The Ministry of Agriculture, Forestry and Fisheries plans to place bids through negotiated contracts on Sept. 18, according to the report.
This would mark the government's first buyback of rice released from its stockpile.
The ministry had originally budgeted for a 150,000-ton buyback in fiscal 2026 but expanded the figure after private-sector rice inventories climbed to a record high. A final decision is expected when this year's harvest outlook becomes clearer, Xinhua reported.
The Japanese government released 590,000 tons of stockpiled rice in total in 2025 to help rein in soaring prices amid a supply crunch.
The average retail price of the crop at supermarkets nationwide has eased to around 3,000 yen (about 19 U.S. dollars) per 5 kg, down from about 4,000 yen at the height of the shortage crisis.