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The agriculture ministry plans to allow retailers to continue selling rice from government reserves beyond the current deadline of the end of August.

Sources said the ministry determined that it will be difficult for retailers to meet the deadline as time-consuming processes, such as transportation from warehouses and milling, have delayed distribution.

Detailed procedures are expected to be finalized and announced soon.

The ministry began releasing rice from government stockpiles through negotiated contracts in late May.

A key condition is that the rice must be sold by the end of August before newly harvested crops become widely available.

Of the 500,000 tons allotted for release, applications were finalized for about 300,000 tons.

However, supermarkets and other retailers had sold only about 100,000 tons as of Aug. 10.

Some retailers said they have not received rice nearly two months after applying.

Businesses have also asked for an extension of the sales deadline.

The stagnation in distribution of inexpensive stockpiled rice is affecting rice prices.

According to the agriculture ministry, the average price of a 5-kilogram bag of rice sold at about 1,000 supermarkets nationwide was 3,737 yen ($25), including tax, in the week ending Aug. 10.

This is up 195 yen, or 5.5 percent, from the previous seven-day period, marking the largest week-on-week increase since the survey began in March 2022.

Of all the rice sold, the share of “blended rice and other products” category, which includes stockpiled rice, fell to 48 percent from 55 percent the previous week.

Due to the sluggish distribution of stockpiled rice, the intended effect of these rice reserves holding down the average price has likely diminished. 

Stockpiled rice typically sells for about half the price of its brand-name counterparts at 2,000 yen per 5 kg.

Yield from this year's early harvest has already begun appearing in stores at high prices. If the sale of cheaper stockpiled rice comes to an end as originally scheduled, the overall average rice price could rise further and negatively impact household budgets.

Stockpiled rice was originally sold through auctions to distributors, such as agricultural cooperatives, and wholesalers.

However, the agriculture ministry switched to direct sales to retailers through discretionary contracts following criticism over slow distribution.

Contracts were initially limited to major retailers. After the program was expanded to include smaller businesses, the increased workload has slowed the pace of distribution.

Source : asahi