Japan’s farm minister, Taku Eto, stepped down following public outrage over his remark that he never had to buy rice because he received plenty as gifts from supporters. His comment was seen as insensitive during a time when many Japanese consumers face soaring rice prices. Eto’s resignation adds pressure on Prime Minister Shigeru Ishiba’s government, which is already struggling with low approval ratings ahead of a critical Upper House election and ongoing trade negotiations with the U.S.
Poor Harvests and Aging Farmers Drive Rice Prices Higher Despite Government Stockpiles
Rice prices in Japan have surged to record highs due to poor harvests, adverse weather, and Japan’s protectionist policies favoring domestic farmers. Despite government efforts to release stockpiles to stabilize the market, prices continue to climb, hitting historic levels in supermarkets nationwide. The United States Department of Agriculture noted that even with imports and new domestic crops arriving, prices remain elevated due to supply shortages from the previous year.
Japan’s Farm Minister Resigns Amid Outcry Over Rice Costs and Food Security WorriesThe inefficiency and aging population of Japan’s rice farmers exacerbate supply constraints. Most rice farms are small-scale and operated by elderly farmers, with fewer young people entering agriculture. Additionally, Japan’s strong cultural preference for domestic rice over foreign imports, combined with high tariffs on imported rice, keeps the market relatively isolated and vulnerable to supply shocks.
Tourism and Panic Buying Increase Rice Demand While Inflation and Food Security Rise
Demand for Japanese rice has grown, partly fueled by increased tourism, which has put further strain on limited supplies. Panic buying and hoarding by households and businesses have also contributed to price spikes. While some retailers are considering importing rice, consumer unfamiliarity with foreign rice varieties limits the potential impact of these imports in easing supply shortages.
Japan’s inflation, driven largely by rising food prices, remains stubbornly high at 3.6% year-on-year, surpassing the Bank of Japan’s 2% target for three consecutive years. A weak yen makes food imports more expensive, worsening inflationary pressures. With Japan importing about 60% of its food and having a food self-sufficiency rate of only 38%, the country faces ongoing challenges in achieving its goal of 45% self-sufficiency by 2030.