Japan eyes private-sector group to prevent rice oversupply

November 28, 2017

Tokyo- Japan's ruling Liberal Democratic Party adopted a proposal on Tuesday for establishing a private sector-led national organization that will collect supply-demand information on rice to prevent an oversupply.

The decision reflects worries about excessive supply of rice after the abolition of the government's decades-old "gentan" rice production adjustment system in fiscal 2018, which starts next April.

The new organization is expected to be set up by the end of the year at the earliest, LDP sources said.

Under the proposal, the envisaged organization will be joined mainly by the Central Union of Agricultural Cooperatives, or JA-Zenchu, rice wholesalers and associations of restaurant operators and exporters, the sources said.

To help stable rice output, the new organization is expected to encourage producers and restaurant operators to conclude multiyear agreements or expand purchase deals amid a shortage of low-priced rice sought by such businesses.

The government is also seen providing the organization with information held by local governments on rice planting.

The gentan policy has set targets by region of the acreage under cultivation for rice as staple food in order to prevent rice prices from falling due to overproduction.

The JA group has called for nationwide supply-demand adjustment after the targets are abolished in fiscal 2018, along with subsidies of 7,500 yen per 10 ares of rice fields paid to farmers who work in line with the targets. Jiji Press