The government will discuss selling part of its strategic rice reserve next week, the agriculture minister Taku Eto said in a presser today.

The rice price in Japan is up 60% year-on-year as of last month, according to Bloomberg’s calculation using wholesalers’ price data compiled by the ministry.

The Bank of Japan cited rice’s contribution to inflation in its economic outlook report today as it raised its key policy rate to the highest level in 17 years.

The government holds about a million tons of rice as emergency stockpiles, about one-seventh of the country’s estimated annual consumption.

“Producers might oppose the move saying the rice price was finally high enough to cover their inflated costs of production,” Eto said.

“But I hope everyone understands that the release would benefit producers too as high prices could trigger consumers to change from eating rice,” Eto added.

The average wholesale price of rice rose to ¥24,655 (US$159) per 60 kg bag as of December 2024, according to government data.

The minister did not give the amount or the date of the release, and added the plan will be discussed in detail on January 31st.

Japan places higher tariffs on imports past a limit of 100,000 tonnes and its high domestic prices stand in stark contrast to other countries.

Prices for Thailand white rice, which serve as an Asian benchmark, recently reached the lowest since early 2023.

India, the biggest rice exporter, rolled back restrictions on shipments last year.

That’s benefited global supply, and the US Department of Agriculture forecasts world stockpiles will rise for the first time in four seasons.