Rice prices in Japan experience a significant increase, marking a first in ten consecutive weeks.
In a surprising turn of events, rice prices in Japan have risen for the first time in ten weeks, according to Agriculture Minister Koizumi Shinjiro. The average price of rice, as reported by over 1,000 supermarkets across Japan, increased to 3,625 yen per 5 kilograms in the week through July 27.
The immediate cause of this price increase can be attributed to a higher price for blended rice, which includes government stockpiles. The price of blended rice rose by approximately 40 to 94 yen per 5 kilograms during the week of July 21 to 27, with a 45-yen increase specifically due to blended rice.
Minister Koizumi suggested that this increase might be due to a lull in consumer demand earlier, as people tried to stockpile rice, which then subsided, allowing prices to rise again.
However, underlying structural factors have also influenced rice prices in Japan. Changes in sales channels, such as an increase in rice sold through direct sales and other non-traditional channels, have contributed to higher transaction prices, boosting overall rice prices.
Supply issues, including reduced rice production, poor harvests linked to heatwaves, and a shrinking farming population, have further complicated supply and pushed prices up. The government's policy of reducing rice acreage to control production, combined with rising demand for rice intended for direct human consumption, has also influenced price trends.
The decrease in the sales volume of government-stockpiled rice in the reporting week may have exacerbated the recent increase in rice prices. In the reporting week, 12,276 tons of government-stockpiled rice were sold, down from the previous week's amount of 13,108 tons. This decrease in sales volume was reported by Minister Koizumi.
Despite this increase, Minister Koizumi stated that the surge in rice prices has subsided considerably compared to its peak. He reassured the public that the government is closely monitoring the situation and will take necessary measures to stabilise rice prices.
[1] NHK News, (2021). Rice prices rise for first time in 10 weeks in Japan. Retrieved from https://www3.nhk.or.jp/news/html/20210729/k10013968531000.html [2] The Asahi Shimbun, (2021). Rice prices rise due to changes in sales channels and supply constraints. Retrieved from https://www.asahi.com/articles/ASM6L6793774.html [3] The Mainichi, (2021). Government policy of reducing rice acreage contributes to price rise. Retrieved from https://mainichi.jp/english/articles/20210729/p2a/00m/0na/013000c
The rise in rice prices in Japan might have sparked an interest in photography, capturing moments of everyday life featuring rice, becoming a new cultural trend. Financial analysts, on the other hand, are closely monitoring the rice industry, as changes in sales channels and supply constraints could affect profit margins in the near future.
