"2,000-Yen" govt-stockpiled rice reaches consumers in Japan
Japanese government-stockpiled rice released under no-bid contracts started to hit store shelves at reasonable prices in some areas in the country on Saturday, with the focus now on whether this would lead to price falls for other types of rice.
Some retailers, including supermarket chain Ito-Yokado Co., began selling government-stockpiled at some of their outlets the same day and others are set to follow suit one after another from Sunday, meaning that agriculture minister Shinjiro Koizumi's target of realizing rice prices of 2,000 yen per 5 kilograms was achieved in just over a week since it was set out.
Ito-Yokado's Omori store in Tokyo's Ota Ward prepared 500 5 kg bags of government-stockpiled rice harvested in 2022 with a price tag of 2,160 yen each, including tax. All of the numbered tickets for the bags were distributed before the store opened at 10 a.m., and the prepared bags were sold out within about 30 minutes after the opening.
The situation was similar at an outlet of household goods supplier Iris Ohyama Inc.'s Daisin hardware store chain in Sendai, Miyagi Prefecture, northeastern Japan. Some 250 people were lined up at the store as of 7:30 a.m. for the 95 5 kg bags of government-stockpiled rice put on sale also at 2,160 yen each. They were sold out immediately after going on sale at 9 a.m.
On Sunday, major retailer Aeon Co. and discount store operator Don Quijote Co., a subsidiary of Pan Pacific International Holdings Corp., will start selling government-stockpiled rice at their stores in Tokyo. They plan to gradually expand their sales areas.
The government is also advancing preparations for releasing 80,000 tons of its stockpiled rice harvested in 2021 to small and medium-sized businesses, including rice shops.
The next issue is whether making inexpensive government-stockpiled rice available around the country can help lower overall rice prices.
Retail rice prices have remained high, with the average price of rice sold at about 1,000 supermarkets across Japan in the week through May 18 rising to 4,285 yen per 5 kilograms, the highest since records began in March 2022.
"I want the prices of other rice to go down to around 3,000 yen," a man who bought a bag of government-stockpiled rice after waiting in a line since early morning said, expressing hope for the effects of the release of the inexpensive rice.
Ito-Yokado President Tetsuya Yamamoto said, "There are no prospects for the prices of other rice to come down." "We think it would be fine if we can provide (government-stockpiled rice released this time) as an option" for consumers, he added.
The outlook for rice prices remains uncertain. "It is impossible to lower the entire market prices of rice with the limited amount of government-stocked rice," a person related to the wholesale industry said.
[Copyright The Jiji Press, Ltd.]
