Japan's Rice Crisis: Boom in Private-Sector Imports Amid Soaring Prices

Japan is witnessing a significant increase in private-sector rice imports as the nation copes with a critical supply shortage, presenting challenges for both consumers and policymakers. In May, private imports soared to 10,600 metric tons, a stark rise from the 3,004 tons for the entire previous financial year.

This spike in imports, though still minor compared to the 7 million tons consumed annually, comes amid doubled rice prices following a harsh heatwave, an earthquake, and increased tourism demands. In response, the Japanese government released stockpiled rice at reduced prices, offering consumers a respite from high costs.

Traditionally, Japan adopts a protectionist stance on staple foods, imposing a levy of 341 yen per kilogram on private imports. However, under WTO rules, the government can import 100,000 tons tariff-free. In a bid to alleviate price pressures, an early tender for tariff-free rice was held in advance of the usual September auction.

(With inputs from agencies.)