Taku Eto, Japan’s farm minister, resigned on May 21, 2025. The country continues to grapple with escalating inflation, and rice prices have reached all-time highs. This disruption couldn’t have come at a better time. Japan’s government is having an especially tough time with approval ratings just ahead of one very important Upper House election.
In March, Japan’s inflation rate jumped to 3.6% y-o-y. This was the third straight year that it was above the Bank of Japan’s 2% goal. This recent climb in inflation has focused new scrutiny on the rising price of basic foods, and especially rice. In the week ending May 11, rice prices jumped to a record high. In retaliation, the agriculture ministry hit back hard by releasing government stockpiles to flood the market.
Japan’s agricultural landscape is complicated by a low food self-sufficiency rate, which stands at 38%, significantly below the government’s goal of 45% by fiscal 2030. The developing country currently depends on imports for nearly 60% of its food supply. To shield US farmers, particularly local farmers, it places harsh responsibilities on the imported rice. Increased tourist activity in Japan has shot up demand for Japanese rice, putting yet more pressure on an already sickly market.
The crisis has been aggravated by the impact of bad harvests last year, which have driven up rice prices in large part. Sayuri Shirai, an economist, noted the disparity in prices, stating, “That is very high compared to the U.S. or Europe,” highlighting the challenges faced by Japanese consumers.
While Japan’s growing older population is still able to work these small farms, their productivity and effectiveness are doubtful. As the number of farmers continues to shrink, people worry about the future of local agriculture. The shrinking workforce has made it even harder to keep up with domestic demand, and soaring costs only add to the challenge.
That resignation of Taku Eto is an early sign of the severe pressure that is building on the government to change course and tackle such economic challenges. As consumers voice their frustrations over rising prices, Shirai remarked, “That is why a lot of consumers are very angry,” reflecting widespread discontent with the current state of food affordability in Japan.