Taiwan's Rice Exports to Japan Set to Surge, Leveraging Price Advantage

Competitive Pricing and Quality Drive Increased Rice Exports to Japan, Marking a Significant Trade Opportunity

TAIPEI (Taiwan News) – The Ministry of Agriculture announced a significant increase in rice exports to Japan, with expectations to exceed 10,000 tonnes this year.

According to Agriculture Deputy Minister Hu Chung-yi (胡忠一), Taiwan's annual rice exports to Japan averaged around 3,500 tonnes between 2020 and last year. Notably, exports from January to April of this year already reached 5,136 tonnes, as reported by CNA.

Hu pointed out a substantial price difference, with Japanese rice prices doubling in the last four months, rising from NT$441 (US$13.6) to NT$870 for a five-kilogram package. In comparison, the wholesale price of Taiwanese rice hovers around NT$40 per kilogram.

Both Taiwanese and Japanese rice varieties belong to the japonica type, according to Hu. This similarity, combined with Taiwan's significantly lower prices, gives its rice a strong competitive edge in the Japanese market.

The Japanese government maintains strict import controls to support domestic rice production. Annually, Japan allows 770,000 tonnes of rice imports, with 670,000 tonnes being acquired by the government for public reserves.

Under a zero-tariff quota, only 100,000 tonnes of rice are available for foreign importers, Hu stated. While the US and Australia receive the majority of this quota, Taiwan and other countries compete for the remaining portion.

Taiwanese rice has successfully entered institutional meal supply channels in Japan, including schools, hospitals, and long-term care facilities, alongside retail distribution in supermarkets, Hu added. This expansion is further promoted through a collaboration between Taiwan's Okura Rice Shop and three Japanese food suppliers.

The Tainan District Agricultural Research and Extension Station reported that its "Tainan No. 11" rice variety, which meets Japan's pesticide residue standards due to stringent fertilizer and pesticide controls, saw 2,400 tonnes exported to Japan in September. This rice variety also has been exported to Singapore and Australia.