In a bold move to fulfill a key campaign promise, Philippine President Ferdinand Marcos Jr. has announced the rollout of a subsidized rice program priced at just 20 pesos (US$0.35) per kilogram, starting in the Visayas region. The initiative, unveiled after a closed-door meeting with regional governors in Cebu, comes less than three weeks before the May 12 elections, sparking debate over its timing and sustainability. With surplus rice stocks piling up in government warehouses, the program aims to ease the burden of high food costs on Filipino families, but questions linger about its long-term feasibility and political motivations.
A Campaign Promise Realized
Marcos, who pledged during his 2022 presidential campaign to slash rice prices to 20 pesos per kilo, took to social media on Wednesday to herald the start of this ambitious plan. “P20 per kilo [of] rice. That was the promise—and today, we begin to make it real, starting in the Visayas” he wrote on Facebook and Instagram. The announcement was initially slated for a public event at the Cebu Provincial Capitol, following a program in Laguna, but was instead discussed privately with Visayas governors, including Cebu’s Gwendolyn Garcia. 
The program targets Central, Western, and Eastern Visayas, as well as the Negros Island Region, areas identified by Agriculture Secretary Francisco Tiu Laurel Jr. as having a greater need for affordable food. “There are more people in need in these regions” Laurel told reporters, adding that the government intends to expand the initiative nationwide once logistical challenges are resolved. Families availing of the program will be limited to purchasing 10 kilos per week, or 40 kilos per month, to ensure equitable distribution.
The Department of Agriculture (DA) has allocated between 3.5 billion and 4.5 billion pesos (US$62 million to US$80 million) from the national budget for the initial rollout. Laurel emphasized that the president has instructed the DA to sustain the program until 2028, the end of Marcos’s term, extending beyond its original timeline of December 2025 or February 2026.
Surplus Stocks and Urgent Action
Central to the program’s launch is the pressing need to offload excess rice reserves. According to Leyte Governor Jericho Petilla, who attended the meeting with Marcos, the DA currently holds 380,000 metric tons of rice—more than enough to meet demand for the year. “They have warehouses full. They cannot buy palay from the farmers because they don’t have a place to put it. So they have to dispose of it right away. That is why they are in a hurry” Petilla explained to journalists. He noted that governors were caught off guard by the speed of the proposal, with the DA pushing for immediate agreements to purchase and distribute the subsidized rice.
Laurel corroborated this urgency, highlighting that much of the surplus originates from Iloilo and other regions. “We also have to move out our stocks from other areas because our warehouses are still really full of rice and palay” he said. The overflow of unmilled and milled rice has created a logistical bottleneck, preventing the government from procuring more from local farmers—a situation that has frustrated agricultural communities already grappling with fluctuating market prices.
Retail prices for rice, a staple in Filipino diets, remain significantly higher than the subsidized rate. As of Tuesday, locally produced regular milled rice in Metro Manila markets ranged from 33 to 43 pesos (US$0.58 to US$0.76) per kilo, down from 48 to 52 pesos (US$0.85 to US$0.92) a year ago, per DA price monitoring. Imported well-milled rice, meanwhile, sold for 42 to 48 pesos (US$0.74 to US$0.85) per kilo. While these figures reflect a decline, they are still far from the 20-peso target, a goal Laurel admitted was unattainable last year due to global rice prices reaching a 15-year high.
Election Timing Raises Eyebrows
The decision to launch the program in the Visayas, home to approximately 13 million voters, just weeks before the May 12 elections has fueled speculation about political motives. Governor Petilla acknowledged the perception of opportunism, stating, “People are asking if this is sustainable because it might be gone soon.” However, he defended the initiative’s timing by emphasizing the logistical necessity of clearing warehouse stocks, rather than attributing it solely to electoral strategy. “Are they in a hurry for politicking? No. They have warehouses full” he reiterated.
The political backdrop adds another layer of complexity. A day before Marcos’s meeting in Cebu, Vice President Sara Duterte was in Danao City, also in Cebu, rallying supporters of her father, former President Rodrigo Duterte. The elder Duterte, currently detained in The Hague facing charges of crimes against humanity at the International Criminal Court over his controversial war on drugs, remains a polarizing figure. Sara Duterte’s presence in the region underscores the enduring influence of the Duterte political dynasty, which could complicate Marcos’s efforts to consolidate support through initiatives like the rice subsidy.
Analysts suggest that while the program addresses a genuine economic need, its rollout in a key electoral battleground like the Visayas could be interpreted as an attempt to sway undecided voters. The Marcos administration, eager to demonstrate tangible progress on campaign promises, may see the subsidy as a way to bolster its image ahead of the polls. Yet, critics argue that such short-term measures risk being perceived as populist ploys if not accompanied by structural reforms to address rice production and pricing challenges.
Sustainability and Economic Implications
Beyond the immediate political context, the P20-per-kilo rice program raises critical questions about its long-term viability. The DA’s commitment to sustaining the initiative until 2028 is ambitious, but experts caution that subsidies of this scale could strain public finances if not carefully managed. The initial funding of up to 4.5 billion pesos represents a significant allocation, and expanding the program nationwide would likely require substantially more resources.
Moreover, the program’s reliance on surplus stocks highlights deeper systemic issues in the Philippine agricultural sector. Overproduction in certain regions, coupled with inadequate storage infrastructure, has led to recurring gluts that depress farmer incomes and burden government resources. While disposing of excess rice at subsidized rates offers temporary relief to consumers, it does little to address the root causes of market instability. Farmers, unable to sell their palay due to full warehouses, may face further economic hardship unless complementary policies—such as improved procurement systems or investments in storage facilities—are implemented.
Global market dynamics also pose a challenge. Last year’s spike in international rice prices, driven by supply chain disruptions and export restrictions in major producing countries like India, underscored the Philippines’ vulnerability as a net importer. Although domestic prices have eased somewhat in 2025, any resurgence in global costs could undermine the subsidy’s affordability. Laurel acknowledged these hurdles, noting that the DA has been “working day and night to bring this to reality” despite external pressures.
Public Reaction and Future Outlook
Public response to the program has been mixed. In the Visayas, where food insecurity remains a pressing concern for many low-income households, the prospect of affordable rice is a welcome relief. Local leaders, including the governors present at the Cebu meeting, have expressed cautious optimism about the initiative’s potential to alleviate economic strain. However, skepticism persists among some residents and analysts who question whether the subsidy can be sustained beyond the election period.
The broader agricultural community, particularly farmers struggling with unsold palay, may view the program with ambivalence. While it clears space for future procurement, it also underscores the government’s failure to balance supply and demand effectively. Without assurances of fair pricing and market access, rural producers risk being sidelined by a policy ostensibly designed to benefit consumers.
As the Marcos administration pushes forward with the P20-per-kilo rice program, its success will hinge on transparent execution and a commitment to addressing structural challenges in the rice sector. For now, the initiative stands as both a lifeline for struggling families and a lightning rod for political debate. With elections looming and economic pressures mounting, the coming weeks will test whether this bold promise can deliver lasting change or remain a fleeting gesture in a turbulent political landscape.
