Photo/Illutration Shinjiro Koizumi speaks to reporters on May 21 after assuming the position of Minister of Agriculture, Forestry and Fisheries. (Nobuo Fujiwara)

In response to surging rice prices, the newly appointed farm minister announced plans to scrap the bidding system and begin direct sales of the government’s rice reserves to wholesalers.

“If there is demand, we are prepared to release rice without limits,” Shinjiro Koizumi said on May 21. “We need bold measures that go beyond what has been done so far.”

The move aims to release the staple crop into the market at lower prices and stabilize costs for consumers.

The farm minister suggested that the government could increase the release beyond the planned 610,000 tons, roughly 60 percent of its emergency reserve.

Earlier that day, Prime Minister Shigeru Ishiba instructed Koizumi to explore shifting away from the auction system.

“We must take strong action to ensure consumers can access rice at stable prices,” Ishiba said.

Since March, the government has been selling portions of its massive stockpile of the crop through auctions, awarding contracts to the highest bidders.

However, this method has been criticized for driving up retail prices, as wholesalers pass on higher costs to consumers.

In response, the government is considering negotiated sales, which would allow more direct control over prices and could potentially lower costs for shoppers.

During a Diet debate on the same day, Ishiba pledged a target price in the 3,000-yen ($20) range for a 5-kilogram bag of rice.

“The government is accountable for prices if they remain high,” he said.

According to the farm ministry, the latest national average price of rice stood at 4,268 yen per five kilograms, more than double the average from the same period last year.

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