Japan Govt to Relax Bidding Conditions for Stockpiled Rice
Tokyo — Japan may revise bidding rules for government rice stock sales amid rising prices. Agriculture Minister Taku Eto said the government is considering easing conditions to boost market supply. Current rules restrict auctions to large buyers and require a one-year buyback. Critics say this deters sales as distributors anticipate continued high prices.
Tokyo -The Japanese government is considering revising bidding conditions for the purchase of government-stockpiled rice, it was learned on Friday.
As rice prices keep rising despite the release of stockpiled rice, some in the ruling camp have suggested that there is a need to relax the bidding conditions. “We will take these opinions seriously,” agriculture minister Taku Eto told a press conference on Friday.
Under the current rules, large rice collectors who purchase 5,000 tons or more of brown rice annually are eligible to participate in auctions for government-stockpiled rice. The government will buy back the same quality and quantity of rice sold to the buyers within a year.
However, there are concerns that due to the one-year buyback rule, distributors are refraining from releasing rice in the market, because they expect rice prices to remain high.
Eto reiterated that the government will not necessarily stick to the buyback rule. “We will not take rice from the market if rice prices remain high,” the minister stressed.
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Source : Nippon.com
