TOKYO, Aug 06 (News On Japan) –
Japan’s authorities plan to flood the market with stockpiled rice to decrease costs is going through setbacks, as demand slumps and cancellations from retailers improve. Initially well-liked, the rice is now piling up on cabinets, prompting calls to increase the end-of-August gross sales deadline. Even discounted imported rice is struggling to promote. Meanwhile, rice costs have unexpectedly risen for the primary time in 10 weeks.
Initially launched as a part of a marketing campaign to flood the market and drive down costs, the plan is now prompting calls from retailers to increase the looming gross sales deadline.
Panasonic has simply unveiled a brand new rice cooker designed to cook dinner even aged rice deliciously—an obvious nod to the present oversupply. But regardless of early enthusiasm, demand for the government-released stockpile rice has sharply declined. At one level, lengthy strains fashioned earlier than shops opened. Now, cabinets are visibly stacked with unsold baggage, and buy limits have been lifted.
“The initial sales were overwhelming, but that was the peak,” mentioned Junko Matsui, head of Super Maruyasu. “We expect to sell out by late August, but it’s going to be close.”
The similar slowdown is affecting imported rice. Aeon started promoting U.S.-grown Calrose rice in June, and beginning immediately, the worth has been slashed by 700 yen to 1,980 yen (excluding tax) in a bid to stimulate demand.
Despite the market being saturated with rice—from each stockpiles and imports—costs usually are not falling as anticipated. On the opposite, the typical value for a 5-kilogram bag of rice at supermarkets rose 40 yen from the earlier week to three,625 yen, marking the primary improve in 10 weeks.
Some customers stay hesitant to purchase the older rice, with one shopper in her 30s saying, “My family is concerned because it’s aged rice, and the taste is different. Since we have kids, we’ve gone back to regular branded rice.”
Agriculture Minister Koizumi revealed that about 29,000 tons, roughly 10% of the 300,000 tons of stockpile rice allotted to supermarkets and meals providers, have been canceled.
Delays in distribution and processing amenities are believed to be behind the cancellations. The government-set gross sales deadline is the tip of this month, however many companies are calling for it to be prolonged.
“Extending the sales period may affect the pricing of newly harvested rice,” mentioned Koizumi. “We’ll monitor the situation closely and consider countermeasures as needed.”
Source: TBS