Koizumi, Japan's New Agriculture Minister, Faces Soaring Rice Prices and Possible Surge in Imports from U.S.
The Yomiuri Shimbun
Agriculture minister Shinjiro Koizumi arrives at the Prime Minister's Office in Tokyo on Wednesday.
Newly appointed agriculture minister Shinjiro Koizumi faces critical challenges, including addressing the rising price of rice and a possible increase in agricultural imports from the United States.
How he manages these issues could ultimately determine the fate of Prime Minister Shigeru Ishiba's administration.
During his inaugural press conference at the Agriculture, Forestry and Fisheries Ministry on Wednesday, Koizumi said: 'What we need to focus on right now, above all, is rice. It's all about tice. I want to take the first step toward lowering rice prices.'
Ishiba said Wednesday he had instructed Koizumi to change how the government sells stockpiled rice reserved for emergency use, shifting from competitive bidding to discretionary contracts in order to reduce prices.
Although currently only rice distributors can bid on contracts, Koizumi stressed that he was committed to moving quickly to flesh out plans such as for expanding discretionary contracts to include retailers and restaurant operators.
The National Federation of Agricultural Cooperative Associations (JA Zen-Noh) placed successful bids on more than 90% of the 210,000 tons of stockpiled rice released by the ministry in March. Yet, as of April 27, only about 10% of that rice had reached retailers and the food service sector.
The average price of a five-kilogram bag of rice sold at supermarkets nationwide has increased for 17 weeks running, and now exceeds ¥4,000 — double last year's price. Koizumi will have to act swiftly to ensure that reserve rice reaches consumers and retail prices come down.
He will also be tested during the Japan-U.S. negotiations over President Donald Trump's tariff measures.
Proposals for increased imports of corn and soybeans, both of which Japan relies on imports for, are being considered as bargaining chips with the United States. Plans to boost rice imports are also being floated, though they are certain to face fierce resistance from Japan's farmers.
'Based on a policy of not sacrificing agriculture, I want to cooperate with relevant ministries and agencies to secure national interests,' Koizumi said.
One senior official inside the ministry expressed optimism, saying, 'We expect he will make reforms.' However, another senior official raised concerns, arguing that 'if policies are decided top-down, it will cause confusion on the ground.'
A Diet member with close ties to the agricultural lobby said that Koizumi 'knows how to grab attention, but his leadership abilities are still untested.'
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