Japan has announced plans to sell 210,000 tons of rice from its emergency stockpiles to combat soaring domestic prices. This move comes as households face record-high rice costs, with the average price for 5 kilograms of rice climbing 82% to 3,688 yen ($24) during the week of January 27 compared to the same period last year, according to the Ministry of Agriculture, Forestry, and Fisheries.
Despite a stronger harvest in 2024, the country’s heavily regulated rice market, compounded by distribution issues, has led to the price hike. Chief Cabinet Secretary Yoshimasa Hayashi addressed the issue at a press conference on Friday, attributing the price surge to these systemic problems rather than a shortage in supply.
The 210,000 tons of rice to be sold represents approximately 3% of Japan’s anticipated annual demand. The government will initiate the first tender in early March for 150,000 tons, with deliveries expected to begin mid-month. Hayashi confirmed that the amount available for sale would increase if the situation required it.
The stockpiling system, first established in 1995 following a poor harvest in 1993, currently holds about 1 million tons of rice. The Bank of Japan has cited the rising cost of rice as one of the factors influencing its recent upward revision of inflation forecasts, which prompted an interest rate hike in January.
This price surge stands in contrast to global rice markets, where wholesale prices for Thai white rice, a key Asian benchmark, have dropped to their lowest level since 2022.
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