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2026-09-21 08:44:11
【Japan's Rice Prices on a Rollercoaster: New Rice Cheaper Than Old Rice, Government Buyback of Reserve Rice Fails to Alleviate Farmers' Worries】 (1) A rare phenomenon has emerged in Japan: rice produced in 2025 is more expensive than this year's new rice. Last year's "rice shortage" pushed up rice prices, but with the easing of supply and the government's release of reserve rice, rice prices have recently plummeted. From September 7 to 13, the average price of rice in stores fell below 3,000 yen per 5 kilograms for the first time in two years, falling for five consecutive weeks. (2) Rice prices reached a high of 4,416 yen per 5 kilograms at the beginning of the year, but fell by more than 2,000 yen in nine months. NHK analysis suggests that the main reason is the government's release of reserve rice, which led to a record high in private stocks at the end of June, resulting in a "rice surplus". (3) On the 18th, Japan's Ministry of Agriculture, Forestry and Fisheries launched a buyback of 210,000 tons of reserve rice, the first time since the current system was implemented in fiscal year 2011, but the scale and effectiveness have been questioned. Some rice farmers say that about 200,000 tons is not enough and that about 300,000 tons should be purchased. (4) Farmers are in dire straits: the estimated cost of purchasing new rice this year has plummeted by 40% year-on-year, the first such drop in five years and the largest ever. Affected by the situation in the Middle East, fuel, fertilizer, and labor costs have increased by more than 10%, and producers are worried that rice prices will fall below cost. The newly appointed Minister of Agriculture, Forestry and Fisheries, Kazuo Tsugami, has also expressed concern. (5) The sales side is also under pressure, with retailers worried that the 2025 harvest will be unsold after the new rice is stored. Media outlets believe that buying back reserve rice may alleviate the price decline, but this contradicts efforts to curb inflation. The Yomiuri Shimbun stated that the Ministry of Agriculture, Forestry and Fisheries' rice policy is "extremely chaotic," and the government must strengthen the production base.
