19 Firms Apply to Buy 90,000 Tons of Japan Government Rice; Could Appear on Store Shelves by First Week of June
The Yomiuri Shimbun
Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi speaks at the House of Councillors Agriculture, Forestry and Fisheries Committee on Tuesday.
The Agriculture, Forestry and Fisheries Ministry had received applications from 19 companies to buy state-held reserves of rice through 'discretionary contracts' as of 9 a.m. Tuesday, agriculture minister Shinjiro Koizumi told reporters Tuesday after a Cabinet meeting.
The total amount applied for was 90,824 tons, part of the 300,000 tons to be released through the contracts in which the government will set the price of the grain. Once the deals are closed, the rice is expected to be delivered to the companies on Thursday at the earliest.
If all goes well, it could appear on store shelves by the first week of June.
The applicants include Pan Pacific International Holdings Corp. — a leading retailer that operates Don Quijote discount stores — Sundrug Co., Rakuten Group, Inc. and OK Corp, the ministry said.
Major retailers handling at least 10,000 tons of rice annually are currently eligible for the contracts. Koizumi has considered expanding the scope of applicants to small and medium-sized supermarkets and local rice shops, saying, 'The next step is to determine how to deliver the rice to these places satisfactorily.'
The ministry will consider revising the details of the contracts in the future, Koizumi said.
By shifting from public bidding to discretionary contracts, the ministry aims to deliver the rice directly to retailers that are close to consumers and have it available at supermarkets and other stores for around ¥2,000 per 5 kilograms (excluding tax) by early June.
'We will do our utmost to alleviate the public's concerns and prevent further decline in rice consumption.' Koizumi said Tuesday during a policy speech at the House of Councillors Agriculture, Forestry and Fisheries Committee.
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