The Curious Case Of Japan’s Missing Rice: Why Are Market Shelves Empty?

Edited by:Diana George

Japan is facing a rice shortage, but the reasons behind it remain unclear. Despite an increase in last year’s harvest, prices have surged to record highs, fueling public frustration, conspiracy theories, and even government intervention through emergency stockpiles. The rice market in Japan operates through a complex supply chain, where collection agents buy from farmers and sell to wholesalers. Although the harvest grew by 180,000 tons last year, agents report a shortfall of 230,000 tons, a gap that the agricultural ministry cannot explain.

Agriculture Minister Taku Eto suggested that rice may be hidden somewhere in the supply chain, as per a Bloomberg report.

The shortage worsened in August when fears of a major earthquake led to panic buying. Even after the warning was lifted, prices remained high. Rice farmers, who typically earn between ¥2.5 million and ¥3 million annually, have benefited from the surge, but speculation remains about middlemen stockpiling rice to profit from rising prices.

Consumers are feeling the strain, with the price of a standard 5-kilogram bag nearly doubling to ¥3,952. Major retailers like Seven-Eleven have increased prices on rice-based meals, contributing to overall inflation. The Bank of Japan has responded with rate hikes, as rising rice costs have a direct impact on economic policy.

Public anger over food prices has political consequences. Last year’s elections saw the ruling Liberal Democratic Party lose seats, pushing the government to release emergency rice reserves. However, this has done little to satisfy consumers, who continue to face empty shelves and purchasing limits in stores.

Japan’s rice supply issues stand in contrast to the global market, where prices are declining. Domestic preferences and high tariffs on foreign rice have made imports ineffective in stabilizing costs. Meanwhile, fierce competition among collection agents has driven up prices, with smaller players offering steep premiums to farmers.

Doubts remain over the reported 2024 harvest of 7.34 million tons, as many farmers claim their yields were lower due to record-breaking summer heat. Some suspect the government’s numbers are inflated, adding to the uncertainty surrounding the shortage.

The government has begun selling emergency reserves, but experts warn that prices may not drop due to the auction-based system. Critics argue that decades of policies favoring small-scale farmers have weakened Japan’s rice industry, making large-scale farming the only viable solution for future stability.

This article has been republished from The Times Now News.