Azernews.Az

By Alimat Aliyeva

Japan is about to flood the market with nearly a quarter of a million tons of rice stocks in an unprecedented move to combat price increases caused by record summer heat, panic buying, and distribution issues, Azernews reports.

On Friday, Japanese Agriculture Minister Taku Eto announced that the government would release up to 210,000 tons of rice to the market as consumers have been grappling with price hikes of more than 50 percent in recent months.

Speaking just before the decision was made, Eto emphasized that the government typically does not intervene in the market but acknowledged that the recent price surge "has had a significant impact on people's lives," according to The Guardian.

According to the government, the average retail price of a 5 kg bag of rice has risen to 3,688 yen ($24), compared to last year's 2,023 yen.

While the Japanese government has previously used its rice reserves in response to natural disasters or crop failures, this is the first time it has intervened specifically to address distribution problems, such as supply chain disruptions that have driven prices up.

Japan’s rice stocks were already depleted following the impact of record temperatures on the 2023 harvest. Stocks further declined last year, partly due to increased consumption driven by a record number of tourists. Additionally, panic buying in response to warnings about typhoons and earthquakes forced some retailers to limit sales.

The price of rice continued to climb even after initially surging last summer, as shortages caused by extreme temperatures in the previous year led to a surge in demand.

The government had hoped that prices would stabilize once the new rice crop went on sale last fall, but the price hikes persisted.

Japan's Ministry of Agriculture typically purchases about 200,000 tons of rice annually for its emergency reserves, storing it for five years before selling it, often repurposing it as animal feed.

The practice of stockpiling rice began in 1995 after a major crop failure two years earlier triggered panic buying, highlighting the importance of rice as a staple food in Japan. The current situation underscores how climate change, natural disasters, and global supply chain challenges are increasingly affecting food security. As a result, Japan’s reliance on strategic rice reserves and its interventions in the market may become more common in the future to safeguard its domestic food supply.