4 days ago
Analyst forecasts decline in rice prices as supply increases
Rice sold from national stockpiles is now on store shelves throughout Japan, indicating prices will start to ease as consumers become confident about supply.
A rice policy analyst at the Mitsubishi Research Institute says the government's new strategy to increase distribution of the grain is working so far.
"Recent supply increases have clearly conveyed to the public that there is plenty of rice available," said Research Fellow Inagaki Kimio. "I think this has been very important for consumer confidence."
5-kilogram bags of rice from national stockpiles are being sold around 2,000 yen, or 14 dollars. The same weight of brand-name rice is selling for about double that figure.
Inagaki says rice prices in supermarkets are expected to fall overall as shoppers focus on buying the cheaper grain from stockpiles. He sees declines in June and July.
"Farmers across the country now have the motivation to increase rice production," he said. "The role of the government is to develop policies to support and maintain this motivation."
Inagaki adds that a survey by the agriculture ministry indicates the rice harvest this fall will increase by 400,000 tons from last year.
