Japan eyes sale of rice reserves through discretionary contracts
Japan's new agriculture minister says the government is considering changing the way it sells the country's reserve of rice stocks. It's the latest measure aimed at tackling the surging prices of the staple grain.
Agriculture Minister Koizumi Shinjiro said on Wednesday: "My ministry will cancel an auction for stockpile rice scheduled next week. I told ministry officials to come up with measures for selling the stockpiles through discretionary contracts, instead of competitive bidding."
The ministry has been selling the stockpiles to bidders who offer the highest prices at auction, but some argue that the method has kept prices high. Discretionary contracts with buyers may help lower prices, but it poses the challenge of how to select contractors and decide prices. The new method also faces legal issues.
The rice issue was debated in the Diet on Wednesday. Prime Minister Ishiba Shigeru indicated the government wants to reduce prices to below 4,000 yen, or 28 dollars, per five kilograms.
Rice farmers are both hopeful and concerned about the future, as Koizumi takes office.
Seki Takashi, a rice farmer said: "Koizumi has served as the director of the LDP Agriculture and Forestry Division and met farmers across Japan. So he knows the reality of Japanese farming. I believe he will draw up policies to give us hope and reverse the decline in the number of rice farmers."
Another farmer, Sasaki Takayuki said: "He is relatively young as a politician. I expect him to be more flexible and speedier. He may also have the power to push through policies even in the face of opposition."
Farmer Hata Shinichi said: "Rice prices are unexpectedly high, but we are worried they may crash someday. We want policies that will stabilize prices for five, 10 years so producers can keep on going and will be able to create long-term plans."
Hata said the farming population is shrinking and productivity has not improved. He hopes the new minister will tackle these mid- to long-term challenges.
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