"Wait, is that really okay?" Farmers Surprised by Price Offers in Fierce Competition for Japan's Earliest New Rice (Saturday Station, June 14, 2025)
As reserve rice stocks gradually enter the market, attention is turning to the price of this year's new rice crop. A visit to one of the earliest harvesting regions revealed a fierce competition—a kind of "rice war"—that may affect these prices. (Broadcast on June 14, "Saturday Station")
Heatwaves and Pests: Farmers Worried About New Rice Yields
Mr. Kenichi Arai, a rice farmer in Saitama who owns rice paddies equivalent to the size of about 10 Tokyo Domes, showed us the following:
"This is brown rice damaged by stink bugs. Last year, due to the heat and the stink bugs, I think our yield was down 20 to 30 percent. This year, I worry that stink bug numbers might explode even further."
— Kenichi Arai, Arai Agriculture
A survey in Saitama confirmed that the overwintering density of stink bugs was about 43 times higher than the previous year, raising alarm among farmers. Mr. Arai said that in nearby farms last year, yields dropped to one-tenth of normal due to extreme heat and rice stink bugs.
Amidst these challenges, pre-harvest rice buying at high prices has already begun.
"Last year, the price was around 17,000 yen per 60 kg, but this year it's around 22,000 to 23,000 yen."
— Kenichi Arai
The advance payment offered to farmers by JA (Japan Agricultural Cooperatives) when collecting rice is reportedly 5,000 to 6,000 yen higher than last year's price. But why is JA offering such high prices?
"It's probably because JA wasn't able to collect enough rice last year. The price they offered was too low, and private buyers were offering much higher prices. As a result, rice didn't flow into JA."
— Kenichi Arai
Pre-Harvest Buying Heats Up with Surprise Offers
The fierce competition for new rice is also happening in
Okinawa. In Ishigaki City, harvesting of Japan's earliest "early crop rice" has already begun.
"The crop this year? It's excellent. Almost too good — a bumper harvest."
— Nagatoshi Uechi, Ishigaki rice farmer
"This is the very first rice of the season. Japan's earliest new rice."
— Daiki Nakamoto, Ishigaki rice farmer
Smiling as he holds a heavy stalk of rice, Mr. Nakamoto explained that fierce competition has already begun for this new crop.
"Just yesterday, someone asked if they could visit my fields. We walked around together. Honestly, when they offered their price, I was like, 'Wait, is that really okay?'"
— Daiki Nakamoto
Although Mr. Nakamoto usually sells to JA, since March or April he has been receiving multiple inquiries from buyers outside the prefecture, offering surprisingly high prices.
"JA itself is offering prices much higher than last year, but private buyers offer even more if they negotiate directly. It was surprising. Still, as a father, I know how expensive rice can get for consumers. I don't want to sell for outrageously high prices, even though I probably could."
— Daiki Nakamoto
Rice "Spot Prices" Continue to Plummet
Meanwhile, an important index that affects rice prices is continuing to decline.
"Prices have dropped by about 12,000 yen. They've plunged twice now—it's quite a shock."
— Tomio Kanazawa, President, Kanazawa Rice Sales
Mr. Kanazawa, a rice wholesaler in Gunma Prefecture, has been closely monitoring the sudden drop in spot prices since the end of last month. Spot trading refers to deals between wholesalers that do not involve JA, and these prices serve as an important market indicator.
"The speed of the decline is astonishing."
— Tomio Kanazawa
For example, the price for a 60 kg bag of 2024 (Reiwa 6) Koshihikari from
Ibaraki and Chiba has fallen from 48,500 yen at the end of last month to 36,000 yen as of yesterday—a drop of 12,500 yen.
"There's even data showing buyers hoping to push prices down another 2,000 to 3,000 yen. I expect prices will likely continue to fall, because the release of reserve rice has reduced demand for branded rice."
— Tomio Kanazawa
Retailers Still Waiting for Reserve Rice
Sales of reserve rice have also begun in Ishigaki City, Okinawa, meaning reserve stocks have now reached all 47 prefectures in Japan.
On June 10, Minister Koizumi announced additional releases of reserve rice.
"We will release an additional 200,000 tons—100,000 tons from 2021 and 100,000 tons from 2020 stockpiles. Since some stores have already sold out, we want to release more."
— Minister of Agriculture Koizumi (June 10)
However, many retailers still haven't received their stock.
At "Maruyasu" supermarket in Tokyo, they applied for 20 tons of reserve rice on May 30, but have yet to receive any.
"We had expected to get the reserve rice a bit sooner, so we had held back on other orders, and our inventory has now become quite low."
— Takashi Matsui, CEO of Super Maruyasu
Yesterday, the Ministry of Agriculture contacted the store:
"They sent us a draft contract, requesting we return it by the 18th. The earliest delivery will be in early July. It's later than I had expected."
— Takashi Matsui
What's Next? Prices May Drop to the 3,300 Yen Range by September
Anchor Aya Takashima:
"Reserve rice has started appearing in stores at about 2,000 yen, but what will happen to overall rice prices?"
Announcer Tomoki Itakura:
"Currently, the average price for rice sold at supermarkets nationwide is still over 4,200 yen for 5 kilograms. We spoke to experts: Assistant Professor Naoya Matsudaira (Utsunomiya University) and Professor Katsumi Arahata (Japan International Academy University). Both predict that with reserve rice stabilizing supply in July, prices will start falling to around 4,000 yen, and by August, may drop into the high 3,000 yen range."
Anchor Aya Takashima:
"What about by September, when new harvests arrive? Will prices fall further?"
Announcer Tomoki Itakura:
"Here the two experts differ slightly. Matsudaira expects that even though yields may be 400,000 tons higher than last year, potential heatwaves could lead to stink bug outbreaks in some regions, which may limit yields and keep prices in the high 3,000 yen range. On the other hand, Professor Arahata suggests that if the Ministry of Agriculture reports a bumper harvest in late August, prices could fall to between 3,300 and 3,500 yen."
Anchor Aya Takashima:
"Let's hope for a good harvest. What about the impact of imported rice?"
Announcer Tomoki Itakura:
"The 'minimum access' rice imports are expected to arrive starting in late September. Professor Arahata believes their impact will be limited, but Matsudaira warns that the additional supply could destabilize the market, making price trends harder to predict."
Anchor Aya Takashima:
"It seems we may need to wait a bit longer before rice prices stabilize."
Journalist Hideo Yanagisawa:
"Rice prices will be strongly affected by this summer's weather. If yields drop due to heatwaves, prices will rise. Besides reserve and imported rice, we'll need to keep an eye on the weather."
Anchor Aya Takashima:
"We also have to worry about flooding. Hopefully, the weather will cooperate and allow new rice to be sold at reasonable prices."