News On Japan

Wholesale Rice Prices in Japan Forecast to Hit Unprecedented Highs

TOKYO - The wholesale price of rice traded between businesses is expected to reach an unprecedented level of over 36,000 yen per 60 kilograms despite a bumper harvest this year, according to interviews conducted by JNN, highlighting the intense competition among buyers and the distorted dynamics of Japan’s rice market.

As rice harvesting entered its final stages in October, producers like Koike Farm in Chiba were relieved to see yields return to normal after last year’s poor harvest. “Last year, our yield was nearly cut in half, but by thoroughly controlling pests and diseases this season, we managed to achieve an average harvest,” said owner Takashi Koike. The Ministry of Agriculture, Forestry and Fisheries projects that total rice production this year will increase by more than 680,000 tons compared with last year.

Despite the higher supply, however, the average inter-company transaction price — known as the “relative transaction price” — for September is expected to be in the upper 36,000-yen range per 60 kilograms, roughly 14,000 yen higher than the same period last year and the highest on record. The data shows that trading for new-season rice has overheated and that prices are likely to remain elevated in the months ahead.

At a rice shop in Chiba, piles of unsold rice sit in storage despite the abundant harvest. “New rice isn’t selling. It’s too expensive,” said the shop’s president. “Cheaper rice sells first, so everyone in the industry uses that up. The expensive stuff just sits here.” The surge in prices has been fueled by a fierce “collection battle” — competition among buyers to secure stock amid fears of another shortage like last year’s.

Private buyers revealed that they are spending roughly double their usual amounts to secure rice. “It’s nerve-wracking. We’re buying at much higher prices than usual,” one wholesaler said. Their main rivals are Japan Agricultural Cooperatives (JA), which has significantly increased the “advance payment” it offers farmers to secure supply. In response, private buyers have offered even higher prices to avoid losing out, prompting JA to raise its payment again and driving prices even higher.

The intense bidding now involves private collectors, JA, and even general consumers, creating a market where no side benefits. “We’re seen as the bad guys, but we’re taking big risks,” said a private buyer. “If we lower our purchasing price, we can’t buy anything. If we raise it, we can’t sell. It’s a dilemma.”

Even with the new rice collected at inflated prices, sellers are reluctant to cut prices for fear of financial ruin. “There’s a limit to how much loss we can absorb,” the rice shop president explained. “If we slash prices too much, we’ll go under.” Some industry observers predict that if rice ends up in surplus due to the abundant harvest, prices could eventually fall by spring. But uncertainty looms. “Nobody knows when the price might crash,” the shop president said. “It’s like gambling.”

Producers, wholesalers, retailers, and consumers alike are caught in a vicious cycle of rising prices that benefits no one. Many are now calling for urgent, comprehensive measures to stabilize Japan’s rice market before the situation worsens.

Source: TBS

News On Japan
POPULAR NEWS

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS
         

MORE Business NEWS

A series of cyberattacks has exposed millions of personal records belonging to customers of major Japanese companies, including Muji, Matsuya and All Nippon Airways, as well as individuals connected to the Foreign Ministry, while cybersecurity experts investigating a separate attack involving GMO say a serious mistake by the hackers may provide crucial clues to their identities.

Japan's furniture and home goods retailer Nitori opened what it describes as its largest store in the world on October 30th in Osaka's Chayamachi district, bringing a major new retail destination to an area east of Hankyu Osaka-Umeda Station known for its youth culture, fashion boutiques, and specialty shops.

Japan's Nikkei 225 Stock Average plunged 1,369.36 points, or 2.12%, to close at 63,290.11 at 3:30 p.m. on Friday, October 30, ending a three-day winning streak as a sharp selloff in semiconductor and artificial intelligence-related shares swept through the Tokyo market, while the Bank of Japan's decision to leave interest rates unchanged failed to restore investor confidence.

The Bank of Japan announced on October 30th that underlying inflation has effectively reached its 2% target for the first time since the goal was introduced in 2013, marking a major milestone in the country's efforts to achieve sustained price growth, while keeping its benchmark interest rate unchanged at 1.25% as policymakers assess the impact of last month's rate increase.

Halloween celebrations across Japan are becoming increasingly expensive as October 31 approaches, with costume prices nearly doubling over the past five years and the average spending budget rising to 8,148 yen, prompting more people to find creative ways to enjoy the annual event without stretching their finances.

Hands Shibuya, one of Tokyo's best-known variety stores, will close on November 15 after 48 years in business, bringing an end to a shopping destination famous for its enormous selection of innovative household goods, stationery and unusual gadgets, with around 100,000 products still filling its shelves in the final weeks before closure.

Tokyo stocks extended their recovery on Thursday, October 29, with the Nikkei 225 closing at 64,659.47 points at 3:30 p.m., up 705.28 points, or 1.10%, from the previous session, as renewed buying of semiconductor and artificial intelligence-related shares helped the benchmark record its third consecutive daily gain ahead of the Bank of Japan's monetary policy decision.

GMO has announced a reward totaling approximately 150 million yen for information leading to the identification of hackers responsible for a cyberattack on its systems, while also pledging compensation to customers whose personal information has been exposed, as Japan faces a growing wave of cyberattacks targeting major companies.