Government agricultural policy allows large corporations to rule rice market

The Agriculture, Forestry and Fisheries Ministry, and the ruling parties agreed on an outline of the budget request for the next fiscal year on July 27.

Under the budget plan, the government will buy up surplus rice at 5,000 yen (42 dollars) per 60 kg, less than 30 percent of the standard price of rice, further pressing down rice prices in general, and will even allow trading firms and other large supermarket chains to buy up rice at discount prices.

On the production side, the total number of agricultural households in January 2003 was 2.98 million, the lowest number ever and less than half the number for the 1960s. Paddy acreage also continues to decline as a result of the Liberal Democratic Party policy of importing rice and discouraging farmers from producing rice.

The bill to revise the staple food law was enacted recently. The JCP proposed that the government buy up 300 million tons of rice at 8,000 yen (67 dollars) per 60 kg to ensure s stable supply against unfair cornering by large corporations. It also proposes to do without rice imports by stabilizing rice production through guaranteeing reasonable prices and income for producers.

The United Nation's Food and Agriculture Organization has predicted an increase in demand for rice and called for increased production. (end)