Soaring Rice Prices: Make Use of Debate to Reform Agricultural Policy

Editorial

15:05 JST, May 29, 2025

A viewpoint of how to reform agricultural policy in the medium to long term, not just taking emergency measures to reduce rice prices, must not be forgotten.

The government and the ruling and opposition parties should deepen discussions from this perspective.

Three party leaders — Yoshihiko Noda, president of the Constitutional Democratic Party of Japan; Seiji Maehara, co-representative of the Japan Innovation Party; and Yuichiro Tamaki, leader of the Democratic Party for the People — attended a meeting of the Committee on Agriculture, Forestry and Fisheries at the House of Representatives and debated with newly appointed Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi.

It was unusual for the three leaders of the main opposition parties to pose questions together at a standing committee meeting in which the prime minister was not present. It can be said that this indicates that the trend in rice prices has become a central political issue for this summer’s House of Councillors election.

Currently, the average price of rice per 5 kilograms is in the ¥4,200 range. To lower the price, Koizumi has changed from general competitive bidding to discretionary contracts in releasing stockpiled rice, and he has also decided to sell the rice directly to major retailers.

With such steps, Koizumi has stated that the stockpiled rice will be sold for ¥2,000. During the day’s deliberations, he also said that he “aims to sell the newly contracted stockpiled rice for around ¥1,800.”

Regarding the government’s efforts, Noda said: “[The government] seems to be promoting measures from the consumers’ perspective, but producers are concerned. It’s also important to achieve a balance.” He pointed out the need to be wary of a situation in which rice prices fall too low, which would deal a blow to farmers.

Koizumi said: “[We must] stabilize prices and prevent consumers from turning away from rice. I don’t believe that the emergency measures offer suitable prices for producers.”

Some observers believe that if farmers’ income decreases as a result of lowering rice prices, there will be a string of farmers who will leave the business. As Noda pointed out, it is essential to give consideration to producers.

Both Maehara and Tamaki noted that problems with long-standing agricultural policy have caused rice prices to soar.

Maehara called for changes in the distribution system, in which rice goes through distributors, wholesalers and retailers before reaching consumers. Koizumi said: “The distribution of rice is said to be complicated and bizarre. We will analyze the matter carefully.”

Tamaki suggested that the government should review its policy of effectively reducing rice paddy acreage, which is aimed at preventing a decline in rice prices by controlling the supply of rice. Koizumi only said that he would consider various reforms.

There is a growing global demand for Japanese rice partly due to the Japanese food boom. There is much room to expand rice exports.

The policy that in effect reduces rice paddy acreage has reached its limits. It is time to consider a new rice policy that will allow farmers to earn sufficient income through increased production.

(From The Yomiuri Shimbun, May 29, 2025)