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The Marcos administration is ready to spend ₱10 billion to ₱12 billion to subsidize the upcoming pilot run of its ₱20-per-kilo rice program in the Visayas region and Kadiwa ng Pangulo (KNP) stores, according to Agriculture Secretary Francisco Tiu Laurel.
In a briefing on Tuesday, April 29, Laurel said the government has authorized the redirection of ₱5 billion from the national government’s contingency fund to the state-run Food Terminal Inc. (FTI).
FTI, a food processing and distribution agency attached to the Department of Agriculture (DA), has been tasked with procuring rice from the buffer stocks of the National Food Authority (NFA) to be sold to consumers.
In particular, it will spend ₱4.5 billion for the rice procurement, with the remaining ₱500 million for logistics, packaging, and other related expenses.
With the current market price of rice standing at ₱33, the FTI and a participating local government unit (LGU) will split the gap to reach the ₱20 rice, paying ₱6.5 each.
As such, LGUs who opt to participate in the initiative will also spend around ₱4.5 billion in total.
Since the program has yet to commence, the government sees the expenditure of ₱1 billion to ₱3 billion, depending on the demand for the ₱20 rice.
However, the NFA already spent this amount when procuring rice from local farmers last year.
Last week, the NFA’s stock reached a five-year high of 378,157 metric tons (MT) of palay or unmilled rice, equivalent to 7.56 million bags of rice.
With the peak of the harvest season this week, Laurel said the government is ready to procure around 500,000 MT of palay by year-end.
The move to subsidize the ₱20 rice initiative, known as the “Bente Bigas Mo” program, has been criticized because it would cost the government additional money.
In response, Laurel noted that subsidizing rice has traditionally been done to lower rice prices, citing the likes of Indonesia, Malaysia, Japan, China, and India.
He said the Philippines could have done this as early as last year, if not for the elevated world prices and low NFA stocks.
Mass rollout eyed
Based on the outcome of its pilot run, the government is keen on launching a nationwide rollout of the ₱20 rice program in January 2026.
For now, Laurel said the DA must first “experience at least six months” with the pilot run to confirm if it’s feasible for the entire country.
The program’s pilot in the Visayas region is set to kick off in Cebu on Thursday, May 1. It will span Western Visayas, Central Visayas, Eastern Visayas, and Negros Island Region.
The DA is eyeing to serve around 400,000 families, with an individual limit of up to 40 kilos of rice per month.
Meanwhile, its test run in KNP stores will commence on Friday. It will initially be available across eight sites in Metro Manila.
Namely, the Bureau of Animal Industry (BAI) in Quezon City; Bureau of Plant Industry (BPI) in Manila; Philippine Fiber Industry Development Authority (PhilFIDA) in Las Piñas; Bagong Sibol Market in Marikina; Disiplina Village in Valenzuela City; Navotas City Hall; Camp Crame; and outside the DA’s headquarters in Quezon City.
The number of Kadiwa stores to sell ₱20 rice is expected to increase once certain complexities in logistics are addressed.
The launch of both events are still awaiting approval from the Commission on Elections (Comelec) on the part of participating LGUs.
The DA earlier secured exemption from the poll spending ban, authorizing the ₱20 subsidized rice program—provided that certain conditions are met.
The pilot run for the program will conclude in December.
President Ferdinand “Bongbong” Marcos Jr., however, already ordered the DA to sustain the program through the end of his term in 2028.
