Japan starts 1st rice buyback to replenish reserves
Japan has begun buying back 210,000 tonnes of rice to rebuild government reserves after emergency releases in 2025 depleted stockpiles. The move aims to strengthen food security following recent supply shortages while supporting market stability. Additional purchases from the 2026 crop will further restore strategic reserves to safeguard future rice availability.
Japan’s farm ministry on Friday began procedures to buy back 210,000 tons of rice to replenish government reserves drawn down by releases in 2025, the first such move since the current stockpiling system began in fiscal 2011.
The Ministry of Agriculture, Forestry and Fisheries is negotiating contracts with up to 10 companies and organizations, with deals potentially concluding the same day if agreement is reached on prices and other terms.
The move comes as the government seeks to rebuild its rice reserves following a shortage crisis that began around summer 2024 and sent prices of the staple food sharply higher.
While the ministry said the buyback would not have a major impact on price trends, it could help support prices as the amount of rice available on the market will be reduced.
The government released a total of 590,000 tons of emergency rice reserves in 2025, leaving its stockpile at around 320,000 tons, well below the roughly 1 million tons deemed an appropriate level.
The rice covered by the latest buyback will come from the 2025 crop and be purchased from among the 10 companies and organizations that successfully bid for a combined 310,000 tons of reserve rice released in auctions in March and April last year.
They include agricultural cooperatives and rice distributors. The National Federation of Agricultural Cooperative Associations secured more than 90 percent of the rice sold in the auctions and is expected to account for most of the buyback.
The ministry said it will disclose the amount purchased and the number of contracts after the buyback deals are concluded.
In addition to the 210,000 tons being sought this time, the ministry has already signed contracts to purchase 210,000 tons from the 2026 crop as part of efforts to restore reserve levels.
The overall reserve level is expected to eventually come to around 590,000 tons, after reserve rice from the 2020 crop is exhausted from the government stockpiles under the practice of removing older rice for use as animal feed and other purposes
To Read more about Rice News continue reading Agriinsite.com
Source : Japan Today
