In a major move to ease the burden of high food costs, Farm Minister Shinjiro Koizumi announced on Monday that the Japanese government will sell 300,000 metric tons of stockpiled rice to retailers through a no-bid contract system.
The goal is to cut supermarket rice prices in half by early June.Of the total amount, 200,000 tons will be from the 2022 harvest and 100,000 tons from 2021. The rice will be sold at ¥11,556 per 60-kg bag of unpolished rice, translating to approximately ¥2,160 for a standard 5-kg retail bag — nearly half the current average price of ¥4,285.
The government will cover transportation costs and relax typical regulations, such as the requirement for buyers to restock the government’s emergency reserves. However, retailers must submit detailed sales plans and provide weekly reports on rice sold. Failure to comply could result in penalties, including disqualification from future purchases and public disclosure on the ministry’s website.
The no-bid method replaces the traditional auction system, which had failed to significantly reduce rice prices or fix shortages. Prime Minister Shigeru Ishiba instructed Koizumi to implement this shift immediately after Koizumi’s appointment last week.
While the move has been praised for its potential to quickly lower prices, experts like Nomura economist Takahide Kiuchi warn that only a limited number of consumers may benefit if panic-buying occurs.
Despite concerns about transparency, the public appears optimistic. A Kyodo News poll showed that nearly 60% believe rice prices will drop, and Koizumi’s new role has already boosted the approval ratings of both himself and Prime Minister Ishiba.
FAQ:
Q1: When will the cheaper rice be available in stores?
A: By early June 2025, according to Farm Minister Koizumi’s announcement.
Q2: Will everyone be able to buy rice at half price?
A: Not necessarily. Experts warn that panic-buying or limited stock could mean only a portion of consumers benefit from the lower prices.
Source: https://www.japantimes.co.jp/news/2025/05/26/japan/koizumi-no-bidding-contract/
