Japan Gov't To Release Additional 200,000 Tonnes From Rice Stockpiles

TOKYO, June 10 (Bernama-Kyodo) -- Japan plans to release another 200,000 tonnes of rice from government stockpiles through direct contracts with retailers, farm minister Shinjiro Koizumi said on Tuesday, in the latest effort to curb elevated prices of the staple food.

According to the Kyodo News Agency, the released rice will consist of 100,000 tonnes each from the 2020 and 2021 harvests. Koizumi said he expects the 2020 rice to be sold in stores at 1,700 yen (US$12) per 5 kilograms (kg).

The move will leave the country with a rice reserve of around 100,000 tonnes, down from about 910,000 tonnes before the government began releasing stocks through auctions in March and April.

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A sharp decline in stockpiles has raised concerns that the government's rice reserves could fall short in an emergency. Koizumi has expressed interest in increasing rice imports to ensure a stable domestic supply.

Koizumi said the rice will be distributed to smaller supermarket chains and speciality speciality shops, as well as major retailers, with the farm ministry set to begin accepting applications on Wednesday.

"We will deliver the stockpiled rice quickly so that it will reach consumers at lower prices," Koizumi told a news conference.

The government essentially stores 1 million tonnes of rice in preparation for emergencies such as disasters or crop failures, buying 200,000 tonnes annually from farmers over five years. Japan's annual domestic rice demand is roughly 6.7 million tonnes.

Rice has been in short supply at stores in Japan since last summer, keeping prices elevated. Prices have doubled compared with a year earlier, averaging 4,223 yen per 5 kg in the week through June 1.

The ministry suspects some wholesalers and farmers are hoarding rice in anticipation of price hikes.

Earlier this month, the government of Prime Minister Shigeru Ishiba held the first meeting of relevant ministers to discuss Japan's rice policy and examine why the price uptrend has persisted.

Facing public frustration, the government began earlier this year to release rice stockpiles to address the soaring prices, the first-ever discharge of reserves to alleviate distribution shortages.

Koizumi, who became farm minister on May 21 after his predecessor, Taku Eto, resigned over a gaffe about gifts of rice from supporters, decided to release 300,000 tonnes by resorting to the rare step of sales through direct contracts with retailers in the hope that the cheaper rice would bring down overall prices.

The remaining reserve is "sufficient to respond to disasters or poor harvests," Koizumi said, pointing out that only 40,000 tonnes were released after the 2011 earthquake and tsunami in northeastern Japan, which triggered one of the world's worst nuclear accidents.

-- BERNAMA-KYODO