Rice Purchase Applications Halted Amid Huge Demand; Government Expects to Reach 200,000 Ton Limit for Release

The Yomiuri Shimbun

17:30 JST, May 28, 2025

Amid a flood of purchase applications from major retailers, the government is now expected to reach its 200,000-ton limit for releasing state-stockpiled rice that was harvested in 2022, according to the agriculture ministry.

The Agriculture, Forestry and Fisheries Ministry announced Tuesday a temporary halt to new applications for so-called discretionary contracts, in which the price is set by the government.

About 70 companies submitted applications, with demand for the 2022 rice quickly overwhelming the allocated supply out of a total release volume of 300,000 tons. The remaining 100,000 tons of rice, which was harvested in 2021, will be made available as early as Friday through discretionary contracts exclusively for small and mid-sized supermarkets and rice shops.

“We anticipated a lukewarm response [from retailers], but we received this level of cooperation in less than two days,” said Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi on Tuesday.

The ministry began accepting applications for the discretionary contracts on Monday. It initially expected about 50 major retailers who handle at least 10,000 tons of rice annually to participate.

Deliveries to retailers could begin as early as Thursday, potentially getting the rice in stores during the first week of June. As of Tuesday, however, more than 90% of the applications focused on 2022 rice, while only a small percentage focused on 2021 rice.

The ministry aims for a retail price of about ¥1,800 per 5 kilograms for 2021 rice in the discretionary contracts aimed at small and medium-sized retailers. This lower price, down from the initial target of about ¥2,000, is intended to make the 2021 rice more affordable due to the lower demand for it compared to the 2022 rice.

The ministry is also considering revising the first-come, first-served application process for retailers. “Our goal is to provide a finely tuned response that covers both major retailers and small-to-medium-sized supermarkets, as well as local rice shops,” Koizumi said.

Koizumi said at a House of Representatives Agriculture, Forestry and Fisheries Committee meeting Wednesday that government-stockpiled rice, priced at ¥2,000, will be available on store shelves early next week. He also responded to a question from Yoshihiko Noda, leader of the Constitutional Democratic Party of Japan, stating, “By introducing new discretionary contracts at ¥1,800, rice prices will stabilize and decrease.”

As of Tuesday, applicants included supermarket chains Aeon Group and Ito-Yokado Co., Pan Pacific International Holdings Corp., which operates discount store Don Quijote Co., drugstore Sundrug Co., and e-commerce giant Rakuten Group, according to the ministry.

The Iris Group announced Tuesday it had secured a contract for 10,000 tons. The rice is expected to arrive at the group’s milling plants as early as Thursday, with sales beginning on their e-commerce site and at stores in Sendai, Kawasaki and Matsudo, Chiba Prefecture, next Monday at the earliest.

LY Corporation Group also announced its application, and FamilyMart Co. confirmed with The Yomiuri Shimbun that it had applied as well. FamilyMart is considering selling 1-kilogram packages for single-person households and others at ¥400, a price that meets the ministry’s target of about ¥2,000 for 5 kilograms.

To sell the government’s stockpiled rice, which is currently stored as unpolished rice in warehouses, the rice must first be milled using specialized machinery. This has led to concerns that some millers will struggle to handle the overwhelming number of requests from retailers.