Japan Pauses Rice Sales After Retailer Surge

Japan's government has paused its rice stockpile sales after about 70 major retailers, including Rakuten, Don Quijote, Aeon, and FamilyMart, rapidly applied to purchase rice amid soaring prices. The Ministry of Agriculture is releasing up to 300,000 tons of rice from its 2021 and 2022 stockpiles through direct contracts priced at roughly half of recent auction bids. Agriculture Minister Shinjiro Koizumi stated that contracts are being finalized and deliveries could begin as early as this week, with rice expected to reach store shelves in early June at about 2,000 yen per 5 kilograms. This direct sales approach replaces the previous auction system, which failed to curb sharp price increases caused by poor harvests and rising tourism demand. The government also plans to expand eligibility for stockpile purchases to smaller retailers to improve market distribution. The impact of this intervention on stabilizing rice prices and public sentiment will be closely watched ahead of upcoming elections.