Tokyo, 25 May, /AJMEDIA/
New farm minister Shinjiro Koizumi said Saturday that the government plans to sell its stockpiled rice to retailers through direct contracts, aiming to make it available in stores at 2,000 yen per 5 kilograms as soaring prices weigh on consumers.
He added the reserve rice is expected to reach store shelves as early as June, with criticism mounting that the government has failed to curb a spike in rice prices, hurting households as inflation continues to outpace wage growth.
Koizumi, who assumed his post on Wednesday after his predecessor resigned following a remark about gifts of rice from supporters, has pledged to sell the stockpiled grain directly to retailers, bypassing auctions that have prevented government control over prices.
The government of Prime Minister Shigeru Ishiba is likely to commence procedures for negotiated contracts on Monday, while exploring online sales of the low-priced stockpiled rice to ensure broad distribution across the country.
On Friday, Koizumi held talks with Rakuten Group Inc Chairman and President Hiroshi Mikitani to exchange views on possible online sales. Afterward, the head of the e-commerce giant told reporters, “We would like to actively consider raising our hand” for a contract.
Touching on the recent rice price hike in a speech in Sapporo on Saturday, Koizumi said, “It’s too expensive. To cool the abnormal surge, we want to bring it down by introducing 2,000 yen stockpiled rice” into the market.
The average price of the nation’s staple food in Japanese supermarkets reached a record 4,268 yen per 5 kilograms in early May, roughly double last year’s level, due in part to a poor harvest and growing demand for rice-based dishes amid a boom in inbound tourism.
Official data released Friday, meanwhile, showed rice prices hit a new record in April for the seventh consecutive month, marking a 98.4 percent increase from a year earlier. Core consumer prices, excluding volatile fresh food, rose 3.5 percent in the same month.
The government plans to release 300,000 tons initially and may provide additional supplies if necessary. Koizumi has expressed his intention to publish weekly retail rice prices by region and examine distribution channels.
But it remains uncertain whether the move will lead to an overall drop in rice prices, given that Japan’s annual domestic demand totals around 6.7 million tons, while the amount held in reserve is limited, analysts said.