Wholesalers may be behind elevated retail rice prices

Japan’s high retail rice prices may be linked to growing gaps between wholesalers’ procurement and selling prices for stockpiled rice, according to a government survey. These wider price spreads compared to ordinary rice harvested in 2022, as well as higher margins added by wholesalers on stockpiled rice sales, are contributing factors. Agriculture Minister Taku Eto emphasized that wholesalers must recognize the distinction between stockpiled rice transactions and regular sales, while also introducing a new auction system with a 60,000-ton quota to expedite distribution without wholesaler involvement, aiming to lower retail prices by eliminating their costs.