The Guardian is reporting that Japan is to flood the market with almost a quarter of a million tonnes of stockpiled rice in an unprecedented attempt to arrest soaring prices caused by record summer heat, panic buying and distribution problems.
Agriculture minister, Taku Eto, says the government will release up to 210,000 tonnes of rice, as consumers battled a surge in prices of more than 50 per cent in recent months.
Speaking shortly before the decision, Eto noted that the government did not normally intervene in the market, but conceded that recent price rises have had a significant impact on people’s lives.
He says the price hike has been too sharp.
The latest average retail price of an 11 pound bag of the Japanese staple was 3,688 Yen, according to a government survey, over 1,500 Yen more than last year.
Japan’s government has previously dipped into its rice reserves in the aftermath of natural disasters or crop failures, but this is the first time it has intervened over distribution issues, including when supply chain disruption contributes to rising prices.
