Japan’s Ministry of Agriculture, Forestry, and Fisheries has initiated its third auction of government-held rice reserves to address the nation’s escalating rice prices. This auction, which commenced on April 23, offers 100,000 tons of rice harvested in 2022, including premium varieties such as “Masshigura” from Aomori Prefecture and “Ten no Tsubu” from Fukushima Prefecture.
Qualified wholesalers submitted bids via email, with rice awarded to the highest bidders. Any unsold rice is scheduled for re-auction on April 24 under the same system.
Despite previous efforts, its prices have continued to climb. In the week leading up to April 13, the average price in Japanese supermarkets reached 4,217 yen (approximately $30) per 5 kilograms, marking the 15th consecutive week of price increases. This surge is attributed to factors such as a poor harvest in 2023 due to high temperatures, increased demand from tourism, and panic buying following natural disaster warnings.
In response, the Japanese government has pledged to release additional stockpiled rice monthly until July to stabilize prices. However, logistical challenges have impeded the distribution of previously released reserves, with only a small fraction reaching supermarkets.
The ongoing crisis has also led to a shift in consumer behaviour, with more Japanese consumers and businesses embracing foreign varieties, such as American and South Korean rice, which are often more affordable.
The government continues to monitor the situation and has indicated readiness to implement further measures if necessary to ensure a stable supply and mitigate price surges.
