WILLAGRI
The price of rice, a staple of the Japanese diet, has doubled in a year, threatening the country’s political stability. Agriculture Minister Shinjiro Koizumi introduced an innovative solution by directly selling strategic stocks of so-called “vintage” rice at discounted prices, which appeased consumers. This crisis highlights the government’s conflicting policies on rice, between keeping prices low and protecting local farmers. Koizumi could use this opportunity to reform the inefficient agricultural system and consolidate his political legacy. Agriculture Minister Shinjiro Koizumi bypassed the auction to sell strategic reserves directly, reducing prices. Rice is deeply rooted in Japanese culture, with historical and cultural significance. Declining consumption and conflicting agricultural policies have contributed to the current crisis.
Source : Bloomberg