Japan plans to release some of its rice stockpiles reserved for emergency use in response to record domestic prices for the grain.
The government will discuss selling part of its strategic rice reserve next week, the farm minister Taku Eto said in a presser on Friday. The price of rice in Japan is up 60% year-on-year as of last month, according to Bloomberg’s calculation using wholesalers’ price data compiled by the ministry.
The Bank of Japan cited rice’s contribution to inflation in its economic outlook report today as it raised its key policy rate to the highest level in 17 years.
The government holds about a million tons of rice as emergency stockpiles, about one-seventh of the country’s estimated annual consumption.
“Producers might oppose the move saying the rice price was finally high enough to cover their inflated costs of production,” Eto said. “But I hope everyone understands that the release would benefit producers too as high prices could trigger consumers to change from eating rice.”
The average wholesale price of rice rose to ¥24,655 ($159) per 60 kilogram bag as of December, according to government data. The minister did not give the amount or the date of the release, and added the plan will be discussed in detail on Jan. 31.
Japan places higher tariffs on imports past a limit of 100,000 tons and its high domestic prices stand in stark contrast to other countries.
Prices for Thailand white rice, which serve as an Asian benchmark, recently reached the lowest since early 2023. India, the biggest rice exporter, rolled back restrictions on shipments last year. That’s benefited global supply, and the U.S. Department of Agriculture forecasts world stockpiles will rise for the first time in four seasons.
