Sake breweries across Japan are struggling to secure funds to purchase sakamai, rice used for sake production, as its price has risen sharply.
Prices of sake rice have been soaring in line with the steep rise in the cost of staple rice. The sudden spike has given breweries little time or leeway to reflect the higher raw material costs in retail prices, squeezing their profit margins.
In response, the National Tax Agency, which has jurisdiction over the liquor industry, is launching a first-of-its-kind support program to foster direct partnerships between breweries and farmers, aiming to secure a stable, long-term supply of sake rice.
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