Japan Diet Enacts Bill to Stabilize Rice Supply, Demand

Tokyo, July 8 (Jiji Press)–The Diet, Japan’s parliament, on Wednesday enacted a bill designed to stabilize rice supply and demand. The bill to revise the staple food law was approved at a plenary session of the House of Councillors, the upper chamber of the Diet. It cleared the House of Representatives, the lower chamber, last month. Farmers will now be responsible for demand-driven rice production to help stabilize rice supply and demand. In response to a severe shortage of rice and subsequent price surges in 2024, a provision on production adjustments was scrapped. The provision, which was based on the assumption that rice demand would decline, had remained in place even after the end of the “gentan” rice acreage reduction policy in 2018. The rice market turmoil was attributed partly to the government’s failure to assess rice distribution accurately and make reliable supply and demand forecasts. Various businesses, including those in the food processing and service industries, will now have to report inventory, shipments and sales volumes in order to help improve the accuracy of the forecasts. Other changes include enabling the release of government stockpiled rice during times of supply shortage caused by rising demand, rather than just a drop in production. A private-sector rice stockpiling system will also be established, enabling major rice buyers, such as agricultural cooperatives, and wholesalers to manage approximately 200,000 tons of rice for a swift reserve release. On Tuesday, the Upper House’s agriculture, forestry and fisheries committee adopted a supplementary resolution calling for necessary measures if supply and demand become unbalanced due to unforeseen circumstances. END [Copyright The Jiji Press, Ltd.]