TOKYO: (Bernama-Kyodo) - Japan's new farm minister, Shinjiro Koizumi (pic) said on Saturday (May 24) that the government plans to sell its stockpiled rice to retailers through direct contracts, aiming to make it available in stores at 2,000 yen (US$14) per 5 kilogrammes, as soaring prices weigh on consumers, Kyodo News Agency reported.
He added that the reserve rice is expected to reach store shelves as early as June, with criticism mounting that the government has failed to curb a spike in rice prices, hurting households as inflation continues to outpace wage growth.
Koizumi, who assumed his post on Wednesday after his predecessor resigned following a remark about gifts of rice from supporters, has pledged to sell the stockpiled grain directly to retailers, bypassing auctions that have prevented government control over prices.
Japanese Prime Minister Shigeru Ishiba is likely to commence procedures for negotiated contracts on Monday, while exploring online sales of the low-priced stockpiled rice to ensure broad distribution across the country.
On Friday, Koizumi held talks with Rakuten Group Inc. Chairman and President Hiroshi Mikitani to exchange views on possible online sales. The head of the e-commerce giant told reporters, "We would like to actively consider raising our hand" for a contract.
On the recent rice price hike in a speech in Sapporo, northern Japan, on Saturday, Koizumi said, "It's too expensive. To cool the abnormal surge, we want to bring it down by introducing 2,000 yen stockpiled rice" into the market.
The average price of the nation's staple food in Japanese supermarkets reached a record 4,268 yen per 5 kilogrammes in early May, roughly double last year's level, due in part to a poor harvest and growing demand for rice-based dishes amid a boom in inbound tourism.
Official data released on Friday showed that rice prices hit a new record in April for the seventh consecutive month, marking a 98.4 per cent increase from a year earlier. Core consumer prices, excluding volatile fresh food, rose by 3.5 per cent in the same month.
The government plans to release 300,000 tonnes initially and may provide additional supplies if necessary. Koizumi has expressed his intention to publish weekly retail rice prices by region and examine distribution channels.
But it remains uncertain whether the move will lead to an overall drop in rice prices, given that Japan's annual domestic demand totals around 6.7 million tonnes, while the amount held in reserve is limited, analysts said. - Bernama-Kyodo
