The New Savior of Japan’s Rice Industry: Exports Surge 26-fold Despite Higher Tariffs

South Korea’s rice exports to Japan have reached a record high in the first half of 2025 as the latter faces a severe food shortage, causing domestic rice prices to soar. This is the first time in over three decades that South Korean rice has made a large-scale appearance in the Japanese market, despite high import tariffs.

According to the Korea Agro-Fisheries & Food Trade Corporation, in the first six months of this year, the country exported a total of 416 tons of rice to Japan, 26 times higher than the previous annual record of 16 tons in 2012. The 2012 exports were mainly for humanitarian relief after the 2011 earthquake and tsunami disaster in Japan.

Normally, Japan imposes high import tariffs on rice, approximately 341 yen (equivalent to $2.32) per kg. However, due to the surge in domestic rice prices, South Korean rice is becoming more competitive, despite the tariffs. According to Japan’s Ministry of Agriculture, Forestry and Fisheries, the average price of a 5-kg bag of rice in May reached around 4,200 yen, double that of the previous year. In comparison, a 4-kg bag of South Korean rice costs about 4,000 yen, according to the National Agricultural Cooperative Federation of South Korea.

The main rice variety exported is Japonica, which is popular in both South Korea and Japan. Additionally, some famous Japanese rice varieties, such as Koshihikari and Akibare, have also been cultivated in South Korea in recent years. Local governments are working to develop more domestic varieties to cater to both domestic demand and exports.

Icheon, a region renowned for its high-quality rice in South Korea, has recently seen a significant number of Japanese tourists purchasing rice to take home. In local supermarkets, 10 kg of Icheon-grown rice is sold for approximately 40,000 won ($28).

Provincial and county governments in South Korea are seizing the opportunity presented by Japan’s rice shortage to expand their export market share. Notably, Hadong County exported rice to Japan for the first time in May, with a volume of 80 tons, and plans to export an additional 200 tons by the end of the year.

While Japan faces a shortage, South Korea has a surplus of rice. According to data from South Korea’s Ministry of Agriculture, Food and Rural Affairs, the per capita rice consumption in South Korea has significantly dropped from 93.6 kg in 2000 to 55.8 kg in 2024, a decrease of nearly 40%. A similar trend is observed in Japan, where per capita consumption has declined from 64.6 kg to 51.5 kg during the same period.

South Korea’s annual rice surplus in recent years has consistently exceeded 200,000 tons. In response, the government has set a target to reduce rice paddy fields by 80,000 hectares, or 11%, in 2025. However, the current rate of land conversion is only 1% per year, making it challenging to achieve this goal. Some experts also warn that a drastic reduction in rice paddy fields could lead to a future shortage if extreme weather events or abnormal supply and demand fluctuations occur.