P20/kilo rice: Cebu vendors back its rollout, doubt its sustainability

LOOK: The prices of rice at the Mandaue City Public Market have decreased by P1 to P5 per kilo, depending on the brand. Additionally, the price of corn rice has dropped by as much as P15. Rice vendors noted that the price reduction began last week, as suppliers also lowered their prices. | via Mary Rose Sagarino

CEBU CITY, Philippines — The Cebu Market Vendors Multi-Purpose Cooperative welcomed the national government’s plan to roll out the P20-per-kilo rice program in the Visayas.

But while vendors support the idea, they expressed cautious optimism. They warned that the program might be unsustainable and could benefit only a limited number of people.

In a phone interview, cooperative president Erwin Gok-ong said the program could bring temporary relief to low-income consumers if implemented properly, but he warned it would likely be a “heavily subsidized showcase” that would not reach the majority of households.

“Number one, nindot kaayo ni siya nga balita. Malipay ang mga tawo ana. Number two, kaya na nga buhaton sa gobyerno. Number three, pero kung buhaton nila, it will be very, uh, heavily subsidized,” Gok-ong said.

(Number one, this news is good news. The people will be happy with that. Number two, that can be done by the government. Number three, but if they do that, it will be very heavily subsidized.)

READ: P20 per kilo of rice may be seen by early 2023 — DAR

President Ferdinand “Bongbong” Marcos Jr.’s long-standing campaign promise to make rice available at P20 per kilo is set to begin at the end of April 2025, starting in Regions 6, 7, and 8.

A closed-door meeting held at the Cebu Provincial Capitol on April 23 gathered the President, Visayas governors, and Agriculture Secretary Francisco Tiu Laurel Jr., who announced the program’s pilot implementation in the Visayas.

The decision was based on what Laurel said was a greater need in the Visayas regions and the availability of government rice stocks, particularly in Iloilo. The pilot will be funded with an initial budget of P3.5 billion to P4.5 billion.

READ: ‘P20 per kilo’ rice program feeds Palace-VP Duterte hostilities

But Gok-ong, whose group is one of the largest in the Carbon Public Market, the oldest and biggest public market in Cebu, questioned the logistics and sustainability of the program.

He explained that world market prices for rice remain significantly higher than P20/kilo, and even with tariff exemptions and direct importation via government-to-government (G2G) arrangements, the actual landed price of imported rice in Cebu would still hover at P32 to P34 per kilo.

“Bisan imo mong i-Google, ang world market price karon sa 25 percent broken rice, naa sa $500 to $550 per metric ton. That translates to around P28 to P32 per kilo. Apil pa transportation, labor, packaging, maski wala pa tariff, muabot gihapon ug P32 to P34 per kilo diri sa Cebu,” Gok-ong said.

(Even if you Google it, the world market price now is 25 percent broken rice, it is $500 to $550 per metric ton. That translate to around P28 to P32 per kilo. You include transportation, labor, packaging, even without the tariff, that will still amount to P32 to P34 per kilo here in Cebu.)

He added that the government’s experience with the now-defunct National Food Authority (NFA) provides a precedent for price interventions, but noted that previous efforts were limited in scope and reach.

READ: President Marcos visits Cebu, meets with Gwen, 2 other governors

P20/kilo rice: Limited access, unclear mechanics

The Department of Agriculture has proposed a 10-kilogram per week limit per family at P20 per kilo. The subsidized rice will be sold through select distribution points, likely managed by local government units (LGUs).

However, the cooperative raised concerns about the lack of clear guidelines on how the program would be carried out and monitored.

“Wala pa ta kahibaw kinsa’y pwede mobaligya, kinsa’y pwede mopalit, pila ka kilo per family, ug pila ka beses sila pwede mupalit kada semana,” said Gok-ong.

He also warned of the risk of leakage and profiteering along the supply chain, citing past experiences where only a portion of subsidized rice actually reached intended beneficiaries.

“Kung ibutang nimo nga one thousand bags ang gi-release, basin five hundred lang (bags) ang makaabot sa mga tao. Ang uban i-divert, ibaligya sa taas nga presyo,” he said.

(If we saw 1,000 bags are released, then maybe 500 bags will reach the people. The others will be diverted, and sold at a higher price.)

P20/kilo rice: No threat to local markets

Despite his reservations, Gok-ong clarified that the program was not seen as a threat by vendors in Carbon or other public markets.

“Dili mi ma-threaten ana. Ang makapalit siguro ana, less than five percent sa among customers. Gamay ra gyud,” he said.

(We are not threatened by that. Those who can buy that, less than five percent of our customers. There are only a few really.)

He emphasized that for many consumers, quality would remain more important than the price.

“Maski barato, kung mura lang ug NFA nga bugas nga walay baho, dugmok, dili na mopalit ang mga tawo. Mas gusto nila pilit, lumoy, ug humot nga bugas — kay mao na ilang gikaon human sa trabaho tibuok adlaw,” Gok-ong added.

(Even if it is cheap, if it will still be like the NFA rice that don’t have a smell, broken, people would not buy it. They like one that is sticky, soft, and rice that smells good — because that is the one that they eat at work for the whole day.)

Asked whether the P20 rice program is a fair market intervention, Gok-ong replied: “Fair para sa mga tawo, yes. But economic-wise, dili siya sensible. Dako ang subsidy nga kinahanglan, ug dili siya long-term nga solution.”

(Fair for the people, yes. But economic-wise, it would not be sensible. A large subsidy would be needed and it is not a long-term solution.)

Why Cebu?

Gok-ong believes Cebu’s strategic position in the Visayas as a food distribution chain is a factor in its selection for the pilot rollout.

“Cebu is not a rice-producing province, pero dako ang demand dinhi. Naa diri ang pier, naa ang logistics. It’s a central distribution hub for the Visayas and Mindanao,” he said.

(Cebu is not a rice-producing province, but the demand is high here. The pier is already here, the logistics are here. It’s am central distribution hub for the Visayas and Mindanao.)

He acknowledged that there might also be political motivations behind the timing and location of the launch.

“Maybe there are other political considerations. Dili ko mo-assert ana, pero possible (I won’t assert that, but it’s possible),” Gok-ong said.

Duterte: ‘Bubudol na naman’

The program has already drawn criticism from Vice President Sara Duterte, who said the P20 rice was being revived as a political ploy to boost administration allies ahead of the 2025 elections.

“Well, hindi ko alam kung anong motibo nila. Baka, yes, binubudol na naman nila ‘yung mga tao sa P20 per kilo na bigas,” Duterte said on Wednesday, without directly naming President Marcos.

(Well, I don’t know what their motive is. Perhaps, yes, they are trying to ‘budol’ the people again with P20 per kilo rice.)

She accused the administration of misleading the public, saying the original campaign promise was made despite knowing it would be difficult to fulfill.

“Sa totoo lang, nung sinabi yung P20 per kilo na bigas ay nagsinungaling yung nagsabi. Alam niyang hindi kayanin pero pinaasa niya ang mga tao,” Duterte said.

(In truth, when he said about that P20 per kilo rice, the one who said that was lying. They know that they could not be done, but they let the people hope.)

Malacañang has not responded to requests for comment.

What’s next

The Department of Agriculture said it aimed to expand the program nationwide once the logistics and management systems would be refined during the Visayas rollout.

The goal, according to Laurel, is to keep the program going until 2028.

Gok-ong, however, urged the government to engage local retailers and cooperatives in the planning and execution.

“Wala mi gi-involve sa planning. Wala pa mi kahibaw unsa’y role namo ani. Pero kung tinud-on ni nila, maayo pud nga apilon ang mga vendors ug cooperatives para mas organized,” he said.

(We were not involved in the planning. We don’t know what our role here. But if they would really implement this, it would be good to include the vendors and cooperatives so that it would be more organized.)