TOKYO - Japan’s government plan to flood the market with stockpiled rice to lower prices is facing setbacks, as demand slumps and cancellations from retailers increase. Initially popular, the rice is now piling up on shelves, prompting calls to extend the end-of-August sales deadline. Even discounted imported rice is struggling to sell. Meanwhile, rice prices have unexpectedly risen for the first time in 10 weeks.
Initially launched as part of a campaign to flood the market and drive down prices, the plan is now prompting calls from retailers to extend the looming sales deadline.
Panasonic has just unveiled a new rice cooker designed to cook even aged rice deliciously—an apparent nod to the current oversupply. But despite early enthusiasm, demand for the government-released stockpile rice has sharply declined. At one point, long lines formed before stores opened. Now, shelves are visibly stacked with unsold bags, and purchase limits have been lifted.
"The initial sales were overwhelming, but that was the peak," said Junko Matsui, head of Super Maruyasu. "We expect to sell out by late August, but it’s going to be close."
The same slowdown is affecting imported rice. Aeon began selling U.S.-grown Calrose rice in June, and starting today, the price has been slashed by 700 yen to 1,980 yen (excluding tax) in a bid to stimulate demand.
Despite the market being saturated with rice—from both stockpiles and imports—prices are not falling as expected. On the contrary, the average price for a 5-kilogram bag of rice at supermarkets rose 40 yen from the previous week to 3,625 yen, marking the first increase in 10 weeks.
Some consumers remain hesitant to buy the older rice, with one shopper in her 30s saying, "My family is concerned because it’s aged rice, and the taste is different. Since we have kids, we’ve gone back to regular branded rice."
Agriculture Minister Koizumi revealed that about 29,000 tons, roughly 10% of the 300,000 tons of stockpile rice allocated to supermarkets and food services, have been canceled.
Delays in distribution and processing facilities are believed to be behind the cancellations. The government-set sales deadline is the end of this month, but many businesses are calling for it to be extended.
"Extending the sales period may affect the pricing of newly harvested rice," said Koizumi. "We’ll monitor the situation closely and consider countermeasures as needed."
Source: TBS
