New Agriculture Minister Shinjiro Koizumi Aims for Rice Prices under ¥3,000 in Stores by Early June (Update 1)

The Yomiuri Shimbun

11:06 JST, May 23, 2025 (updated at 13:45 JST, May 23)

Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi said Friday that “the current priority is to release the government’s stockpiled rice on discretionary contracts so that rice will be available in stores for less than ¥3,000 [per 5 kilograms].”

He also aims to have the rice available on store shelves from the beginning of June. The details of the discretionary contracts are expected to be announced within a few days.

“Rice must be priced at less than ¥4,000. We will achieve that price as soon as possible,” Prime Minister Shigeru Ishiba said during the party leadership debate on Wednesday. If it can’t be achieved, “we must take responsibility,” he added.

According to the Agriculture, Forestry and Fisheries Ministry, the average price of 5 kilograms of rice sold at supermarkets nationwide from May 5-11 was ¥4,268, up ¥54 from the previous week. The release of stockpiled rice was not fully effective, as the price remained high, more than double that of the same period last year.

At his inaugural press conference on Wednesday, Koizumi announced that he would cancel the fourth bidding for stockpiled rice, which was scheduled for May 28-30. He made it clear that he would revise the contracts to be discretionary contracts in which the government would select the contractors.

The sale of government stockpiled rice has been conducted through public bidding in order to maintain fairness, but since the contractor offering the highest price wins the contract, this has been a factor in driving up the price. Generally, under a discretionary contract, the government can arbitrarily choose a contractor based on price and other conditions. The introduction of discretionary contracts is aimed at lowering prices.

Koizumi expressed confidence in lowering the price through dicretionary contracts. “I have talked with the Finance Ministry, and we have obtained their understanding that we will use this [fixed] price,” he said.

Currently, participation in the bidding is limited to producer intermediary, but the scope of discretionary contracts is expected to be expanded to include retailers and food service operators, and discussions are being held with the suppliers.