
No more mister rice guy
It was only a matter of time before Taku Eto would be forced to resign as agriculture minister after he made tone-deaf remarks about rice price increases.
Prime Minister Shigeru Ishiba and his ruling Liberal Democratic Party have far too narrow a margin in the legislature and face too tough a battle in the Upper House election slated for this summer to tolerate such gaffes.
Eto was replaced by Shinjiro Koizumi in an effort by Ishiba to capitalize on the young politician's star power and smarts to repair the damage and better position the party for the ballot anticipated in July. The move is unlikely to solve the problem of soaring rice prices. That, not cosmetic fixes, will determine the LDP's future in the election campaign.
Japanese consumers have been hammered by a spike in rice prices. The average price of a 5-kilogram bag of rice hit ¥4,268 for the week of May 11, the highest level since March 2022 and an increase of ¥54 from the previous week. Prices have been climbing virtually without interruption and are now more than double last year's price, a hardship for every household — and business — given the centrality of the item to the Japanese diet.
The pain created by that surge was doubled last week when Agriculture, Forestry and Fisheries Minister Eto made insensitive comments about the situation to supporters at a rally. Speaking at a fundraising event, Eto said, 'I'm not buying rice. Thanks to my supporters giving me plenty of it, I have so much of it in my house that I could sell it.'
He added that 'It may not be intentional, but there are all kinds of things mixed in the rice we receive, like black pebbles and other things.' The suggestion that the product was unclean was construed as offensive to farmers.
When the remarks triggered a predictable and understandable backlash, Eto explained that he was trying to make a joke, but conceded that he went 'too far.' Japan deserves better ministers who don't make light of hardship imposed on voters, especially when it is a result of failure to do their job.
Initially, Eto kept his position, with Ishiba continuing to support a Cabinet minister with considerable experience and who the prime minister said was needed to deal with a difficult situation. Eto has represented a rural district for over two decades and is considered an expert on agriculture policy, having served as agriculture minister for a year and who headed a Lower House agriculture committee as well as an LDP panel on the sector. Eto, too, said he needed to stay in his post to fix the problem.
Opposition mounted, however, forcing Ishiba's hand. Eto reversed course and submitted his resignation Wednesday, although some reports say that he was fired. The prime minister took responsibility for the move, saying it was his fault for picking Eto and then keeping him despite the controversy.
To replace him, he turned to Koizumi, the telegenic junior LDP member who has served as environment minister, the leader of the party's youth wing and was head of the LDP's agricultural policy committee when Shinzo Abe was prime minister. He is sharp, a good communicator and a strong supporter of Ishiba even though he lost to him in the Liberal Democratic Party presidential race last year.
The scandal has united the opposition in the Diet, creating fear that it could also help those parties muster support for a vote of no-confidence in the parliament, turning the anticipated Upper House election into a snap double election that could cost the LDP its position as ruling party.
Electoral calculations are top of mind for Ishiba and his party. The LDP lost its majority in Lower House elections last year. Both the prime minister and his party have since struggled in polls, with recent surveys showing support for him ranging from 22% to 31%, the lowest levels since he took office last year. Skyrocketing rice prices are a major source of dissatisfaction, with the government's handling of the problem getting approval in the low teens, although inflation more generally is hurting households as wages can't keep pace with continually rising prices.
Koizumi has said that he will tackle the problem with 'urgency,' aiming to 'dispel public anger and distrust' and focus on rice policy. Under Eto, the government ordered the release of additional rice from emergency stockpiles and offered incentives for bidders to sell rice more quickly after acquiring the grain at auction.
Those are temporary fixes. Japan's agricultural system requires structural change. Current law protects longtime land holders, which effectively prevents newcomers from buying or using land, which leaves thousands of acres fallow and effectively pushes up prices by creating artificial scarcity. Those restrictions must be loosened. Another possible reform would allow the government to sell rice directly to retailers, cutting out wholesalers that are proving to be a bottleneck in the system.
Those changes will require the LDP to challenge longtime supporters from rural areas. It isn't clear if the party and the government have the stomach — or the political capital — to effectuate those types of reform.
The LDP has other problems, though. Overshadowed by Eto's remarks were comments by Shoji Nishida, an LDP member of the House of Councilors, who called descriptions on a monument to the "Himeyuri" nursing corps of female students who died in the Battle of Okinawa during World War II 'a revision of history.' Nishida subsequently withdrew the remark and Ishiba then apologized to Okinawa Gov. Denny Tamaki, calling it 'highly regrettable.'
Earlier this month, a weekly newsmagazine reported that Ishiba received over ¥30 million from a supporter and did not disclose it in his political fund reports. While he denies any wrongdoing, these charges add to the perception that the LDP is indifferent to such rules. The party was hit last year by a funding scandal and has returned to its old ways: haughty, arrogant and more concerned with itself than the Japanese public.
Ishiba, his government and his party have other pressing concerns. The consumption tax debate continues and the relevance and significance of that issue will only grow as households deal with more cost-of-living increases. The Trump tariffs pose a real risk to Japan and a deal is needed, although the Japanese government must not be too eager for an agreement nor compromise too much.
That is a fine line to walk and the rice issue will be part of those discussions, as U.S. negotiators are likely to press for more imports of U.S. rice. This is another critical assignment for the new agriculture minister. Resting in the balance is not only the ultimate outcome of those trade talks but the potential future of the LDP government and the Ishiba Cabinet, the fates of the prime minister and Koizumi as well.
The Japan Times Editorial Board
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