Key Facts
• June 11: Applications for additional 200,000 tons of reserve rice began.
• Targeted rice: 2020 and 2021 harvests, distributed via discretionary contracts.
• Within one hour, approximately 30 companies applied, including Aeon Group (5,000 tons) and 7-Eleven (50 tons).
• Major retailers like Ito-Yokado and Don Quijote declined due to logistical and milling challenges.
• Minister Shinjiro Koizumi highlighted complex rice distribution and cited profit increases: one wholesaler saw a 500% rise in operating profit year-on-year.
• A major rice wholesaler reported a profit increase from ¥396 million (2024 Q1) to ¥1.929 billion (2025 Q1).
• The wholesaler’s profit margin rose from 1.4% to 5%, still below the 6.7% average for Tokyo Stock Exchange-listed companies.
• Koizumi’s remarks caused public concern over alleged profiteering, impacting stock prices of wholesalers.
• Wholesalers denied hoarding or price manipulation, citing operational transparency and demand-driven supply.
• Experts emphasized the need for balanced pricing to avoid harming farmers or consumers.
Summary
Japan’s Ministry of Agriculture initiated applications for 200,000 tons of reserve rice on June 11, targeting 2020 and 2021 harvests. While some companies like Aeon Group and 7-Eleven applied, others, including Ito-Yokado and Don Quijote, opted out due to logistical and milling constraints. Minister Shinjiro Koizumi’s comments on the complexity of rice distribution and significant profit increases among wholesalers sparked public debate. A major wholesaler reported a fivefold profit increase, though its profit margin remained below the industry average. Koizumi’s remarks led to stock price fluctuations and raised concerns about potential profiteering. Wholesalers denied allegations of hoarding or price manipulation, emphasizing demand-driven operations. Experts called for balanced pricing strategies to ensure fair distribution without harming farmers or consumers.
