Government to Buyback Rice Once It Released

The government of Japan is expected to buy back the rice for national reserve which was released in 2025. Although it released a great amount of rice reserve for reducing rice price, that measure caused large amount of rice stock in the market. The private rice stock marked a record high, putting downward pressure on rice price. Ministry of Agriculture, Forestry and Fisheries (MAFF) will make a final decision on the buyback late August, considering estimation of rice harvest of this year.

Caused by poor harvest in the previous year and increasing consumption, the price of rice rose to an extreme level in 2025. Rice is the staple food for consumers in Japanese. The government of Japan decided to release governmental stock of rice to stabilize rice price. It was highly unusual for the government to release its rice stock not for maintenance of supply in natural disaster, but for controlling the price.

 

The government has been maintaining around 1 million metric tons of rice in its stockyard, since the reserve system was introduced in 1995. While it had 960 thousand tons of rice reserve before starting release of reserved rice in the spring of 2025, the amount was reduced to the current level of 320 thousand tons. It is required for the government to resume the amount of rice reserve to 1 million tons.

 

With ample supply backed by national policy, the rice price is on the trend of decline this year. The price of brown rice that was produced in 2025 was dropped from 37 thousand yen for 60 kilogram in October 2025 to 32 thousand yen in June 2026. Although farmers and traders have been sending requests to the government to buy back the released rice, Sanae Takaichi administration has been reluctant to do that, because the measure may exacerbate current price inflation.

 

Release of reserved rice which was harvested before 2025 slowed down consumption of new rice produced in 2025. MAFF announced that private stock of rice rose up to 2.43 million tons at the end of June 2026, which is the highest amount since 2004 when it started the survey. The ministry explains that the stock increased with upsurge of rice import, caused by rice shortage in 2025. It also expects increase of the stock in 2027 with good harvest in 2026.

 

To maintain rice price, the government has been promoting the policy of reducing rice pads in Japan. But it is not easy for the government to force rice farmers to reduce their basis of production. Production of rice consequently keeps on increasing, threatening traders with possible decline of rice price. Buyback of rice will inevitably affect rice trade and price. There is no sign, however, for Takaichi, whose skill in agricultural policy is unknown, to take a leadership in the policy on rice price.

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