The Ministry of Agriculture, Forestry and Fisheries has decided not to approve the product exchange in Osaka, which has applied for the transition to full-scale rice futures trading.
Rice futures trading will be abolished because the exchange believes that the current pilot transaction will not continue.
The Osaka Dojima Commodity Exchange, which is the only company in Japan that is conducting a trial trading of rice futures, has applied to the country for a transition to a full-scale transaction with no deadline.
The Ministry of Agriculture, Forestry and Fisheries, which was examining this, decided not to approve it and notified the exchange on the 6th.
Regarding the reason, the Ministry of Agriculture, Forestry and Fisheries states that "the number of producers and distributors participating in the transaction has not increased and it does not meet the approval criteria."
The exchange argued on the 5th that the number of participants is increasing at the hearing of the government, but most of the rice futures trading will be next year because the current pilot transaction will not continue. It will be abolished in June.
Rice futures, which started in Osaka during the Edo period, were abolished in 1939 and then resumed in 2011, but they will disappear from Japan.
At the Osaka Dojima Commodity Exchange, rice futures trading exceeds 90% of the total transaction volume, and we will be forced to review our management strategy in the future.