Japan gov’t to buy back stockpiled rice over price collapse concerns
Japan plans to buy back rice from its 2025 stockpile in September as rising inventories and a strong 2026 harvest outlook raise concerns over oversupply and price collapse. Private rice stocks reached a record 2.43 million tonnes, while retail prices have fallen to around ¥3,000 per 5 kg.
TOKYO – Japan’s farm ministry is set to buy back rice it released from its stockpile in 2025 amid calls by farmers concerned about a price collapse, sources close to the matter said Wednesday.
The Ministry of Agriculture, Forestry and Fisheries plans to carry out the buyback in September after confirming production conditions for the 2026 harvest based on statistics to be released next Monday and holding an experts meeting.
While inventories of 2025 rice swell, newly harvested rice is beginning to enter the market, making the rice surplus increasingly apparent.
The ministry released a total of 590,000 tons of stockpiled rice in 2025 in response to rice shortages.
Stockpiles now stand at 320,000 tons. Even when rice to be secured from the 2026 harvest is included, the total would only reach 530,000 tons, about half the appropriate level of 1 million tons.
While farm minister Norikazu Suzuki had sought an announcement by late July regarding the buyback, Prime Minister Sanae Takaichi took a cautious stance, saying it would run counter to measures to curb inflation.
At an experts meeting held on July 28, the ministry said it would “assess supply and demand, including the outlook for the 2026 crop.”
Due in part to increased production in 2025, private-sector inventories of rice hit a record 2.43 million tons as of the end of June, making rice oversupply more pronounced.
The ministry estimates that if the 2026 crop is harvested as expected, production will total 7.32 million tons, exceeding the projected demand of 6.93 million to 7.11 million tons.
Meanwhile, the average retail price of rice at supermarkets nationwide has fallen to around 3,000 yen ($19) per 5 kilograms.
The average price spiked to over 4,000 yen during the shortages that began in the summer of 2024, due in part to extreme summer heat that reduced the previous season’s harvest.
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Source : Japan Today
