed interest in increasing rice imports to ensure a stable domestic supply.
Koizumi said the rice will be distributed to smaller supermarket chains and specialty shops, as well as major retailers, with the farm ministry set to begin accepting applications on Wednesday.
"We will deliver the stockpiled rice quickly so that it will reach consumers at lower prices," Koizumi told a news conference.
The government essentially stores 1 million tons of rice in preparation for emergencies such as disasters or crop failures, buying 200,000 tons annually from farmers over five years. Japan's annual domestic rice demand is roughly 6.7 million tons.
Rice has been in short supply at stores in Japan since last summer, keeping prices elevated. Prices have doubled compared with a year earlier, averaging 4,223 yen per 5 kg in the week through June 1.
The ministry suspects some wholesalers and farmers are hoarding rice in anticipation of price hikes.
Earlier this month, the government of Prime Minister Shigeru Ishiba held the first meeting of relevant ministers to discuss Japan's rice policy and examine why the price uptrend has persisted.
Facing public frustration, the government began earlier this year to release rice stockpiles to address the soaring prices, the first-ever discharge of reserves to alleviate distribution shortages.
Koizumi, who became farm minister on May 21 after his predecessor, Taku Eto, resigned over a gaffe about gifts of rice from supporters, decided to release 300,000 tons by resorting to the rare step of sales through direct contracts with retailers in the hope that the cheaper rice would bring down overall prices.
The remaining reserve is "sufficient to respond to disasters or poor harvests," Koizumi said, pointing out that only 40,000 tons were released after the 2011 earthquake and tsunami in northeastern Japan, which triggered one of the world's worst nuclear accidents.
© KYODO
23 Comments
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Yubaru
How appropriate... JA
Yubaru
So what this is stating is that contrary to the 300,000 reportedly planned to be sold, Japan has actually going to be "selling" 800,000 tons and cut its emergency supply down to roughly 10% of what it normally keeps?
Even at 200,000 tons per year, restocking the "emergency supply" will take roughly 4 years.
I pray that there are no other emergencies on the horizon, or we will be SOL
Hideyoshi.N
I pray that there are no other emergencies on the horizon, or we will be SOL
Don't worry , if real emergency happen in Japan , like earthquake, government can make special emergency rule and import foreign rice urgently.
wallace
We haven't seen any of the reduced-price rice in our local Hyogo stores, but we don't need to buy for the moment since I bought a 30 kg bag last year.
HopeSpringsEternal
The 4yr old "chicken feed" rice is going bad anyway, so might as well flood the market, time for a short squeeze!
Cephus
Why hold rice in storage when people are in dire need. Great job releasing it!
Matt
The power must be taken out of these middlemen's hands. If rice is so important to us then profit must be taken out of the equation. Farmer - Retailer - Public
Yrral
Let them eat rice cake,I think rice shortage is a hoax,their is alternate to rice ,that about 200 million dollar of rice
sakurasuki
So generous, only to wait the price to be doubled first before really being released.
shogun36
golly gee, thanks..............6 months too late
Yubaru
Contrary to the belief of some, perhaps many, posters here, JA and the government do not hold all the "stock" of rice in Japan. There are, as noted on national news, that the government is "urging" private holders, who are storing rice, to "sell" their stocks as well.
But seeing as how it's an "urge", odds are not much will come from it!
itsonlyrocknroll
The urgency, without delay should be to import rice, at the very least on a temporary basis to stabilise the retail price.
The current policy is billy bonkers, self-deprivation, this evening a trip to the supermarket, the price of a 5kg bag of rice was close to 4700 yen.
To sell rice stockpiled for national emergencies back to the taxpayer that purchased the rice is a national embarrassment, more so a insult.
Farm minister Shinjiro Koizumi seems oblivious to the charade he is totally responsible for.
Headless chickens.
Garlic eater
I wonder if other countries have food stockpiles for “emergencies” and what they consist of. I know the Japanese prefer rice as a staple, whereas some other countries hardly eat it at all. So I suspect food preference is largely cultural, based on years of habit more than anything. How about we all exercise flexibility when the usual supply of a preferred food is perturbed? Truth be told, it is quite possible to have a balanced diet even inside Japan without eating a grain of rice.
elephant200
The fundamental cause if rice crisis is the old men population in Japanese rurals were fewer and fewer and the labour forces to grow rice is shrinking. If Japan keep stubbornly reject foreign rice impor mts, the crisis will be severely turning to a chaos !
kaimycahl
If the government is stock piling rice that they have stored for years they are releasing stale rice from their reserves to the people only to restock fresh rice this is their way of getting rid of it without it going to waste.
*The released rice will consist of 100,000 tons each from the 2020 and 2021 harvests. Koizumi said he expects the **2020 rice to be sold in stores at 1,700 yen per 5 kilograms.*** Is this a supply and demand ploy rice has been in short supply at stores in Japan since last summer, keeping prices elevated. Prices have doubled compared with a year earlier, averaging 4,223 yen per 5 kg in the week through June 1. The ministry suspects some wholesalers and farmers are hoarding rice in anticipation of price hikes.**
Garlic eater
Thanks, but no thanks. I will do just fine without it. Call me when you remove the tariffs on foreign rice.
CS
Thats alot of chicken feed.
MiuraAnjin
200mkg/1.2m = 167kg of rice each.
Annual rice consumption per capita in Japan = 74kg.
MiuraAnjin
Scratch that.
It's 200,000,000kg/120,000,000日本人
So a meagre 1.67kg each.
My bad.
CrashTestDummy
I like rice.
1glenn
I do not understand why rice is not simply imported.
Yubaru
Japan imports literally tons of rice!
ILoveDownvotes
@Yubaru
All three of them!!! ;-)