Agriculture Secretary Francisco Tiu-Laurel Jr. on Tuesday said the government plans to provide subsidized rice priced at P20 per kilo to nearly half of the country’s population starting next year, as part of President Ferdinand Marcos Jr.’s push to ease the burden of high living costs.
In a post-State of the Nation Address (SONA) forum moderated by Presidential Communications Office Undersecretary Claire Castro, Laurel said the plan targets 15 million low- and middle-income households.
This is equivalent to around 60 million Filipinos, with an initial allotment of 10 kilos per household per month.
“This is very important for families below the middle class,” Laurel said, highlighting the impact of inflation on essential goods.
“When rice is affordable, families can also spend on other needs like milk for children or daily meals,” he added.
Laurel confirmed the program’s initial implementation will be subsidized. The government has earmarked P18 billion for 2025, of which ₱10 billion will be used in cash outlays.
The remaining P8 billion will come from existing stockpiles of palay and rice.
To sustain the program, Laurel explained that the Department of Agriculture (DA) will purchase palay directly from farmers.
Twenty percent of that stock will be sold at P20 per kilo, while the remaining 80 percent will be retailed between P38 and P42 to generate revenue for the subsidy.
“This model allows us to support both consumers and farmers,” Laurel said.
However, he emphasized that full implementation hinges on amending the Rice Tariffication Law (RTL), which currently restricts the National Food Authority (NFA) to buffer stocking and bars it from directly intervening in the rice market.
“To be able to buy and sell rice strategically, we need to restore the NFA’s powers,” Laurel said.
“I thank Speaker Martin Romualdez for filing House Bill No. 1, which seeks to amend the RTL,” he added.
During his fourth SONA on Monday, President Marcos reiterated his promise to bring rice prices down to P20 per kilo without hurting local farmers.
