The Ministry of Agriculture, Forestry and Fisheries (MAFF) resumed its rice import tenders for fiscal 2016 on December 16 under its Simultaneous Buy and Sell system (SBS), which were halted this October due to shady deals of imported rice with so-called “adjustment money” paid by trading firms to wholesalers in the country.
At the state-controlled SBS auctions, sales prices of imported rice showed a downward trend.
U.S. non-glutinous milled rice, medium grain, which occupied most of rice sold by biddings on December 16, was purchased by local wholesalers with the lowest price in the 150 yen range per kilogram, which is cheaper than that of domestically produced rice to be sold for food restaurant chains and the like.
Stakeholders are likely to urge the administration to closely watch how the cheaper prices of SBS imported rice will make an impact on the market price of domestic rice.
In past transactions of SBS imported rice, some of Japanese trading firms paid “adjustment money” to rice wholesalers for expenses of sales promotions in the domestic market.
Before resuming the SBS tenders, MAFF has revised the system with a new rule to prohibit payments of the “adjustment money.”
MAFF’s revised system, analysts say, has possibly made some influence on the lowest price on record hit at the resumed SBS auctions.
The U.S. milled rice was sold at the December 16 tenders to local wholesalers with a price of 156 yen per kilogram, 12 yen cheaper than that at the previous auction.