Japan’s Rice Prices Hit Record High Despite Government Stockpile Release

Rice prices in Japan have reached an all-time high, averaging 4,172 yen ($28) per 5 kilograms, as the government prepares to introduce the first batch of its released stockpiles.

Rising Costs and Government Intervention

The latest data shows that rice prices at supermarkets nationwide more than doubled from the previous year between March 10 and 16, marking the 11th consecutive week of increases. Despite government efforts, the anticipated impact of stockpile releases on lowering prices has yet to materialize.

In mid-February, the government announced plans to release up to 210,000 tons of its stockpiled rice to stabilize the market. Between March 10 and 12, the Ministry of Agriculture, Forestry, and Fisheries auctioned approximately 142,000 tons, with the National Federation of Agricultural Cooperative Associations securing 94% of the supply. The first batch is expected to reach stores by the end of the month.

Supply Challenges and Market Pressures

Experts warn that if the stockpile release fails to curb prices, additional releases beyond the initial 210,000-ton plan may be necessary. The surge in rice prices stems from a poor harvest in the summer of 2023, where high temperatures significantly reduced yields. Additionally, a sharp increase in foreign tourists has driven up rice demand at restaurants, further straining supply.

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