Japan rolls back rice output expansion, sets 2026 target based on demand
Japan's farm ministry said Friday it would set its rice production target for 2026 at 7.11 million tons in line with the maximum estimated demand, marking a shift away from the previous administration's policy of expanding production to ease price pressure, Kyodo reports.
The figure, a decrease from the expected production of 7.48 million tons for the 2025 harvest, reflects the return by the administration of Prime Minister Sanae Takaichi to the conventional policy of matching production with demand.
The move seeks to maintain prices by addressing producers' concerns that a further increase in production would lead to oversupply. The government also indicated that it will resume purchasing rice for its stockpiles, which had been halted for the 2025 harvest.
Competition among buyers has intensified for the 2025 crop, with retail prices currently averaging over 4,000 yen ($26) for 5 kilograms. There are concerns that the withdrawal of the production increase policy only a few months after it was announced could signal tighter supply and cause elevated prices to become entrenched.
Earlier, it was reported Japan's September industrial output rises 2.2% compared to the previous month.