Latest news with #PanPacificInternationalHoldings
Straits Times
28-05-2025
- Business
- Straits Times
Japan pauses stockpile sales as retailers snap up rice
The rush to snap up the reserves usually stored for natural disasters comes as the government tries to assuage the impact of inflation on households. PHOTO: AFP TOKYO – Japan paused its sale of rice reserves after seeing a fast response from retailers, in a positive sign for the government's efforts to temper soaring rice prices and ease consumers' cost-of-living concerns ahead of an election this summer. Major players including Rakuten Group and Pan Pacific International Holdings, the parent company of popular discount store Don Quijote, were among the some 70 retailers to secure a portion of the 200,000 metric tons of the staple grain on sale on May 27, according to the Ministry of Agriculture. The rush to snap up the reserves usually stored for natural disasters comes as the government tries to assuage the impact of inflation on households, which have seen rice prices nearly double over the past year, ahead of an upper house election that could be punishing for Mr Shigeru Ishiba's minority government. Agriculture Minister Shinjiro Koizumi told reporters late on May 27 that he was 'very grateful' for the response and the speed at which retailers bought up the rice, adding that he hoped the next round of sales could start on May 30. The government is set to unload a total of 300,000 tons of stockpiled rice with a fixed wholesale price of about 10,000 yen (S$89) per 60kg, instead of auctioning it as had been done in earlier reserve releases. Mr Koizumi has said that he hoped selling directly to retailers at a set price would halve the current rice price for consumers of more than 4,000 yen per 5kg to around 2,000 yen. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
New Straits Times
27-05-2025
- Business
- New Straits Times
Japanese retailers apply to buy government's cheap stockpiled rice
TOKYO: Nineteen Japanese companies have applied to purchase the government's stockpiled rice, with contracts expected to be finalised and rice delivered to them as soon as Thursday, Agriculture Minister Shinjiro Koizumi said on Tuesday. WHY IT'S IMPORTANT This is a crucial step in the government's plan to swiftly alleviate public concerns about rice prices, which have doubled since last year, by making the staple more affordable and readily available. Rice prices have become a top concern for voters ahead of upper house elections in July. The applications come less than a week after Koizumi took over as agriculture minister after his predecessor resigned over a gaffe about rice, and immediately overhauled the government's method of releasing emergency rice. "We are now proceeding with the procedures promptly, and we will complete the discretionary contract with the first businesses today or tomorrow, and deliver the stockpiled rice the day after tomorrow," Koizumi said. "Things are falling into place so that the rice can hit store shelves in the first week of June." CONTEXT Rising rice prices, exacerbated by crop damage and heightened tourism demand in Japan, have become a major issue, causing pain for consumers and denting the government's popularity. The government's previous method of releasing stockpiled rice through auctions and layers of middlemen was deemed too slow and insufficient to lower retail prices. BY THE NUMBERS The applications amount to approximately 90,824 metric tons, which is around 30 per cent of the rice planned for release. Among them, Don Quijote operator Pan Pacific International Holdings and Sundrug have applied for 15,000 tons and 12,866 tons, respectively. WHAT'S NEXT All eyes will be on whether the cheaper stockpiled rice, which the government wants to be priced around 2,000 yen (US$14.05) per 5 kg before tax, will bring down the price of other rice. Supermarket rice prices have risen 19 of the last 20 weeks for which data is available, hitting a record high 4,285 yen in the week through May 18. Koizumi has said the government was ready to release more rice if necessary.
