Md.Atiqul Islam Emon

Japanese Retailers Trying to Overcome Soaring Rice Prices.

In Japan, rice is a staple food that is ingrained in its culture and daily diet. However, a number of factors, including climate change, rising production costs, and disruptions to the global supply chain, have caused rice prices to soar in recent years for Japanese retailers. Retailers have been compelled to employ novel strategies as a result of this price increase in order to maintain affordability for customers and ensure sustainable business operations. Reasons for the Rise in the Price of Rice Changes in the climate and natural disasters Rice crops are damaged by typhoons, heavy rains, and droughts, all of which occur frequently in Japan. For instance, in the year 2023, unanticipated floods in important rice-producing regions like Niigata and Akita resulted in significant yield losses, resulting in a decrease in supply and an increase in prices. Rising Costs of Production Global inflation and geopolitical tensions (such as the Russia-Ukraine war) have led to significant increases in the prices of fertilizers, fuel, and labor. Price fluctuations have a direct impact on the costs of domestic rice farming because Japan purchases a significant amount of its fertilizers from abroad. Domestic consumption of rice is declining. Despite rising rice prices, Japan's per capita rice consumption has been falling for decades due to shifting eating habits. Farmers and retailers are put under pressure as a result of this paradox because lower demand results in higher production costs per unit. Issues in the Global Supply Chain Despite the fact that Japan is mostly self-sufficient in rice, price volatility is caused by disruptions in the global food supply chains, such as export restrictions imposed by major rice-producing nations like India.