What’s behind the surge in Japan’s rice prices?

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TOKYO: Rice prices in Japan have doubled due to a shortage of supply last year since last year, causing a national crisis that has removed policy makers and consumers from guards.

Rice is considered an almost sacred item in Japan, which is deeply involved in its culture, language and tradition. The market has been largely molded by imports from imports, but the rice that grows at home is now so expensive that despite the shipment from abroad, the sky is rising.

For many consumers, the basic food has become a luxury, and responding to their pain is a top priority for policy makers before key parliamentary elections in the coming weeks.

When did it all begin?

The crisis brings the beginning to the crop of 2023.

A extreme heatwave contributed to a sub -standard crop, which gives far less market rice. Producers and businesses had caught this trend by early 2024 and was ready for a shortage of purchases that were available.

Fuel added to the fire was a strong earthquake that affected southern Japan on August 8, 2024. The earthquake launched the government’s first consultation consultation on the highest risk of mega -leak on the banks of the trough of Nanaki, and panic consumers tried to store rice, spaces. The increase in demand for foreign visitors also cooperated. Due to these factors, by August, 400,000 metric tons decreased and the stock scheduled from 2024 to two months ago. Wholesale prices have increased by 41 % in September and has increased almost every month since then.

Meanwhile, the Ministry of Agriculture relies on a crop index that measures the volume of non -brown rice production, reducing this reduction for months, saying that there will be a lot to roam with the new crop.

Since the early 1970s, the government has effectively controlled the amount of rice born in the country to balance supply and demand, which has encouraged the farmers to reduce it.

What did the government do?

When prices rise, the government announced plans to release rice from its emergency reserves in February – the first time it will do so in pricing efforts.

The rice was initially sold to the most bidder by auction and was divided by the Japan Agricultural Cooperatives (JA) group, a collection agency with an unsafe supply chain, and failed to reach consumers or reduce retail costs.

With the appointment of Farm Minister Shinjiro Quizomi, things began at the end of May, forced to resign from a gap on rice. Kozumi immediately turned to sell directly to retailers at this price, which would allow them to offer 5kg of rice in about 2,000 2,000 yen ($ 13.85). This supply reached consumers within a few days.

So far, only government stored rice is cheap, and supply is limited. The prices of the Nation Wide Supermarket for Rice are more than 4,000 yen since March, which is below the target of Prime Minister Shigero Asba.

Kozumi has promised to release the government’s 910,000 tonnes of reserves and relied on imports to bring prices faster.

Why not rely on imports?

Under the ‘minimum access’ agreement within the World Trade Organization, Japan has 770,000 tonnes of tonnes of free import quota for rice, of which up to 100,000 tonnes of basic rice-which is about 1.0 1.0 % of total consumption.

Beyond this amount, private imports are 341 yen per kilogram per kilogram. It is usually enough to keep foreign products out. With the latest rise in prices, however, trade firms and wholesalers are importing more rice, especially more than the United States.