The government plans to release another 200,000 tons of rice from its stockpiles through direct contracts with retailers, farm minister Shinjiro Koizumi said Tuesday, in the latest effort to curb the elevated prices of Japan's staple food.
The move will leave the country with a rice reserve of 100,000 tons. Koizumi said the released rice will go to smaller supermarket operators in addition to major retailers.
Japan had stockpiled 910,000 tons of rice before it released around 310,000 tons in auctions in March and April. Koizumi, who became farm minister on May 21 after his predecessor resigned over a gaffe about gifts of rice from supporters, decided to release 300,000 tons by resorting to the rare step of sales through direct contracts with retailers.
Rice prices have doubled compared with last year, averaging 4,260 yen ($29) per 5 kilograms in late May. The government expects the cheaper rice sold through direct contracts to bring down overall prices.
The released rice will consist of 100,000 tons each from the 2020 and 2021 harvests. Koizumi said he expects the 2020 rice to be sold at 1,700 yen per 5 kg.
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