Agricultural cooperatives across Japan have significantly reduced advance payments to rice farmers in 16 prefectures, cutting amounts by an average of 20 to 40 percent compared to the previous year, according to a recent tally. The declines come amid weakening demand driven by a range of factors including rising retail prices, government interventions, and increased rice supply.

The cooperatives cited a drop in consumption following price hikes triggered by supply shortages that began about two years ago. In response to these shortages, the Japanese government released rice from its emergency stockpiles and permitted increased imports. Additionally, higher domestic production this year has contributed to easing the tight market conditions.

In Tochigi Prefecture, the advance payment for the popular Koshihikari rice cultivar was reduced by 45 percent, falling to 15,500 yen per 60 kilograms. Industry sources noted that retail prices for some new crop varieties have dropped below 3,000 yen per five kilograms at supermarkets, a marked decline from the peak prices exceeding 4,000 yen per five kilograms observed during the height of the shortages.

Despite these adjustments, the government has yet to announce the timing or volume of its planned purchases to replenish its emergency rice reserves. This lack of transparency has caused some cooperatives to delay decisions on advance payments, raising concerns about the financial stability of rice farmers as they face uncertainties about market support.

The reduced payments and market fluctuations underscore ongoing challenges within Japan’s rice sector as it seeks to balance domestic supply and demand amid evolving economic and policy conditions.