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Japan Plans to Expand Rice Exports While Addressing Domestic Supply

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03/12/2025
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Japan Plans to Expand Rice Exports While Addressing Domestic Supply

by Geraldine S.
03/12/2025
in Tariffs & Duties

Japan’s agriculture ministry has announced plans to increase rice exports to 350,000 tons by 2030, nearly eight times the 2024 export volume, as part of a broader strategy to stabilize domestic supply and prices.

A decline in rice acreage has contributed to reduced production, leading to supply constraints and price increases. To address this, the ministry aims to expand rice production for export while ensuring that surplus supply can be redirected to the domestic market if needed.

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This initiative will be incorporated into Japan’s basic plan for food, agriculture, and rural areas, which undergoes revision every five years. The proposal is set to be reviewed by a government council this week, with Cabinet approval expected by the end of March.

Japan exported 45,000 tons of rice in 2024 and has set a long-term goal of reaching 1 million tons by 2040. The shift comes as domestic demand for rice declines due to changing dietary preferences and a shrinking population.

To support this strategy, the government has been incentivizing farmers to grow rice for non-staple uses, including exports and animal feed. In 2024, rice paddies capable of producing 1.2 million tons were allocated for non-staple purposes, nearly six times the amount of rice currently stockpiled for price stabilization.

Currently, rice grown for export accounts for less than 1% of staple rice production. If the 2030 target is met, this share would increase to about 5%, providing flexibility to redirect supplies to the domestic market when necessary.

Japanese rice is generally more expensive than foreign varieties due to high production costs. To improve international competitiveness, the government plans to assist Japanese food companies in expanding overseas and will promote cost reduction strategies such as increasing farmland, adopting advanced agricultural technologies, and improving rice yields.

The existing goal of achieving 5 trillion yen ($33.8 billion) in exports across all agricultural products, excluding rice, will be maintained under the revised policy. Additionally, Japan’s food self-sufficiency target will remain at 45% on a calorie basis.

Meanwhile, trade discussions have highlighted Japan’s import tariffs on rice. At a March 11 press conference, White House Press Secretary Karoline Leavitt referenced Japan’s tariff policies, noting that the U.S. is reviewing trade measures related to agricultural imports. A policy review is expected ahead of upcoming tariff adjustments in April.

Discover supply chain news insights on The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com with free tools.

#RiceExports #TradePolicy #AgricultureNews #GlobalTrade #SupplyChainNews

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