Supermarkets offering foreign-grown rice as Japan faces record prices

Japan's supermarket operators have been strengthening sales of cheaper, foreign-grown rice, offering another choice to consumers hit by rising prices and concerns about shortages of the country's staple food.

Japan's supermarket operators are increasingly turning to cheaper, foreign-grown rice to cater to consumers grappling with rising prices and concerns about shortages of the country's staple food. This shift comes as the government and retailers struggle to manage the supply and price of domestic rice.

The Japanese government has been attempting to mitigate the issue by selling stockpiled rice at discounted prices. Shinjiro Koizumi, the new agriculture minister, pledged to sell stockpiled rice for under 3,000 yen per 5 kg by early June, aiming to stem the consumer shift to foreign brands [1]. However, the government's efforts have been slow to translate into lower supermarket prices due to a complex and time-consuming distribution process [1].

The new agriculture minister, Koizumi, took office following the resignation of Taku Eto, who faced public outrage over his comments about receiving free rice from supporters. The resignation comes amidst a backdrop of soaring rice prices and low approval ratings for the government [2]. The spike in rice prices reflects lingering effects from poor harvests last year, with domestic rice consumption heavily supported by local production rather than imports [2].

Supermarkets have responded to the situation by offering foreign rice as an alternative. While this move provides consumers with more options, it also highlights the challenges faced by Japan's domestic rice industry. The country's rice economy remains relatively isolated from the world market, with high tariffs protecting local farmers from competition [2].

The rising prices of rice have also contributed to Japan's overall inflation, which reached 7.0% in April. This inflation is largely driven by food prices, with rice being a significant contributor [1]. The cheap yen, which makes food imports expensive, has exacerbated the issue [2].

In response, the government is planning to release 100,000 tons of rice every month through July, aiming to alleviate the supply-demand imbalance. However, questions remain over how the government will select retailers and set prices for the rice [1].

As the government and retailers work to address the rice crisis, consumers will continue to face high prices and potential shortages. The increased availability of foreign rice offers a temporary solution, but it also underscores the need for long-term reforms to Japan's rice industry and supply chain.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3RV00J:0-japan-pledges-immediate-rice-relief-for-consumers-to-prevent-shift-to-foreign-brands/
[2] https://www.cnbc.com/2025/05/21/japan-minister-resigns-after-backlash-on-rice-remarks.html