By SHO ITO/ Staff Writer

The trading price of newly harvested rice hit a record high in September, rising 63 percent  compared with the same month last year, farm ministry data showed on Oct. 21.

Including tax, the cost of brown rice was 36,895 yen ($243) per 60 kilograms, a jump of 14,195 yen year on year.

Comparable data was first compiled in 2006.

The transaction price between businesses refers to the average price at which Japan Agricultural Cooperatives (JA) and other rice collection agents ship directly to wholesalers.

Figures are updated monthly from September when the new harvest enters the market.

The previous high was 27,649 yen in May for the 2024 harvest. The September price exceeds this by 9,246 yen, or 33 percent.

Meanwhile, the volume of the staple traded in September was 160,000 tons, down 93,000 tons, or 36 percent, from the same month last year.

Fears of rice shortages last year led to earlier deals and higher trading volume in September 2024, making the amount for September this year appear smaller by comparison. 

In the background to this year’s surge in prices is intensifying competition to collect rice from farmers.

More private collection agents tried to secure deals with farmers across the country following the historic rice shortages and price hikes that began in summer 2024.

In response to this situation, JA raised the “Gaisan Kin” rate across the board. This provisional payment is made to farmers before the official trading price is determined.

According to the farm ministry, JA set the provisional payment 30 to 70 percent higher than last year, which is contributing factor to the price surge.

However, there are industry concerns that an oversupply of rice could eventually trigger a heavy dip in prices.

The volume of this year’s harvest for staple food use is expected to reach 7.15 million tons, an increase of 634,000 tons compared to last year, according to the ministry.

If this occurs, it would be one of the largest yield levels since 2016.

Published Date: October 23, 2025