President Marcos wants subsidized P20/kilo rice sustained

MANILA, Philippines — The government has funding in place to sustain President Marcos’ P20-per-kilo subsidized rice program until the end of his term, with most of the additional funds released still unused, agriculture chief Francisco Tiu Laurel Jr. said yesterday.

Known as “Benteng Bigas Meron Na!,” the program is providing relief to vulnerable consumers and is expected to reach as many as 60 million Filipinos through June 2028.

“It’s really helping a lot of people,” Tiu Lau Laurel said, pointing to the program’s impact on households hit by high food costs.

The funding position gives the government room to sustain the subsidy while keeping it targeted at consumers who need it most.

The initiative also gives the National Food Authority (NFA) a bigger role in the rice market by allowing it to purchase more palay from local farmers through faster inventory movement.

Tiu Laurel said forcing the broader market to sell rice at P20 per kilo could instead hurt farmers, whose production costs leave little room for further price cuts.

Even the most efficient local rice farmers spend about P12 to produce a kilo of palay. 

Milling, transport, trading and other costs must still be covered before rice reaches consumers.

A market-wide P20 per kilo retail price could therefore squeeze farm incomes and discourage domestic production, particularly if farmers are forced to absorb the difference.

The targeted subsidy allows the government to lower prices for qualified consumers without imposing the full cost on farmers and other players in the supply chain.

Tiu Laurel said President Marcos was aware that the P20 per kilo market price for rice, which he promised during the 2022 campaign, could no longer be attained.