TOKYO, Mar 06 (News On Japan) –
Japan’s rice costs have been steadily climbing, with the price of a 5-kilogram bag rising from 2,430 to three,297 yen final yr and additional rising to three,949 yen this yr, placing stress on family budgets. To curb these rising costs, the federal government has determined to launch its rice reserves.
The expectation was that this transfer would deliver costs down, however they continue to be excessive. The reserve rice, bought as blended rice, goals to keep up affordability with out sacrificing style. However, logistical challenges imply any worth discount is more likely to be short-lived.
Meanwhile, issues persist over an ongoing rice scarcity, with some specialists criticizing agricultural cooperatives for inefficiencies of their help measures.
Starting subsequent week, Japan will start the bidding course of for 150,000 tons of its 210,000-ton rice reserves. Consumers are most involved about whether or not this launch will truly result in decrease rice costs. Looking at previous tendencies, the value of a 5-kilogram bag of rice was round 2,400 yen in January final yr. Now, it has surged to just about 4,000 yen.
So, will releasing reserve rice deliver costs down? In easy phrases, costs might drop—however solely briefly. The authorities has introduced a bid for 150,000 tons, and yesterday, Agriculture Minister Eto revealed plans to expedite a further 60,000 tons for public sale. If these processes proceed easily, rice ought to attain customers and result in a short lived worth discount.
Professor Oizumi from Miyagi University factors out that company efforts additionally contribute to cost reductions. There are 41 types of reserve rice, which wholesalers can mix with cheaper home or imported rice to supply customers extra inexpensive choices. However, he additionally highlights potential points with releasing reserve rice.
One main concern is the inefficient distribution system. The authorities presently provides rice via intermediaries, resembling agricultural cooperatives, earlier than it reaches customers, inflicting delays. Instead, Professor Oizumi means that rice needs to be bought on to retailers and the meals service business. Currently, the federal government prioritizes sending rice to the Central Union of Agricultural Cooperatives (JA Zen-Noh), which may gradual distribution and forestall a fast worth adjustment.
Even if costs drop briefly, they could quickly return to excessive ranges. The underlying subject is a rice scarcity. Last January, private-sector rice shares stood at 2.74 million tons, however this yr, they’ve decreased to 2.3 million tons—a niche of 400,000 tons. Despite an 180,000-ton improve in manufacturing, provide stays inadequate. Even if the complete 210,000 tons of reserve rice is launched, whole provide would nonetheless be decrease than final yr, elevating doubts concerning the authorities’s declare that there isn’t a scarcity.
Additionally, rice costs might stay excessive attributable to rising manufacturing prices. In Niigata, JA Zen-Noh lately introduced its minimal buy worth for premium Uonuma Koshihikari rice at 225,000 yen per 60 kilograms, a rise of 5,500 yen from final yr. While this transfer offers farmers with monetary safety, it additionally indicators additional worth will increase for customers.
Professor Oizumi emphasizes that Japan’s present rice provide administration system, which operates on a fragile supply-demand stability, needs to be overhauled. He argues that the federal government should shift its focus towards supporting large-scale, high-productivity farms and enhancing export competitiveness to stabilize the rice market in the long term.
Source: YOMIURI