Japan’s Agriculture Minister recently resigned following his controversial remarks about soaring rice prices driven by multiple factors.
Taku Eto stated last Sunday, claiming that he never buys rice since his supporters sent amounts of the grain as gifts. This comment sparks outrage among locals who have been struggling due to the high price, forcing Eto to step down. Koizumi Shinjiro, the former environment minister, now took his place.
Japan has been facing high rice prices for a period of time. A rice bag weighing 5 kilograms now costs 4,268 yen ($29.63). These are due to several factors, such as the bad weather, the poor harvest from previous year, and the long-held policy that shields Japanese farmers but limits supply.
An economics professor from Keio University, Sayuri Shirai, pointed out that most of Japanese rice was planted by elderly farmers in their small farms. With the ageing population, the number of farmers becomes less and less. She also cited the tourism boom that pushes rice demand.
Takuji Okubo, Japan Risk Forum’s chief economist, also stated that some households and businesses began to panic and start hoarding the supply, partially causing the rice price to soar.
Regarding the solution, some retailers have announced their decision to import rice. However, Okubo pointed out that since Japanese consumers and businesses prefer their own rice over foreign’s, this solution may not work.
The government also tried releasing government stockpiles to lower prices. Since March, they have already released 310,000 tons of rice. Still, the price remained high.
This ineffectiveness has pushed the approval rating of Prime Minister Shigeru Ishiba’s administration to an all time low. His coalition may lose seats in the upper house as the election this summer draws near.
