Buying and selling Japan's staple food rice is about to become smoother as the country is opening an online spot market. The goal is to set prices more openly based on supply and demand.

The name of the platform is the "Future Rice Market," and it's funded largely by a private think tank and rice wholesalers.

Producers can offer their desired prices and volumes, and auction their product to the highest bidders within a set time.

Until now, prices of this essential food have been set mostly through negotiations between buyers and agricultural cooperatives representing farmers. Critics have said a spot market was needed to set benchmark prices to improve transparency and allow farmers to gauge demand.

Orikasa Shunsuke, president of Mirai Rice-Market, says they want to create a transparent and fair market that reflects the added value of rice, farmers' production difficulties, and costs, into prices.

The market operator hopes it trades 20,000 tons of rice in the first year, rising to about 5 times that in 5 years.

The project is backed by the agriculture ministry, and another rice spot market is expected to open by the end of the year.