Mixed Feelings as Stockpiled Rice Arrives at Stores; In Spite of Expected Short-Term Price Relief, Worries Arise about Persistent Market Problems
The Japanese government’s release of stockpiled rice has begun reaching supermarkets, aiming to mitigate soaring prices. Despite this intervention, rice prices in Tokyo surged by approximately 90% in March compared to the previous year, marking the largest increase since 1971. The stockpiled rice, often sold as blended varieties, is priced lower than current retail rates, but its impact on overall market prices remains uncertain. Factors such as poor harvests due to high temperatures and increased demand have contributed to the price surge. The government’s efforts continue as they plan further auctions to stabilize the market.
The first lots of government-stockpiled rice, released to ease distribution, have reached shelves at supermarkets and other stores, sparking a mix of anticipation and apprehension among retailers.
It is expected that the majority of this rice will be sold as “blended rice,” a combination of varieties and harvests from multiple regions.
At present, retail prices exceed ¥4,000 per 5 kilograms. However, the price of the released stockpiled rice may be several hundred yen cheaper, in the range of ¥3,000. The key question is whether this will spur a substantial downward trend in the current high rice prices.
Continuing high prices
Zen-Noh Pearl Rice Co., a rice wholesaler affiliated with the National Federation of Agricultural Cooperative Associations (Zen-Noh), has already begun shipments to some supermarkets and other stores in the Tokyo metropolitan area.
Another rice wholesaler has said that shipments will begin in earnest this weekend, mainly in the Kanto region, and that the retail price of the blended rice is likely to be in the mid-¥3,000 range.
The Agriculture, Forestry and Fisheries Ministry reported the average supermarket rice price from March 10-16 was ¥4,172. This marks the 11th consecutive week of elevated prices, more than double the ¥2,045 average recorded during the same period last year.
Major supermarkets plan to start selling stockpiled rice in their stores by the end of the month.
“Customers demanding stockpiled rice could cause some turmoil. So, in accordance with a request from Zen-Noh, we will refrain from labeling the stockpiled rice as such,” a major supermarket official said.
Many stores are expected to leave their stockpiled rice unlabeled. However, as the stockpiled rice may be 10-20% cheaper, depending on the store, “consumers will probably know which is which due to the price difference,” the official said.
The Japanese Consumers’ Co-operative Union has announced plans to begin selling government-released stockpiled rice at some of its stores in the Kanto and Kansai regions at the end of this month.
They are expected to sell blended rice for prices in the range of ¥3,000 per 5 kilograms. The Co-op is also exploring the possibility of offering the rice through its home delivery service, with distribution to begin as soon as supplies are available.
However, the released rice will not be distributed to all retailers. A supermarket owner in Adachi Ward, Tokyo, grumbled: “Small-scale supermarkets are not receiving any of this rice. Given the current high price of rice, aren’t stores with roots in the community the ones that need access to cheaper options?”
Food service industry
The restaurant industry also is exploring the use of stockpiled rice to ensure a consistent supply in response to rice shortages.
Yoshinoya Holdings Co., Ltd. a major beef bowl chain, conducted a tasting session of a 2-kilogram blend of stockpiled and imported rice purchased from a rice wholesaler on Monday.
The company said it plans to have more tasting sessions and change the blend ratio to determine whether to use the rice in its stores after confirming there are no taste or quality issues.
Colowide MD Co., which operates the Gyu-Kaku yakiniku chain and other restaurants, is also considering using the stockpiled rice.
Food service companies are concerned about whether stockpiled rice will be sufficiently distributed.
“We want to use the stockpiled rice to diversify our procurement sources, but distribution to major retailers will be prioritized, potentially excluding us,” an official from a major restaurant chain said.
Another major restaurant chain has also given up on the idea of receiving any stockpiled rice, saying, “It’s unlikely to reach the food service market.”
“[The distribution of stockpiled rice] will provide some price relief, but market awareness of the shortage is increasing. Because the distribution is prioritizing large retailers, the underlying supply shortage will persist,” said Nobuhiro Suzuki, a specially-appointed professor at the University of Tokyo. “Consequently, price reductions may not materialize during the summer, when the market is in the off-season.”
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Source : The Japan News
