Japan's New Ban on Rice Reselling Aims to Curb Price Hikes

During a press conference in Tokyo's Chiyoda Ward on June 13, Farm Minister Shinjiro Koizumi addressed concerns about the reselling of rice for profit, particularly government-issued emergency supplies. He revealed that the Cabinet is set to amend an ordinance that will officially include rice under the Law on Emergency Measures for Stabilizing Living Conditions of the Public, implementing a ban on reselling starting June 23.

Koizumi clarified that this new regulation will prohibit the resale of rice at prices exceeding the original retail price, targeting resellers who sell to the general public, including online platforms. Those who fail to comply with this measure could face severe penalties, such as a maximum prison sentence of one year or fines up to 1 million yen (approximately $6,963), as reselling could exacerbate the rising prices of rice, which the government is trying to mitigate through the release of emergency stock.

The rice that falls under this ban comprises government supplies offered to retailers under direct sales contracts. Currently, these supplies are sold to consumers at around 2,000 yen per 5 kilograms in various supermarkets. Koizumi emphasized the importance of public cooperation in enforcing these regulations, citing that it is vital to ensure government stockpiled rice reaches a wide audience. He referenced the law's original establishment in 1973 during the oil crisis to manage the sale of essential goods in short supply, noting that similar restrictions were applied during the COVID-19 pandemic for items like masks. Major online marketplaces, such as Mercari and LineYahoo, have already begun implementing self-regulatory measures to prevent the resale of government rice.