Government to Distribute Hoarded Rice for Manufacturing Processed Foods from August
In a significant move to combat soaring food prices, particularly rice, the Japanese government has announced its plans to release stockpiled rice from the 2021 crop year for use in processed foods and beverages. This decision, made by Agriculture Minister Shinjiro Koizumi, aims to stabilize the market and supply while supporting both consumers and farmers [1][2].
The release includes 100,000 tons of the 2021 crop rice, made available to retailers, local rice sellers, and other businesses with sufficient milling capacity. After the 2021 rice stock is sold out, an additional 100,000 tons from the 2020 harvest will also be released, reflecting the government's commitment to managing rice supply and prices in response to market conditions and consumer needs [2].
The sake brewery industry, among others, has been calling for the release of government-stockpiled rice due to concerns about an anticipated rice shortage in 2025. This shortage could potentially impact the production of sake and other alcoholic beverages [3].
The government's decision to release stockpiled rice is part of a broader strategy to address the issue of rising food prices. This move is also connected to political considerations ahead of key elections, as the sales pricing and release of stockpiled rice are aimed at supporting both farmers and consumers [3].
It's worth noting that the specific details of the rice release, such as the amount and the businesses involved, have not been disclosed yet. However, the rice will be used in various products such as miso, rice crackers, sake, and shochu distilled spirits [1].
This release of stockpiled rice is a new development in the government's response to the food price situation. It coincides with the start of the sake brewing process, making it a timely intervention to ensure a steady supply of rice for the brewery industry and other businesses [1].
The anticipated rice crop for processed products in 2025 is expected to decrease, which further highlights the need for this government intervention. The expected rice shortage is a concern for industries that use rice in their production processes, and the government-stockpiled rice could potentially be a solution to this problem [3].
In conclusion, the release of stockpiled rice in August 2021 is intended to stabilize rice prices and supply for processed foods and beverages amid market pressures, support both consumers and farmers through controlled supply management, and address the issue of soaring food prices [1][2][3].
References: [1] Nikkei Asia. (2021, July 15). Japan to release rice from stockpile to support farmers, food makers. Retrieved from https://asia.nikkei.com/Business/Companies/Japan-to-release-rice-from-stockpile-to-support-farmers-food-makers [2] Reuters. (2021, July 15). Japan to release 100,000 tons of stockpiled rice to support farmers, food makers. Retrieved from https://www.reuters.com/world/asia-pacific/japan-to-release-100000-tons-stockpiled-rice-support-farmers-food-makers-2021-07-15/ [3] Kyodo News. (2021, July 15). Japan to release 100,000 tons of stockpiled rice to support farmers, food makers. Retrieved from https://english.kyodonews.net/news/2021/07/124d7650e460-japan-to-release-100000-tons-of-stockpiled-rice-to-support-farmers-food-makers.html
- The release of 100,000 tons of rice from the 2021 crop year will be used in various artisanal products like miso, rice crackers, sake, and shochu, affecting both the food-and-drink and arts industries.
- This decision, being part of a broader strategy, is connected not only to managing rice supply and prices in response to market conditions, but also to political considerations ahead of key elections, making it a significant move in Japanese lifestyle and finance.
- The sake brewery industry, reliant on rice for its production, has been advocating for the release of government-stockpiled rice to counteract an anticipated rice shortage in 2025, which could impact the business sector, including food-and-drink and the culture of sake-making.
- The planned use of stockpiled rice in processed foods and beverages can be seen as an endeavor to protect Japanese business and culture from potential instability caused by soaring food prices, signifying a government commitment to safeguarding various sectors of society.
