Japanese government, ruling party considering ways to deal with unexpected glut of rice supply; possible options include buying rice overly harvested in 2013 to resupply it for use in processed food and feedstuff, expanding government's rice stockpiles
November 1, 2013
– The Japanese government and ruling party are considering ways to deal with an expected glut of rice supply in the country for consumption as staple food.
Possible options include buying rice overly harvested in 2013 to resupply it for use in processed food and feedstuff and expanding the government's rice stockpiles, informed sources said.
The government and the Liberal Democratic Party are concerned that an excess supply will send rice prices tumbling amid falling domestic consumption, the sources said.
Details, including how much of rice the government will buy, are expected to come out by the end of November.
The possible purchases are likely to be financed by a rice farmers' fund managed by a ministry-affiliated body, the sources said.
According to the farm ministry, the country is likely to see two straight years of rich rice harvests in 2013, leaving nearly 600,000 tons in estimated excess supply.END
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