Japan Begins Direct Sale of 300,000 Tons Rice to Retailers to Cut Prices

Japan's agriculture ministry, led by new Minister Shinjiro Koizumi, is taking direct action to reduce soaring rice prices by selling 300,000 metric tons of government stockpiled rice directly to major retailers through no-bid contracts. This approach follows the failure of past auctions to lower prices, with the government aiming to set wholesale prices at roughly half the previous average, resulting in retail prices near 2,000 yen ($14) per 5-kilogram bag, down from over 4,000 yen. The ministry plans to expedite distribution to ensure rice reaches shelves by early June and is covering transportation costs to facilitate this. The move is partly driven by recent factors such as crop damage from extreme heat, increased tourism demand, and hoarding by traders, which have contributed to nearly doubling rice prices year-on-year. The government is also prepared to increase the volume of rice released if demand remains high and is collaborating with e-commerce platforms like Rakuten to support distribution efforts. This strategy aims to stabilize rice prices and address consumer concerns ahead of Japan's upcoming upper house election.