Japan’s rice exports have reached a record high, with a volume of 24,469 tons from January to July this year. This represents a 23% increase compared to the same period last year, according to the Agriculture, Forestry and Fisheries Ministry. Despite the private sector’s rice inventory falling to its lowest level since 1999, rice meant for export cannot be used in the domestic market due to government subsidies being tied to its production.
Hong Kong was the largest importer of Japanese rice during this period, receiving 7,163 tons. The United States followed closely behind with 4,638 tons, and Singapore imported 3,554 tons. The total export value also reached a new high at ¥6.4 billion, marking a significant increase of 29%.
The Japanese government considers rice as one of its key products for export and has set ambitious targets for increasing annual export volumes. In 2023 alone, Japan aims to export around 37,186 tons of rice – an approximately twelve-fold increase from ten years ago.
Meanwhile, domestic demand for rice has been declining in recent years. To address this issue and support farmers’ income through exports instead of relying solely on the domestic market, the ministry has implemented measures such as capping rice production volume while providing subsidies for farmers who grow rice specifically for export purposes. These subsidies can amount up to ¥40,000 per every 1 square kilometer of cultivated land.
It is important to note that these subsidies come with conditions: if farmers use their subsidized crops in the domestic market instead of exporting them as intended by the program guidelines they are required to return the money received.
Agriculture Minister Tetsushi Sakamoto highlighted during a press conference that despite concerns about potential shortages in Japan’s domestic market due to increased exports he assured that there is currently an ample supply available with private sector inventories totaling at approximately1.56 million tons as of June-end - significantly higher than last year’s total annual export volume.
As Japan continues its efforts towards expanding its presence in international markets through increased agricultural exports like rice it remains crucially important that both supply and demand factors are carefully managed so as not disrupt local markets or negatively impact food security within Japan itself