Declining rice prices in Japan have now persisted for six weeks straight. According to the latest data from the agriculture ministry, the average cost of 5-kilogram rice bags dropped significantly. Supermarkets nationwide reported an average price of 3,672 yen, down 129 yen from the previous week.
This marks the first time in 21 weeks that prices have fallen below 3,700 yen. Notably, declining rice prices have also seen three consecutive weekly drops exceeding 100 yen. Analysts attribute this trend to increased sales of government-stockpiled rice under discretionary contracts.
Despite the downward trend, current prices remain 62.8% higher than last year. However, the year-on-year gap has narrowed to 1,416 yen, the smallest difference since October 2024. This suggests that inflationary pressures on rice may be easing.
Looking ahead, farmers and retailers remain cautious about the prolonged declining rice prices. While consumers welcome lower costs, producers worry about shrinking profit margins. Some industry groups are calling for balanced policies to support both affordability and sustainable farming. If prices keep falling, smaller farms could face financial strain, potentially impacting future harvests. Analysts suggest that monitoring supply levels and adjusting stockpile releases will be key to maintaining market stability in the coming months.
Meanwhile, single-origin brand rice also experienced a dip. The average price for 5-kilogram bags fell by 51 yen to 4,290 yen. While the decline was less severe than standard rice, it still reflects broader market trends.
Experts believe the declining rice prices stem from strategic government releases. By increasing supply through discretionary contracts, authorities have helped stabilize costs. Retailers have passed these savings to consumers, leading to consistent weekly drops.
Market watchers predict prices may stabilize soon. However, if government interventions continue, further declines could occur. For now, shoppers benefit from more affordable rice, though long-term trends remain uncertain.
As Japan navigates fluctuating food costs, declining rice prices offer temporary relief. The coming weeks will reveal whether this trend holds or reverses.
