Tokyo, Apr. 28 - Japan and China are close to hammering out an agreement that would restore full-scale exports of Japanese rice to China, The Nikkei reported in its Tuesday morning edition.
An official announcement is expected as early as Wednesday.
Japanese rice exports to China were suspended in 2003 due to quarantine-related issues, but some shipments were temporarily resumed last year. With the reasons for the quarantine now largely resolved, rice exports are set to be fully restored.
Japan and China had been expected to reach an export agreement by March 31, but negotiations have lasted longer than anticipated. Chinese President Hu Jintao's coming visit to Japan in early May is seen as a motivating factor for the nations to ink an agreement soon.
China's rice consumption is said to total 200 million tons annually, making it at least 20 times the size of the Japanese market. Due to sluggish domestic demand for rice, the Agriculture Ministry aims to increase exports.
But rice cultivated in Japan is much more expensive than that grown locally in China. As a result, Japanese rice is viewed as a high-end product that is often given as a gift. Whether Japan will be able to increase rice exports to China may depend on demand from wealthy consumers and improvements in competitiveness.