TOKYO: Japan’s government will slash the price of stockpiled rice to ¥2,000 (approximately US$14) per 5kg, in a decisive move to ease pressure on consumers facing steep price hikes for the staple grain, the Ministry of Agriculture announced on Monday.
The initiative will see 300,000 metric tonnes of government-held rice released to retailers under discretionary contracts, as part of a broader strategy to swiftly stabilise prices ahead of the upper house election in July. The scheme follows a pledge by newly appointed Agriculture Minister Shinjiro Koizumi to accelerate rice distribution.
Rice prices have roughly doubled compared to last year, driven by climate-induced crop damage, extreme summer heat, and a resurgence in tourism boosting domestic demand. The spike has posed a political risk for Prime Minister Shigeru Ishiba, whose administration is contending with a record-low approval rating.
To further ease supply bottlenecks and reduce consumer costs, the government will cover transportation expenses to ensure the rice reaches retail shelves by early June. The targeted price of ¥2,000 per 5kg is roughly half the current average retail price, according to market data.
Japan may also consider expanding distribution beyond retailers depending on market conditions, signalling a more flexible approach to stabilisation efforts.
“The price of rice has about doubled compared to last year. We felt continuing the same way as before would not meet the people’s expectations,” said Minister Koizumi during a briefing with farm ministry officials.
“We will dispel the public concerns about rice prices with even greater speed and a greater sense of urgency,” he added.
As part of a push for private sector involvement, Koizumi met with Rakuten Group CEO Hiroshi Mikitani on Friday, who expressed support for the initiative, indicating that online platforms could play a key role in rapid distribution.
The government’s stockpiling policy typically mandates replenishment of released rice, but authorities have decided against repurchasing this batch, acknowledging that restocking could sustain inflated market prices.
Earlier in March, Japan released 210,000 metric tonnes of rice through two public auctions to combat rising costs. However, distribution inefficiencies meant only 7% of that stock had reached retailers by late April, prompting criticism of the system’s sluggishness.
The latest strategy aims to bypass the previous multi-layered supply chain and deliver rice more directly and efficiently to consumers in need.
