Osaka, Aug. 13 (Jiji Press)–A Japanese rice price futures index was listed Tuesday on the Osaka Dojima Exchange, offering a hedge against future price fluctuations.

The move comes after rice interdealer prices surged amid a shortage of high-quality rice due to the effects of extreme heat in summer 2023, forcing supermarkets and other retailers to raise prices.

The Dojima Rice Average index is based on the weighted average price of rice brands across Japan, and is expected to be considered an indicator of fair prices. Its standard transaction unit is 3 tons, and the price per 60 kilograms is displayed in 10-yen increments. Trading hours are from 9 a.m. to 3 p.m. on weekdays.

Futures contracts effectively fix future purchase and sale prices, potentially offsetting losses from rising spot prices in the event of adverse weather. Widespread use of futures trading is expected to allow consumers to purchase rice at stable prices.

The exchange operator calls for broad participation in rice futures trading by stakeholders in the rice industry.

[Copyright The Jiji Press, Ltd.]

Published Date: August 13, 2024