Price Adjustment Indicators for Reiwa 8 Sugar and Starch Years
Overview
The Ministry of Agriculture, Forestry and Fisheries determined and announced various indicators under the price adjustment system for sugar, isomerized sugar, and sugar preparations in the Reiwa 8 sugar year, and for starch in the Reiwa 8 starch year, pursuant to the Act on Price Adjustment of Sugar and Starch. Both years run from October 1, 2026, through September 30, 2027, and the indicators establish adjustment benchmark prices, adjustment rates, secondary adjustment charges, and subsidy unit prices for domestic products.
Key points
- The Ministry of Agriculture, Forestry and Fisheries determined and announced the price indicators for the Reiwa 8 sugar year and Reiwa 8 starch year.
- The sugar adjustment benchmark price was set at 155,500 yen per product tonne, and the designated sugar adjustment rate at 38.14 percent.
- The starch adjustment benchmark price was set at 202,360 yen per product tonne, and the designated starch and other products adjustment rate at 4.598 percent.
- Subsidy unit prices for domestically produced sugar and domestically produced starch made from potatoes and sweet potatoes were established by raw material.
Overview
The Reiwa 8 sugar year and Reiwa 8 starch year run from October 1, 2026, through September 30, 2027. At the start of the new years, the Ministry of Agriculture, Forestry and Fisheries determined and announced various price indicators for sugar, isomerized sugar, sugar preparations, and starch.
Based on the Act on Price Adjustment of Sugar and Starch, the system is intended to offset disadvantages arising from differences in production conditions between Japan and other countries. It is funded mainly by adjustment charges collected from low-priced imports, which are used to provide subsidies to domestic product producers and manufacturers.
Impact
The price adjustment system uses adjustment charges collected mainly from low-priced imports to provide domestic product producers and manufacturers with subsidies equivalent to the difference between domestic production and manufacturing costs and sales proceeds.
Details
For sugar, the adjustment benchmark price was set at 155,500 yen per product tonne, the designated sugar adjustment rate at 38.14 percent, and the secondary adjustment charge at 25,613 yen per product tonne. The subsidy unit price for domestically produced sugar is 27,592 yen per product tonne for sugar beet raw material and 44,419 to 126,830 yen per product tonne for sugarcane raw material, depending on the region. In Kagoshima Prefecture, the prices are 47,898 yen for Tanegashima, 80,530 yen for Amami Oshima, 49,702 yen for Kikai Island, 44,419 yen for Tokunoshima, 45,960 yen for Okinoerabu Island, and 87,103 yen for Yoron Island. In Okinawa Prefecture, the prices are 46,733 yen for the main island of Okinawa, 94,790 yen for Izenajima, 76,297 yen for Kume Island, 73,140 yen for Minamidaito Island, 126,830 yen for Kitadaito Island, 46,002 or 53,389 yen for Miyakojima, and 60,960 yen for Ishigaki Island. Products manufactured and sold on the main island of Okinawa were set at 37,433 yen per product tonne. The 46,733 yen price for the main island of Okinawa excludes products sold on that island.
For isomerized sugar, the adjustment benchmark price was set at 236,174 yen per product tonne, the adjustment rate at 20.78 percent, and the secondary adjustment charge at 14,191 yen per product tonne. For sugar preparations, the adjustment benchmark price was set at 308,555 yen per product tonne and the adjustment rate at 32.70 percent. Each adjustment rate establishes the burden level used to calculate the adjustment charge unit price by applying the rate to domestic and international cost differences and other factors.
For starch, the adjustment benchmark price was set at 202,360 yen per product tonne and the designated starch and other products adjustment rate at 4.598 percent. The subsidy unit price for domestically produced starch made from potatoes and sweet potatoes is 23,676 yen per product tonne for potato raw material and 67,531 yen per product tonne for sweet potato raw material.
The adjustment benchmark price serves as the basis for adjusting the prices of imports and domestic products, while adjustment charges are collected from importers and others. The indicators announced this time were established for the respective systems covering sugar, isomerized sugar, sugar preparations, and starch.