Japanese businesses plan price hikes for rice products


Unlike retailers, rising rice prices did not immediately impact food product manufacturers and restaurant chains. — Bloomberg

TOKYO: In response to the rising price of rice, retailers, restaurant chains and food-product manufacturers are taking steps to deal with the situation.

They are trying to absorb the costs by increasing the prices of onigiri rice balls, boxed lunches and processed rice products, as well as by ending the service of offering extra portions of rice for free.

Seven-Eleven Japan Co announced on Monday that it will raise the prices of some of its boxed lunches and onigiri rice balls in phases starting from Jan 27.

The firm will raise the price of rice balls by up to 28 yen, including “Shiomusubi,” which will be raised from 108 yen (excluding tax) to 128 yen. The price of boxed lunches will increase by up to 60 yen.

As customers have been shying away from stores due to higher prices, Seven-Eleven has made efforts since September to recover patrons by lowering the prices of some products, including fried rice.

However, the company was forced to review its strategy in less than six months because rice prices are expected to continue going up for an extended period of time.

Seiyu Co began selling rice produced in Taiwan in November.

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It is rare for a major supermarket to sell rice produced overseas.

However, the Taiwan rice is popular because it is cheaper than equivalent domestic rice but tastes almost the same, according to the supermarket.

Unlike retailers, rising rice prices did not immediately impact food product manufacturers and restaurant chains because they usually conclude long-term contracts for rice purchases.

However, some companies have decided to raise the prices of their products as there is no sign that rice prices will decline.

Nissin Food Products Co will raise the prices of products in the “Nissin Curry Meshi” series and other instant cup rice products by about 11% beginning with its shipments in April.

Nichirei Foods Inc will raise the prices of fried rice and other frozen foods by 10% to 30% starting in February.

In September, Skylark Holdings Co raised the price of rice at its Gusto, Jonathan’s and other restaurants under its wing by 30 yen to 55 yen.

Denny’s, a subsidiary of Seven & i Holdings Co, raised the price of rice in December and ended its free service of offering extra rice during breakfast and lunch hours.

Rice became in short supply due to the low quality of the 2023 rice crop.

The additional hoarding demand in preparation for a disaster further negatively affected stocks of rice.

Prices remained high even after the rice produced in 2024 became available in stores. — The Japan News/ANN

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