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TOKYO -- The Japanese government and ruling coalition decided May 14 to distribute 100,000 metric tons of stockpiled rice as the fourth batch release to ease price increases for the staple food item, according to a source close to the government.

The government has released its reserve rice three times so far, but prices have remained high. Authorities hope that additional releases will increase the supply and help bring down prices. An official announcement on the fourth release is expected soon.

In April, Prime Minister Shigeru Ishiba instructed agriculture minister Taku Eto to release stockpiled rice every month until around July, before new crops reach the market. In addition to the fifth round of release planned for June, the government is working out measures to continue the monthly releases of 100,000 tons after that.

So far, the government has held three rounds of bidding targeting rice collection agents -- those who purchase rice from producers and deliver it to the market. Approximately 140,000 tons was bought in the first round, 70,000 tons in the second and 100,000 tons in the third, totaling about 310,000 tons. Reserve rice has been released in sequence since mid-March. According to the Ministry of Agriculture, Forestry and Fisheries, 3,018 tons had reached retailers such as supermarkets by April 13, with volumes appearing on store shelves continuing to grow.

The agriculture ministry said due to the increased presence of blended rice containing stockpiled rice at retailers, the average retail price of a 5-kilogram bag of rice sold at supermarkets nationwide was 4,214 yen (tax included, about $29) from April 28 to May 4 -- marking the first drop in 18 weeks. Still, prices remain roughly double those of the same period last year.

Because of this, the government believes that wholesalers, who purchase rice from collection agents, are adding markups when selling to retailers. Authorities plan to urge these wholesalers to cooperate in stabilizing rice prices.

Source : mainichi