In Japan, the inter-industry transaction prices for rice have experienced a decrease for three consecutive months, with the average price for 60 kilograms of brown rice reported at 35,465 yen (including tax) as of January this year. This reflects a decline of 610 yen (2%) from the previous month, and follows a peak price of 37,058 yen in October last year. Although the prices have fallen recently, they are still 9,538 yen (37%) higher compared to January of the previous year, indicating a complex fluctuation in market conditions.

The average price pertains specifically to "grades A1 rice," which consists of grains that are considered relatively uniform. The calculation of the average price is based on contracts between collection vendors, such as agricultural cooperatives, and wholesale distributors. A significant harvest of staple rice last year may have contributed to an excess stock situation that has been driving prices downwards in recent months. As a consequence, various stakeholders in the rice industry are expressing concerns regarding diminishing sales velocity as they face both oversupply and the effects of high prices.

The quantity of rice contracted in January amounted to 129,000 tons, marking the third-lowest amount for that month since 2006. While contract amounts for last harvest were progressing at a higher-than-average pace, they have seen a sharp slowdown recently. This situation signals growing apprehension among industry players regarding the potential impact of unsold stock and pricing on market dynamics moving forward, emphasizing the need for strategic adjustments within the sector to stabilize the market and manage supply effectively.