Japan eyes doubling stockpiled rice release, easing bidding conditions

The Japanese government plans to roughly double the supply of stockpiled rice to about 600,000 tons and relax bidding conditions for the purchase of its reserve rice, as rice prices remain at near record highs, local media reported Thursday.

The government is expected to release about 100,000 tons of stockpiled rice monthly through July, in addition to 321,000 tons of reserve rice sold in three auctions conducted between March and April, Kyodo News reported.

Average rice prices continued rising to record highs before falling for the first time in 18 weeks in the week through May 4.

Currently, the government sells reserve rice to wholesalers on the condition that the same amount of rice is bought back, in principle, within a year. Wholesalers can only take part in stockpiled rice auctions if they agree on the buyback rule.

Some lawmakers of the ruling Liberal Democratic Party have called for this condition to be eased, as the rule is seen as discouraging rice distributors from participating in auctions out of fear that they may not be able to sell rice back if they face a potential shortage, the report said.

The agriculture ministry is considering the possibility to extend the buyback deadline by several years, it added.