Japan Press Weekly

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2014 August 20 - 26 [ECONOMY]

Do-nothing gov’t brings about dramatic drop in domestic producer rice price

The price of domestic rice is sharply declining as Japan’s government has abandoned the policy to adjust rice supply and demand with Japan’s participation in the Trans-Pacific Partnership (TPP) free trade pact in mind.

The expected price of the high grade Koshihikari grown in Chiba Prefecture this year is 9,000 yen per 60kg, down 3,000 yen from a year earlier. The price of the high-quality Akitakomachi produced in Ibaraki Prefecture is 7,800 yen, down 2,200 yen from the previous year. The highest-quality Koshihikari from Niigata Prefecture, whose price is regarded as a benchmark for all domestic rice brands, dropped to 12,000 yen by 1,700 yen compared to a year ago.

According to the survey results released by the agriculture ministry, a rice farmer needs to receive at least 16,000 yen per 60kg to break even.

Due to the decrease in rice consumption and bumper harvests in recent years, wholesalers and the National Federation of Agricultural Cooperative Associations are overstocked with rice. They are dumping their excess stock, bringing about a collapse of the rice price.

Under the assumption that Japan will take part in the TPP framework, the central government has reduced its responsibility for adjusting the supply and demand of domestically grown rice. This year, Prime Minister Abe Shinzo’s administration cut by half the amount of subsidies for farmers who achieved a reduction target in rice production. The state plans to totally abolish its adjustment policy in 2018.

The Japan Family Farmers Movement (Nouminren) is demanding that the government directly purchase the surplus rice produced last year in order to stabilize the rice price.

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Nouminren held an exchange meeting for rice farmers and distributors on August 24 in Tokyo with about 140 people participating.

At that gathering, a rice shop owner underlined the need for the government to implement measures to support the price of rice, saying, “Farmers are complaining that they can barely survive by growing rice. As for us, rice dealers, also can barely make a living by selling rice.”

Past related article:
> Farmers call for gov’t measures to deal with slump in rice price [September 4, 2013]