Japan’s government is releasing tax-free imported rice to curb the rising prices of rice in Japan. Notably, despite of trying desperately to control rice prices, Japan has not yet achieved much positive outcomes in the direction. As per the latest report surfaced from Japan’s market, the average price per 5 kilograms of rice at approx. 1,000 supermarkets in Japan in the week to Sept. 7 were priced at ¥4,000 for the first time since early June. However, now the government in its major step to curb the rising prices of rice has decided to release tax-free imported rice into the market earlier than usual. This move is one among the major steps to cap the prices of the grain.
Govt. to Release Imported Rice Three Months Earlier Than Usual
In a statement govt. said that it is obliged to import about 770,000 tons of rice duty-free each year under a system called “minimum access.” Of the imports, 100,000 tons are auctioned off to private businesses for sale as table rice. Being the staple food of the nation, it’s worthless to explain the importance of rice in Japan. The agriculture ministry says it started auctions of the rice in June and started deliveries to wholesalers last week, or about three months earlier than usual. About 60,000 tons have been auctioned so far.
The major rice importing countries for Japan are the rice markets of the US, Australia and other countries. The importance of rice in Japan can be figured out from the fact that the figures presented by the finance ministry shows that private companies also directly imported 26,000 tons of rice in July, an increase of about 200-fold from the same month last year. That rice incurs an import duty of more than 2 dollars a kilogram. However, despite the increase in supply, this year’s domestic harvest is fetching higher prices resulting into the high rice prices in Japan.