Japan’s government plans to release up to 210,000 tons of its stockpiled rice to stabilize the market and bring prices back to normal. The move aims to address soaring rice prices due to high demand and supply shortages.
The government hopes that the first-ever release will “bring the market back to normal.” The reserved rice, mainly from last year’s harvest, will be handed over to wholesalers in mid-March after bidding. A total of 150,000 tons will be released initially, with the remaining 60,000 tons expected to hit store shelves between late March and early April.
The recent hike in rice prices is unusual, according to farm minister Taku Eto. The nationwide consumer price index for rice skyrocketed 64.5 percent in December from a year earlier, the biggest climb since comparable data became available in 1971.
A combination of factors has contributed to the price surge, including poor harvests in the summer of 2023 and a sharp rise in foreign tourists. Additionally, an earthquake advisory warning issued by the Japan Meteorological Agency prompted consumers to hoard rice, further straining the supply.
The government plans to sell the reserved rice to agricultural cooperatives and other wholesalers on condition that they can buy back the same amount within a year to avoid a price collapse. The move is part of a broader effort to address the issues affecting the country’s staple food supply.
Source: https://japantoday.com/category/national/japan-to-release-210-000-tons-from-rice-reserves-amid-surging-prices?comment-order=popular