Japan's rice crisis shows signs of easing

According to CNBC on June 26, after many months of high prices, rice prices in Japan are showing signs of decreasing.

Data from Japan's agriculture ministry showed the average price of a 5-kg bag of rice fell to 3,920 yen ($27.03), marking the first time it had fallen below 4,000 yen since March 2.

Onigiri production line at Fuji Foods' processing plant in Funabashi, Chiba, Japan. Photo: Getty

This is also the first time rice prices have reached the target set by Prime Minister Shigeru Ishiba. Last May, Mr. Shigeru Ishiba pledged to reduce rice prices to “3,000 yen, because keeping it at 4,000 yen is not good.”

Rice is a controversial subject in Japan, with prices skyrocketing and supermarket shelves across the country running short. Careless comments about rice even cost a minister his job.

Former Japanese agriculture minister Taku Eto resigned in May amid public outrage over his comments about accepting free rice from supporters. Japan is in the midst of a rice crisis, with prices for the staple food nearly doubling over the past year amid soaring inflation and supply shortages.

According to Mr. Tim Harcourt, an economist at the Institute of Public Policy and Governance at the University of Technology, Sydney (UTS), many factors continue to put pressure on rice prices. “First, the phenomenon of hoarding due to online rumors about a super earthquake. Second, the war between Russia and Ukraine has caused a shortage of wheat, forcing people to switch to rice instead. Third, the strong recovery of the tourism and catering industries has increased demand for rice consumption,” Mr. Tim Harcourt said.

In addition, the unusually hot summer of 2023 also led to crop failures. The Japanese government has taken emergency measures such as releasing national rice reserves to curb rising prices. In addition to releasing government reserves, retailers have offered imported rice from overseas, such as the United States and South Korea.

The rice shortage in Japan appears to be easing “thanks to the release of government reserves,” the National Supermarket Association of Japan told CNBC. But the recovery in supply is uneven. Rice shortages persist in some areas. And while the rice crisis has eased, prices remain high.

(According to CNBC)

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