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Japan Sees First Rice Price Drop as Stockpiled Grain Arrives in Stores

Koizumi shifted from auctions to direct contracts to distribute cheaper emergency rice with plans for additional releases if needed

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Overview

  • Prices dropped by ¥25 to an average of ¥4,260 per 5kg bag in the week to May 25, marking the first decline in three weeks according to the agriculture ministry.
  • After selling 310,000 tons of stockpiled rice through auctions, the government has begun distributing additional stocks to retailers under no-bid contracts at ¥2,000 per 5kg bag.
  • Hundreds of shoppers queued for hours at outlets including Iris Ohyama, Ito-Yokado and Aeon under one-bag-per-household limits, with stocks selling out rapidly.
  • Rice prices have more than doubled year-on-year largely because of extreme heat-related production shortfalls and other supply pressures.
  • Farm Minister Shinjiro Koizumi pledged to release more grain and explore buying back rice from wholesalers to prevent further price spikes.