A farmer harvests rice in Kazo, Saitama Prefecture, on August 21.
14:40 JST, September 4, 2024
Japan’s rice export volume reached a record high of 24,469 tons from January to July, up 23 percent from the same period last year, the Ministry of Agriculture, Forestry and Fisheries said on Tuesday.
Although private sector rice stocks have fallen to their lowest level since 1999, rice destined for export cannot be sold on the domestic market because government subsidies are linked to production.
The largest amount of rice, 7,163 tons, was exported to Hong Kong. The United States came in second with 4,638 tons, followed by Singapore with 3,554 tons.
The total export value also reached the highest level, at ¥6.4 billion, an increase of 29%.
The government considers rice as one of its main export products. The annual export volume in 2023 was 37,186 tons, an increase of about 12 times compared to ten years ago.
Domestic demand for rice is declining, which is why the ministry has been limiting the volume of rice production, even after it ended a policy in 2018 that caused farmers to reduce their rice production.
On the other hand, the ministry has encouraged rice farmers to grow rice for export by paying subsidies, which can reach ¥40,000 per 1,000 square meters of rice fields.
The use of rice grown with subsidies is fixed. If the rice is used for the domestic market, the farmers have to pay back the subsidies.
Agriculture, Forestry and Fisheries Minister Tetsushi Sakamoto stressed at a press conference after Tuesday’s cabinet meeting that the private sector’s rice stockpile stood at 1.56 million tons as of the end of June, far exceeding last year’s annual export volume.
“There is a shortage of rice [in the domestic market] “Gradually it will improve,” he said.
