A: Hey, you heard about our new Agriculture Minister, Koizumi?
B: No, what's up with him?

A: Well, he wants to sell some of that government rice at retail stores from early June for around 14-21 dollars per 5kg!
B: Whoa, that's cheap! But why isn't it being auctioned off?

A: That's what I was about to say! Instead, he's planning on using 'no-bid contracts'. He cancelled the next auction.
B: So, who gets the rice then?

A: He says they'll sell it through 'discretionary contracts', making a 5kg bag cost around 2000 yen! They start next week, and we might see it on shelves by early June.
B: That sounds like a good plan to lower prices!

A: Also, he said this year's rice production is expected to be 7.19 million tons, an increase of 400,000 tons from last year. The crop area is the largest in the past five years too!
B: Wow, that's a lot of rice! I wonder how many bowls we can fill with it...
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Japan's new agriculture minister, Koizumi Shinjiro, says he will take steps so rice from government stockpiles can be sold at retail stores from early June in the 2,000 yen range, or about 14 to 21 dollars, per 5 kilograms.



The ministry is releasing the reserve rice through auctions starting in March in an effort to stabilize distribution and lower prices.



But rice prices have continued to soar. Koizumi is planning to use no-bid contracts to sell the stockpiled rice instead of auctioning it off to the highest bidders. He has ordered his officials to cancel next week's auction.



Koizumi said at a news conference on Friday that the plan is to sell the reserve rice through discretionary contracts, so that a 5-kilogram bag can be priced in the 2,000 yen range.
The minister said the process of introducing discretionary contracts is expected to start next week. He said it is possible that reserve rice in this price range will be available on store shelves in early June.



Koizumi also said that based on a survey at the end of April, the ministry estimates this year's rice production at 7.19 million tons, up 400,000 tons from last year. He said the acreage for this year's crop is 1.33 million hectares, the largest in the past five years.