Core Viewpoint - Japan is facing a "rice shortage crisis" with rising rice prices and a significant number of traditional rice shops closing down due to market pressures and changing consumer behavior [1][2][3]. Group 1: Rice Price Surge - Japanese Prime Minister Shigeru Ishiba announced a thorough investigation into the reasons behind the sudden spike in rice prices [1]. - The government has been increasing the circulation of rice in the market by releasing reserve stocks, yet the rice shortage persists [1][4]. - The government plans to import rice to address the soaring prices, indicating a severe supply issue [1]. Group 2: Traditional Rice Shops Struggles - A record number of 88 rice shops have closed or ceased operations in the 2024 fiscal year, marking the highest number in five years [2]. - Over 47.6% of rice shops reported deteriorating business conditions, with 25.2% experiencing reduced revenues compared to the previous year [2]. - Traditional rice shops are struggling to compete with supermarkets and online platforms, which offer better pricing and convenience [2][3]. Group 3: Market Dynamics and Consumer Behavior - The decline in rice consumption in Japan has led to a shrinking market, with annual production dropping to around 7 million tons since the 1990s [3]. - Many consumers prefer purchasing rice from supermarkets and online platforms due to better pricing transparency and convenience [2][3]. - The traditional rice shops are facing challenges in supply chain management, making them more vulnerable to stock shortages [3]. Group 4: Government Measures and Market Impact - The Japanese government is selling reserve rice directly to retailers instead of through auctions, which has further harmed traditional rice shops [4]. - The government has announced plans to release a total of 300,000 tons of reserve rice to stabilize prices, with the selling price set at 11,556 yen (approximately 576 RMB) for 60 kg [5]. - Despite government efforts, rice prices continue to rise, with some supermarkets increasing prices for 5 kg bags to over 4,000 yen (approximately 200 RMB) [5]. Group 5: Agricultural Sector Challenges - Farmers are not benefiting from rising rice prices due to a system where they sell rice to cooperatives at pre-agreed prices, limiting their income despite market price increases [6][7]. - The agricultural structure in Japan is causing many full-time rice farmers to exit the industry, leading to a decline in traditional rice shops [7]. - Experts suggest that without significant reforms in the rice market, the "rice shortage crisis" may recur, posing a severe threat to small traditional rice shops [9].