Japan's agriculture ministry has announced that it will release 210,000 tons of rice from government reserves to address soaring prices. This marks the first time that stockpiled rice will be released specifically to stabilize supply.

Japanese Agriculture Minister Taku Eto said at a news conference following a Cabinet meeting on Friday that the distribution will begin as early as mid-March, with the possibility of further increases if needed. The stockpiled rice is expected to reach store shelves between late March and early April.

This decision follows a sharp rise in retail rice prices, which reached record highs in the week ending Jan 26.

Due to supply shortages, spot market prices for wholesale transactions have surged, with the price of Niigata Koshihikari rice, a renowned rice variety known throughout Japan, rising by 80 percent since autumn 2024, Nikkei reported.

Eto said he hopes that the release of the reserved rice will bring the market back to normal.

The release will be conducted through bidding, with an initial allocation of 150,000 tons. Subsequent releases will be determined based on the state of rice distribution. The bidding process will be open to major rice distributors, Nikkei reported.

The Ministry of Agriculture, Forestry and Fisheries maintains a reserve of 1 million tons of rice for emergencies like crop failures, according to the public broadcaster NHK.

In the past, rice reserves were only released in response to poor harvests or disasters. However, the ministry relaxed its policy last month, allowing the release of stockpiled rice to curb surging prices.

Despite a rise in rice harvest to 6.79 million tons in 2024 — an increase of 180,000 tons from the previous year — supplies have fallen short of meeting demand from households and the restaurant industry.

As of the end of December, major distributors secured 210,000 tons less rice compared to the previous year. While the exact reason remains uncertain, the agriculture ministry points to hoarding by wholesalers and farmers expecting further price hikes as the primary factor. Officials warned that if the situation continues unchecked, rice — a staple food — could become a target for financial speculation.

Experts believe the government's decision to release stockpiled rice is intended to curb speculative activity. The agriculture ministry plans to closely monitor the impact of this measure on prices.

While experts expect the increased supply to drive prices down in the short term, they warn that market adjustments over time could lessen the policy's effectiveness in the medium to long term.