Japan is set to release nearly 250,000 tonnes of stockpiled rice in an unprecedented move to combat soaring prices driven by extreme summer heat, panic buying, and distribution challenges. Agriculture Minister Taku Eto announced on Friday that the government will make available up to 210,000 tonnes of rice as consumers face price increases exceeding 50% in recent months.
Eto acknowledged that while the government typically refrains from market intervention, the recent price surges have significantly affected people’s lives, prompting this decision due to the sharpness of the price hike. According to a government survey, the current average retail price for a 5kg (11lb) bag of rice has risen to ¥3,688 ($24), up from ¥2,023 last year.
Historically, Japan’s government has tapped into its rice reserves following natural disasters or crop failures, but this marks the first instance of intervention due to distribution issues contributing to rising prices. The country’s rice stockpiles had already diminished due to record temperatures impacting the 2023 crop, and further depletion occurred last year as consumption surged with an influx of tourists. Panic buying in response to typhoon and earthquake warnings also led some retailers to limit sales.
The price of rice has continued to escalate following an initial increase last summer, as a shortage caused by extreme temperatures the previous year drove demand higher. Although the government anticipated that prices would stabilize with the sale of newly harvested rice last autumn, they continued to rise.
Despite the 2024 harvest being 180,000 tonnes larger than that of 2023, distributors managed to secure less grain than the previous year, amid speculation that farmers and wholesalers were hoarding in expectation of further price increases, according to Kyodo news agency.
The stockpiled rice is expected to be sold to agricultural cooperatives and wholesalers by mid-next month, with availability for consumers anticipated by early April. To prevent a collapse in prices, the government is required to repurchase an equivalent quantity of rice from distributors within a year.
While the locations of rice storage facilities are kept confidential for security reasons, a warehouse in Saitama prefecture near Tokyo was opened to the media ahead of the announcement, showcasing approximately 20,000 tonnes of rice—enough to fill 300 million bowls. Japan has nearly 1 million tonnes of reserve rice stored across about 300 facilities nationwide. The agriculture ministry typically purchases around 200,000 tonnes of rice annually for emergency reserves, storing it for five years before selling it, primarily as animal feed. Japan began its rice stockpiling efforts in 1995 following a significant crop failure that led to panic buying.
