The agricultural cooperative federation JA Zen-Noh Tochigi has announced a record-high provisional payment to rice farmers for this year’s harvest. The move comes amid fierce competition for supply and signals rising costs that are already being felt by consumers at the checkout.
The provisional payment, an advance given to farmers who consign their rice to JA for sale, is a key indicator of the year’s market prices. For the prefecture’s main ‘Koshihikari’ variety, the payment will be set at ¥28,000 per 60kg bag, a dramatic increase of ¥11,700 compared to the previous year. This marks the highest figure since the current calculation method was introduced in 2008. Similar increases have been applied to Tochigi’s original ‘Nasuhikari’ and ‘Tochigi no Hoshi’ varieties.
A spokesperson for JA Zen-Noh Tochigi stated, “In addition to ensuring a stable supply for consumers, we decided on this increase so that producers can continue farming with confidence.” The cooperative aims to secure a larger volume of rice by offering competitive rates, as private buyers are also vying for the harvest.
National Retail Prices Reflect Upward Trend
This pressure at the production level is contributing to a steady rise in retail prices nationwide. According to the Ministry of Agriculture, Forestry, and Fisheries (MAFF), the average retail price for a 5kg bag of rice rose to ¥3,804 in the week ending August 17th. This represents a ¥67 increase from the previous week and is the second consecutive weekly rise.
The data reveals a growing divergence in the market. The average price for premium single-variety rice climbed to ¥4,268 per 5kg, while blended rice, which includes government-stockpiled reserves, fell slightly to ¥3,169. However, sales figures show a distinct shift in consumer behaviour, with premium varieties now accounting for 58% of the market share, up by six percentage points. MAFF officials attribute the overall price increase to the growing presence of the new season’s more expensive harvest in stores.
Supermarkets and Shoppers Navigate the High Costs
On the shop floor, retailers and consumers are adapting to the challenging economic climate. While the new season’s rice is arriving, its high price point is causing some friction. A supermarket in Kashiwa, Chiba Prefecture, reported that sales of its new-season rice, priced at ¥4,298 for 5kg, have been slower than expected. The management believes the high price, coupled with the availability of cheaper alternatives like government-stockpiled rice, has made consumers more cautious.
In response to these affordability concerns, many supermarkets are extending their sales of government-stockpiled rice, which was initially scheduled to end in August. A supermarket in Kakogawa, Hyogo Prefecture, will continue selling stockpiled rice for just over ¥2,100 per 5kg—less than half the price of the new season’s harvest, which is on sale for around ¥5,000.
Shoppers have welcomed the move. “I make packed lunches for my growing grandson, and with the price of everything going up, it’s a huge help that they’ll continue to sell the more affordable rice,” said a woman in her 70s at a store in Utsunomiya. A mother of two in Kakogawa added, “I saw the price of the new rice and thought it was very expensive. At this price, I’d rather buy the stockpiled rice, so I’m glad they are continuing to sell it.”
Government Signals Potential Policy Shift
At the national level, the rising prices have intensified discussions about Japan’s long-standing rice production policies. Agriculture Minister Koizumi commented on a recent national poll by the Yomiuri Shimbun, which found that 86% of respondents supported reviewing production controls in favour of boosting output.
Speaking to reporters in Kagoshima Prefecture, Mr. Koizumi called the poll’s findings “incredibly encouraging from a policy-making standpoint.” He added, “I am determined to create an environment where both farmers and consumers can benefit.” His remarks suggest a potential shift in government strategy to address the dual challenges of ensuring farmer profitability and maintaining food affordability for the public.
