Speaking at a post-State of the Nation Address forum in San Juan, Tiu Laurel said the expansion will be supported by ₱8 billion worth of existing rice stocks under the National Food Authority (NFA), with the remaining ₱10 billion set aside for next year’s procurement of palay from local farmers.
Additional funds for expanded access
“The government must help ease daily life, even just a little,” he said. “If rice is affordable, families will have enough left to buy milk for their children or a decent viand to enjoy daily meals together.”
The initiative, which began as a pilot in select areas, is being scaled up to benefit not only low-income families but middle-income households as well. President Ferdinand Marcos Jr. has directed the Department of Agriculture (DA) to sustain the program through the end of his term in 2028.
The ₱20 rice budget is separate from the proposed ₱9 billion palay procurement fund for 2026 under the General Appropriations Act.
Two-tier pricing model proposed
To ensure the program’s long-term viability, Tiu Laurel proposed a two-tier pricing model. Under this structure, 80 percent of NFA rice will be sold at about ₱42 per kilo to the general market, and revenues will subsidize the remaining 20 percent for targeted recipients at ₱20 per kilo.
However, the secretary said full implementation hinges on amendments to the Rice Tariffication Law. Proposed reforms include restoring the NFA’s power to intervene in the market, license retailers, and sell rice directly to consumers, especially during harvest seasons.
House Speaker Martin Romualdez has filed House Bill No. 1, or the RICE Act, which would grant the DA and NFA greater authority in managing rice importation and allow the DA to set a minimum floor price for palay—protecting farmers from predatory pricing.
Tiu Laurel reiterated that only the government should absorb losses from the ₱20 rice program, not rice producers.
Economic sabotage: DA cracks down on profiteering
He warned that artificially low palay buying prices constitute economic sabotage, and the DA will take strict enforcement measures against unscrupulous traders.
The DA emphasized that the ₱20 rice subsidy will cover only about 15 percent of total domestic rice production, minimizing risks of market disruption. Procurement and subsidy mechanisms are being carefully calibrated to ensure fair pricing and farmer welfare.
To bolster transparency, the DA will release annual reports detailing rice procurement, distribution, and subsidy use. It will also deploy digital tracking tools and community feedback channels to curb leakages and ensure accountability. —Ed: Corrie S. Narisma