Core Insights - Japan's rice prices continue to soar, prompting the government to announce a new plan to release reserve rice into the market to stabilize prices at historic highs [1] Group 1 - The Japanese government is implementing measures to address the rising rice prices by releasing reserve rice [1] - The strategy includes direct supply of rice to retailers to help mitigate the price surge [1] - The current rice prices are at their highest levels in history, indicating a significant market challenge [1]

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]

Core Viewpoint - The Japanese government plans to sell reserve rice directly to retailers instead of auctioning it to intermediaries, aiming to stabilize rice prices amid record-high market prices [1] Group 1: Government Actions - The new Minister of Agriculture, Forestry and Fisheries, Koizumi Shinjiro, announced the direct sale of reserve rice to retailers [1] - The government intends to bypass the auction mechanism that hinders price control and will sign contracts directly with retailers [1] Group 2: Pricing Strategy - The government will sell a 5-kilogram bag of rice at a price of 2,000 yen (approximately 101 RMB) [1] - The current average market price for a 5-kilogram bag of rice is 4,268 yen (approximately 215 RMB), which is more than double the price from the same period last year and the highest since the data collection began [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]