Japan Govt to Consider Buying Back High-Bid Stockpiled Rice; Koizumi May Consider Rereleasing Through No-Bid Contracts
Japan’s government may repurchase rice sold under former Minister Taku Eto’s competitive bidding system if distributors agree. Agriculture Minister Shinjiro Koizumi said re-releasing it via no-bid contracts is an option. Bidding prices were nearly double previous no-bid rates. Only 20% of the 210,000 tons auctioned reached retailers. Around 1,500 no-bid rice applications have been received.
The government may consider buying back stockpiled rice that was released though general competitive bidding under former agricultural minister Taku Eto if distributors are willing to return it.
During a press conference after the Cabinet meeting on Tuesday, Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi stated that some distributors are calling for the cancellation of transactions completed during that time as the bidding process yielded higher prices than no-bid contracts.
“If such a request is made, we want to respond appropriately and take advantage of [the opportunity,]” said Koizumi, adding that re-releasing the rice through no-bid contracts is “one option.”
The average successful bid price from the three bidding sessions for 60 kilograms of unpolished rice was ¥20,812 excluding tax, roughly double the selling price of ¥1,010 for rice harvested in 2022 that was released via no-bid contracts.
According to the Agricultural, Forestry and Fisheries Ministry, of the about 210,000 tons of stockpiled rice that was auctioned off in March, only 41,975 tons, about 20%, had reached retailers, restaurants and other food-related businesses.
Koizumi also announced that the government had received about 1,500 applications from small and medium-sized supermarkets and rice dealers for stockpiled rice sold through no-bid contracts.
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Source : The Japan News
