TOKYO - The Japanese Cabinet on Friday approved a shift in its rice policy, moving toward a demand-aligned output strategy and introducing new measures to prevent shortages, as prices for the staple have spiked in recent years.
The government of Prime Minister Sanae Takaichi plans to submit a bill to the Diet later in the day to revise the law on stabilizing the supply, demand, and prices of staple foods, which marks a reversal from the initiatives of her predecessor, Shigeru Ishiba, to expand production and exports to lower prices.
The changes aim to stabilize prices by preventing the overproduction of rice and encouraging firms to produce it according to market conditions.
Due to recent shortages partly attributed to the government's failure to grasp the state of rice distribution and the supply-demand outlook, the revisions will require food-related businesses to periodically report their rice stock levels.
To supplement the government's rice reserves, which can be released rapidly in the event of a shortage, private companies that are large enough will be required to hold rice reserves.
In a development dubbed the "Reiwa rice crisis," referring to the current Japanese imperial era, prices of the Japanese staple have risen sharply in recent years. According to government data, average retail prices for a 5-kilogram bag of rice have been trending downward, staying below 4,000 yen ($25) in recent weeks.
In the event of a supply shortage, the government will issue warnings or publicly name and shame businesses that fail to comply with its release orders.
The government has cited high temperatures affecting supply and greater demand from inbound tourists as factors contributing to surging rice prices.
