Japan Reveals Plans to Double Rice Reserves, Ease Auction Rules
(MENAFN) Japan intends to increase its rice reserves to approximately 600,000 tons—nearly twice the current volume—and will loosen conditions tied to purchasing rice from its reserves, as domestic rice prices hover close to all-time highs, according to local media on Thursday.
A Japanese news outlet reported that the government plans to release around 100,000 tons of stored rice each month through July. This comes on top of the 321,000 tons already distributed through three auctions held between March and April.
Although rice prices had climbed to unprecedented levels, they dipped for the first time in 18 weeks during the period ending May 4.
At present, wholesalers purchasing reserve rice are generally required to repurchase an equivalent amount within a year. Participation in rice auctions is contingent upon agreeing to this buyback condition.
However, some members of the ruling Liberal Democratic Party have advocated for easing this rule, as it is believed to deter distributors concerned about being unable to fulfill the buyback obligation if a shortage arises.
The agriculture ministry is currently exploring options to extend the buyback period by several years, the report noted.
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