New-rice inventories have swelled to near-record levels, sending retail prices nationwide sharply lower. Rice farmers are facing a deteriorating earnings environment.
This year's rice inventories reached a record 2.43 million tonnes as of the end of June, prompting warnings of an unprecedented rice glut. An official from JA-Zenchu (Central Union of Agricultural Cooperatives) said that ensuring adequate earnings for sustainable rice production is essential, while the worsening financial condition of farmers is driving both the aging of the farming population and business closures.
At a supermarket in Yokohama, 5 kg of new Ibaraki-grown Koshihikari rice is being sold for ¥2,646, while the nationwide average retail price has fallen sharply from the high of ¥4,416 recorded in January this year. The person responsible for procurement said prices are expected to fall further, to ¥2,200–¥2,300, in November and December.