Marilyn Cahatol

Agriculture Secretary Francisco Tiu Laurel Jr. joins farmers, stakeholders, and beneficiaries in a simple salu-salo at the KADIWA Center under the Benteng Bigas Meron (BBM) program at the Bureau of Animal Industry (BAI) compound in Quezon City on May 15, 2025. The event marks the first day of selling rice at ₱20 per kilo, promotes affordable rice access, and reaffirms the government’s support for local farmers. Maria Tan, ABS-CBN News

Article (news)

Jervis Manahan

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/175360167201320250515-benteng-bigas-program-MT-5.jpg" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">Agriculture Secretary Francisco Tiu Laurel Jr. joins farmers, stakeholders, and beneficiaries in a simple salu-salo at the KADIWA Center under the Benteng Bigas Meron (BBM) program at the Bureau of Animal Industry (BAI) compound in Quezon City on May 15, 2025. The event marks the first day of selling rice at ₱20 per kilo, promotes affordable rice access, and reaffirms the government’s support for local farmers. <em>Maria Tan, ABS-CBN News </em></span></span></span></div><p>MANILA — On the third year of the Marcos Jr. administration, the government rolled out the President&#x27;s biggest campaign promise: the sale of P20/rice.</p><p>This comes after years of skyrocketing rice prices and rice inflation that dented the image of the administration.</p><p>Last May 15, the Department of Agriculture officially spearheaded the launch of P20/kilo rice but only to certain marginalized sectors–persons with disabilities (PWD), solo parents, 4Ps beneficiaries, and senior citizens.</p><p>In an exclusive interview with ABS-CBN News, Agriculture Secretary Francisco Tiu Laurel Jr. recounted the steps they took in realizing the president&#x27;s campaign promise.</p><p>&quot;Since I was appointed as secretary, dun pa lang nandun na ang mission, sabi ni boss, tingnan mo tong 20 pesos, paano ito, pangako ko ito, paano matutupad ito in whatever way possible,&quot; Tiu Laurel said.</p><p>(It started when I was appointed as Secretary. The mission was already clear. The President told me to ensure his promise will come true in any way possible.) </p><p>&quot;Nung start of 2024, nagstart na ako mag-ipon, mag-stockpile ng palay, for an eventual launch of this P20 rice. The key factor there is we have stocks. So early 2024, nag-umpisa na kami mag stockpile ng palay. We are ready,&quot; he added.</p><p>(In early 2024, I started creating a stockpile of unhusker rice for the eventual launch of P20/rice.)</p><p>But the Rice Tarrification Law became a major impediment.</p><div><a class="fr-green" href="https://www.abs-cbn.com/business/10/13/20/aanhin-pa-ang-damo-rice-farmers-call-for-scrapping-of-rice-tariffication-law"><strong>&#x27;Aanhin pa ang damo?&#x27;: Rice farmers call for scrapping of Rice Tariffication Law<br/></strong></a></div><p>&quot;The biggest challenge kaya na-delay yan, we were ready since February this year or March pwede na kami mag start. Yung batas ang problema, we have to look at everything kasi nag change ang NFA (National Food Authority) mandate. Kung di kami nag-issue ng rice emergency, wala lahat ito,&quot; Tiu Laurel said.</p><p>(The biggest challenge that delayed the launch was the Rice Tarrification Law. We were ready as early as February or March. But we had to look at the law that changed the mandate of NFA. If we did not issue the food security emergency, this would have not happened.)</p><p>But despite the odds, the agriculture department finally launched Benteng Bigas Meron na (BBM) last May.</p><p>Eligible beneficiaries lauded the program as it helped them make both ends meet.</p><p>&quot;Sinasadya ko po talaga lagi dito kasi syempre para maka-budget ng konti, bente pesos na Kadiwa. Malaki kasi for example yung 10 kilo namin umaabot ng 25 days, malaking tulong sakin yun na nagbubudget,&quot; said Dicke Arandia, a PWD.</p><p>(I go out of my way to go here so I could save money. It helps us a lot because this could last us for 25 days.) </p><div><a class="fr-green" href="https://www.abs-cbn.com/news/nation/2025/7/6/marcos-jr-says-p20-per-kilo-rice-is-here-to-stay-1453"><strong>Marcos Jr. says P20 per kilo rice &#x27;is here to stay&#x27;<br/></strong></a></div><p>&quot;Samin po na nagba-budget, napakalaking tulong po yung bente pesos na Kadiwa ng Pangulo. Naghanap po ako sa Novaliches, wala po,&quot; he added.</p><p>(For people like us in tight budgets, the P20/rice helps us a lot. But I need to travel far. I went to Novaliches, there was none.)</p><p>The program targets to reach 15 million families by 2026.</p><p>In its current iteration, the P20 program is still limited to certain Kadiwa stores and accredited market stalls, mostly in Metro Manila.</p><p>But consumers say they are willing to travel a little farther if it means they can buy more rice with the little money that they have.</p><p>&quot;Dito po kasi mura po ang bigas kasi, kasi mas nakakatipid kami kasi mura bigas, at masarap naman sya lutuin,&quot; said Reneboy Cadiz, a consumer.</p><p>(It&#x27;s cheaper here and we get to save. The quality is also good.)</p><p>&quot;Sobrang mahal ng bigas eh, kaya nung nalaman namin ito, nagpunta kami kasi kahit papano nakakatipid kami sa bigas sa pagsasaing,&quot; he added.</p><p>(Rice is too expensive. When we learned about this, we really went here because this is cheaper.)</p><div><br/></div><div><strong>EFFECT ON FARMERS </strong></div><p>But while it may be helpful to consumers, it&#x27;s the farmers who take the hit. Traders have been using the P20 rice as an excuse to push palay prices lower. </p><p>&quot;Ang talagang problema namin yung presyo ng palay. Ako mismo, nag-ani ako, nag harvest ako palay, hindi ko naibenta,&quot; said Judie Mendoza, a rice farmer from San Ildefonso, Bulacan. </p><p>(Our major problem is the price of palay. I myself harvested palay but I was not able to sell it.)</p><p>&quot;Nagpapaaral ako ng dalawang anak tas nagkautang ako sa bangko ngayon kasi di ko naibenta yung palay ko,&quot; he added.</p><p>(I send two children to school and now I incurred debts in the bank.)</p><p>An investigation is underway to identify the traders involved in the scheme.</p><p>&quot;Shame on them, hindi dapat ginagamit yon. I instructed the NFA admin na lumabas ang regional people to talk to farmers, get the names of the traders, kailan sila nagbenta ng murang palay, iimbestigahan sila para mamarkahan sino mga ito,&quot; Tiu Laurel said.</p><p>(Shame on them, they should have not used that. I instructed the NFA administrator to go out and talk to the farmers, get the name of the traders, so we could do deeper investigations.)</p><p>Tiu Laurel said farmers will also soon be added to the list of beneficiaries of the P20 program by October.</p><p>&quot;Kayo rin nagtanim niyan, ng palay natin. Kaya dapat makinabang kayo sa murang bigas din para gumaan din ang inyong buhay. Siguradong makakatulong ito to increase your own income,&quot; he said. </p><p>(You planted it so you should benefit from it. This will help you increase your own income.)</p><div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/7/2/-low-palay-prices-seen-causing-losses-for-local-farmers-2034">&#x27;Low palay prices&#x27; seen causing losses for local farmers</a></div><div> </div><div><strong>LARGE SUBSIDIES</strong></div><div><strong><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/175360932749620250515-benteng-bigas-program-MT-18 (1).jpg" style="width:960px" class="fr-fic fr-dib" alt="Agriculture Secretary Francisco Tiu Laurel Jr. joins farmers, stakeholders, and beneficiaries in a simple salu-salo at the KADIWA Center under the Benteng Bigas Meron (BBM) program at the Bureau of Animal Industry (BAI) compound in Quezon City on May 15, 2025. Maria Tan, ABS-CBN News/File"/><span class="fr-inner" style="text-align:left">Agriculture Secretary Francisco Tiu Laurel Jr. joins farmers, stakeholders, and beneficiaries in a simple salu-salo at the KADIWA Center under the Benteng Bigas Meron (BBM) program at the Bureau of Animal Industry (BAI) compound in Quezon City on May 15, 2025. <em>Maria Tan, ABS-CBN News/File</em></span></span></span></strong>But the more pressing concern in the rollout of P20 rice is the large government subsidies needed to finance the program.</div><p>For every kilo of P20 rice sold, the government shells out at least P13 pesos. For 2025 alone, the government has earmarked P5 billion.</p><p>An economist said this artificial lowering if rice prices will be hard to sustain.</p><p>&quot;Itong subsidized na bigas ay medyo mirage, medyo illusory sya na oo meron, may mapagbibilhan ng benteng bigas pero napaka select ng lugar na ito. Konti lang Kadiwa stores, hindi pa sya accessible sa milyun-milyong Pilipino,&quot; said Prof. JC Punongbayan of the UP School of Economics.</p><p>(This subsidized rice looks like a mirage. It&#x27;s quite illusory that okay it&#x27;s available but only in select areas. There are too few Kadiwa stores and it&#x27;s not accessible to millions of Filipinos.)</p><p>&quot;Tingin ng maraming ekonomista, hindi sustainable yung subsidy ng bigas, bilyun-bilyong piso ang nawawala sa kaban ng bayan taun-taon dahil sa malalaking rice subsidies na yon,&quot; he added.</p><p>(A lot of economists think that subsidies aren&#x27;t sustainable. Billions will have to be spent annually just to finance this.)</p><p>Punongbayan said this comes as a very expensive cost to government.</p><p>&quot;Yung gobyerno mismo kulang na talaga pera nya, yun deficit ng gobyerno ay lampas ng isang trilyong piso every year. Kung magsa-subsidize ka ng bigas, dadagdag ito sa deficit ng gobyerno,&quot; Punongbayan said.</p><p>(The government itself has deficits of almost 1 trillion pesos per year. If we will subsidize rice, it will deepen government deficits.)</p><p>He said the target should be lowering the rice prices through market forces, without government subsidies.</p><p>&quot;Gusto natin makita yung retail price ng bigas, yun ang bababa without the subsidies of the government. At para makamit yon ang sagot in one word ay productivity,&quot; he added.</p><p>(We want to see retail prices going down without the subsidies of the government. And to achieve that, we have to increase productivity.)</p><p>However, the agriculture department said the government spends more in other financial aid, and that the cost of their subsidy is actually low.</p><p>&quot;The cost to subsidize ay actually cheaper than other ayudas eh, mas mura eh. Sa totoo lang, sana dito na lang binigay, deretso sa sikmura ng tao para mawala ang gutom,&quot; Tiu Laurel said.</p><p>(The cost to subsidize is actually cheaper than other aid. In reality, I hope they just put the money here and it will directly benefit the people.)</p><p>&quot;At the end of the day it will always be a subsidy which is normal, China subsidizes, Malaysia subsidizes, now even Japan is subsidizing yung bigas nila,&quot; he added.</p><div><a class="fr-green" href="https://www.abs-cbn.com/news/business/2025/6/18/gov-t-may-shoulder-full-cost-of-cheap-rice-program-by-2026-marcos-1251"><strong>Gov&#x27;t may shoulder full cost of cheap rice program by 2026: Marcos</strong></a></div><div><br/></div><div><strong>WAY FORWARD</strong></div><p>Tiu Laurel said they have plans to mitigate the large costs of the P20 program.</p><p>&quot;Meron kaming plano na pagpasok ng 2026, bibili kami palay ng dalawang price. One would be for the good eating quality varieties, yun yung mas mura,&quot; he said.</p><p>(We have a plan by 2026, we will buy palay in two pricing schemes. One would be cheaper but still of good quality.)</p><p>&quot;Yung mas mahal na bigas, ibebenta namin at a profit to subsidize yung loss sa bente pesos. The objective is to lower yung friction cost, the cost of subsidy,&quot; Tiu Laurel added.</p><p>(The more expensive rice will be sold at a profit to subsidize the loss in the P20 program.)</p><p>The department also has plans on investing on other commodities such as corn, sugar, and coconut to divert from its rice-centric policies.</p><p>&quot;Things can only get better, we have identified the problem, the plans are no longer plans. We are solving the problem,&quot; Tiu Laurel said.</p><p>&quot;Things are moving, makikita ng taumbayan by end of next year lahat,&quot; he ended.</p><div><a class="fr-green" href="https://www.abs-cbn.com/news/business/2025/4/29/gov-t-subsidizing-p20-kg-rice-nfa-warehouses-overflowing-da-0903"><strong>Gov&#x27;t subsidizing P20/kg rice, NFA warehouses overflowing: DA</strong></a></div><div><br/></div><div><strong>RELATED VIDEO:</strong></div><script data-wid="auto" type="text/javascript" src="https://content.viralize.tv/display/?zid=AAFz8gWM8iRADsJr&amp;cid=ABdA-AcCoXVwylDE"></script><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/p6vS_xMB7oQ?si=Z9G2Sh3M8ELC8gmc" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe><br/></div>

<p>On the third year of the Marcos administration, the government rolled out the president's biggest campaign promise: the sale of P20/rice.</p>

On the third year of the Marcos administration, the government rolled out the president's biggest campaign promise: the sale of P20/rice.

P20/kilo rice: A fulfilled campaign promise or a costly compromise?

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P20/kilo rice: A fulfilled campaign promise or a costly compromise?

Jervis Manahan,

ABS-CBN News

Published July 27, 2025 05:42 PM PHT

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Updated July 27, 2025 06:40 PM PHT

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