Core Insights - The Japanese government plans to release an additional 200,000 tons of reserve rice to stabilize rice prices, which have doubled compared to the same period last year, currently averaging 4,223 yen for a 5-kilogram bag [1][2] - Despite government efforts to release reserve rice, the effectiveness has been limited, with only 7.1% of the 210,000 tons released in March reaching retail stores by late April [2][3] - The high rice prices are attributed to several factors, including government policies aimed at reducing overproduction, climate change impacts, and increased demand due to natural disasters [2] Government Actions - The government has shifted its strategy for releasing reserve rice from a bidding system to direct contracts with large retailers, aiming to sell rice at 2,000 yen for a 5-kilogram bag [3] - The reserve rice being released is from the 2021 and 2022 harvests, with transportation costs covered by the government [3] - There is skepticism regarding the long-term effectiveness of these measures, with experts suggesting that the current high prices may persist beyond the upcoming elections [3] Market Conditions - A significant increase in food prices is expected, with 1,932 food items projected to rise in June, three times the number from the previous year, including over 100 items made from rice [1][2] - The ongoing high prices have led to consumer fatigue, with many reducing their purchases of food and daily necessities [1][2] - The agricultural sector faces challenges such as labor shortages due to an aging population and adverse weather conditions affecting rice quality [2]

Group 1 - The Japanese government has announced a new rice reserve release plan, opting for direct contracts with large retailers instead of auctioning to intermediaries, resulting in a 47% price reduction compared to recent auction prices [1] - The price of rice in Japan has surged, with a 98.4% increase year-on-year as of April, marking the highest rise since 1971, leading to concerns about rice becoming unaffordable by 2025 [1][2] - Since March, the Japanese government has released a total of 410,000 tons of reserve rice, the first such action since the establishment of the reserve system in 1995, but only 7% has reached the retail market [2] Group 2 - The Japanese Agricultural Cooperative (JA) has acquired 95% of the released reserve rice, leading to a situation where the government releases rice but the cooperative hoards it, creating a "buyer monopoly" [2][4] - The JA controls over 90% of rice transactions in Japan, managing the entire supply chain from production to sales, and has significant financial power with assets exceeding 100 trillion yen [4] - The current rice crisis in Japan is attributed to systemic issues within agricultural policy and the concentration of power, raising alarms about food security [5] Group 3 - Japanese tourists are increasingly purchasing rice in South Korea due to rising prices in Japan, with reports of significant sales increases in Korean supermarkets attributed to this trend [6] - The average retail price of 5 kg of rice in Japan was 4,214 yen, while in South Korea, it was 29,782 won, indicating a price disparity that influences consumer behavior [6]