Rice Prices Remain High in Japan Even after Stockpile Releases

Tokyo, Feb. 16 (Jiji Press)–Retail rice prices in Japan are still above 4,000 yen per 5 kilograms on average, almost double the level before supply shortages hit consumers, even after the government’s releases of stockpiled rice to keep prices low. In February last year, the agriculture ministry announced plans to release 210,000 tons of stockpiled rice. The decision came as a reversal of its policy because the ministry had expected that the volume of 2024 rice would be enough to cover demand. The country’s staple food law stipulates that releases of government-stockpiled rice be used to cover “supply shortages due to falling production.” Therefore, although rice started disappearing from store shelves in summer 2024 and consumers asked for stockpiled rice to be released, the government did not take action. Even after 2024 rice started appearing in the market, rice prices did not fall but climbed even higher. Eventually, the ministry changed rules to allow stockpiled rice to be released “in case that smooth rice distribution is disrupted.” Last March, it started releasing stockpiled rice through bidding mainly by agricultural cooperatives. But selling rice through bidding had little effect in curbing prices as released rice had not reached store shelves for long periods. In May last year, the ministry changed the method for releasing rice, from bidding to discretionary contracts. The change enabled stockpiled rice to be sold directly to retailers at cheap prices, helping to send retail prices below 4,000 yen per 5 kilograms on average. Rice prices were anticipated to fall due to increased supply starting in autumn 2025 as production levels for 2025 rice were expected to be the highest since 2017. But agricultural cooperatives offered farmers initial payments higher than the previous year’s in order to secure rice. As a result, rice prices rose again. Kazunuki Oizumi, honorary professor at Miyagi University, described the releases of stockpiled rice as “too late.” Last summer, the agriculture ministry acknowledged that its demand prediction had been inaccurate and that there had been supply shortages as of 2024. Rice prices may have been lower if stockpiled rice had been released sooner. Oizumi said that the agriculture industry has had some distrust in the ministry since the shortage of 2024 rice was caused by its inaccurate prediction. The ministry’s failure to deliver the message about the predicted abundance of 2025 rice eventually caused retail prices to remain high, Oizumi said. END [Copyright The Jiji Press, Ltd.]