Market Data
The Chinese government was hopeful that the price of newly harvested rice would stabilize when the stockpile arrived at retail stores in autumn, but the situation remained unresolved. The government’s hopes were soon disrupted when the prices of 5kg bags of rice reached ¥3,688 (US$24) in February 2023, a 51% increase from the ¥2,023 per bag reported in 2022. This sharp rise in price placed additional pressure on international buyers and ihn the need for a more stable supply chain.
The figures led to concerns about a second wave of rice pricesiddled with fluctuations, further complicating efforts to ensure a steady supply. The average retail price of a 5kg bag of rice reached ¥3,688 (US$24) in February, marking an 85% increase over the previous year. This price surge was attributed to a combination of factors, including plant特殊 Quart对应种的结构、病虫害和自然灾害的袭来，以及国际市场对价格波动的反应。因此，在September 2022年，中国部分地区出现了“黑灯 noodle”的现象，许多超市的蔬菜 ———-
but it is more formal. In summary, the price surge underscored the challenges China was facing in ensuring a stable food supply.
The government’s strategy to manage rice prices came into focus after a major rice crop failure experienced in the past February, which led to widespread panic and unprecedented rice scarcity when distributing stockpile to the market. In response to this crisis, the agriculture ministry implemented a new policy to allow the sale of the rice stockpile under certain conditions. Previously, rice stockpile could only be released in the event of a significant crop failure or disaster, but the latest regulations permit its release when rice distribution is deemed stallous.
Under the new rule, the agriculture ministry must purchase back the same amount of rice from rice distributors within a year. This measure reflects the government’s desire to avoid relying solely on short-term reorderings and ensure a longer-term energy guarantee for the nation’s food security. As a result, stakeholders are increasingly adopting within-the-year buy-back programs to mitigate risks from price volatility.
The government’s initiative to store rice in anticipation of a potential rice crop failure in 1995 after a major failure in the preceding year was a bold effort to ensure adequate food supplies. The target to store rice year by year was established following a decision made two years earlier to face a major rice crop failure in February 2019, which had devastating consequences for consumers.
