The Department of Agriculture (DA) announced on Wednesday the launch of a pilot program offering rice at a subsidized price of P20 per kilogram, with implementation starting in the Visayas region. Agriculture Secretary Francisco Tiu Laurel Jr. said the initiative, a key campaign promise of President Ferdinand Marcos Jr., was finalized after a closed-door meeting with the President and 12 Visayas governors.
The program is backed by a government subsidy estimated at P3.5 to P4.5 billion. According to Tiu Laurel, the subsidy will allow rice to be sold at P20 per kg despite higher milling and procurement costs. He noted that current stock levels in the Visayas, particularly in Iloilo, make the region a suitable starting point.
Each family may purchase up to 10 kg of subsidized rice weekly under the program, which is set to run until at least early 2026. President Marcos has instructed the DA to make the program sustainable through 2028.
The DA said the timing is favorable due to a drop in global rice prices, easing the subsidy burden. However, agricultural groups emphasized the need to balance affordability with fair prices for local farmers.
Jayson Cainglet of the Samahang Industriya ng Agrikultura estimated that the subsidy would cover about 320,000 metric tons—equivalent to nine days of national rice consumption—while stressing that farmgate prices for palay should remain at P18 per kg.
Federation of Free Farmers national manager Raul Montemayor expressed skepticism, labeling the program a “political move” due to its heavy reliance on subsidies. He warned that rice bought by the government at P24 per kg would need to retail at around P45 per kg to break even.
DA monitoring shows that local rice prices in Metro Manila currently range from P32 to P54 per kg, highlighting the potential impact of the subsidy on consumer affordability.
