The Japanese agriculture ministry has initiated the auction of stockpiled rice to address rising prices amid supply shortages. The first release will consist of 150,000 tons from a reserve of 210,000 tons, aimed at alleviating distribution issues. Major buyers must repurchase the rice within a year, and retail prices continue to soar significantly.
On March 10, 2025, the Japanese Ministry of Agriculture commenced the auction process for stockpiled rice as a strategic measure to counteract rising prices resulting from supply shortages. The initial offering will make available 150,000 tons from a total of 210,000 tons of rice reserves earmarked for release. This marks the first instance of stockpiled rice being issued to alleviate distribution challenges, diverging from previous constraints that limited releases to only severe harvest failures or major disasters.
The stockpiled rice is anticipated to reach consumers by late March. The ministry has stipulated that major buyers will be required to repurchase the rice within a one-year timeframe. This initiative comes amid escalating rice prices as significant purchasers, such as agricultural cooperatives, compete to secure adequate supplies. Notably, the retail price of Koshihikari rice, a premium Japanese variety, surged by 4% in February, setting a record high of ¥4,363 for every 5 kilograms in central Tokyo, according to data from the internal affairs ministry.
Moreover, the total volume of rice procured by major buyers, including Japan’s National Federation of Agricultural Cooperative Associations (Zen-Noh), decreased by approximately 210,000 tons compared to the previous year, as reported by the agriculture ministry. The dynamics of supply and demand within the rice sector reflect broader economic pressures and indicate the importance of government intervention in stabilizing market conditions.
In conclusion, the Japanese government’s initiative to auction stockpiled rice seeks to mitigate soaring rice prices driven by supply shortages. With a planned release of 150,000 tons, this marks a significant intervention in the market. As retail prices and procurement volumes continue to fluctuate, proactive measures such as these are essential in ensuring a stable rice supply for consumers and buyers alike.
Original Source: japannews.yomiuri.co.jp
