Core Insights - The rising rice prices in Japan are closely linked to the government's political fate, with a 98% increase in rice prices over the past year contributing to overall inflation and potential voter backlash in upcoming elections [1][2]. Group 1: Rice Price Dynamics - The Japanese government is implementing classic retail strategies to address soaring rice prices, including repackaging aged rice and releasing reserve stocks into the market [1][3]. - The price of a 5-kilogram bag of rice has exceeded 4,000 yen (approximately 198 RMB), highlighting the significant cost burden on consumers [2]. - Despite previous attempts to stabilize prices through reserve rice releases, the direct sale of reserve rice to retailers has proven effective, reducing the price of "aged rice" to under 2,000 yen (approximately 99 RMB) [3]. Group 2: Cultural and Historical Significance of Rice - Rice holds deep cultural and historical significance in Japan, with its cultivation dating back over 3,000 years and being integral to Japanese nutrition and political history [3][4]. - The historical context includes past rice riots that have led to significant political changes, emphasizing the importance of rice in Japanese society [3]. Group 3: Government Policies and Agricultural Challenges - The Japanese government has historically intervened in the rice market to maintain self-sufficiency and stabilize prices, but these policies have led to long-term overproduction and inefficiencies [4][5]. - The decline in rice consumption due to changing dietary habits and a decreasing farmer population has resulted in a supply-demand imbalance, exacerbated by contradictory government policies [5][6]. - The current agricultural landscape includes approximately 40% of rice fields being fallow, indicating potential for increased efficiency through the consolidation of small farms, though this faces resistance from powerful agricultural cooperatives [5][6].

Group 1 - The Japanese government plans to release an additional 200,000 tons of reserve rice to stabilize rice prices, as stated by the new Minister of Agriculture, Forestry and Fisheries, Koizumi Shinjiro [1] - Of the 200,000 tons of reserve rice, 100,000 tons are from 2020 and the other 100,000 tons are from 2021, which will reduce the reserve rice stock to approximately 100,000 tons after the release [1] - The average price of 5 kg of rice in Japanese supermarkets was 4,223 yen (approximately 209 RMB) during the week of May 26 to June 1, marking a decrease of 37 yen from the previous week, the first consecutive decline since November of the previous year [1] Group 2 - Despite the recent price drop, the current rice price remains above 4,000 yen for 5 kg, which is double the price from the same period last year, raising concerns about whether the government can achieve its target of bringing prices down to the "3,000 yen range" [1] - The rise in rice prices since last summer has been attributed to extreme heat causing poor rice harvests, and a previous earthquake risk warning led to panic buying, resulting in a temporary "rice shortage" [1] - The Japanese government established a reserve rice system in 1995 to release rice in cases of disasters or large-scale crop failures, but previous releases since March have had limited effectiveness in stabilizing prices [2]

Core Viewpoint - The Japanese government is taking measures to stabilize rice prices and encourage consumption by selling government rice reserves at significantly reduced prices to large retailers [1] Group 1: Government Actions - The Japanese Ministry of Agriculture, Forestry and Fisheries announced the details of a contract to sell government rice reserves, targeting large retailers with a selling price of 10,700 yen (approximately 538 RMB) for 60 kg of brown rice, which is 47% cheaper than the previous auction price [1] - The government aims to allow consumers to purchase the rice at around 2,000 yen at retail counters by early June [1] - The release volume of rice is set at 300,000 tons, with the average price for the 2022 crop being 11,010 yen per 60 kg, and the previous auction's average winning bid price being 20,302 yen, indicating a significant price reduction [1] Group 2: Minister's Statements - Minister Koizumi stated the intention to eliminate public anxiety regarding rice prices and to prevent further decline in rice consumption [1] - The government will soon start accepting applications from interested companies without imposing buyback conditions, and the transportation costs will be covered by the state [1]

Group 1 - The average price of rice in Japan decreased to 4,214 yen per 5 kilograms during the period from April 28 to May 4, marking a decline of 19 yen compared to the previous week, breaking an 18-week upward trend [1] - The decrease in rice prices is attributed to the government's release of reserve rice into the market, with supermarkets offering low-priced mixed reserve rice products, which effectively lowered overall prices [1] - Despite the price drop, current rice prices remain approximately double compared to the same period last year, indicating ongoing challenges in achieving sustained price reductions [1] Group 2 - The Japanese Ministry of Agriculture, Forestry and Fisheries has conducted three rounds of bidding to release 310,000 tons of reserve rice to stabilize market prices, but only 63,000 tons have been distributed so far, representing 32% of the planned total [3] - To address the high rice prices, Aeon supermarket plans to introduce California medium-grain rice at a price of 2,894 yen for 4 kilograms starting June 6, aiming to provide consumers with a more affordable option [3]