Photo/Illutration The storage facility of the government’s stockpiled rice in Saitama Prefecture on Feb. 12 (Asahi Shimbun file photo)

The average retail price for 5 kilograms of rice has dropped to 3,920 yen ($26), falling below 4,000 yen for the first time in three and a half months, the farm ministry announced on June 23.

The figure is based on sales data from about 1,000 supermarkets nationwide from June 9 to 15. It represents a decline of 256 yen, or 6.1 percent, from the previous week.

This marks the fourth consecutive week of rice price declines. The week-on-week drop exceeded 100 yen for the first time since March 2022, when the ministry began releasing the data.

Prime Minister Shigeru Ishiba’s pledge to bring rice prices below 4,000 yen appears to be bearing fruit after just three weeks.

Rice prices have declined as more low-cost rice released from the government’s emergency stockpiles has appeared on store shelves.

Although previously released stockpiled rice had been auctioned to distributors, this batch of rice has been distributed through direct sales to retailers to keep prices lower.

This staple crop began appearing in stores in late May for around 2,000 yen per 5 kg, a sharp contrast to the auctioned rice, which typically sold for around 3,500 yen.

Rice not supplied by the government is even more expensive. The average price of brand-name rice, sourced from a single region or variety, remained at 4,338 yen.

More affordable rice blends, some of which mix rice from the government stockpiles with other types, averaged 3,495 yen.

Blends and stockpiled rice made up 50 percent of total rice sales, up 6 percentage points from the previous week, and equaling sales of premium brand rice. This rise in volume of cheaper rice accelerated the downward pressure on prices.

However, despite the recent decline, rice prices are still 1.8 times higher than they were during the same period last year, when the average was just 2,198 yen.

Farm minister Shinjiro Koizumi acknowledged regional disparities in pricing, noting that prices remain above 4,000 yen in some areas, particularly in western Japan.

“We can’t afford to relax our efforts just yet,” he told reporters, signaling the government’s ongoing commitment to stabilizing rice prices.

Koizumi also expressed concern that farmers may be upset about the falling prices and pledged to hold dialogue sessions with producers.

By June 15, only 7,200 tons of stockpiled rice had reached store shelves via direct sales, according to the ministry. This accounts for just a fraction of the 300,000 tons allocated for this distribution method.

Nevertheless, rice prices dropped, with wholesalers potentially slashing prices on existing inventory in anticipation of an influx of cheaper rice.

While consumers welcome the current trend of falling prices, it could quickly reverse if the distribution of low-cost stockpiled rice from direct sales stalls.

(This article was written by Hisashi Naito and Kenta Nakamura.)

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