What's happened
As of June 2025, Japan faces a persistent rice price crisis, with costs soaring nearly 100% year-on-year. The government has released stockpiled rice to alleviate the situation, but prices remain high, impacting consumers and prompting political fallout, including the resignation of Agriculture Minister Taku Eto.
What's behind the headline?
Current Situation
- Rice prices in Japan have surged by 98.4% year-on-year as of April 2025, with the average price for 5 kg reaching around ¥4,260 ($29.80).
- The government has sold 310,000 metric tons of stockpiled rice, but distribution has been slow, and prices remain double that of the previous year.
Factors Influencing Prices
- Panic buying due to rumors of a major earthquake has exacerbated the situation, leading to a significant increase in demand.
- The 2023 harvest was poor due to extreme heat, further straining supply.
- Increased tourism and dining out have also contributed to higher rice consumption.
Political Implications
- The crisis has led to political repercussions, including the resignation of Agriculture Minister Taku Eto after insensitive remarks about rice purchasing.
- New Agriculture Minister Shinjiro Koizumi aims to reduce prices to around ¥3,000 per 5 kg, but achieving this goal will require effective management of stockpiles and consumer demand.
What the papers say
According to The Japan Times, the average price of rice has reached ¥4,260 per 5 kg, a significant drop from previous weeks due to government stock releases, but still double last year's prices. The South China Morning Post highlights that panic buying and poor harvests have led to a crisis, with the Koshihikari brand selling for nearly ¥5,000. Al Jazeera notes that the government's measures have not effectively lowered prices, leading to political fallout for Prime Minister Shigeru Ishiba, whose approval ratings have dropped amid rising inflation and consumer dissatisfaction.
How we got here
The rice price crisis in Japan has escalated due to panic buying triggered by earthquake fears, poor harvests from extreme weather, and increased demand from tourism. The government has been releasing stockpiled rice to stabilize prices, but the effectiveness of these measures remains in question.
Go deeper
- What are the main reasons for the rice price surge?
- How is the government addressing the rice crisis?
- What impact does this have on consumers?
Common question
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What are the latest economic challenges and responses in Japan, the UK, and the US?
As global economies face various challenges, understanding the latest developments can help individuals and businesses navigate these turbulent times. From rising rice prices in Japan to pension reforms in the UK and increasing jobless claims in the US, these issues raise important questions about economic stability and government responses. Here are some common questions people are asking about these pressing economic matters.
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What is Causing Japan's Rice Price Crisis?
Japan is currently facing a severe rice price crisis, with prices soaring by 98.4% year-on-year as of April 2025. This situation has raised numerous questions about the underlying causes, government responses, and the broader implications for consumers and farmers alike. Below, we explore the key factors contributing to this crisis and its impact on Japanese society.
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What is Causing the Surge in Rice Prices in Japan?
Japan is currently grappling with a significant rice price crisis, with costs soaring nearly 100% year-on-year. This situation has raised numerous questions about the underlying causes, government responses, and the impact on consumers. Below, we explore the key factors contributing to this crisis and its broader implications.
More on these topics
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Japan is an island country of East Asia in the northwest Pacific Ocean. It borders the Sea of Japan to the west and extends from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.
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Shigeru Ishiba is a Japanese politician. Ishiba is a member of the Liberal Democratic Party and of Heisei-Kenkyukai until 2011.
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Rice is the seed of the grass species Oryza glaberrima or Oryza sativa. As a cereal grain, it is the most widely consumed staple food for a large part of the world's human population, especially in Asia and Africa.