A Study on the Fundamental Problems Concerning Rice in Modern Japan

Abstract

　There are four basic points in dispute on rice in modern Japan : 1) the issue concerning structural over-supply of rice ; 2) the issue of reforming the Food Control System that affects distribution and price formation of rice ; 3) the issue on structural reform of rice paddy farms ; 4) international relations centering around rice, especially the issue about opening the market for foreign rice.
　The main points of the report are as follows.
　Domestic rice consumption is decreasing year by year. The annual consumption of rice per capita was 135.0 kg in 1934-1938 (average), 118.3 kg in 1962, 71.0 kg in 1988 ; the long-term prospect of the demand per capita is estimated to be 59-62 kg in the year 2000. Over-supply of rice became a subject of agricultural policy, so enforcement of rice production adjustment and conversion to other crops have been in effect since 1969.
　As a rule, rice is supposed to be under government control for demand-supply, production, and distribution in accordance with the plan. But actually, divergence of rice distribution is already seen : 1) government-controlled distribution ; 2) authorized private distribution ; and 3) free (unauthorized) distribution. Reform in the future will put an emphasis on "setting places" of price formation and some concrete plan is being examined.
　The majority of producers still have small-size farms at present. Enlarging the farm size, raising the productivity, and reducing the cost are main subjects for agricuItural administration.
　U. S. Rice Millers' Association appealed to the USTR concerning the U. S. Trade Act Article 301 twice, in September 1986 and 1988, but both appeals were rejected. Moving the stage of negotiation to GATT and the Uruguay Round, the case is being discussed. The Japanese proposal to the Agricultural negotiation group was as follows : "With regard to the basic food staple, some boundary adjustment measures to maintain necessary domestic production should be allowed in spite of GATT Article 11." The same proposal was made from the Republic of Korea.