Japan’s cabinet has approved a shift towards a demand-driven rice production policy, alongside new measures to address supply shortages, as prices of the staple have risen sharply in recent years.

The government of Sanae Takaichi plans to submit legislation to the Diet to revise the law governing the stabilisation of staple food supply, demand and pricing, Japan’s Kyodo News reports. The move marks a reversal of policies under former prime minister Shigeru Ishiba, which had focused on expanding output and exports in an effort to bring down prices.

Under the revised framework, authorities aim to stabilise prices by curbing overproduction and encouraging producers to align output more closely with market demand. The policy shift follows recent shortages that have been partly attributed to inadequate oversight of rice distribution and an incomplete assessment of supply and demand conditions.

To address these shortcomings, food-related businesses will be required to report their rice stock levels on a regular basis. In addition, larger private sector operators will be mandated to hold reserves to complement government stockpiles, which can be released quickly during periods of shortage.

The situation, widely referred to as the “Reiwa rice crisis”, reflects the sharp increase in prices seen in recent years even as government data show that average retail prices for a 5kg bag have recently edged lower, remaining just below JPY4,000 ($25).