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          Japanese rice sells well despite high price

          (Xinhua)
          Updated: 2007-07-28 16:56

          Japanese rice, which has returned to China's supermarkets again after a four-year ban, has won a warm response from consumers.

          "The exact sales figures are not yet available, but indications from vendors in Beijing and Shanghai is unexpectedly pleasing," a manager with the rice division of China National Cereals, Oils and Foodstuffs Corporation (COFCO), the sole agent for the rice in China, told Xinhua.

          "We will consider buying more when the first 24 tons are sold," said the manager who declined to give his name.

          However, prices for the two up-market brands, Kishihikari and Hitomebore, have also put off many ordinary Chinese.

          In a supermarket of the Beijing Pacific Department Store, two-kilogram bags of Kishihikari sold for 198 yuan each and Hitomebore for 188 yuan, almost 20 times the price of the home-grown rice and more than 10 times the cost of rice imported from Vietnam and Thailand.

          "I've known from the papers the rice is famous for its sweet flavor and sticky texture, but it's too expensive," said Shi Zhurong, a retired teacher from Beijing, at the supermarket.

          "I'd rather buy the rice imported from Thailand, which is almost the same in quality, but much cheaper," said the 58-year-old woman.

          The supermarket manager who only gave her surname as Zhu said they sold more than 100 bags in the first day.

          "We didn't expect to sell that much as the price may be too high for ordinary consumers. Most of buyers seem to be Japanese," said Zhu.

          The COFCO manager said, "High-income earners are our target consumers, and this has proved right by the fact that most of the buyers are Japanese and the people who once lived in Japan as they know the rice is quality.

          "We are planning to promote the rice to more Chinese consumers, " he said.

          China banned rice imports from Japan in 2003 on quarantine grounds, claiming it could contain insects. The ban was lifted in April after Japan promised to ensure the rice was polished and tested in processing.

          The first 24 tons of rice, valued at 110,000 US dollars, came from Japanese prefectures of Niigata and Migagi. The rice is only sold in Beijing and Shanghai, according to COFCO.

          Wang Ruiyuan, vice president of China National Association of the Grain Sector, said the Japanese rice would have no effect of domestic rice costs.

          "The average yearly rice consumption in China is around 200 million tons. The amount from Japan is too small to affect such a huge market," said Wang. "Only high-income consumers and luxury restaurants can afford it."


          (For more biz stories, please visit Industry Updates)



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