Record rice price increases have reached historic highs in Japan, leading to long queues in stores and growing discontent ahead of the July elections to the upper house of parliament, the Financial Times reported.
Rice prices are breaking records
The average price of a 60-kilogram bag of rice from the 2024 harvest has risen to ¥26,400 ($184), the highest in history. The crisis has been exacerbated by the poor harvest in 2023, the end of the deflationary period, and retailers’ willingness to raise prices. Some wholesalers are restricting supplies, which only exacerbates the situation.
Government actions and political implications
For the first time outside of natural disasters, the Japanese government is selling off strategic rice reserves, which has caused a rush of demand. Prime Minister Shigeru Ishiba dismissed the Minister of Agriculture and appointed Shinzaburo Koizumi to replace him, who has been tasked with resolving the crisis. A special cabinet has also been created to reform agricultural policy.
Causes of the crisis and prospects
Analysts criticize the previous “non-sowing” program, which was in effect until 2018 and artificially kept prices high. As in many countries, a transition to subsidies would help reduce farmers’ costs and increase production. Although the proportion of farmers in the population has fallen to less than 1%, they retain a strong political lobby, which complicates reforms, but public outcry may accelerate change.