Photo/Illutration Workers open bags of government reserve rice on March 18 at a rice mill in Saitama Prefecture. (Usen To)

Around 70,000 tons of rice from government reserves have been sold to distributors in the second round of auctions aimed at bringing down the soaring prices of the staple food.

The latest auction completes the sale of all 210,000 tons of rice released from the government’s massive stockpiles stored for emergencies, according to the agriculture ministry.

However, officials remain ready to conduct another round if the current release does not have the intended cooling of prices on the market.

The second auction was held between March 26 and 28, with four bidders participating.

The average winning bid for the rice reached 20,722 yen ($138) per 60 kilograms, which is 495 yen lower than the first round.

The slight price drop is likely due to the higher percentage of older rice harvested in 2023.

Together, the two rounds of bidding resulted in an average winning bid of 22,737 yen, which is below the most recent average transaction price of 26,485 yen in the supply chain, reported in February.

The rice from the second auction is expected to reach successful bidders by mid-April, with supermarket shelves likely stocking it one to two weeks later.

However, it remains unclear whether this will lead to an immediate drop in retail rice prices.

Despite the first round of the auction taking place in early March, the average price of a 5-kg bag of Koshihikari rice increased by 316 yen, or 7 percent, to 4,679 yen in mid-March, compared to the previous month.

This marks the 11th consecutive month of price increases in rice since May.

Agriculture minister Taku Eto said on April 1 that he believed the amount of rice released from government stockpiles was sufficient to cover any shortages.

However, he reiterated that additional portions from the reserves could be auctioned if prices continue to rise.

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