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🇰🇷 South Korea /Economy & Trade

Japan to repurchase surplus rice released last year to stabilize prices

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified Context piece
  • Japan's government intends to repurchase 150,000 tons of reserve rice released in 2023 to address a surplus that has caused prices to drop and delayed the sale of the 2025 crop.
  • The move comes after a significant release of 590,000 tons of reserve rice last year to combat soaring prices, which initially stabilized the market but resulted in an all-time high of 2.43 million tons of rice in stock by June.
  • This repurchase aims to support farmers by preventing further price declines, though it raises concerns about consistency with the government's inflation control policies and potential disadvantage to consumers.

Japan's government is planning to buy back 150,000 tons of reserve rice that it released into the market last year. The move is intended to alleviate a growing surplus that has led to falling prices and is delaying the sale of the newly harvested 2025 crop.

The Ministry of Agriculture, Forestry and Fisheries plans to repurchase reserve rice released into the market next month.

— Asahi ShimbunReporting on the government's plan to buy back reserve rice.

The government had released a substantial 590,000 tons of reserve rice in an effort to curb a sudden surge in prices that doubled over about a year. While this intervention offered temporary relief, the market naturally stabilized with the arrival of new harvests and a decrease in panic buying. However, the released reserve rice has become a burden, as farmers significantly increased their production of rice for staple use due to the previous price hikes.

As of the end of June, rice inventory stood at 2.43 million tons, exceeding the optimal level of 1.8 to 2 million tons by as much as 600,000 tons. This oversupply has driven down the average retail price for a 5kg bag of rice by about 30% from its peak, to 3,191 yen. With harvest forecasts indicating normal yields, the situation of rice overabundance is expected to continue. Agricultural groups and farmers are now urging the government to repurchase the reserve rice to prevent further price drops.

The government plans to decide on repurchasing 150,000 tons of reserve rice released into the market at a rice policy deliberation council meeting on the 2nd of next month.

— Asahi ShimbunDetailing the scale and timing of the repurchase.

Initially, the Prime Minister's office was reportedly cautious about repurchasing the rice, viewing it as contradictory to the government's inflation control policies. However, concerns over backlash from farmers, who are a key political support base for the ruling Liberal Democratic Party, appear to have led to a shift in direction. The Asahi Shimbun noted that repurchasing the reserve rice could disadvantage consumers and create inconsistencies with anti-inflation measures.

The repurchase of reserve rice could disadvantage consumers and create inconsistencies with the government's inflation control measures.

— Asahi ShimbunHighlighting potential drawbacks of the government's plan.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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