Japan's rice crisis shows signs of easing

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, who in May pledged to reduce rice prices to “3,000 yen, because keeping it at 4,000 yen is not good.”

Rice is a controversial topic in Japan, with prices skyrocketing and shortages on supermarket shelves across the country. 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 receiving free rice from supporters. Japan is experiencing a rice crisis as the price of the staple food has nearly doubled in 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 a poor harvest. The Japanese government has taken a number of emergency measures, including releasing rice from national reserves, to curb the price increase. In addition to releasing rice from government reserves, retailers have offered imported rice from overseas, such as the US 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. However, 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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