Overview

• Shinjiro Koizumi, Japan's newly appointed agriculture minister, has ended the auction-based rice distribution system in favor of direct contracts to expedite stockpile releases.
• The government plans to release 100,000 tons of rice monthly through July, aiming to stabilize prices and deter a shift to cheaper imported rice.
• Koizumi has set a target to lower retail rice prices to under ¥3,000 per 5 kg by early June, compared to the current average of ¥4,268.
• Soaring rice prices, driven by climate-related crop damage and a tourism surge, have pushed food inflation to 7.0% in April, up from 6.2% in March.
• Despite earlier stockpile releases, only 7% of rice reached retailers by late April due to distribution bottlenecks, prompting Koizumi's swift policy reforms.