Japan’s farm ministry announced on Monday a plan to reduce stockpiled rice prices to approximately 2,000 yen ($14) per 5 kilograms (11 lb) and expedite its distribution to retail stores. This initiative addresses rising rice prices, driven by crop damage from extreme heat and increased demand from tourism, which have strained consumer budgets.

Japan's Prime Minister Shigeru Ishiba speaks to media after a meeting with incoming Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi (not in picture) at his official residence in Tokyo, Japan May 21, 2025.

To achieve this, the government will release 300,000 metric tons of stockpiled rice—equivalent to about half a month’s national consumption—through discretionary contracts with retailers. This move aims to make rice more affordable and accessible. Previously, in March, the government auctioned 210,000 metric tons, but only 7% reached stores by late April due to a complex, multi-layered distribution system that favored high bidders, keeping retail prices elevated.

Supermarket data showed rice prices at 4,285 yen per 5 kg for the week ending May 18, a 17-yen increase from the prior week. To counter this, the government will subsidize transportation costs to ensure stockpiled rice reaches shelves by early June at the targeted price of 2,000 yen. The ministry is also exploring options to distribute rice beyond traditional retailers.

Newly appointed Agriculture Minister Shinjiro Koizumi, who began his role last week, emphasized swift action. He stated: “The price of rice has about doubled compared to last year. We felt continuing the same way as before would not meet the people’s expectations.” Koizumi added: “We will dispel public concerns about rice prices with even greater speed and a greater sense of urgency.” His comments reflect the urgency to stabilize prices ahead of the upper house election in July.

On Friday, Koizumi met with Hiroshi Mikitani, CEO of Rakuten Group, who expressed the online retailer’s readiness to support the government’s efforts. This collaboration could enhance distribution efficiency, ensuring rice reaches consumers more quickly.

The initiative focuses on balancing supply and consumption without disrupting Japan’s rice market. By leveraging stockpiled reserves and streamlining logistics, the government aims to ease consumer costs while maintaining the stability of domestic rice production.