This contribution argues that Agriculture Minister Shinjiro Koizumi's response to the rice problem should focus on fundamental issues rather than superficial measures.
Key Points
1. Minister Koizumi's Proposals and Issues
- Rapid-fire proposals including abolishing the crop condition index
- Responding to producers' claims that production statistics are too high compared to reality
- However, survey methods have continued for many years, not just a current issue
- Concern about focusing only on superficial measures
2. Misunderstandings and Reality About Distributors
- Rebuttal to claims that wholesalers made 5 times profit compared to previous year
- Simply selling rice bought cheaply at higher prices due to price increases since last summer
- Wholesalers' profit margins are actually low compared to other industries
- Performing important functions including collection, distribution, and rice milling
3. Structural Difficulties of Wholesalers
- Position squeezed between huge agricultural cooperative organizations and major supermarkets
- Fulfilling mission of smoothing rice distribution with low profitability
- Rice market size halved due to production adjustment, many small wholesalers went out of business
- Argument that wholesalers are the biggest victims of agricultural policy
4. Essential Problem of Lack of Market Functions
- No wholesale market-like venue exists for rice
- Physical fair price formation center closed in 2011
- World's first futures market was Osaka Dojima rice market, but full futures market not approved
- Producers deprived of risk hedging functions against price fluctuations
5. Production Adjustment Policy Issues and Solutions
- 400,000 ton shortage wouldn't be an issue if producing 10 million tons without production adjustment
- Sufficient production capacity to meet domestic demand of 6.5 million tons
- Attention diverted from essential problems of market absence and production adjustment
- Suggests need for fundamental agricultural policy reform
The article concludes that solving rice problems requires not superficial measures but fundamental reforms including restoring market functions and reviewing production adjustment policies.