Rice Prices in Japan Reach Highest Level in 11 Years

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ByHui Yin

The Ministry of Agriculture, Forestry, and Fisheries (MAFF) revealed that the prices for Japan’s fiscal 2023 rice crop have been rising sharply, partly due to last year’s high temperatures that reduced the quality and quantity of rice distributed. The main index of rice prices reached its highest level in 11 years.

Rice grown in Japan is generally collected from farmers by the Japan Agricultural Cooperatives (JA). Wholesalers then distribute the rice to supermarkets, restaurants, and other customers. Announced every month by MAFF< the price at which JA sells rice to wholesalers is the standard indicator of rice prices.

According to preliminary figures, the price for 60 kilograms of unpolished rice in June 2023 was JPY 15,685, indicating an increase of approximately 14% over the same month of the previous year. This marked the highest level in 11 years.

As of the end of June 2024, private inventories of rice totaled 1.56 million tons, showing a decrease of roughly 20% compared to the same month the previous year, thereby reaching the lowest point since statistics were first tracked in 1999.

Demand for rice has been falling by around 100,000 tons per year due to several factors including population section. However, for the first time in 10 years, it rose during the one-year period to June 2024, increasing by 110,000 to 7.02 million tons in total. MAFF reported that the reasons for the rice include increased consumption of rice by foreign visitors to Japan and recovery in demand following the COVID-19 pandemic.

According to an estimation by MAFF, the rapid increase in the number of overseas visitors to Japan has impacted the demand for rice. Based on the assumption that each visitor consumes 78 grams of rice per meal and has two servings of rice per day, MAFF estimated that demand for rice among visitors to Japan went up by 19,000 tons during the period from July 2022 to June 2023. An increase of 31,000 tons was seen during the period from July 2023 to June 2024, rising to a total of 51,000 tons.

A MAFF official commented on the current rice situation, stating that “there was enough stock to meet demand, and with new rice from the 2024 crop already coming in from July onward, there would be no shortages.”

Hui Yin moved from Hong Kong 🇭🇰 to the USA 🇺🇸 when she was just 8 years old. Now in her late 20's she enjoys writing and taking long walks in the park to burn off the copious amounts of rice she eats for dinner.