As per the sources, it has been reported that the Japanese farmers are set to produce less expensive rice than existing brands to boost exports, following the signing of a Pacific free trade deal that will expose them to fierce foreign competition and farming sources. However, the Japanese rice has been well recognized for its quality, while high prices have hampered its significant growth in exports, as revealed by the industry experts. Further, it has been indicated through the sources that as the domestic market which is showing signs of leveling off, partly due to the country’s aging and declining population, so an industry body are aiming to secure growth by competing with foreign rice in overseas markets.
Furthermore, in this matter, the National Federation of Agricultural Cooperative Associations is also planning to direct some areas of the country to focus on growing cheaper rice by cutting costs and specializing in varieties with higher yields. The federation is also aiming to increase Japan’s annual rice exports by more than six times to 10,000 tons over the next three years .In this matter, the Japan and 11 other countries, including the United States, signed the Trans-Pacific Partnership free trade agreement in February.
As per current report, the agreement will enter into force 60 days after all 12 countries ratify it. In case, if all 12 nations have not ratified it after two years, it will take effect 60 days after at least six countries, accounting for 85 percent of the combined gross domestic product of the 12 signatories, do so. Under the TPP instructions, Japan’s agricultural sector will face an influx of cheaper foreign products and the government of Prime Minister Mr Shinzo Abe also informed that it will take steps to help enhancement of the international competitiveness of domestic farmers.