Japan to Supply Lower-Priced Reserve Rice to Rural Areas Amid Price Surge

TOKYO, May 28 (Bernama-Kyodo) -- The Japanese government has pledged to supply reserve rice to rural areas at lower prices, in response to soaring retail costs and high demand from major retailers, Kyodo news agency reported.

The Ministry of Agriculture, Forestry, and Fisheries said on Wednesday that it will ensure the stockpiled rice is distributed more broadly and stably by giving priority to small retailers, after suspending bulk orders from large chains.

“We will continue with our efforts to make sure reserve rice will reach people living in rural areas as much as possible,” said Agriculture Minister Shinjiro Koizumi during a parliamentary session, hinting at potential purchase limits for large retailers.

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The move came after around 70 major retailers submitted requests totalling over 200,000 tonnes -- two-thirds of the 300,000 tonnes made available -- just one day after the launch of the new release scheme on Monday.

The ministry has since stopped accepting new orders from major retailers and will allocate the remaining 100,000 tonnes to small supermarkets and local rice shops. Applications are expected to reopen as early as Friday, with the government covering transport costs.

Currently, only major retailers that handle over 10,000 tonnes of rice annually can make bulk purchases under the ministry’s criteria.

The government has been under pressure to stabilise food prices, as the average price of retail rice has doubled compared to a year ago.

Earlier stockpile releases through auction failed to curb the spike, prompting the government to adopt direct sales to retailers.

Major players such as Aeon Co, Ito-Yokado Co and Rakuten Group Inc have purchased rice under the new scheme. However, most opted for 2022 harvest stocks, leaving the 2021 rice supply for smaller businesses.

Chief Cabinet Secretary Yoshimasa Hayashi expressed hope that the ministry, under Koizumi’s leadership, will ensure a stable supply of affordable rice to households.

Koizumi was appointed last week by Prime Minister Shigeru Ishiba after the previous minister stepped down over a controversy involving free rice from supporters.

The 2021 rice will likely be priced at around 1,800 yen (US$13) per 5kg -- more than half the current average market price.

Japan had stockpiled 910,000 tonnes of rice before releasing 312,000 tonnes via auction in March and April. Around 600,000 tonnes remain, with half now slated for release.

-- BERNAMA-KYODO