Japan aims to reduce reliance on energy and food imports

The central government aims to step up efforts to reduce the country’s reliance on imported energy sources and food as prices soar due to growing geopolitical tensions and a weaker yen.

Funding for measures to strengthen the country’s energy and food security, such as those to promote energy conservation and domestic food production, was included in the government’s fiscal 2023 budget plan, adopted Friday.

The government’s fiscal 2022 second supplementary budget included stopgap measures to cushion the impact of rising prices on households. The fiscal 2023 budget plan features more drastic steps aimed at making the economy resilient to changes in imported goods prices.

As part of measures to enhance energy security, the industry ministry earmarked ¥26.1 billion (about $196 million) to offer subsidies to companies introducing energy-saving equipment.

The government also plans to promote the use of nuclear energy. As part of the effort, it will promote the restart of idled nuclear reactors, believing that increased use of nuclear power will help contain surges in electricity bills.

The farm ministry secured ¥28.3 billion to finance measures to enhance food security. It aims to promote domestic production of wheat and soybeans to raise their self-sufficiency rates. It will also increase fertilizer and feed production to reduce imports.

The government also plans to take measures to promote wage growth to overcome higher prices.

The industry ministry secured ¥2.4 billion to ensure fair business conditions for smaller companies in vulnerable positions. Since such firms would not be able to raise wages if they cannot pass on higher raw materials costs to clients, the ministry plans to step up oversight to ensure pricing is carried out appropriately.

Agencies