Japan’s Direct Retail Rice Sales Set To Cut Consumer Costs

Japan‘s agriculture ministry announced a direct intervention to curb the rising price of rice by distributing government-held reserves directly to major retail chains, in a move intended to ease pressure on consumers and bolster public confidence ahead of key elections.

Agriculture Minister Shinjiro Koizumi acknowledged that the previous approach — releasing rice through public auctions — had done little to stabilize prices at the retail level. He explained that the government had therefore decided to pursue direct contractual sales with large-volume retailers handling at least 10,000 tonnes of rice annually, describing the change as a more pragmatic solution to ensure the staple reached consumers at affordable prices.

The recent spike in rice costs had reportedly become a political liability for Japan’s ruling party, which is already grappling with declining approval ratings ahead of the upper house elections scheduled for July.

Koizumi, who is also the son of former Prime Minister Junichiro Koizumi, expressed hope that the revised strategy would offer immediate relief to households and help restore confidence in the government’s management of the economy.

According to Minister Koizumi, the initial batch of government-released rice is expected to reach retail shelves by early June, with a starting volume of 300,000 tonnes. He noted that this quantity could be increased depending on how the market responds.

The announcement comes on the heels of a public backlash that forced Koizumi’s predecessor, Taku Eto, to resign. Eto had drawn widespread criticism after casually admitting he never purchases rice — claiming instead that he always receives it for free — a remark that further inflamed tensions amid soaring food prices.

Recent government data revealed that rice prices surged by a staggering 98.4% in April compared to the same period last year, marking a slight uptick from March’s already steep increase.

Multiple factors are believed to be driving the sharp rise in costs. A combination of heat-damaged harvests in 2023 and consumer panic triggered by a widely publicized “megaquake” alert led to widespread stockpiling. Additionally, a historic influx of tourists has contributed to higher domestic demand, while some market players have been accused of deliberately hoarding rice to exploit the tightening supply.

Africa Today News, New York