A 47-year-old stay-at-home mom in Tokyo expressed her frustration with the rising prices of rice at a local supermarket. She stated that her family consumes 30 kilograms of rice each month, but the high prices have made it unaffordable for them. The supermarket had bags of newly harvested rice from various prefectures, but the prices were reported to be 50% to 80% higher than last year. Despite having supplies of newly harvested rice, the supermarket struggled to sell them due to their expensive nature.
This situation is not unique and has been observed throughout Japan this year. Rice prices have significantly increased due to factors such as intense competition among retailers and purchasers for limited supplies. This shortage and high price have put a strain on household budgets, prompting Agriculture, Forestry and Fisheries Minister Yasuhiro Ozato to consider reviewing the nation’s rice policies.
The shortage in rice supply can be traced back to the summer heat wave in 2023, which negatively affected rice quality and reduced availability. Additionally, consumers stockpiling rice as a precautionary measure further contributed to the scarcity. Retailers and buyers engaged in fierce competition to secure supplies, driving up prices even more. Private companies rushed to purchase stocks of rice from farmers at higher prices than those offered by agricultural cooperatives.
The government’s response was often delayed despite early warning signs of a looming shortage. Although efforts were made since late August to improve the situation by pressuring companies and wholesalers, there was reluctance on releasing supplies from government stockpiles when shops started running low on rice.
While supplies from major production areas like Hokkaido are expected soon, experts predict that prices will remain higher than previous years due to increasing production costs. The chairman of JA Zenchu called for understanding about growers’ cost pressures and suggested reflecting these additional costs in sales prices.
However, long-term trends indicate a decline in demand for rice as people diversify their diets. This could potentially accelerate consumers’ shift away from consuming rice if prices continue rising.
In light of these circumstances surrounding Japan’s declining consumption of rice and its impact on farmers’ incomes, Prime Minister Shigeru Ishiba hinted at reviewing production levels and providing direct income compensation during his campaign for leadership within the Liberal Democratic Party (LDP). Agriculture Minister Ozato also suggested potential changes in policies related to ensuring stable operations for future paddy cultivation.