P20/kilo rice program boosts demand for staple

The government's sale of subsidized rice at P20 per kilo contributed to the increase in the country's demand for the staple in the previous market year, an international agency said.

- By JASPER EMMANUEL ARCALAS

The US Department of Agriculture-Foreign Agricultural Service in Manila (USDA-FAS Manila) revised upward its rice consumption estimate for the Philippines in market year 2024-2025 by 0.6 percent to 17.3 million metric tons (MT) because of the subsidized rice sale.

The rice market year for the Philippines starts in June and ends in July of the following year.

On an annual basis, the estimated rice consumption in market year 2024-2025 was four percent higher than the 16.6 million MT recorded volume in market year 2023-2024, according to USDA-FAS Manila.

For the current market year 2025-2026, the USDA-FAS Manila kept its rice consumption forecast at 17.3 million MT since there is no foreseen measurable shift toward other carbohydrate sources like bread or pasta.

"The demand is still primarily driven by the increase in population, growing income levels of households and moderating rice inflation due to the softening of global rice prices," the USDA-FAS Manila said.

The Department of Agriculture (DA)'s sale of the P20 per kilo rice, which began in May, also contributed to higher production in market year 2024-2025.