Japanese executive convicted in Myanmar for selling rice above set prices returns home

TOKYO (AP) — A Japanese business executive has returned home from Myanmar following his release from more than a month of detention after being convicted of violating rice pricing rules, his company said Wednesday.

Hiroshi Kasamatsu, a director of the Myanmar supermarket Aeon Orange, was in custody in Myanmar since his June 30 arrest for selling rice at prices above the official regulations. Japan’s Foreign Ministry confirmed Monday that the Japanese national was convicted of violating law related to daily necessities and service. He was sentenced to one year in prison and fined 500,000 kyat (about $150).

His parent company Aeon released a statement Wednesday confirming his return home after the conviction. The company said that retailers operating in Myanmar had no way of knowing the change of law in that country about the rice pricing, which caused Aeon Orange's rice prices to “deviate” from the controlled price in violation to the related law.

The company apologized for causing trouble and thanked Japanese Foreign Ministry and others for their support that allowed Kasamatsu's safe return home.

Kasamatsu was freed Monday afternoon, said Maj. Gen. Zaw Min Tun, spokesperson for the Myanmar’s ruling military council.

The Japanese Foreign Ministry said it was unclear if Kasamatsu would stay in Myanmar or return to Japan. He was released from custody and is in good health, it said, but declined to give further details.

Rice is vital in Myanmar, a country struggling to stabilize its economy as civil war disrupts efforts to recover from the COVID-19 pandemic. The army seized power from the elected government of Aung San Suu Kyi in 2021, triggering nonviolent protests that have evolved into armed resistance.

Aeon Orange is a part of Japan’s retail giant Aeon group, and operates several supermarkets in Myanmar. Aeon said it had no immediate comment.

Kasamatsu was among a number of foreign executives arrested on similar allegations in Myanmar.

The state-run Myanmar Alin newspaper reported in early July that the arrests for allegedly overpricing rice — from 31% to 70% over official prices set by the Myanmar Rice Federation — involved 62 suspects, 102 warehouses, 53 supermarkets and superstores, 25 mills and seven other shops in major cities.

Japan has historically maintained friendly ties with Myanmar. Compared with many Western nations, it took a softer approach toward Myanmar’s military government over its poor human rights record and undermining of democracy. Tokyo has not imposed economic sanctions though it does not acknowledge the legitimacy of the current government and urges restoration of democracy, and limits Japanese aid to humanitarian purposes.

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Associated Press writer Grant Peck contributed from Bangkok.