Photo/Illutration A bag from the government rice reserves that was auctioned to distributors is sold at an Acoop Farmers supermarket chain store in Nagano on May 21. (Asahi Shimbun file photo)

Farm minister Shinjiro Koizumi told reporters on June 3 that the government is considering buying back stockpiled rice from any willing distributor who acquired stock from its recent auctions. 

After the direct rice sales to retailers, the auctioned rice became relatively expensive. It is possible that the auctioned rice bags will not sell well.

“If it is difficult to handle the auctioned rice, don’t hesitate to tell us,” Koizumi said at a news conference after a Cabinet meeting on June 3. “We will use it in the next step.” 

He elaborated that one option is selling the previously auctioned rice directly to retailers once the government reacquires it. 

In its prior plan, the government held auctions for portions of its rice reserves in March and April. The rice, blended with grains from other brands, was sold at supermarkets from late March for around 3,500 yen ($24.30) per 5-kilogram bag. 

Its current approach of contracting with retailers directly has 5-kg bags on supermarket shelves priced at roughly 2,000 yen, as Koizumi anticipated.

For rice sold to small and midsize supermarkets, the expected price is even lower at about 1,800 yen. The application process for direct contracts with the government started on May 30.

The National Federation of Agricultural Cooperative Associations (Zen-Noh), which bought more than 90 percent of the rice auctioned by the government, said, “We haven't received any requests from wholesalers to return the rice we sold them.”

CHEAPEST IN HOKKAIDO

Regional price differences for the auctioned rice are also an issue.

On June 2, the farm ministry released the retail prices of the government auctioned rice as of May 29 by region.

Most of the stock was mixed with rice from other brands, with a store in Wakayama Prefecture logging the highest price of 4,480 yen for a 5-kg bag, excluding tax.

Meanwhile, the cheapest bag went for 2,980 yen at a Hokkaido location. Prices tend to be lower in the Hokkaido, Tohoku and Hokuriku regions.

The ministry said it has not analyzed the reason for these price differences yet.

Koizumi said at the news conference that he plans to continue conducting similar surveys and will announce the results to use as discussion materials.

Related News