Japan PM Hopes to Boost LDP with Lower Rice Prices Ahead of Election; Release of Govt-Stockpiled Rice Not Guarantee Fall in Retail Price

By Masashi Tanaka / Yomiuri Shimbun Staff Writer

16:14 JST, May 27, 2025

Prime Minister Shigeru Ishiba is betting on lower rice prices, resulting from the release of government-stockpiled rice under discretionary contracts, to break the stagnant political situation.

If realized, Ishiba intends to use the outcome to boost his administration in the upcoming House of Councillors election this summer.

Ishiba was confident about realizing his goal of lowering the retail price of a 5-kilogram bag of government-stockpiled rice to around ¥2,000 when he spoke to reporters at the Prime Minister’s Office on Monday.

“By utilizing the unprecedented method of discretionary contracts, the probability of achieving the goal is very high,” Ishiba said.

The government and ruling parties proposed discretionary contracts early on as a way to solve the issue of surging rice prices.

Senior officials of the Finance Ministry, which manages state-owned properties, also suggested that releasing stockpiled rice using the method was legally possible.

However, former Agriculture, Forestry and Fisheries Minister Taku Eto, a lawmaker with vested interests in farming policies, was anxious about the backlash from farmers.

Eto once said, “It’s not right for the government to commit to a price.”

Due to his cautious stance, making arrangements for using discretionary contracts became difficult.

During that period, the price of rice continued to rise, and Ishiba told his aides, “If things remain unchanged, the administration may not survive.”

Eto was dismissed from the post because of his comments regarding the rice issue, and Shinjiro Koizumi was appointed as the new Agriculture, Forestry and Fisheries Minister. Following the change, the plan to use discretionary contracts was quickly realized.

Ishiba believes that rice-farming policies should be reviewed as a result of the current situation. He thinks that even if the ruling parties lose the votes of rice farmers, his administration will gain public support.

Some within the Liberal Democratic Party have welcomed the decision.

“This is totally different compared to before when we just sat idle as the price of rice increased,” said an LDP upper house member. “It will be a positive [for the LDP] in the election.”

However, even if the government-stockpiled rice circulates in the market at low prices, it is uncertain whether retail prices in general will also fall.

“It is difficult to clearly predict whether the bet by the prime minister and Mr. Koizumi will be successful,” said an LDP lawmaker who has served as a Cabinet minister.