Japan in the rice crisis: exploding prices and state reserves in action!

Japan in the rice crisis: exploding prices and state reserves in action!

Tokio, Japan - Japan faces significant economic and social challenges. In May 2025, the country lost its status to Germany as the largest net believer state. Japan led this ranking for almost 35 years, but now Japan's net foreign assets are around 533.05 trillion yen (approx. 3.3 trillion euros), which means an increase of 12.9 % compared to the previous year. Germany, on the other hand, has a net foreign assets of 569.65 trillion yen (approx. 3.56 trillion euros) and has overtaken Japan with it, like Sumikai.com reported.

Another central topic in Japan is the continuing price increase. Consumer prices in the 23 districts of Tokyos rose by 3.6 % compared to the previous year in May 2025, the highest increase in over two years. This increase in living expenses hits many Japanese households hard.

rice crisis and state measures

Developments in the Reisector are particularly dramatic. Due to poor harvests and explosive prices, Tokyo had to fall back on state rice stocks for the first time. The travel prices exceeded the brand of 1,000 yen (approx. 6.30 euros) per kilo - an increase of up to 80 % compared to the previous year. Agriculture Minister Taku ETO announced that 210,000 tons of rice from state reserves to stabilize prices. These stocks are usually intended for poor harvesting or natural disasters, which underlines the urgency of the current situation, as in a report by Tageschau.de

The bad harvest in the summer of 2023 and the average harvest in 2024 tightened the situation. Climate change has a lasting impact on rice cultivation. Critics point out that government subsidies for other plants such as feed rice are not sufficient to support rice farmers. The acreage for rice is also limited by the state, and although the official policy to reduce the growing regions in 2018, the farmers lack the incentives to increase the extension.

social developments and challenges

parallel to economic developments. The birth rate continued to decrease: In the first quarter of 2025, only 162,955 children were born, which corresponds to a decline of 4.6 % compared to the previous year. These figures are in the context of a changing society in which the long -established neighborhood associations lose importance and increasingly dissolve.

At the end of 2024, around 3.77 million foreigners lived in Japan, which is an increase of almost 360,000 compared to the previous year. The Japanese government is also planning to revise rice growing policy and has introduced measures in the education sector to record international students from Harvard who are affected by an entry ban.

How the current rice crisis, the shrinking range of supplies and the increasing prices will have a long -term effect on Japanese society. In the current situation, the challenges are diverse and require determined action by the Japanese government.