Why Is Rice So Expensive in Japan Now? Government Reserve Release Explained
📊 Rice Prices Have Skyrocketed Since 2024
In early 2024, a 5kg bag of rice typically cost around ¥2,000. By spring 2025, prices hit over ¥4,000 for certain brands, sparking concern across Japan. What caused this dramatic spike?
🔍 Key Reasons Behind the Surge
- Extreme weather: The 2023 heatwave significantly reduced the percentage of premium-grade rice.
- Tourism boom: Rising demand from inbound tourism pressured food supply chains.
- Distribution chaos: JA struggled to purchase rice, forcing retailers into costly spot purchases.
- Weakened yen & high farming costs: Fertilizer, fuel, and pesticide costs skyrocketed, prompting farmers to raise prices.
🏛 Koizumi Steps In With Rice Reserves
In early 2025, Agriculture Minister Shinjiro Koizumi authorized the release of over 300,000 tons of government-stored rice from the 2020–2021 stock.
- Major retailers like Rakuten and AEON offered 5kg bags for around ¥2,000.
- Consumer response was massive—many batches sold out instantly.
- Slow logistics revealed deeper issues in Japan's distribution system.
⚖️ Was Distribution the True Culprit?
While logistics delays worsened the crisis, experts point to structural problems. JA’s declining purchasing power and opaque pricing mechanisms made rice markets highly unstable.
🔮 What’s Next?
As reserve rice reaches shelves and the government considers reforms, prices may stabilize. Still, transparency in rice distribution and better demand forecasting are key to preventing future crises.