Tokyo: The Japanese government has announced plans to release an additional 200,000 tons of rice from its stockpiles through direct contracts with retailers. This move, announced by Japan’s farm minister Shinjiro Koizumi, is part of an effort to address the rising prices of the country’s staple food.

According to Lao News Agency, the rice release will include 100,000 tons from both the 2020 and 2021 harvests. Minister Koizumi indicated that the 2020 rice is expected to retail at 1,700 yen ($12) per 5 kilograms in stores. This strategic release will reduce the national rice reserve to approximately 100,000 tons, a significant decrease from the 910,000 tons held before the government initiated stock releases through auctions earlier in March and April.

The ministry has outlined that smaller supermarket operators, specialty shops, and major retailers will receive the released rice. Applications for distribution will be accepted starting Wednesday. “We will deliver the stockpiled rice quickly so that it will reach consumers at lower prices,” Koizumi stated during a news conference.

Japan maintains a rice reserve of about 1 million tons to prepare for emergencies such as natural disasters or crop failures, purchasing around 200,000 tons annually from farmers over a five-year period. The nation’s annual domestic rice demand stands at roughly 6.7 million tons. Since last summer, rice has been in short supply, resulting in elevated prices that have doubled compared to the previous year, reaching an average of 4,223 yen per 5 kg by early June.

The government suspects that some wholesalers and farmers might be hoarding rice in anticipation of further price increases. In response to public concerns, the government, led by Prime Minister Shigeru Ishiba, convened a meeting with relevant ministers earlier this month to evaluate Japan’s rice policy and investigate the reasons behind the persistent price hikes.

Koizumi, who took over as farm minister on May 21 following the resignation of his predecessor Taku Eto, has authorized the release of 300,000 tons of rice through direct retail contracts. This decision aims to reduce prices by providing more affordable rice to the market.