Japan Government Begins Bidding Process for Stockpiled Rice Amid Price Surge
The Japanese agriculture ministry has launched an auction for 150,000 tons of stockpiled rice to counteract soaring prices and supply shortages. This marks the first general release of reserves outside of emergencies. Retail prices for popular varieties have reached record highs, prompting this intervention to stabilize the market ahead of expected shortages.
The Japanese agriculture ministry has begun accepting bids for stockpiled rice to mitigate rising prices and supply shortages. In the initial auction, the government will offer 150,000 tons out of the total 210,000 tons planned for release, marking the first such action outside emergency situations like poor harvests or disasters. The released stock is expected to reach retailers by late March and will be sold with a buy-back condition within one year.
Rice prices have surged recently, particularly for Koshihikari, a prominent Japanese variety, which saw a 4% increase in February, reaching a peak of ¥4,363 for 5 kg in central Tokyo. This surge reflects major buyers, such as agricultural cooperatives, competing to secure enough supplies as current collections stand at about 210,000 tons lower than the previous year. The agriculture ministry’s decision aims to address the significant drop in rice stock levels among major buyers, such as Zen-Noh, the National Federation of Agricultural Cooperative Associations.
The Japanese government is taking proactive measures to address rising rice prices and scarcity by auctioning stockpiled reserves. This initiative allows for the immediate release of rice into the market and aims to stabilize prices, especially given the recent spikes observed. With major buyers facing diminishing supplies, the government’s strategy may prove crucial in alleviating current market pressures.
Original Source: japannews.yomiuri.co.jp
