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4 days ago
- Business
Japan Key Rice Price Hits Record High amid Thin Trade in May
News from Japan Economy Jun 17, 2025 17:41 (JST) Tokyo, June 17 (Jiji Press)--The average price to wholesalers of rice harvested in Japan in 2024 hit a new record high amid thin trading in May, an agriculture ministry report showed Tuesday. The average price in transactions between wholesalers and rice buyers dealing with farmers, such as the National Federation of Agricultural Cooperative Associations, or Zen-Noh, came to 27,649 yen for 60 kilograms of brown rice, up 77 pct from that for 2023 rice a year earlier. The ministry believes that the record price in May had little impact on retail prices as 2024 rice accounted for only about 3 pct of all transactions. Trade volume for the newest rice shrank to a May record low of about 52,000 tons from 79,000 tons a year before. Amid intensifying competition to buy rice from farmers, trade in 2024 rice peaked earlier than in usual years. Trade volume hit a record high for each month from September to December, but logged a record low from January to May. [Copyright The Jiji Press, Ltd.] Jiji Press
Yomiuri Shimbun
27-05-2025
- Business
- Yomiuri Shimbun
Discretionary Contracts for Stockpiled Rice: Will They Be A Catalyst for Calming Prices?
The government has taken the unusual step of releasing stockpiled rice under 'discretionary contracts.' It is hoped that this will have the effect of turning the tide on soaring rice prices. Under the conventional practice of general competitive bidding, eligible participants were limited to major distributors, such as the National Federation of Agricultural Cooperative Associations (Zen-Noh). In contrast, the discretionary contracts will allow around 50 major retailers that can handle 10,000 tons or more of rice to participate. According to an announcement by the Agriculture, Forestry and Fisheries Ministry, it will release a total of 300,000 tons of stockpiled rice — 200,000 tons produced in 2022 and 100,000 tons produced in 2021. The sales price at stores, including general expenses and profit margins, is envisioned to be around ¥2,000 per 5 kilograms. The rice is expected to be on store shelves in early June. Rice has been stockpiled with the use of national funds, and the ideal approach is to sell the rice at the highest possible price when it is released. Under general competitive bidding, the operator who offers the highest price wins the bid. For this reason, over-the-counter prices for 5 kilograms of rice have remained high at more than ¥4,000, double the level last year, even though 310,000 tons of stockpiled rice have been released so far. The release of stockpiled rice under discretionary contracts is reportedly meant to be a catalyst to change the uneasy sentiment in the market. However, the government's attempt to tie down over-the-counter selling prices poses a challenge in terms of the antitrust law. Retailers are urged to exercise restraint and avoid adding excessive profit margins to their selling prices. Prime Minister Shigeru Ishiba said at the Diet that prices 'must be in the ¥3,000 range.' In addition to stockpiled rice, the prices of brand-name rice will also be a focus. The ministry has noted that stagnation at the distribution stage is the reason for the high prices. If stockpiled rice that is priced cheaply due to the discretionary contracts is placed on store shelves, wholesalers and other businesses — who are said to be hoarding their inventory in anticipation of continued tight supply and demand — may increase their sales, and the effect of lower prices may spread to brand-name rice as well. Even if stockpiled rice is used for the time being as a step to calm prices, it will be necessary to change the nation's rice agricultural policy from the consumers' perspective as a step in the medium to long term. This is because the current policy of effectively reducing rice paddy acreage has highlighted an inability to provide a stable supply of rice under unforeseen circumstances. It is obvious that current rice prices are at a level that is difficult for consumers to accept, but producers are also faced with rising prices of fertilizers and production materials. The number of rice farmers has halved over the past 15 years. There are concerns that if prices become too low, farmers will leave the business at an accelerated pace. It is hoped that a system will be established that allows farmers to increase rice production with peace of mind, including strengthening the production base by reviewing the policy of reducing rice paddy acreage, and transferring surpluses to exports. It is important to promote measures to stabilize prices that will be acceptable to both consumers and producers. (From The Yomiuri Shimbun, May 27, 2025)
Japan Today
16-05-2025
- Business
- Japan Today
Stores to get priority on gov't rice stockpiles to ease prices faster
The Japanese government pledged Friday to set aside a quota of its stockpiled rice for supermarkets and other retailers, in an effort to accelerate distribution and help consumers benefit from lower prices more quickly. Of the 300,000 tons of reserve rice to be released over three months through July, 60 percent will be allocated to retailers. To encourage broader participation from distributors in the auctions, the buyback deadline will be extended from one year to five years. The government has already auctioned 312,000 tons of rice in three tranches between March and April. The additional planned release of reserve rice through July will bring the total to 612,000 tons, equivalent to around 9 percent of annual domestic demand. Distributors such as the National Federation of Agricultural Cooperative Associations will be required to coordinate with retailers to ensure the rice is sold in stores within around a month, effectively preventing the stockpiles from being diverted to food service businesses. The national federation has purchased over 90 percent of the stockpiled rice so far. © KYODO
Kyodo News
16-05-2025
- Business
- Kyodo News
Stores to get priority on gov't rice stockpiles to ease prices faster
KYODO NEWS - 2 hours ago - 20:20 | All, Japan The Japanese government pledged Friday to set aside a quota of its stockpiled rice for supermarkets and other retailers, in an effort to accelerate distribution and help consumers benefit from lower prices more quickly. Of the 300,000 tons of reserve rice to be released over three months through July, 60 percent will be allocated to retailers. To encourage broader participation from distributors in the auctions, the buyback deadline will be extended from one year to five years. The government has already auctioned 312,000 tons of rice in three tranches between March and April. The additional planned release of reserve rice through July will bring the total to 612,000 tons, equivalent to around 9 percent of annual domestic demand. Distributors such as the National Federation of Agricultural Cooperative Associations will be required to coordinate with retailers to ensure the rice is sold in stores within around a month, effectively preventing the stockpiles from being diverted to food service businesses. The national federation has purchased over 90 percent of the stockpiled rice so far.
Kyodo News
16-05-2025
- Business
- Kyodo News
Stores to get priority on gov't rice stockpiles to ease prices faster
KYODO NEWS - 9 minutes ago - 20:20 | All, Japan The Japanese government pledged Friday to set aside a quota of its stockpiled rice for supermarkets and other retailers, in an effort to accelerate distribution and help consumers benefit from lower prices more quickly. Of the 300,000 tons of reserve rice to be released over three months through July, 60 percent will be allocated to retailers. To encourage broader participation from distributors in the auctions, the buyback deadline will be extended from one year to five years. The government has already auctioned 312,000 tons of rice in three tranches between March and April. The additional planned release of reserve rice through July will bring the total to 612,000 tons, equivalent to around 9 percent of annual domestic demand. Distributors such as the National Federation of Agricultural Cooperative Associations will be required to coordinate with retailers to ensure the rice is sold in stores within around a month, effectively preventing the stockpiles from being diverted to food service businesses. The national federation has purchased over 90 percent of the stockpiled rice so far.
