Old Rice, But at Half Price... Japan Begins Online Sales of Reserve Rice

Applications for Second Batch Now Open to Small and Medium Distributors
Concerns Raised Over Quality of Aged Rice in Reserve Release

In response to soaring rice prices, the Japanese government has begun selling rice reserves, which were released through a negotiated contract system, via online shopping malls.

According to local media outlets such as NHK and Yomiuri Shimbun on May 30, the online retailer Rakuten started selling reserve rice through its online marketplace from the afternoon of the previous day.

Rice is being sold at a supermarket in Miyazaki Prefecture, southwestern Japan. Photo by AP

The price, excluding tax, is set at 1,980 yen (approximately 19,000 won) for a 5kg bag, and shipments to consumers are scheduled to begin on June 7. Line Yahoo also started accepting pre-orders for 5kg bags at 1,850 yen (about 17,700 won) through its online sales site on the same night.

This realization of half-price sales became possible after Shinjiro Koizumi, the newly appointed Minister of Agriculture, Forestry and Fisheries (hereafter referred to as the Agriculture Minister), changed the rice reserve release method from competitive bidding to negotiated contracts. Upon taking office on May 21, Koizumi stated, "We will ensure that rice is displayed in supermarkets at 2,000 yen, including distribution costs." Between May 12 and 18, the average price of a 5kg bag of rice sold in supermarkets was 4,285 yen (about 41,000 won), which is twice as high as a year ago.

The release of rice reserves through negotiated contracts is accelerating. The Ministry of Agriculture, Forestry and Fisheries has already completed the process of accepting applications from 61 major distributors for the first batch of negotiated contracts, which covers about 200,000 tons from the 2022 harvest and about 20,000 tons from the 2021 harvest. Applications for the second batch, which includes 80,000 tons from the 2021 harvest, are currently being accepted from small and medium-sized distributors.

However, there are concerns about quality as older rice, such as that from the 2021 harvest, is being supplied through the release of reserves. Local media have reported that sensitive consumers may notice a different aroma when cooking rice with old grains, and they are also providing guidance on how to cook old rice to make it taste better.

In this situation, Tamaki Yuichiro, leader of the Democratic Party for the People, the third-largest opposition party, sparked controversy by mentioning "feed rice." On May 28, during a question session at the House of Representatives Agriculture, Forestry and Fisheries Committee, Tamaki said, "If just one more year passes, this will become animal feed."

This remark was made with the 2021 rice harvest in mind, based on the fact that the Japanese government converts rice stored for more than about five years into animal feed. In response, Agriculture Minister Koizumi expressed regret, saying, "It's unfortunate." Kenta Izumi, former leader of the Constitutional Democratic Party, the second-largest opposition party, criticized Tamaki on his X (formerly Twitter) account, stating, "This is staple food that will soon be on our tables. This is not the kind of language that should be used at this time."

As public opinion toward his remarks turned unfavorable, Tamaki later explained on X that he "had no intention of causing disruption and was merely explaining the system."

Meanwhile, after the Japanese government announced the release of "half-price reserve rice," a surge in orders from retailers caused the acceptance of orders to be temporarily suspended. On May 28, Agriculture Minister Koizumi told local media that "about 70 businesses have expressed their intention to purchase a total of more than 200,000 tons of reserve rice through negotiated contracts."