More Japan Rice News: Updated May 26, 2025.

Japan weighs doubling stockpiled rice release to rein in price surge

Article source: https://mainichi.jp/english/articles/20250515/p2g/00m/0bu/032000c

Ideas

The Japanese government keeps increasing the rice supply but the price of rice remains high which might indicate there is something not quite right in the rice supply chains.

Most likely either rice suppliers such as producers, wholesalers, middlemen, and even supermarkets are keeping the price of rice high.

This seems very unusual as whenever the supply is increased normal supply and demand would put pressure to lower the price of rice in the market.

Again, normal supply and demand would put pressure on the rice market to begin to lower the price of rice but again something is amiss in Japan related to the rice market.

Prices usually control a market but maybe in this case there is some other factor which might have too much market control or market power which is keeping rice prices higher than normal.

There might be some collusion among some suppliers or middlemen that have formed some kind of cartel in the rice market that is keeping the prices of rice higher that usual.

There is always the possibility or idea that the Japanese government should maybe buy foreign rice as way to increase its stockpiles. Its time for the Japanese rice market to be less nationalistic for the good of Japan society and bring in stockpiles of foreign rice in case there is another possible rice shortage.

But there are always some who might think foreign rice is either not good enough and or doesn't taste very good and then there are those who might think the Japanese rice market should be for Japanese rice only.

Rice supplies should never have been that low as the Japanese government or government agencies related to agriculture should never have allowed the supply to be that low. 

If there was a possible shortage of rice the Japanese government should have or could have bought foreign rice to supplement the rice market as a way to keep prices down as most likely Japanese consumers would eventually have gotten used to the taste of foreign rice like consumers get used to many things foreign in many countries.

If the 2024 rice harvest was good and the 2024 rice harvest saw an increase of 180,000 tons then there is something amiss in the rice market in Japan. 

Most likely, or not. wholesalers and farmers formed some kind of informal cartel to keep prices high to benefit them despite the challenges of Japanese households.

The Japanese government needs to intervene for the good of Japanese society and find a ways to force farmers and wholesalers to follow normal supply and demand principles in the rice market.

If rice is a major stable in Japan has assumed why would the Japanese government not release enough rice into the market and or buy foreign rice as needed to keep the supply and demand normal instead of letting the farmers and wholesalers control the market and prices.

Yes, there might have been an increase in foreign tourists into Japan but could that have been the only reason for the rice shortage. Articles keep suggesting that foreign tourists are the reason for the rice shortage in Japan.

To be fair this all doesn't make sense, as farmers produce rice and sell in in auctions and then wholesalers take over and sell it to supermarkets and so on.

The government or suppliers or wholesalers, if needed should buy enough foreign rice to keep the price of rice in the market normal that supply and demand are always in some kind of equilibrium.

There should never be the need to buy back rice or any other agricultural product in Japan with normal supply and demand principles.

Yes at auctions, for the most part, farmers are price takers and have to accept the rice as given in a rice auction. Of course they could always decline to sell their supply of rice in the auctions which might be what's happening in Japan now.

This should never have happened in Japan if rice is such an important food stable for Japanese households and whomever should in the Japanese government should have been in more control for the good of Japanese society and Japanese households.

Have a nice day!