Japan gets US nod to end rice hoarding

Posted on May 20, 2008 

Japan gets US nod to end rice hoarding

The US and Japan are poised to strike a deal that will remove one of the most reviled distortions in global rice markets and could send prices plummeting in the coming weeks.

Senior government sources in Tokyo said Japan had received permission from Washington to begin exports from its giant, but largely hidden, mountain of unwanted American rice to countries that needed it most.

The exposure of the vast Japanese rice surplus has emerged as one of the chief imbalances of world rice markets and an effect of the complex and wasteful lattice of rules, subsidies and pacts that have knocked global agriculture markets so badly out of kilter.

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