Japan Press Weekly

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2011 June 29 - July 5 [AGRICULTURE]

Japan rice will be subject for speculation on futures trading

The agricultural ministry on July 1 gave approval for the Tokyo and the Osaka Commodity Exchanges to trade in domestically produced rice on a trial basis in futures markets for the first time in 72 years. Rice producers are protesting that the measure will turn Japan’s staple food into an item for speculation.

Farm Minister Kano Michihiko said that the March 11 disaster devastated some rice production areas but that “we will make assurance doubly sure on rehabilitation and reconstruction, so there will be nothing wrong with the test-listing.”

Chairman of the Central Union of Agricultural Co-operatives (JA-Zenchu) Moteki Mamoru on the same day expressed “strong protest” against the government giving a green light to a test-listing of domestically produced rice.

A statement he published points out that the government “is seeking to adopt a rice policy based on thorough market fundamentalism by allowing Japan’s staple to enter into futures trading, the field for speculative money games.”

The statement goes on to say, “The Great East Japan Disaster and the nuclear accident heavily damaged Japan’s leading rice growing district. I feel strong resentment towards the authorities ignoring the feelings and the voices of producers who are greatly concerned about future rice production and sales and are making all-out efforts to restore and revitalize regional farming.”

The JA group said that it will not participate in futures trading of rice and is taking a firm stand against an official-listing of rice.

President of the National Federation of Farmers Movement (Nominren) Shiraishi Jun’ichi on the same day also said that he is absolutely against futures trading where people’s staple food of rice will be targeted for speculation.

Shiraishi said that he cannot understand the government giving consent to futures trading of rice at a time when rice production is becoming unstable due to the March 11 incident, and that he will do everything to stop the government from going any further.