Japan holds first auction of emergency rice reserves

Japan has officially opened its first auction of emergency rice reserves, aiming to cool down the country's soaring rice prices.

Tadao Koike rice shop in Tokyo, Japan - Photo: AFP

The Japanese Ministry of Agriculture, Forestry and Fisheries is expected to announce the successful bidders for the 150,000 tons of rice on March 12, and all the auctioned rice will appear on shelves in the "land of the rising sun" from the end of March.

The ministry also revealed that it plans to auction an additional 60,000 tons of rice if necessary.

“This is a very unusual situation. We hope to ease the difficulties faced by consumers by resolving the bottlenecks in the supply chain,” Agriculture, Forestry and Fisheries Minister Eto Taku told the Japanese parliament on March 10.

Japanese experts say there are many factors contributing to the country's current rice crisis.

These include a tourism boom that has led to overtourism, which has increased demand for sushi and rice dishes, and crop failures caused by record heat waves in recent years.

Like many other countries around the world, Japan is suffering from the effects of human-caused climate change.

Panic buying of rice following warnings of a “mega-earthquake” in the summer of 2024 has also caused a severe shortage of rice in the country, causing prices to nearly double in the past year.

In August 2024, rice shelves at some stores and supermarkets in Japan were suddenly empty after the government issued a warning about the possibility of a “mega-earthquake” accompanying one of the most intense typhoons in decades.

That time also coincides with the Obon holiday - a time for people in this country to remember their grandparents, ancestors and the deceased, lasting from August 13 to 16 every year.

The rice price problem is getting worse, as some businesses are stockpiling rice to wait for a more suitable opportunity.

Currently, Japan has about 1 million tons of emergency rice in reserve, stored at about 300 facilities across the country. Each year, the country will buy about 200,000 tons of rice to reserve and resell after 5 years, mainly as animal feed.

Japan has previously tapped into its emergency rice reserves during disasters, but this is the first time Tokyo has had to do so due to supply chain issues since the reserve was established in 1995.

Kyodo News reported that rice prices in Japan increased 27.7% in 2024 compared to 2023, the largest increase since 1975.

In December 2024 alone, rice prices in Japan increased by 64.5% compared to the same period in 2023.

Source: https://tuoitre.vn/nhat-ban-mo-phien-dau-gia-gao-du-tru-khan-cap-dau-tien-2025031017185495.htm