Japan : Rice Price for Wholesalers Climbs 73% in February; Reaches Record High For Sixth Consecutive Month
The average price of brown rice in Japan reached a record high for the sixth consecutive month in February 2024, rising 73% from the previous year to ¥26,485 per 60 kg. Due to soaring prices, 19 prefectures plan to increase rice production in 2025. The government will hold a second auction for stockpiled rice from March 26-28.
The average price wholesalers paid for brown rice harvested in 2024 hit a record high for the sixth straight month in February, according to the Agriculture, Forestry and Fisheries Ministry.
The average price stood at ¥26,485 for 60 kilograms, up 73% from a year before. It was also ¥558 higher, or 2%, from a month before.
This is the average transaction price between rice wholesalers and organizations that collect rice from farmers, such as the National Federation of Agricultural Cooperative Associations (Zen-Noh). The ministry began collecting such data for rice produced in 2006.
The average sales price of rice between September, when rice produced in 2024 came on the market, to February was ¥24,383. This topped the average price of ¥23,607 for rice produced in 1993, when there was a serious shortage.
Among major brands, Hokkaido-produced Nanatsuboshi traded at ¥28,020, up 80% from a year ago. Akitakomachi from Akita Prefecture was priced at ¥25,634, up 67%, and Koshihikari from Niigata Prefecture traded at ¥25,786, up 53%. Due to intensifying competition among those who collect and buy rice, rice prices are surging for a wide range of brands.
As of the end of January, 19 prefectures planned to increase rice production this year, according to a ministry survey on individual prefectures’ intended rice acreage in 2025. Soaring rice prices are motivating farmers to grow more rice, and the number of prefectures that intend to increase production in 2025 went up significantly from five in the previous year.
While major rice production centers, mainly those in eastern Japan, indicated they would increase rice production, 24 prefectures were planning about the same production as in 2024 and four prefectures planned to reduce production.
The total acreage of rice for use as a staple food is expected to increase 1.8% from the preceding year to 1.28 million hectares.
To balance rice production with demand, the farm ministry takes surveys at the end of January each year, to be followed by additional checks at the end of April and June. Acreage may fluctuate according to producers’ intentions.
2nd auction to take place next week
The farm ministry announced Wednesday that it will hold the second auction of government-stockpiled rice from March 26 to 28.
About 70,000 tons of rice of 35 varieties, including Haenuki and Koshihikari, will be part of the upcoming auction. Of this amount, 40,000 tons of rice was produced in 2024, while 30,000 tons were produced in 2023.
The rice is expected to be handed to successful bidders in mid-April or later. The ministry hopes the measure will increase the amount of rice available in the market and help reduce prices.
The government plans to release a total of 210,000 tons of reserve rice. The first batch of 150,000 tons of rice was put up for the first auction conducted on March 10-12. More than 90%, or 141,796 tons of rice, drew successful bids, with an average bidding price of ¥21,217 per 60 kilograms.
The government began handing over the reserve rice sold at the initial auction on Tuesday. The rice is expected to hit store shelves as early as in late March.
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Source : Japan News
