Saturday, June 28, 2025

Japan’s rice shortage drives imports to multi-year high in May

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A worsening rice shortage in Japan has pushed domestic prices to multi-year highs, prompting a sharp surge in private-sector imports in May, according to revised trade data released by the Finance Ministry on Friday.Tariffed rice imports soared to 10,605 tons in May 2025, a dramatic increase from just 115 tons a year earlier and more than 3.5 times the total volume imported in all of fiscal 2024. The bulk of shipments came from the United States (7,894 tons), followed by Taiwan, Thailand, and Vietnam.
The spike comes as Japanese consumers and retailers grapple with soaring prices caused by a domestic supply crunch. An auction-based mechanism used by the government to release its stockpiles has been blamed for worsening price pressures.
To address the crisis, the government began direct sales of stockpiled rice to retailers in late May, aiming to calm the market and reduce reliance on high-tariff imports.Still, analysts warn that elevated import levels could return if prices for the upcoming harvest remain high. If newly harvested rice stays near ¥4,000 ($28) per 5 kilograms, imports may climb again, according to Yasufumi Miwa, agriculture expert at the Japan Research Institute.

Japan is committed to importing 770,000 tons of rice annually tariff-free under its WTO minimum access quota, though only around 100,000 tons is used for direct consumption. All rice beyond this quota attracts a tariff of ¥341 per kg, adding further pressure on consumers and retailers already facing elevated food costs.

(inputs from Kyodo News)

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