Food Safety

Rising Rice Prices in Japan Continue for the 13th Week Despite Government Reserves Release

Japan's rice prices have seen a continuous upward trend for 13 weeks, as reported by the agriculture ministry. Between March 24 and 30, the average retail price for a 5-kilogram bag rose to 4,206 yen ($28.55), coinciding with the release of rice from the government's emergency stockpiles. Despite this influx of rice hitting store shelves, prices increased by approximately 10 yen, or 0.2 percent, compared to the previous week. This recent price point is notably more than double that of the same week last year.

In an effort to stabilize rising prices, the government released 21 tons of rice from its reserves, hoping it would lower the overall prices of this staple food. Unfortunately, the supply appears too limited to effect a significant change, with many supermarkets predicting that prices will remain elevated for the foreseeable future. A spokesperson for a major supermarket noted that the available stockpiled rice's effect on overall prices is negligible.

Some retailers have begun selling government-released rice at about 3,500 yen per 5 kg, roughly 1,000 yen cheaper than other rice options, yet this has not fully alleviated the situation. The government rice has quickly sold out in some areas, while other, more expensive rice types linger on the shelves. The price of rice remained relatively stable at just under 1,900 yen per 5 kg until the summer of 2023. However, following a megaquake warning for the Nankai Trough in summer 2024, panic buying contributed to price escalation.

Even after the arrival of new harvest rice in the autumn, prices did not see a decline. This ongoing situation prompted the agriculture ministry, which had initially been reluctant to tap into emergency reserves, to change its stance and auction off all 21 tons of rice designated for release in March. Agriculture Minister Taku Eto indicated that a larger portion of this rice will be available in stores soon, although the real impact on market prices remains uncertain.

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8 Comments

Avatar of Fuerza

Fuerza

If even the supermarkets think prices will stay high, the government's got a problem.

Avatar of Manolo Noriega

Manolo Noriega

The fact prices didn't drop after the new harvest is alarming. Something else is going on.

Avatar of Fuerza

Fuerza

This is what happens when you rely on imports, or maybe the government is supporting one of the rice makers.

Avatar of Ongania

Ongania

The government is using the rice for multiple purposes and reasons, in the most effective manner possible.

Avatar of Manolo Noriega

Manolo Noriega

This just shows the impact of the Nankai Trough warning created instability, which may affect the rice importers.

Avatar of Raphael

Raphael

At least the government is trying to stabilize prices. It's better than doing nothing.

Avatar of Michelangelo

Michelangelo

They couldn't predict a price drop after releasing from the stockpiles? It's not like economics is rocket science.

Avatar of Leonardo

Leonardo

Price rise due a natural disaster warning is a normal reaction from the markets. I'm with the government to support the country.

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