On the 10th, an auction that drew attention in Japan began. What was put up for auction was not commonly seen famous artists' paintings or luxury cars, but 150,000 tons of rice stockpiled by the Japanese government. Regarding the large amount of rice being auctioned, Japan's Minister of Agriculture, Forestry and Fisheries Taku Eto noted, "An unimaginable event has occurred."
The reason the Japanese government’s stockpiled rice has appeared in the auction market dates back to last summer. At that time, supermarkets throughout Japan displayed signs that read, 'One bag of rice and brown rice per family only.' This was because rice supply was unstable, leading to shortages. Reports have also surfaced that theft crimes targeting agricultural products, particularly rice, have increased amidst the rice crisis.
The causes of the rice shortage are multifaceted. First, extreme heat and frequent heavy rains in the summer of 2023 reduced the production of Koshihikari, the most consumed rice variety in Japan. Then, in August of the same year, warnings of a Nankai Trough earthquake resulted in hoarding behavior of rice for food stockpiling. At that time, Asahi Shimbun reported, "The heatwave and the surge of foreign tourists visiting Japan are considered the root causes of the rice shortage."
The New York Times (NYT) reported on the 13th, "Japan is strictly limiting rice production to maintain high prices and support domestic rice growers," adding, "This means that even small disruptions in the supply chain can lead to proportionately larger impacts."
As rice prices surged, the Japanese government anticipated that rice stocks would increase after the fall harvest season, leading to lower prices. However, last year, farmers in Japan harvested 6.79 million tons of rice, which was 180,000 tons more than the previous year, rather than a poor harvest. Despite this, prices did not decrease. Currently, the price of a 11-pound (about 5 kg) bag of rice is 4,000 yen (about 40,000 won), which is more than double the price from a year ago.
One reason the rice prices have not stabilized is the stockpiling by some distributors. Masayuki Ogawa, an associate professor of agricultural economics at Otsunomiya University, stated, "Some corporations and individuals have begun trading rice as a means to make money," suggesting that speculators likely believe that rice prices will continue to rise and are hoarding rice. Minister Eto also remarked, "There is no choice but to think that someone is stockpiling rice."
Ultimately, the Japanese government resorted to releasing stockpiled rice. Traditionally, the government only released stockpiled rice in cases of poor harvests or disaster situations, but this is the first time it has released rice due to distribution instability. The government plans to prioritize bidding for 150,000 tons of rice harvested two years ago and last year as the first batch, with plans to release more rice after monitoring the distribution situation.
It remains uncertain whether the release of stockpiled rice will alleviate the rice supply shortage. The NYT reported, "In the coming weeks, or within a few months at the latest, we will know whether the auction has been helpful." Nippon TV in Japan explained, "The stockpiled rice that was bid on is expected to be sold in supermarkets between late March and April," adding, "Even after the government announced the release of stockpiled rice, rice prices continued to soar."