Core Viewpoint - Japan is experiencing a "rice shortage crisis," leading to skyrocketing rice prices and significant consumer demand for government-supplied rice [1][12]. Group 1: Rice Price Surge and Consumer Behavior - The Japanese government has initiated a new round of rice reserve sales to stabilize prices, resulting in long queues at supermarkets, with some consumers waiting overnight to purchase limited quantities [3][6]. - In Hokkaido, a government reserve rice batch was sold out quickly, with prices significantly lower than market rates, indicating high consumer demand amid rising prices [5][12]. - The government has been actively releasing rice reserves since March, but prices continue to rise, with some supermarkets selling rice at over 4000 yen for 5 kg [12][13]. Group 2: Decline of Traditional Rice Stores - Traditional rice stores in Japan are facing a crisis, with a record number of closures reported, as consumers increasingly prefer supermarkets and online platforms for their convenience and transparency [8][9]. - Data shows that over half of traditional rice stores are experiencing worsening business conditions, with a significant percentage reporting reduced revenues [9][10]. - The decline in traditional rice stores is attributed to several factors, including the aging population, changing consumer preferences, and the inability to compete with larger retail chains [9][11]. Group 3: Government Measures and Market Dynamics - The Japanese government plans to sell reserve rice directly to retailers, bypassing traditional wholesale channels, which further exacerbates the challenges faced by traditional rice stores [10][11]. - Despite rising rice prices, many farmers are not benefiting due to fixed pricing agreements with agricultural cooperatives, leading to a disconnect between market prices and farmer income [13][14]. - The current rice crisis has highlighted structural issues within Japan's rice market, including slow responses from the government and inefficiencies in the distribution system [16][17]. Group 4: Future Outlook - Experts predict that without significant reforms, the rice shortage crisis may recur, posing a severe threat to small traditional rice stores [17]. - The anticipated increase in prepayments for rice by agricultural cooperatives may lead to even higher retail prices in the coming months [16][17].