Japan faces high rice prices like Nigeria – but responds more urgently

Japan is set to release nearly 250,000 tonnes of stockpiled rice in a rare move to tackle surging prices driven by record summer heat, panic buying, and supply chain disruptions.

The Asian nation will release nearly 210,000 tonnes of the staple from its stockpile, agriculture minister Taku Eto announced Friday, acknowledging that while government intervention in the market was rare, the recent surge — exceeding 50% in a few months — has placed a heavy burden on households.

A government survey shows that the average retail price of a 5kg bag of rice has jumped to ¥3,688 ($24), up from ¥2,023 last year.

While Japan has previously tapped into its rice reserves following natural disasters and poor harvests, this is the first time it has done so due to distribution challenges that have contributed to price inflation, reported The Guardian.

The recent price rises “have had a significant impact on people’s lives. The price hike has been too sharp, which is why we have made this decision,” minister Eto said.

Nigeria, which has experienced an extreme surge in rice prices for nearly two years, has failed to contain the rise. Rice is a staple in the country, but prices have soared by over 100% since May 2023, when President Bola Tinubu took office and removed the petrol subsidy while devaluing the naira.

Food inflation reached a three-decade high of 40.7% in May 2024 and stood at 39.8% in December.

The government’s response has been underwhelming. Authorities announced last year that 42,000 tonnes of maize, millet, and garri would be released from reserves, and also claimed to have secured 60,000 metric tonnes of rice from millers.

“This will be made available, and we know that is enough to sustain Nigerians for the next month to six weeks, perhaps up to two months,” said Minister of Information and National Orientation, Mohammed Idris.

However, many Nigerians questioned whether these measures were ever implemented. If they were, they had no noticeable impact, as prices never eased.

Japan’s case

Japan’s rice reserves are under strain due to extreme heat that impacted the 2023 harvest. Rising tourism further increased consumption, while panic buying—spurred by typhoon and earthquake warnings—forced retailers to limit sales.

Despite hopes that prices would stabilize after the 2024 harvest, they continued rising. Although the latest harvest produced 180,000 tonnes more than the previous year, distributors bought less, with reports suggesting farmers and wholesalers were holding back stock in anticipation of further price hikes.

To address the crisis, the government will release stockpiled rice to wholesalers and cooperatives by mid-March, with supplies reaching consumers in early April. However, to prevent market prices from collapsing, authorities must repurchase an equivalent amount within a year.

Japan has nearly 1 million tonnes of rice reserves stored across 300 sites. The country began large-scale stockpiling in 1995 after a severe crop failure sparked widespread panic buying.