Japanese imports of American rice are sharply increasing due to higher prices for homegrown varieties used by restaurants, a result of government measures to prop up domestic rice prices by reducing supplies. Japan caps imports of foreign rice. U.S. produces about 30% more rice than Japan. But demand for the cheaper, easy-to-cook foreign product is on the rise at food service companies. Calrose, grown in the U.S. state of California, is the mainstay variety accounting for about 80% of the Japanese market for foreign rice consumed by people as a staple food. Japan limits rice imports to an annual 770,000 tons under an agreement reached in the Uruguay Round of global trade talks. Up to 100,000 tons of this can be staple food rice traded under simultaneous-buy sell arrangements. SBS imports tripled on the year to more than 70,000 tons in fiscal 2016, with much of the demand likely coming from the food service sector. Ahead of bidding in the fall, demand is seen increasing for fiscal 2017 as well, according to an official at a major wholesaler. U.S. produces an annual 10 million tons or so of rice, about 30% more than Japan, and exports 3 million tons.