Japan starts 1st rice buyback to replenish reserves

Japan's Ministry of Agriculture, Forestry and Fisheries has initiated procedures to purchase 210,000 tons of rice as part of its first-ever buyback to replenish government reserves depleted by emergency releases in 2025. This marks the first such action since the current stockpiling system was established in fiscal 2011. The ministry is engaging in negotiations with up to ten companies and organizations to finalize contracts, potentially concluding on the same day if agreements on prices and terms are reached.

The move aims to rebuild rice reserves after a shortage crisis in summer 2024 led to sharply higher staple food prices. Although the buyback won't significantly impact prices, it will help support them by reducing the amount of rice available in the market. The government released 590,000 tons of emergency rice reserves in 2025, leaving its stockpile at approximately 320,000 tons, far below the ideal level of around 1 million tons.

The rice for this buyback will be sourced from the 2025 harvest and purchased from among ten companies and organizations that bid successfully for a combined 310,000 tons of reserve rice released in auctions in March and April of the previous year. The National Federation of Agricultural Cooperative Associations secured over 90% of the rice sold in the auctions and is projected to acquire most of the buyback.

The ministry will disclose the quantity purchased and the number of contracts after the buyback deals are finalized. Alongside the 210,000 tons acquired this time, the ministry has already signed contracts for an additional 210,000 tons from the 2026 crop as part of restoration efforts. Ultimately, the overall reserve level is anticipated to reach around 590,000 tons once the government stockpiles of older rice, intended for use as animal feed, are depleted.