The Japanese cabinet approved on Friday a shift to a demand-aligned rice production policy and new measures to prevent shortages. The changes aim to stabilize prices amid recent spikes in the staple food's cost. Prime Minister Sanae Takaichi's government plans to submit a bill to the Diet.
The Japanese cabinet on Friday approved a shift in rice policy toward demand-aligned production and introduced measures to avert shortages, as prices for the staple have spiked in recent years.
Prime Minister Sanae Takaichi's government plans to submit a bill to the Diet revising the law on stabilizing supply, demand, and prices of staple foods. This reverses predecessor Shigeru Ishiba's push to expand production and exports for lower prices. The revisions require food businesses to report rice stocks periodically and mandate reserves from large private firms to bolster government stockpiles.
Shortages stem partly from the government's poor grasp of distribution and supply-demand outlooks. Factors include high temperatures hitting supply and rising demand from inbound tourists. Dubbed the "Reiwa rice crisis," prices surged, though government data shows 5-kg retail bags recently trending below 4,000 yen.
In shortages, the government will issue warnings or publicly name non-compliant businesses. As reported by The Japan Times, the revised law explicitly promotes demand-matched production to prevent price drops from oversupply.