TOKYO, Feb 11 (News On Japan) - Rice prices in Japan continue to rise, despite the government’s plan to release emergency reserves in an effort to stabilize the market. A bowl of tendon, topped with freshly fried tempura, is incomplete without steaming hot rice, but the cost of this staple has been steadily increasing.
Akimitsu Tanihara, owner of the popular tempura restaurant Tempura Akimitsu, emphasized his commitment to using domestically grown rice, stating that while various efforts are being made to cut costs, the price of domestic rice has surged dramatically, leaving few alternatives. The Ministry of Agriculture, Forestry and Fisheries (MAFF) announced on February 10th that the average retail price of a 5 kg bag of rice at approximately 1,000 supermarkets nationwide had risen by 38 yen from the previous week to 3,688 yen as of February 2nd—the highest recorded price to date.
At a popular tempura restaurant in Asakusa, Tokyo, customers continued to enjoy hearty bowls of tendon despite the soaring cost of rice. The restaurant's procurement costs have doubled compared to 2024, yet it has refrained from raising prices and has maintained its free large-portion rice service. However, the owner warns that if rice prices continue to climb, an increase in menu prices may become unavoidable.
In response to concerns over rising costs, MAFF announced on February 7th that it would expedite the release of government-held reserve rice. The ministry is expected to outline the quantity to be auctioned as early as this week. Restaurants and businesses that rely heavily on rice view this as a potential relief, with one business owner stating that if the move helps prevent further price hikes, it would be a significant help.
Japan’s reserve rice system is designed to maintain stability during emergencies such as natural disasters or poor harvests. The government purchases approximately 200,000 to 210,000 tons of rice annually, maintaining a stockpile of around one million tons with a five-year storage cycle. Expired stock is repurposed as livestock feed. However, with the announcement of the reserve rice release, the question remains whether this measure will have a significant impact on rice prices.
FNN interviewed Tomio Kanazawa, president of Kanazawa Rice Sales, a rice wholesaler in Gunma Prefecture that supplies rice to hotels, restaurants, hospitals, and school cafeterias. Kanazawa stated that as of now, no drastic price changes have been observed, as there is still no information on when the reserve rice will actually reach distributors. He added that one reason for the persistently high rice prices is that some wholesalers have been stockpiling rice in anticipation of higher selling prices, causing supply bottlenecks in the market.
Kanazawa emphasized that encouraging these stockpilers to release their rice into the market is crucial to stabilizing prices. He noted that if the reserve rice release increases market supply, wholesalers who have been holding back stock may rush to sell before prices drop, which could lead to a wider market correction. He urged the government to provide further details on the reserve rice release as soon as possible, stressing that swift action is essential.
The coming weeks will determine whether the release of reserve rice will have the intended effect of stabilizing rice prices or if additional measures will be needed to address the ongoing price surge.
Source: FNN
