Japan to release extra 200,000 tons of gov't stockpiled rice

Japan plans to release an additional 200,000 tons of rice from government stockpiles through direct contracts with retailers, Agriculture Minister Shinjiro Koizumi said Tuesday, as the staple food's price fell for the second consecutive week.

The amount will consist of 100,000 tons of rice each from the 2020 and 2021 harvests. The government will accept applications for the 2020 rice once the limit for the 2021 rice has been reached.

Major retailers, midsize and small supermarkets, and rice shops with their own rice millers are eligible to apply for 120,000 tons of rice harvested in 2021, including 20,000 tons of rice left unsold from the previous sale, from Wednesday.

The retail price for the 2021 rice is expected to be sold in stores at around 1,800 yen (about 12.43 US dollars) per 5 kg, while the 2020 rice is expected to cost 1,700 yen, Koizumi said.

Rice prices at supermarkets in the week through June 1 averaged 4,223 yen per 5 kg, down 37 yen from the previous week, marking the second consecutive weekly decline, but still having doubled compared to a year ago, according to agriculture ministry data released Monday.

However, Koizumi voiced discontent at the slow pace at which prices are falling. "It didn't even go down 100 yen in two weeks," he said, adding that he will implement strategies to lower prices to the 3,000-yen range target as soon as possible.

The latest effort will reduce the country's rice reserves to around 100,000 tons, down from about 910,000 tons before the government began releasing stocks through auctions in March and April.

Japan essentially stores 1 million tons of rice in preparation for emergencies such as natural disasters or extremely poor harvests. A sharp decline in stockpiles has raised concerns that the government's rice reserves could fall short in an emergency.