The Japanese government announced on Monday it would sell 300,000 metric tons of stockpiled rice to major retailers through negotiated contracts at a weighted average price of 10,700 yen ($75) per 60 kilograms, excluding tax.

The Ministry of Agriculture, Forestry and Fisheries, or MAFF, aims to quickly and affordably deliver the rice to store shelves in an effort to curb the surging prices. Eligible buyers are limited to major retailers, including e-commerce companies such as Rakuten Group, with the weighted average price representing a 47 percent reduction from the previous round of bidding.

Previously, sales were limited to major aggregators such as the JA Group, causing delays as rice moved through wholesalers before reaching retailers. The new direct-to-retailer approach is designed to speed up availability.

Based on typical seasonal margins, MAFF expects the rice to retail at around 2,160 yen, including tax, for 5 kilograms. The stock to be released will include 200,000 tons from the 2022 harvest and 100,000 tons from 2021. The government will handle delivery from warehouses to retailer-designated locations.

At the launch of a response team to handle rice-related emergencies on Monday, Japan's new agriculture minister Shinjiro Koizumi said, "We will dispel public anxiety over rice prices and work to prevent further declines in rice consumption."

Applications from interested businesses will begin soon. Only major retailers handling over 10,000 tons of rice annually — including online sellers — will be eligible. Company names will be disclosed after contracts are signed.

A previous condition requiring retailers to repurchase the same quantity of rice within five years has been scrapped, as it was seen as burdensome and discouraged participation.

Retailers must apply for their desired quantities by August. Applications will be processed on a first-come, first-served basis. If demand exceeds 300,000 tons, the Japanese government plans to increase the volume of rice released.

Responding to concerns about running out of reserves, Koizumi said, "Stockpiled rice exists for times of need. That time is now."

Rakuten Group plans to sell the rice via its e-commerce platform as soon as it secures supply through a negotiated contract. Deliveries will be managed by Japan Post and other logistics partners of the company. Sales are expected to begin in early June, with pre-orders enabled, Nikkei reported.

Despite the release of stockpiled rice beginning in March, rice prices continue to rise. According to Japan's agriculture ministry, from May 12 to 18, the average retail price for 5 kilograms of rice sold at about 1,000 supermarkets nationwide rose to 4,285 yen, up 0.4 percent from the previous week and more than double the price during the same period last year.