The Mainichi Shimbun answers some common questions readers may have about why the price of rice has risen so steeply in Japan recently.

Question: Rice prices are rising, aren’t they?

Answer: Yes, they are. According to the National Supermarket Association of Japan, as of August, the retail price of rice has increased by about 10-20% compared to the same period last year. Due to a decrease in the amount of rice that can be sourced, some stores are short of stock or have limited the number of purchases per customer.

Q: Why are prices increasing?

A: The agriculture ministry has historically implemented policies to prevent overproduction of table rice, given the decreasing demand. However, last summer’s scorching temperatures caused heat damage to crops, especially in key rice-producing regions like Niigata Prefecture, leading to issues such as rice grains becoming cloudy. This type of rice yields less when milled and doesn’t sell well due to its appearance and texture. Consequently, the amount of rice available for distribution has dropped.

Q: Has rice consumption increased as well?

A: Yes. Rice prices have in fact been relatively stable compared to increases in food prices overall, making it a more attractive option for households and so leading to higher consumption. Additionally, with the increase in foreign visitors to Japan, demand for rice in restaurants has also grown. Sushi, Japanese cuisine and even onigiri (rice balls) are popular among tourists. The agriculture ministry estimates that the surge in foreign visitors over the past year, which was 2.3 times higher than the previous year, has driven up rice consumption by 31,000 metric tons. As demand rises and supply decreases, prices have surged significantly.

Q: Where is this leading?

A: The agriculture ministry explains that new rice will be widely available from September, and inventories are expected to increase. However, this summer has also been marked by extreme heat in various regions, again raising concerns about potential impacts on rice crops. The supermarket association has stated that even with the arrival of new rice stocks, there’s no guarantee that prices will drop given the continued high demand.

(Japanese original by Yuki Machino, Tokyo Business News Department)

Published Date: September 2, 2024