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Despite the release of stockpiled rice by the government, rice prices continue to soar, causing growing dissatisfaction among the public. The government should devise measures to dispel concerns about the supply and demand for rice.
The Agriculture, Forestry and Fisheries Ministry released stockpiled rice on March 10-12 and March 26-28. However, there were no signs of prices falling, so the ministry has decided to release additional stockpiles later this month. It is planning additional releases every month through July.
When the ministry released stockpiled rice in March, it explained that supply-demand conditions were not tight and that there was no need to rush to make a purchase. However, according to an announcement on April 14, the average price per five kilograms of rice at supermarkets has increased for 14 consecutive weeks.
The current level of over ¥4,200, about double the price in the previous year, is unacceptable for consumers. Imports of inexpensive foreign rice are increasing rapidly. The current situation, in which it is profitable to even pay high tariffs, is also proof that rice prices are too high.
A possible reason that prices have not fallen is that the ministry has been unable to dispel the concerns of distributors, as it has been slow to take action, such as by releasing stockpiled rice in small batches. This probably led to a buildup in rice inventory.
A survey conducted by the ministry on “missing rice” also reveals the concerns and speculations of related traders.
Although rice production in 2024 was 6.79 million tons, up 180,000 tons from the previous year, the volume secured by the National Federation of Agricultural Cooperative Associations (Zen-Noh) and other major rice distributors has decreased. This has been seen as a missing rice problem.
According to a survey released by the ministry at the end of March, there were widespread moves at each stage by producers, wholesalers, retailers and the food-service industry to secure larger amounts of rice, resulting in stores of rice accumulating in various places.
There is much to be done to dispel concerns about the supply and demand for rice. There are strong views that actual production is lower than estimated. The ministry needs to improve the accuracy of its survey of rice production to adequately ascertain the actual supply-demand situation.
Rice is a staple food of Japan and should not be used as a vehicle for speculation. The ministry should strengthen its demands to distributors and other traders to prevent excessive hoarding of rice.
In addition, if the price increases do not abate, the ministry should not hesitate to further release stockpiled rice.
Another issue will be to secure production by flexibly reviewing the current production adjustment system, which is regarded as effectively a continuation of the policy of reducing rice paddy acreage.
It is important for the ministry to thoroughly inspect the supply-demand outlook and send a strong message that it will ensure sufficient production in 2025 and later as well.
