Japan pledges to cut rice price with direct sales to retailers

TOKYO

(FILES) This file photo taken on Feb. 18, 2025 shows a man walking past sacks of government stockpiled rice piled up in a warehouse in Saitama prefecture, north of Tokyo. (AFP)

Japan's new farm minister said Monday the country's embattled government would release reserve rice directly to large retailers in an attempt to bring down prices for consumers after the recent spike.

The cost of the staple has soared in recent months, creating a major headache for Japan's unpopular leadership ahead of upper house elections due in July.

Farm Minister Shinjiro Koizumi said the strategy in recent months of auctioning rice from the government's strategic reserve had failed to reduce prices in stores.

Officials have therefore "decided to sell it in voluntary contracts" to "large retailers, who treat 10,000 tonnes of rice annually", Koizumi, the son of former premier Junichiro Koizumi, said.

This rice will hit shelves "in early June at the earliest" and the volume of rice the government will release this time -- 300,000 tonnes -- will be expanded if demand is strong, he added.

Koizumi's predecessor Taku Eto resigned last week after saying he never buys rice because he gets it free, sparking public fury.

Data on Friday showed rice prices rocketed an eye-watering 98.4 percent year-on-year in April, slightly more than the previous month's increase.

Factors behind the rice shortfall include poor harvests caused by hot weather in 2023 and panic-buying prompted by a "megaquake" warning last year.

Record numbers of tourists have also been blamed for a rise in consumption while some traders are believed to be hoarding the grain.