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.
New farm minister Shinjiro Koizumi announces a new system for releasing government rice stockpiles to bring down soaring prices, at the Ministry of Agriculture, Forestry and Fisheries in Tokyo on May 26, 2025. (Kyodo) ==Kyodo
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.
The stockpiles of rice produced in 2021 and 2022 are to be sold at around 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.
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 average price of the nation’s staple food in Japanese supermarkets reached a record 4,268 yen per 5 kg in early May, roughly double last year’s level, due in part to a poor harvest.
Japan’s new Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi visits the rice section at a supermarket in Tokyo on May 23, 2025, amid rice shortages and surging prices. (Pool photo) (Kyodo) ==Kyodo
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AloJapan.com