Japan to buy back 210,000 tons of emergency rice to prevent price collapse

The Japanese government is exploring the possibility of repurchasing 210,000 tons of emergency rice released last year, sources familiar with the situation disclosed on Monday, with the goal of averting a price plunge triggered by heightened rice supply. The Ministry of Agriculture, Forestry and Fisheries is set to issue bids through negotiated contracts on September 18, marking the first government-backed buyback of previously released rice stocks.

Initially, the ministry had budgeted for the purchase of 150,000 tons in fiscal 2026, but the figure was increased after private-sector rice inventories soared to record levels. The final decision will hinge on this year's harvest forecast. In 2025, the government released a total of 590,000 tons of stored rice to help alleviate surging prices amidst shortages, bringing the current stockpile to 320,000 tons.

Even with the rice earmarked from the 2026 harvest added in, the cumulative total would only amount to 740,000 tons, roughly half of the recommended 1 million tons. Farm minister Norikazu Suzuki had been pushing for an announcement by late July, but Prime Minister Sanae Takaichi opted for a more cautious approach, arguing that such a measure would conflict with inflation control efforts.

Currently, the average retail cost of the grain at supermarkets nationwide has plummeted to approximately 3,000 yen ($19) per 5 kilograms, down from around 4,000 yen at the height of the crisis.