Japan starts revised rice stocks sales to cut prices by early June
KYODO NEWS - 3 hours ago - 14:37 | All, Japan
Japan began sales of government rice stockpiles via direct contracts on Monday, aiming to slash soaring prices after the newly appointed farm minister pledged to bring them down to about 2,000 yen ($14) per 5 kilograms by early June.
The move comes as the government seeks to quell criticism it has been ineffective in preventing rice prices from skyrocketing at a time when inflation is outpacing wage growth and pressuring household budgets.
The government plans to release around 300,000 tons of rice via the contracts with major retailers, such as supermarkets, bypassing the auction system under which farming cooperatives bought most of the previously released rice, limiting the government's influence over prices.
"Had we continued as we were, I did not believe we could fulfill people's expectations," farm minister Shinjiro Koizumi told Ministry of Agriculture, Forestry and Fisheries officials in a meeting, which was open to the press.
"We will move at speed and with urgency to dispel the people's concerns," he said.
On the same day, the agriculture ministry established a special response team of some 500 members nationwide tasked with handling high rice price issues. Koizumi said the group must prevent a situation where the public starts to turn away from rice products.
The stockpiles of rice produced in 2021 and 2022 are to be sold at 11,556 yen, including tax, per 60 kg and the government will shoulder the cost of transportation to regional areas. Online sales of rice to achieve broader distribution are also under consideration.
Large retailers expected to process 10,000 tons or more of the stockpiled rice will receive daily priority in contracts and sales of the products.
The new measures also do not require retailers to comply with previous requirements that suppliers who bought auctioned rice would have to return an equivalent amount to the government.
Under the previous system, the government from April began auctioning some 312,000 tons of rice stockpiles in three tranches. They were largely sold to groups such as the Japan Agricultural Cooperatives.
In suspending the approach, Koizumi has said the highest-bidder-wins auction system was pushing up rice costs.
The average price of the nation's staple food in Japanese supermarkets has climbed almost without interruption in recent months, reaching a record 4,268 yen per 5 kg in early May, roughly double last year's level, due in part to a poor harvest.
Koizumi assumed his post on Wednesday after his predecessor resigned in an uproar over a gaffe in which he said he had never bought rice due to having a surplus that had been gifted by supporters.
The public appears receptive to Koizumi's plans, with a Kyodo News poll released Sunday after he joined Prime Minister Shigeru Ishiba's Cabinet showing 59.8 percent of respondents think he can bring down rice prices.
Related coverage:
Nearly 60% expect rice prices to fall with new farm minister: poll
New farm minister eyes 2,000 yen per 5 kg retail price for gov't rice
FOCUS: Free rice gaffe sends Ishiba into pre-election damage control mode
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