Japan Govt to Release 100,000 Tons of Reserve Rice Monthly
Japan’s agriculture ministry plans to auction 100,000 tons of reserve rice monthly from May to July to stabilize soaring retail prices. Despite earlier auctions, prices remain over twice last year’s levels. The ministry may ease buyback conditions and has urged wholesalers to avoid excessive markups, after reports of inflated resale margins to retailers raised consumer price concerns.
Tokyo -The Japanese agriculture ministry is considering releasing 100,000 tons of government-stockpiled rice through auctions planned to be held every month in May-July, informed sources said Thursday.
The government sold a total of 312,296 tons of reserve rice in three auctions conducted by April and has been releasing it gradually. Still, retail rice prices have remained high, at more than double the levels a year before. The government aims to encourage the smooth distribution of rice by releasing a set amount of reserve rice continuously.
The government sells reserve rice to buyers on the condition that it would buy back the same amount within a year in principle. Some within the ruling camp have called for this condition to be eased and the ministry is considering the possibility of relaxing it.
Furthermore, it has come to light that some wholesalers who purchased auctioned rice from successful bidders sold it to retailers with substantial profit surcharges. The government plans to ask for cooperation in not pulling up wholesale prices too much so as to prevent surges in retail prices.
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Source : Nippon.com
