Photo/Illutration Rice prices have doubled from the previous year. (Asahi Shimbun file photo)

Rice inventories were at normal levels among farmers, distributors and other businesses in June, an agriculture ministry survey showed, contradicting the ministry’s explanation that increased inventories across sectors collectively jacked up rice prices.

Agriculture minister Shinjiro Koizumi instigated the survey in mid-June to determine the cause of soaring rice prices. The results were presented at a ministry panel on July 30.

The survey found no significant stockpiling among farmers or throughout the distribution sector to support the ministry’s theory.

While the government’s release of emergency rice reserves since March may have helped smooth distribution, it is also possible that no distribution bottleneck existed in the first place and that supply simply fell short of demand, driving up rice prices.

The ministry plans to analyze data from the survey, clarify factors behind the escalating rice prices and publish its findings soon.

To gain a better understanding of distribution of the nation’s staple, the survey covered all businesses registered for handling rice.

According to the survey, inventory levels at the end of June were about the same as in the previous year among farmers, agricultural cooperatives and other distributors, retailers, restaurants and ready-made meal businesses.

Small businesses that were added to the survey also had inventory levels similar to the previous year.

Wholesalers reported an inventory increase of 100,000 tons, but the ministry’s Crop Production Bureau said this was “not an excessive level.”

The ministry previously surveyed about 1,300 businesses that deal in rice in large volumes, such as agricultural cooperatives and wholesalers, to track rice collection and inventories.

The expanded survey required small businesses handling less than 500 tons annually to report their status under the staple food law.

Of about 70,000 businesses added to the survey, 4,433 are dealing in brown rice, including retailers, restaurants and farmers.

The ministry also conducted interviews with industry groups and farmers.

The survey results were reported to a subcommittee of the Council of Food, Agriculture and Rural Area Policies, an advisory panel to the agriculture minister.

The ministry initially suspected “speculative hoarding” as the cause of soaring rice prices.

However, a survey conducted in March showed that inventories as of the end of January increased by about 90,000 tons among farmers, 100,000 tons across the distribution sector including wholesalers and restaurants, and 40,000 tons among consumers from a year earlier.

The survey covered a smaller number of businesses than the latest one.

The ministry revised its previous explanation in March, attributing the steep price increases to “clogs” in rice distribution.

It said inventories slightly increased across sectors, reflecting “concerns” among consumers and distributors.

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