Japan turns to South Korean rice amid soaring domestic prices and shortages

Department of Research and Strategic Studies and International Relation 22-04-2025

In an unprecedented move not seen since 1999, Japan has begun importing rice from South Korea to ease the strain of rising domestic rice prices and dwindling supply. The decision reflects both growing consumer frustration and the Japanese government’s struggle to stabilize the market.

According to recent media coverage, a modest shipment of two tonnes of South Korean rice arrived in Japan last month, marking the first such transaction in over 25 years. Although the quantity is small, Japanese broadcaster NHK reported that an additional 20 tonnes are expected to be delivered in the coming days.

Traditionally, Japanese consumers have been wary of imported rice, often favoring homegrown varieties for their superior taste and quality. This deep-rooted preference was clearly demonstrated in 1993 when Thailand’s rice exports to Japan failed to gain traction, following an unusually cool summer that reduced Japan’s harvest. However, the current market conditions have compelled consumers to reconsider their choices.

Prices for domestically produced rice have more than doubled compared to the same time last year, leading many shoppers to explore cheaper alternatives. Even with steep import tariffs in place, the demand for foreign rice, particularly from South Korea and the United States, has noticeably increased.

Yonhap news agency noted that South Korea’s rice exports to Japan could reach their highest levels since 1990. Meanwhile, American rice producers are also seizing the opportunity, expanding their footprint in the Japanese market.

Arata Hirano, a restaurant owner in Tokyo, shared his experience of switching from local to American rice last year when the shortage began pushing prices to unsustainable levels. Although the cost of Californian rice has risen since his initial order, Hirano said it remains more affordable than Japanese rice. His customers have also reacted positively, with some diners even unaware that the rice they were eating was imported. One patron, Miki Nihei, expressed surprise upon learning this, saying she had no issue with imported rice if it meant keeping meal costs down.

By early April, supermarket rice prices in Japan had climbed to an average of ¥4,214 ($30) for a 5kg bag, more than double the cost from a year earlier. In response, the Japanese government took the rare step of releasing 210,000 tonnes from its strategic rice reserves. While such stockpiles are typically used following natural disasters or poor harvests, this intervention aimed to counteract price hikes driven by heatwaves, panic buying, and distribution bottlenecks.

Despite the effort, the strategy yielded limited success. The Ministry of Agriculture reported that only a fraction of the released rice, just 426 tonnes, or 0.3%, had reached stores by the end of March. Officials cited logistical delays, including a lack of transport vehicles and the time required to prepare the rice for sale.

The situation has been exacerbated by extreme weather in 2023, which damaged crops, along with increased consumption from record tourist arrivals and public anxiety following natural disaster warnings. Together, these factors have left Japan’s rice supply strained and forced the nation to rethink its long-standing reliance on domestically grown grain.