Berliner Boersenzeitung - Rice prices Japan's hot political issue, on and off the farm

EUR -
AED 4.263676
AFN 82.438114
ALL 98.197938
AMD 447.328006
ANG 2.077719
AOA 1064.620337
ARS 1360.113561
AUD 1.782889
AWG 2.09267
AZN 1.98231
BAM 1.956722
BBD 2.342674
BDT 141.896826
BGN 1.957984
BHD 0.437859
BIF 3455.561321
BMD 1.160982
BND 1.486245
BOB 8.034922
BRL 6.368793
BSD 1.160281
BTN 99.784001
BWP 15.459547
BYN 3.797103
BYR 22755.242485
BZD 2.330588
CAD 1.591665
CDF 3340.145066
CHF 0.938903
CLF 0.028582
CLP 1096.814915
CNY 8.335272
CNH 8.326358
COP 4741.449506
CRC 587.294289
CUC 1.160982
CUP 30.766017
CVE 110.316953
CZK 24.793931
DJF 206.615313
DKK 7.459737
DOP 68.661745
DZD 150.686591
EGP 58.118052
ERN 17.414726
ETB 159.501699
FJD 2.609017
FKP 0.860691
GBP 0.85284
GEL 3.157763
GGP 0.860691
GHS 12.008862
GIP 0.860691
GMD 83.025513
GNF 10049.732879
GTQ 8.922202
GYD 242.743728
HKD 9.113683
HNL 30.306011
HRK 7.536862
HTG 152.280404
HUF 402.111859
IDR 18950.937456
ILS 3.946269
IMP 0.860691
INR 99.888536
IQD 1519.9027
IRR 48906.35684
ISK 142.219293
JEP 0.860691
JMD 185.527373
JOD 0.823139
JPY 168.280243
KES 149.964073
KGS 101.315044
KHR 4651.23054
KMF 496.319309
KPW 1044.873325
KRW 1578.052541
KWD 0.354993
KYD 0.966864
KZT 601.321318
LAK 25030.758329
LBP 103964.452593
LKR 348.590172
LRD 232.048276
LSL 20.568287
LTL 3.428078
LVL 0.702266
LYD 6.28596
MAD 10.560655
MDL 19.793492
MGA 5158.629385
MKD 61.566115
MMK 2437.450209
MNT 4159.051941
MOP 9.381582
MRU 45.839588
MUR 52.685565
MVR 17.884925
MWK 2011.925491
MXN 22.094052
MYR 4.927201
MZN 74.256677
NAD 20.568109
NGN 1798.860191
NIO 42.699925
NOK 11.711688
NPR 159.654001
NZD 1.924067
OMR 0.4464
PAB 1.160291
PEN 4.166962
PGK 4.782335
PHP 66.105965
PKR 330.610795
PLN 4.255334
PYG 9262.322161
QAR 4.229892
RON 5.049454
RSD 117.267321
RUB 91.168074
RWF 1675.403455
SAR 4.355275
SBD 9.683085
SCR 17.037594
SDG 697.165986
SEK 11.063181
SGD 1.48587
SHP 0.912349
SLE 26.064201
SLL 24345.211259
SOS 663.132291
SRD 45.093657
STD 24029.978407
SVC 10.151781
SYP 15095.003921
SZL 20.551475
THB 37.935659
TJS 11.434428
TMT 4.063436
TND 3.420311
TOP 2.719135
TRY 46.019577
TTD 7.884951
TWD 34.255344
TZS 3094.016229
UAH 48.442414
UGX 4175.092108
USD 1.160982
UYU 47.062164
UZS 14399.781516
VES 120.285628
VND 30382.892644
VUV 139.483894
WST 3.085782
XAF 656.271721
XAG 0.032129
XAU 0.00035
XCD 3.137612
XDR 0.816571
XOF 656.274549
XPF 119.331742
YER 281.712492
ZAR 20.580968
ZMK 10450.225714
ZMW 27.161259
ZWL 373.835653
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Rice prices Japan's hot political issue, on and off the farm
Rice prices Japan's hot political issue, on and off the farm / Photo: Richard A. Brooks - AFP

Rice prices Japan's hot political issue, on and off the farm

All is calm at Satoshi Yamazaki's rice farm, with its freshly planted rows of vivid-green seedlings, but a row over the cost of the staple in Japan is threatening to deal the government a blow at the ballot box.

Text size:

Shortages of the grain caused by a supply chain snarl-up have seen prices almost double in a year, fuelling frustration over inflation -- and voters could let their anger be known in upper house elections due next month.

To help ease the pain for consumers and restaurants, the government started tapping emergency stockpiles in March, having only previously done so during disasters.

Yamazaki, who grows about 10 percent of his rice organically using ducks to eat pests, said he understands high prices are "troubling" for ordinary people.

But he stressed that thin profits are a concern for many of those who produce it.

"There's a gap between shop prices and what farmers sell rice for to traders and the like," he told AFP in the northern Niigata region.

"Not all the money paid at shops becomes our income," said Yamazaki, a 42-year-old father of seven.

A mosaic of factors lies behind the shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide.

Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say.

The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike.

- 'Old' rice -

Meanwhile, the rising price of imported food has boosted the popularity of domestic rice, while record numbers of tourists are also blamed for a spike in consumption.

Farm minister Shinjiro Koizumi has pledged to cut prices quicker by selling stockpiled rice directly to retailers -- attracting long queues to some shops.

It appears to be working: the average retail price has edged down for a second week to 4,223 yen ($29) for five kilograms (11 pounds), down from a high of 4,285 yen in May.

That hasn't stopped opposition politicians -- with an eye on the elections -- and online critics branding the reserve rice "old", with some likening it to animal feed.

But analysts also blame Japan's decades-old policy of cutting rice-farming land. The policy was introduced to support prices that were being hit by falling demand brought about by changes in the Japanese diet.

Under the 1971 policy, farmers were told to reduce the amount of space used to grow the grain in favour of other crops.

That saw the amount of land used for rice paddies -- not including for livestock feed -- plunge below 1.4 million hectares (3.5 million acres) in 2024, from a peak of 3.3 million hectares in 1960.

While the policy was officially abolished in 2018, it has continued in a form of incentives pushing farmers towards other commodities like soybeans.

Adding to the crisis is Japan's ageing population. Many rice farmers are old and their children have no interest in taking over.

Eighty percent of rice farmers are part-time with less than two hectares of fields but they account for only 20 percent of production, said agronomy expert Kazunuki Oizumi, professor emeritus of Miyagi University.

Their main revenue comes from other jobs or pensions, he added.

- Agriculture 'destroyed' -

Toru Wakui, chairman of a large-scale farm in the northern Akita region who has for decades fought against the acreage reduction, said Japan should "seek an increase in rice production and exports to foreign markets".

"If you only think about the domestic market while increasing output, of course prices will fall," he told AFP. "We need to look for markets abroad."

"The 55 years of acreage reduction destroyed Japan's agriculture," said Wakui, 76, who urged Koizumi in a letter last month to "declare an expansion in rice production".

He also said Japan should consider a scheme to help young people start agriculture businesses without the burden of initial investment in fields and machinery, by involving other sectors including banks and trading companies.

Public support for Prime Minister Shigeru Ishiba's government has tumbled to its lowest level since he took office in October, which local media say was partly caused by the surge in inflation and soaring rice costs.

He has told parliament that increasing production is "an option" to temper prices, but said food security and the livelihood of producers was also important.

For the farmer Yamazaki, "wanting cheap rice with high quality" is a pipe dream.

"We farmers are a little baffled by the limelight that suddenly shifted to us," he said.

"But I think it's a good opportunity for the public to think about how rice is produced."

(U.Gruber--BBZ)