FX.co ★ Japan Moves to Curb Rice Prices with Direct Sales

On Monday, Japan initiated direct sales of government rice stockpiles to help curb escalating prices. This strategic decision follows a commitment by the newly appointed Minister of Agriculture, Shinjiro Koizumi, to reduce the cost of rice to approximately 2,000 yen ($14) per 5 kilograms by early June. This initiative seeks to alleviate widespread dissatisfaction stemming from the government's previous inability to control rising rice prices amidst inflation and stagnant wage growth. Approximately 300,000 tons of rice will be sold directly to major retailers, such as supermarkets, thereby circumventing the traditional auction system, which has predominantly been controlled by farming cooperatives with limited influence over price regulation. "Continued reliance on previous methods would not meet public expectations," Koizumi remarked to officials. He added, "We will act swiftly and decisively to alleviate public concerns." Additionally, a nationwide task force comprising 500 members has been established to tackle the issue, with Koizumi emphasizing the importance of preventing a reduction in rice consumption due to high prices.