The average price of Japan's 2024 rice crop sold to wholesalers surged in January to hit a record high for the fifth straight month, the agriculture ministry said Wednesday.
The January average rose 69% from a year earlier to ¥25,927 per 60 kilograms of brown rice amid intensifying demand.
The ministry surveys and releases monthly the average transaction price, a key market gauge, between rice wholesalers and buyers dealing with farmers, such as the National Federation of Agricultural Cooperative Associations, or Zen-Noh.
Behind the record-breaking rise are intensifying competition among buyers since the serious shortage of the country's staple food in stores in summer 2024 and hoarding by those bullish about rice prices.
The ministry has decided to release 210,000 tons of rice from the government's stockpile because Zen-Noh and others are unable to procure enough rice, hindering smooth distribution.
Agriculture minister Taku Eto announced the release plan on Jan. 24. But the latest survey shows that the announcement has had little impact on transaction prices.
The ministry plans to sell stockpiled rice to major buyers whose rice purchases exceed 5,000 tons per year, on condition that it buys back the same amount basically within a year.
It will first release 150,000 tons, which will be put out to tender, aiming to start deliveries in mid-March. The released rice is expected to become available in stores as early as late March.
As for the remaining 60,000 tons, the ministry will decide when to put the rice to tender after examining the distribution situation.
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