May 27, 2025
TOKYO – The government on Monday launched procedures to sell state-held reserves of rice through contracts in which the government will set the price of the grain.
This represents a change from the sale and delivery of stockpiled rice through public bidding, which is believed to have contributed to soaring prices.
The Agriculture, Forestry and Fisheries Ministry will accept applications for the new “discretionary contracts” on a first-come-first-served basis every day for the rice that will become available for consumers through August. The ministry will begin with 300,000 tons of rice, and additional releases of rice will be considered if necessary.
The ministry hopes to offer the rice at about ¥2,000 for five kilograms at supermarkets and elsewhere in early June.
“We will work swiftly with a greater sense of urgency to dispel the concerns of the public regarding this matter. Our top priority is to stabilize rice prices. We will deliver affordable, delicious rice to consumers as soon as possible,” Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi said at a meeting held at the ministry on Monday.
The government said 200,000 tons of rice produced in 2022 and 100,000 tons of rice harvested in 2021 will be subject to the discretionary contracts. Eligible participants will comprise about 50 large retailers capable of handling at least 10,000 tons of rice.
Only major rice distributors have been able to take part in the public bidding until now.
Previously, stockpiled rice was sold to distributors on the condition that the government would buy back the same amount within one year. This time, however, there are no such conditions.
The unpolished rice sold by the government to retailers will cost ¥11,010 before tax per 60 kilograms for the 2022 crop and ¥10,080 for the 2021 crop. The retail price is expected to be about ¥2,000 for five kilograms before tax, with general expenses incorporated, and about ¥2,160 including tax.
The government is also considering the online sale of rice. On Friday, Hiroshi Mikitani, chairperson and president of the e-commerce company Rakuten Group, Inc., met with Koizumi and indicated his intention to join the discretionary contract system.
The stockpiled rice will be delivered to locations requested by retailers, with the government handling transportation costs.
According to the ministry, the average price for five kilograms of rice sold at supermarkets nationwide from May 5 to 11 was ¥4,268, an increase of ¥54 from the previous week. It is urgent to lower prices, as they have remained at more than double the level of the same period last year.
Prime Minister Shigeru Ishiba indicated during an interparty debate on Wednesday his intention to prioritize lowering rice prices.
“The price of rice [for five kilograms] must be at the ¥3,000 level. We will work to achieve that level as soon as possible,” Ishiba said. The government plans to encourage a decrease in the retail price of stockpiled rice to bring down overall rice prices.
On Monday, the ministry established an in-house special team of about 40 members, led by the administrative vice minister, to strengthen personnel support for dealing with rising rice prices.