The Ministry of Agriculture, Forestry and Fisheries (MAFF) of Japan has announced a significant step to manage rice prices amid rising market trends. On March 19, 2025, the ministry detailed plans to hold the second tender for government-held rice from March 26 to March 28, aiming to release an additional 70,000 tons to the market.
This move comes in the wake of a previous tender, which saw around 142,000 tons of rice successfully bid on, with approximately 8,800 tons remaining unsold. The rice targeted in this upcoming tender will include not only the unsold portion from the first round but also rice from previous harvest years. It's projected that the successful bidders will receive their rice shipments after mid-April 2025.
Included in this tender are notable rice varieties, such as 'Haenuki' from Yamagata Prefecture and 'Koshihikari' from Toyama Prefecture, among 35 distinct brands set to be sold. The breakdown indicates that there will be 40,000 tons of rice harvested in 2024, and 30,000 tons from the 2023 crop, to contribute to the government’s effort to stabilize the market.
The decision to release further rice stocks aligns with MAFF's concerns over soaring rice prices. As highlighted by recent data, the relative transaction price for rice—a standard measure used in wholesale markets—has escalated dramatically. In February 2025, the average price per 60 kilograms rose to ¥26,485, including tax, which is an increase of ¥558 from January and represents a staggering 73% rise compared to February 2024.
The rising price trend is alarming stakeholders. The average was significantly influenced by high demand for premium varieties like 'Yumepirika' from Hokkaido, which recorded an unprecedented 87% increase since last year, alongside similar substantial hikes in other popular brands. MAFF reports that overall rice prices have hit record highs for the past six consecutive months, marking a period of unaffordability for many consumers.
In light of this situation, experts and market analysts are watching closely to see if the upcoming tender manages to curb the high prices and effectively redistribute rice supplies that have accumulated due to lack of bidding interest in previous sales. As noted in reports, the first tender revealed that about 94.2% of the offered rice was successfully bid, but the unclaimed portion still indicates an oversupply that has not yet alleviated pressure on pricing.
Moreover, MAFF has also been proactive by announcing that the planting intentions for rice, as of January 2025, indicate increases across various prefectures. In particular, regions like Hokkaido, Fukushima, and Ibaraki are set to plant more rice this year compared to last year. MAFF estimates that the total planting area could increase by as much as 3400 hectares in Hokkaido and 3200 hectares in Fukushima, primarily driven by farmers eager to capitalize on the rising market prices.
As the second tender looms, key industry players express cautious optimism. The Ministry itself stated, "We have seen a continuous increase in prices, and this second tender aims to stabilize the market," emphasizing the importance of managing rice supply to avoid detrimental spikes that could affect both consumers and producers.
The upcoming tender is not just a routine government sale, but a critical intervention strategy that reflects an urgent need to balance supply with rising costs, ensuring that rice remains accessible to all stakeholders in Japan’s agricultural economy.
Overall, as intending bidders prepare for the tender, the discourse around rice pricing, quality standards, and the future of domestic rice production continues to unfold. The success of this tender will be pivotal in establishing a more stable and predictable market environment.
The government’s commitment to ongoing assessments of rice supplies and price impacts signifies a robust approach aimed at sustaining Japan's rice farming heritage amid increasing economic pressures.
Stakeholders eagerly await not only the outcomes of this tender but the broader implications it may have on defining the future landscape of rice production in Japan, aligning agriculture with market dynamics in a continually evolving economic context.
