The Japanese government has started supplying stockpiled rice to the market at low prices to stabilize rice prices; however, signs of instability in rice prices continue, including a sharp rise in advance payments for new rice in production areas.
According to the Asahi Shimbun on the 8th, the advance payments offered by NongHyup to rice farmers across various regions have risen by nearly 40% compared to the previous year in some areas.
The NongHyup in Niigata Prefecture, a major rice-producing area, has offered an advance payment of 1,917 yen (about 18,000 won) for 5 kg of this year's Koshihikari first-grade new rice, which is 35% higher than last year. The advance payment for the Akita Komachi variety offered by the NongHyup in the Akita region has also risen to 2,000 yen per 5 kg, about a 43% increase.
Advance payments are typically determined between July and September; however, this year, as the competition for rice acquisition has accelerated, the timing has also been moved forward. Concerns about further increases in rice prices are growing locally.
Kunio Nishikawa, a professor at Ibaraki University, noted, "The sharp rise in advance payments for new rice could lead to an increase in consumer prices," adding, "With many variables such as this year's harvest and government stockpiled rice release volumes, it is a challenging situation to predict prices."
Since the end of last month, the Japanese government has been supplying stockpiled rice through private contracts to curb the surge in rice prices. Major supermarket chain Ito-Yokado has secured stockpiled rice from the government and is selling it for 2,160 yen (about 20,746 won) for 5 kg, which is about half of the average nationwide price for supermarkets in Japan (4,285 yen) that month.
However, it remains uncertain how effective the release of stockpiled rice will be in stabilizing overall market prices. Distribution of imported rice is also expanding, and Calrose rice from California in the United States has recently been displayed in large stores like Aeon, gradually increasing its market share.
Shinjirō Koizumi, the Minister of Agriculture, Forestry, and Fisheries, said in an interview with the Nihon Keizai Shimbun that day, "To stabilize the overheated market, we will keep all options open," indicating that he would also consider utilizing the duty-free import volumes (MMA) under existing trade agreements. He added, "After stabilizing rice prices, we need to find policy directions that can maintain farmers' motivation to cultivate."