The surge in rice prices across Japan stems from a supply shortage, and experts predict the situation will persist in the short to medium term.
Since last autumn, rice prices in Japan have been climbing continuously, with the cost of a 10-kilogram bag doubling from 2,000 yen (about 13.92 U.S. dollars) to over 4,000 yen, placing a significant financial strain on residents.
In an interview with China Central Television (CCTV) on Wednesday, Mitsuyoshi Ando, a professor at The University of Tokyo's Graduate School of Agricultural and Life Sciences, shared insights into the underlying causes.
"It is basically clear that there is indeed a rice shortage, which is an obvious fact. Last year's rice production was lower than expected, and there were already discussions of a potential shortage starting from last year. In summary, one of the issues this time is that there is simply not enough rice," said Ando.
To stabilize the market, the Japanese government began releasing reserve rice in March this year, but the measure has had limited impact. Data from Japan's Ministry of Agriculture, Forestry and Fisheries shows that as of April 27, only about 7 percent of the released reserve rice had reached retail markets.
"Indeed, a considerable amount of reserve rice has been released, but the issue is that it takes time for these rice to actually reach consumers. Another issue is that the initial amount released was relatively small, so even when it hits the shelves, it will sell out quickly with a continuous and large supply unable to be ensured. From late August to September last year, a lot of rice was purchased at relatively high prices. On top of that, there are distribution costs and profit margins. Since the purchase price itself was high, it's impossible for the current market price to drop," said Ando.
Looking ahead, Ando believes that rice prices will remain high for the foreseeable future.
"I believe rice prices will remain high for a while. After September, new rice will gradually hit the market. However, if this year's rice production continues to be poor or only just meets demand, prices will likely stay elevated. Fertilizer prices are rising, and the cost of agricultural machinery has also increased significantly. From the perspective of farmers, it is really difficult to lower prices," said the expert.
Rice price surge in Japan likely to persist due to short supply: expert
