Japan releases strategic rice reserves to combat price surge
What's the story
Japan, where rice is not just a staple food but also a cultural symbol, has decided to tap into its strategic rice reserves. The move is aimed at reducing the burden of rising prices on its people.
In February, the government announced it would auction 210,000 tons of rice from its contingency stockpile.
The first batch from the reserve has now hit some supermarkets, including those in the southern island of Kyushu.
Cultural significance
Rice is integral to Japan's culture and economy
Rice enjoys a special status in Japanese culture, as it features in almost all meals, sushi, desserts, alcohol, and even as offerings in religious ceremonies.
So much so that even fast-food giant McDonald's has rice-based items on its menu.
However, this heavy reliance on rice makes Japan vulnerable to supply disruptions from unexpected events like disasters or severe weather.
Economic impact
Price surge and government intervention
The average price of a 60kg sack of rice in Japan reached about $160 last year, a 55% hike from two years ago.
The price hike has been blamed on supply chain problems. Agriculture, Forestry and Fisheries Minister Taku Eto, without specifying, said there is enough rice, but it doesn't make it to supermarkets.
As a result, the Japanese government started auctioning its emergency rice stocks last month.
The initial 150,000 tons were auctioned last month.
Consumer concerns
Citizens remain skeptical about quality of auctioned rice
Despite the government's efforts to stabilize prices, some consumers remain doubtful about the quality of the auctioned rice.
"I do not intend to buy it because I have heard that it is old rice. I am still very particular about rice," housewife Emi Uchibori, 69, told CNN.
Similarly, Yuko Takiguchi, a 53-year-old part-time worker, said she would only consider buying it if its price were reduced significantly.