More than 30 companies have applied to purchase over half of the 300,000 tons of stockpiled rice Japan plans to release through direct sales contracts with major retailers, the farm ministry said Tuesday, just a day after launching a new scheme to curb elevated rice prices.
Applicants, including supermarket giant Aeon Co., discount store chain Don Quijote, and e-commerce operator Rakuten Group Inc., will gain access to rice stockpiles produced in 2021 and 2022 at roughly half the price compared to the previous auction-based method.
As of 2 p.m., a total of 33 companies had signed up for 157,073 tons of the stockpiled rice, according to the Ministry of Agriculture, Forestry and Fisheries. Some of the rice is expected to reach retail shelves in early June.
Flooded with applications, however, the ministry later decided to temporarily suspend accepting further requests after finding that nearly all of the 200,000 tons of rice produced in 2022 had been ordered.
Farm minister Shinjiro Koizumi, who is leading the government's effort to drive down rice prices after his predecessor was sacked over a gaffe regarding the staple food, said on social media that following the pause, the remaining available rice will be from the 2021 harvest.
Of the 33 retailers, Aeon plans to sell about 20,000 tons of rice, priced at around 2,000 yen ($14) per 5 kilograms, in line with the government's target.
Mr Max Holdings Ltd., another discount store operator, said it is considering setting a price point below 2,000 yen per 5 kg, excluding tax.
The average price of the staple food at supermarkets has doubled from a year earlier in recent months despite the government's efforts to lower prices through the release of its reserve rice.
Looking ahead, the government will consider relaxing the current eligibility criteria for direct contracts, which have so far been limited to major retailers, to allow distribution to smaller supermarkets and rice shops, according to Koizumi.
On Monday, the farm minister said the government would sell its rice stockpiles through direct contracts, bypassing the auction system under which farming cooperatives had acquired most of the rice by consistently outbidding other buyers.
Koizumi said at a press conference Tuesday that the government is prepared to release its entire stockpile if necessary. A total of 312,000 tons were sold via auctions in March and April, with 300,000 tons of the remaining 600,000 tons set to be sold through direct contracts.
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