Japan's Strategic Move to Slash Rising Rice Prices

Japan plans to significantly lower stockpiled rice prices to 2,000 yen per 5 kg and expedite distribution to counteract rising rice costs. The move is critical as Japan faces crop damage from extreme heat and increased demand from tourism, impacting Prime Minister Shigeru Ishiba's government's approval ratings. New Agriculture Minister Shinjiro Koizumi and Rakuten Group CEO Hiroshi Mikitani collaborate to address these concerns.

In a bid to alleviate rising rice costs, Japan's government is taking decisive action. The farm ministry announced plans to reduce stockpiled rice prices to 2,000 yen per 5 kg, swiftly bringing relief to consumers grappling with high staple grain prices.

The surge in rice costs, exacerbated by extreme weather conditions and growing tourism demand, poses a significant challenge for Prime Minister Shigeru Ishiba's administration, particularly with dwindling public support ahead of the July upper house election. The government will release 300,000 metric tons of stockpiled rice to retailers, promised the newly appointed Agriculture Minister Shinjiro Koizumi.

Minister Koizumi, backed by Rakuten Group CEO Hiroshi Mikitani, highlighted the urgency to revamp the rice distribution framework. The government's initiative also includes covering transportation costs, ensuring reduced-priced rice reaches stores promptly. Stockpiled rice may be sold beyond retail platforms as circumstances evolve, marking a strategic shift in Japan's approach to stabilize rice prices.

(With inputs from agencies.)