TOKYO: Rice prices are expected to remain high in Japan for the time being, even as rice harvested this year began to hit the shelves at supermarkets where the staple had run short.

The situation, currently marked by the shortages, “will gradually improve” with the full-fledged distribution of new rice, agriculture minister Tetsushi Sakamoto said.

At a meeting Wednesday, rice wholesalers said that prices of 5-kilogram bags of milled rice at supermarkets “were between 1,500 and 2,000 yen last year but have exceeded 3,000 yen,” warning that “if rice prices remain elevated, consumption will decline.”

The total volume of milled rice sales at nine major wholesalers for the week from Saturday grew 3 percent from a year before. The supply is expected to increase with each passing week.

But prices are expected to remain high as the National Federation of Agricultural Cooperative Associations, or Zen-Noh, has raised the allowance paid to producers upon the collection of new rice by about 20 to 40 percent from last year due to rising production costs.

The lofty prices also reflect the impact of rice scarcity caused by consumers stockpiling the grain following a warning of a possible big earthquake in the Nankai Trough off Japan’s Pacific coast in August, when the stock of rice at distributors often decreases ahead of new rice deliveries.

Zen-Noh’s allowances impact retail prices. The allowance for Koshihikari rice from Toyama Prefecture, central Japan, climbed by over 20 percent, while Akitakomachi rice from the northeastern prefecture of Akita posted a rise of nearly 40 percent. Brands from major rice producer Niigata Prefecture also marked increases.

Some industry officials believe that Zen-Noh may increase allowances further as it competes against private-sector companies for new rice, possibly pushing up retail prices more.

JIJI Press