How will the use of no-bid contracts to sell government-held rice affect the market’s price revelation process and potentially impact competition among rice sellers?
Forget the whispers of economic downturns; Japan is battling a different kind of crisis – a surging rice price that threatens the national plate. The man at the helm,newly appointed agriculture Minister Shinjiro Koizumi,isn’t flinching. He faces a challenge as complex as it is indeed critical. While other nations grapple with interest rates, Japan confronts the rising cost of its staple food.But this isn’t just about economics; it’s about cultural identity and national security. Can koizumi succeed where others faltered? The stakes are higher than ever,with consumers keenly watching every move.This is not just a policy shift; it’s a bold play to secure affordable and accessible rice across the nation, a gamble that could define his tenure. Let’s dive into his plan.
Japan’s new agriculture minister, Koizumi shinjiro, says he will take steps so rice from government stockpiles can be sold at retail stores from early June in the 2,000 yen range, or about 14 to 21 dollars, per 5 kilograms.
the ministry is releasing the reserve rice through auctions starting in March in an effort to stabilize distribution and lower prices.
But rice prices have continued to soar.koizumi is planning to use no-bid contracts to sell the stockpiled rice instead of auctioning it off to the highest bidders. He has ordered his officials to cancel next week’s auction.
Koizumi said at a news conference on Friday that the plan is to sell the reserve rice through discretionary contracts, so that a 5-kilogram bag can be priced in the 2,000 yen range.
The minister said the process of introducing discretionary contracts is expected to start next week. he said it is possible that reserve rice in this price range will be available on store shelves in early June.
Koizumi also said that based on a survey at the end of April, the ministry estimates this year’s rice production at 7.19 million tons, up 400,000 tons from last year. He said the acreage for this year’s crop is 1.33 million hectares, the largest in the past five years.
Japan’s new agriculture minister, Koizumi Shinjiro, says he will take steps so rice from government stockpiles can be sold at retail stores from early June in the 2,000 yen range, or about 14 to 21 dollars, per 5 kilograms.
The ministry is releasing the reserve rice through auctions starting in March in an effort to stabilize distribution and lower prices.
But rice prices have continued to soar. Koizumi is planning to use no-bid contracts to sell the stockpiled rice instead of auctioning it off to the highest bidders. He has ordered his officials to cancel next week’s auction.
Koizumi said at a news conference on Friday that the plan is to sell the reserve rice through discretionary contracts, so that a 5-kilogram bag can be priced in the 2,000 yen range.
The minister said the process of introducing discretionary contracts is expected to start next week. He said it is possible that reserve rice in this price range will be available on store shelves in early June.
Koizumi also said that based on a survey at the end of April, the ministry estimates this year’s rice production at 7.19 million tons, up 400,000 tons from last year. He said the acreage for this year’s crop is 1.33 million hectares, the largest in the past five years.
