Former DA chief: P20 rice per kilo unsustainable, could hurt farmers

April 25, 2025 , 10:18 PM

(April 25, 2025) – A former secretary of the Department of Agriculture (DA) on Friday raised the alarm over the government’s P20-per-kilo rice program, warning that it may not be sustainable and could end up hurting farmers.

Leonardo Montemayor, who’s also the chairperson of the Federation of Free Farmers, said that while the initiative is well-intentioned, the long-term impact on farmers and the national budget could be problematic, especially if it heavily relies on subsidies.

“Sa unang tingin, wala namang tututol sa may programa ang pamahalaan kung saan ang mahihirap ay may access sa abot-kayang bigas,” said Montemayor on One PH’s One Balita Pilipinas. “Pero ang kuwestiyon din ay gaano kalaki ang budget na kakailanganin ng gobyerno at hanggang kailan ito gagawin? Malaki kasi ang subsidy requirement, even losses on the part of NFA (National Food Authority).”

On Wednesday, the DA announced that rice at P20 per kilo will be available in select areas in Visayas starting next week. The Malacañang said the program will be expanded nationwide until the end of Pres. Bongbong Marcos Jr.’s term in 2028.

Curiously, the announcement came after Marcos saw a steep 17-point drop in trust and approval ratings in the latest survey of Pulse Asia.

To recall, Marcos vowed to reduce the price of rice to P20 per kilo during his presidential campaign in 2022.

According to the DA, the government will allocate between P3.5 billion to P4.5 billion to subsidize the program.

Montemayor, who briefly took the helm of the DA under former president Gloria Macapagal-Arroyo, estimated that distributing five million sacks of rice per month to poor households nationwide would cost at least P4 billion. He also warned that flooding the market with cheap and government-subsidized rice could depress local farmgate prices.

“Ang bigas na binibenta ng pamahalaan at P20 per kilo, ang katumbas niyan sa farmgate sa palay na binibigay ng trader ay P10 lang per kilo versus sa production cost na P15. So kung P15 ang gastos at ang benta ay P10 lang, every benta mo lugi ka nang P5 kada kilo,” explained Montemayor.

(PM)

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