P20 rice? DA says subsidies are now needed to make it happen

National

FROM P700 to nearly P2,600, the rising cost of a sack of urea illustrates one of the biggest hurdles to the government’s P20-per-kilo rice target, according to the Department of Agriculture (DA).

DA Secretary Francisco Tiu Laurel Jr. said government subsidies would be necessary to make P20-per-kilo rice possible as fertilizer, transport and fuel costs continue to raise rice production expenses.

“We really can’t reach P20 per kilo for rice, we will have to subsidize it,” Tiu Laurel said over One News’ “Storycon," as quoted by Philstar.

Tiu Laurel said urea, which cost around P700 per sack when President Marcos made the P20-per-kilo rice promise during his 2022 campaign, now costs nearly P2,600. He said rising costs in the global market have made the target difficult to achieve, with fertilizer emerging as a major expense beyond the government’s control.

Urea prices had reached as high as P3,000 per 50-kilogram bag before Marcos took office in June 2022 amid the Russia-Ukraine war. Fertilizer prices have since risen again due to the Middle East crisis.

DA data showed that locally produced regular-milled rice averaged P44.94 per kilo from Aug. 24 to 30. Well-milled rice averaged P47.73 per kilo, while premium rice averaged P52.76 per kilo.

Tiu Laurel said Marcos is aware that market prices are unlikely to reach P20 per kilo under current conditions.

The administration has instead rolled out the subsidized

“Benteng Bigas, Meron Na!” program through Kadiwa outlets. The DA said 800 outlets nationwide were participating, with more than 12 million Filipinos benefiting as of July.

The government distributes 10,000 to 20,000 metric tons of P20-per-kilo rice monthly, with the volume expected to reach 40,000 metric tons by year-end.

Tiu Laurel said the program uses the P9 billion allocated to the National Food Authority (NFA) to procure rice from local farmers, along with funds specifically set aside for the initiative. The subsidy program will run until June 30, 2028.

Meanwhile, Tiu Laurel said the country is not facing a rice supply shortage. About 75,000 hectares of farmland were affected by the southwest monsoon, including around 67,000 hectares planted with rice.

He said the government had frontloaded sufficient NFA rice stocks and expects to replenish them by year-end. Rice imports are also planned after the harvest season in preparation for a projected severe El Niño, which the DA expects could cut local rice production by about 700,000 metric tons.(MyTVCebu)