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Japan Issues First Guidance Over Improper Rice Trading

The agriculture ministry told 19 retailers, restaurant operators and food wholesalers to correct practices that violated the Food System Law, the first such guidance since the law took effect in April.

By Newsroom1 min read
Japan Issues First Guidance Over Improper Rice Trading

Agriculture Minister Shin Takebe said 19 businesses — retailers, restaurant operators and food wholesalers among them — were issued guidance for violating the Food System Law over rice transactions between companies, including refusing to negotiate price increases.

It is the first guidance issued under the law, which took effect in April. The ministry did not disclose the names of the businesses and asked them to make improvements on their own initiative, Takebe told a news conference after a Cabinet meeting on the 10th.

The Food System Law calls on companies to trade agricultural and food products on fair terms that take reasonable costs into account.

Ministry survey found violations

The Ministry of Agriculture, Forestry and Fisheries carried out a questionnaire survey and other checks in August and September and found the violations. Sellers presented documents on rising costs and sought price negotiations, but buyers in some cases did not treat the documents as having a reasonable basis.

In other cases, buyers unilaterally notified sellers that the transaction price would stay unchanged.

“If the same things are confirmed in future surveys, we will respond appropriately.”Shin Takebe, agriculture minister