P20 rice, real cost: Who gains, who pays in Marcos鈥� flagship subsidy?
RICE composite image by Jerome Cristobal from Inquirer files
MANILA, Philippines—Under the sweltering sun in Nueva Ecija, Mario Satulan carefully tends to the rice fields he has farmed for decades. A second-generation farmer, he has long known what it means to sell palay at prices that often fall short of his production costs.
So when he heard the government was starting to sell rice at P20 per kilo, his reaction was mixed. “Ang magbebenepisyo po d’yan yung mga taong hindi nagsasaka, hindi nagbubukid. Mga hindi kayang bumili ng bigas na singkwenta pesos, yun po sila ang makikinabang sa subsidy ng gobyerno na bente pesos na bigas,” he told 好色先生TV.
(Those who will benefit are people who are not farmers. Those who can’t afford rice at fifty pesos are the ones who will benefit from the government subsidy for twenty-peso rice.
“Pero kaming mga nagtatanim… bibilin samin na katorse ang palay, tatamaan kami.”
(But us tillers will take a hit, they’ll buy palay at fourteen pesos)
Former Agriculture Undersecretary Dr. Fermin Adriano confirmed that farmers like Satulan are right to be concerned about low buying prices.
“Ngayon ang present [cost of palay is set to] 20 pesos,” he said in an interview with economic professor and former finance undersecretary Cielo Magno.
(Right now, the present cost of palay is twenty pesos)
“Kasi noong bago ako umalis noong 2022, nai-set namin yan ng 19 pesos per kilo of palay. Ngayon dahil bumaba nga ang presyo, 20 pesos. Pero yung actual market price, nitong huli, naglalaro from 14 to 15 [pesos] kaya nga nagko-complain nga yung mga magsasaka natin.”
(Before I left in 2022, we set that at 19 pesos per kilo of palay. But the actual market price today ranges from 14 to 15 pesos, that’s why farmers are complaining.)
The “support price” is the government’s target rate—what the National Food Authority (NFA) or Department of Agriculture (DA) aims to pay farmers to protect them from price drops. But the“actual market price” refers to what traders on the ground really offer, which can fall much lower.
Despite the P20 support price, many farmers are still forced to sell palay for just P14 to P15 per kilo due to limited access to NFA buying stations, urgent cash needs, and middlemen.
Adriano warned that selling rice at P20 per kilo may not reflect the real cost of production, especially when accounting for the full palay-to-rice conversion.
“So yung support price ng NFA yung 20 [pesos] dahil binibili nila lahat sa magsasaka, that means 40 pesos ang mangyayari niyan diba, hindi 23 pesos,” he said.
(So the NFA support price of 20 pesos, since they’re buying everything from the farmers, that means it will end up being 40 pesos, right? Not 23 pesos.)
Magno supported this calculation. She explained that palay undergoes multiple steps—drying, milling, storage—before it becomes market-ready rice.
“Yung sinasabi ni Dr. Fermin kasi kapag binili yung palay, maraming proseso ang pinagdadaanan… So yung isang kilong palay kapag pinroseso mo yun ang output lang talaga ay kalahating kilong bigas,” she said. “Kaya kung 20 pesos yung binibili nila sa farmers, to produce a kilo of rice, you need 40 pesos.”
(What Dr. Fermin meant is that when palay is bought, it goes through many processes. So when you process one kilo of palay, the actual output is only half a kilo of rice. That’s why if they’re buying from farmers at 20 pesos, you need 40 pesos to produce a kilo of rice.)
Government officials, however, said the actual buying price for palay is higher than what Adriano mentioned. Agriculture Assistant Secretary Arnel de Mesa told reporters in May that the NFA is currently purchasing palay from farmers at P23 to P24 per kilo, well above the prevailing farmgate price of P19 per kilo.
Satulan sees the value in the Marcos administration’s rice subsidy program, especially for low-income consumers struggling with rising food prices. But like many rice farmers, he believes the government’s support should not end at the palengke.
If the program is to succeed, he says, agencies like the NFA must ensure that the procurement process is accessible—and that the price they pay truly compensates farmers for their costs.
What is the P20 rice subsidy program?
President Ferdinand Marcos Jr.’s P20-per-kilo rice promise was one of the most memorable slogans from his 2022 campaign. The initiative gained traction in 2024 when government agencies began pilot testing a rice subsidy scheme targeting low-income households.
READ: The wait-and-see period for Bongbong Marcos’ ‘P20 rice’ promise
Graphics by Ed Lustan/Inquirer.net
The program—known as Benteng Bigas Meron (BBM) Na—operates through a targeted subsidy mechanism that enables the government to sell rice at P20 per kilo to vulnerable groups. It works as follows:
- Procurement:
The National Food Authority (NFA) purchases palay (unmilled rice) directly from local farmers at a price of P23 to P24 per kilo, based on the Department of Agriculture’s 2025 guidance. This is significantly higher than the prevailing farmgate average of P19.54 per kilo and is meant to support local rice producers.
- Processing:
The procured palay is dried, milled, and stored. Experts like Magno note that converting palay to milled rice is costly, as it takes about 2 kilos of palay to yield 1 kilo of rice. Thus, a P20 buying price for palay translates to nearly P40 per kilo in actual rice production costs.
- Distribution:
Food Terminal Inc. (FTI), using funds from the Office of the President’s contingency budget, procures the milled rice from NFA and coordinates its distribution. The rice is sold at P20 per kilo through Kadiwa centers and local government unit (LGU)-designated outlets.
The government subsidizes the cost difference. Both FTI (under the DA) and the participating local government units contribute P6.50 per kilo to make up for the gap between the procurement cost and the subsidized retail price.
- Beneficiaries:
The program targets 4Ps (Pantawid Pamilyang Pilipino Program) households, senior citizens, solo parents, persons with disabilities (PWDs), and other indigent families, as identified by their respective LGUs. Eligibility and distribution schedules vary by location.
The P20 rice program is currently in its pilot phase, initially launched in select areas of Metro Manila, including barangays in Taguig and Quezon City. It has since expanded to other regions, with plans to reach up to 14 million Filipinos by September 2025.
The government initially set aside P4.5 billion from the President’s contingency fund to kickstart the P20 rice subsidy program. This was used for rice procurement and distribution through Kadiwa centers and local LGU outlets.
Who really benefits?
There are farmers like Satulan who are not against the idea of a rice subsidy. In fact, he believes the program could be life-changing for many.
“Pero yung bente pesos, nauunawaan ko ’yun,” he said. “Para ’yun sa mga taong mahihirap na hindi kayang bumili ng bigas na mahal.”
(But the 20 pesos, I understand that. That’s for poor people who can’t afford to buy expensive rice.)
For him, the rice subsidy is not the problem—it’s the imbalance that happens when the government focuses only on consumers while overlooking those who grow the rice.
Satulan worries that if rice is consistently sold at P20 per kilo, traders may respond by lowering the prices they pay farmers, just to keep pace with the cheaper market.
“Hahabulin po ng mga traders ’yun na namimili, sasabayan po nila yung bigas na bente, edi mura na po bili sa amin ng palay—kami ang madadali doon,” he said.
(The traders will try to match that—they’ll chase after the ₱20 rice and adjust their prices accordingly. That means they’ll buy our palay for less—and we’ll be the ones to take the hit.)
“Kami naman, okay na kami sa 17 pesos per kilo [ng palay],” he said. “Para maging balance naman sa amin kasi ang mamahal ng mga inputs kagaya ng mga insecticides… manpower na nagtatanim, mga diesel para sa traktora, marami pa ho ’yun.”
(As for us, we’re fine with 17 pesos per kilo of palay. It’s just to keep things balanced on our end because inputs are so expensive, like insecticides, labor for planting, diesel for tractors, and many more.)
Graphics by Ed Lustan/Inquirer.net
Satulan’s appeal for a P17 buying price may seem lower than the NFA’s announced rates, but it reflects the ground realities described by experts earlier in this story.
As Adriano and Magno explained, while the government sets a support price of ₱20 or more, many farmers still end up selling their palay at just P14 to P15 due to limited access to NFA buying stations and the influence of middlemen.
Satulan, who has never sold directly to the NFA in his decades of farming, relies on local traders, whom he fears may lower their buying prices to match the government’s P20-per-kilo rice target.
For farmers like him, a guaranteed P17 per kilo for fresh (wet) palay would at least offer a fair compromise, balancing their rising production costs with the need to keep rice affordable for consumers.
Still, even this compromise doesn’t guarantee comfort.
Even with the current buying price, he explained that some farmers like him aren’t necessarily losing money. But what’s left after all the expenses is barely enough.
“Hindi naman kami malulugi. Kaya nga lang, maliit yung kitahan. Liliit,” Satulan explained.
“Pero aaminin ko, kapag ganoon ang presyuhan, maliit talaga, hindi sakto sa isang pamilya. Kamukha ko, meron akong kolehiyo [na anak na pinag-aaral]—hindi sapat sa apat na buwan kong pinagtrabahuhan.”
(We won’t be operating at a loss. It’s just that the income will be small, very small. But I’ll admit, with prices like that, it’s really not enough for a family. In my case, I have a child in college—it’s not enough to cover the four months of work I put in.)
He says he isn’t asking for much. Just enough for rice farmers like him to feel seen.
“Para sa akin, hinihiling ko lang sana sa ating mahal na pangulo at sa ating gobyerno… kahit ganoon man lang sana [17 pesos],” he said. “Tignan kaming mga producer na talagang gumagawa ng pagkain sa Pilipinas.”
(For me, I just hope our beloved president and the government could at least give us that 17 pesos. Look at us producers who are truly the ones making food for the Philippines.)
‘Palliative measure’: Program seen as short-term, risks hurting farmers
Satulan’s mixed view reflects a broader tension in the subsidy program—one that farmer advocates say has long plagued agricultural policy in the Philippines.
Despite its good intentions, peasant advocate Cathy Estavillo warned that the P20 rice program could backfire, especially for farmers already burdened by low prices and high production costs.
“Itong P20 per kilo na pangako ng gobyerno na ipinagyayabang [ng pangulo] ay automatic na nag resulta sa pagbaba ng presyo ng palay ng ating mga magsasaka dahil ginagamit ng mga trader na P20 na ang presyo ng bigas,” she explained in an interview with the Bilyonaryo 好色先生TV Channel.
(The government’s P20-per-kilo rice promise, touted by the president, has automatically led to a drop in the price of palay for farmers, as traders now use the P20 rice price as their basis.)
“Ang rule of thumb ay 2 kilos of palay equals 1 kilo of bigas so kung P20 per kilo yan ay ang presyo ng palay ay dapat P10, ‘yun P14. So luging-lugi [ang mga magsasaka] doon,” she added.
(The rule of thumb is that it takes 2 kilos of palay to produce 1 kilo of rice, so if rice is sold at P20 per kilo, the buying price of palay would need to be just P10, or at most P14. That leaves farmers at a huge loss.)
Graphics by Ed Lustan/Inquirer.net
While the NFA claims it buys palay at P18 to P23 per kilo, Estavillo argued that these benefits are not felt on the ground.
“Hindi nararamdaman ng ating mga magsasaka dahil ‘yung quality na kailangan para makabenta ka ng P18 to P23 per kilo ay dapat 100% clean at 14% dry [pero] dahil sa kawalan ng mga post-harvest facilities ay hindi [ito] kaya.”
(Farmers don’t actually feel the benefit because to sell at ₱18 to ₱23 per kilo, the palay must be 100% clean and 14% dry—but due to the lack of post-harvest facilities, that standard is impossible for many to meet.)
Estavillo acknowledged that calls for cheaper rice are valid and longstanding.
“Matagal nang nananawagan ang ating mga kababayan lalong-lalo na yung mga ordinary consumers, even farmers, ay nananawagan na ibaba ang presyo ng bigas sa abot-kayang presyo,” she said.
(Our fellow countrymen have long been calling—especially ordinary consumers, even farmers—for rice prices to be lowered to an affordable level.)
However, she cautioned that the subsidy, as currently designed, echoes past food programs that failed to make a meaningful impact.
(This is an artificial, palliative measure—just imagine, our people have to line up just to buy it… Why should something as basic as rice for Filipinos have to be queued for?)
She reiterated that structural issues remain unaddressed, especially since the passage of Republic Act 11203 or the Rice Liberalization Law.
“Actually mula noong naisabatas yung RA 11203 noong February 2019 ay talagang napakatindi ng effect sa ating mga magsasaka at talagang napakababa ng presyo ng pamimili nila ng palay,” she said.
(Actually, since RA 11203 was enacted in February 2019, the impact on our farmers has been severe, with buying prices for palay dropping significantly.)
“Ngayon, nationwide, ang farmgate price ng palay ay umaabot lang ng P14 given na ang cost of production per kilo of palay is P17 to P18 per kilo. So talagang luging-lugi ang ating mga magsasaka,” she added.
(Right now, nationwide, the farmgate price of palay is only around P14, even though the cost of production per kilo of palay is P17 to P18. So our farmers are really operating at a loss.)
Graphics by Ed Lustan/Inquirer.net
Estavillo called on the government to go beyond subsidies and strengthen long-term support for farmers.
“Tama lang ‘yung panawagan namin na dapat mag subsidize ang gobyerno sa cost of production ng ating mga magsasaka. Ang minimum subsidy na panawagan ng Bantay Bigas ay at least P25,000 doon sa cost of production ng ating mga magsasaka na umaabot ng P60,000 per hectare,” she said.
(Our call for the government to subsidize the cost of production for our farmers is completely justified. Bantay Bigas is calling for a minimum subsidy of at least P25,000, given that the cost of production reaches up to P60,000 per hectare.)
“Hindi lang siya dapat subsidy ang ibibigay kundi ie-ensure rin ‘yung mga post-harvest facilities,” she continued.
(It’s not just about providing subsidies; the government should also ensure that post-harvest facilities are in place.)
Beyond the farmers’ plight, concerns about the program’s sustainability and real reach are also mounting.
P20 rice for all? Critics say many are left behind
For IBON Foundation Executive Director Sonny Africa, the P20 rice subsidy, while helpful in theory, appears more symbolic than substantial. In a recent statement, he called it a “political stunt” and “deeply cynical,” pointing out that the initiative is a far cry from the sweeping promise made by Marcos in 2022.
Africa noted that hunger has actually worsened under Marcos’ watch, from 2.9 million families in June 2022 to 7.5 million as of March 2025, according to Social Weather Stations (SWS).
“The president is claiming to do something for hungry Filipinos that he promised long ago but hasn’t really done anything about since he took office,” he said.
He also questioned the sincerity behind the initiative, noting that despite hyping an annual P20-billion increase in the Rice Competitiveness Enhancement Fund (RCEF), the president vetoed even a proposed P5-billion increase just weeks after signing the law. “Saying something that one knows is untrue is usually called lying,” Africa said.
While he described the initiative as ultimately tokenistic, he acknowledged its limited help for a few: “I’m sure makakatulong ’yan, ’yung bente pesos na bigas doon sa mga maambunan.”
(That P20 rice will surely help, at least for those who get a share of it.)
In terms of actual reach, Africa ran the numbers.
If the P4.5-billion budget is for the Visayas alone, it would only support the 900,886 poor families identified in DSWD’s Listahanan 3 for about five months. That still leaves over 4.1 million Visayan families paying the regular commercial price of rice.
“None of this is anywhere near the ‘P20/kilo’ rice that the president promised while campaigning,” Africa said. “What would have been more truthful is if he’d instead promised ‘P20/kilo rice for all 27 million Filipino families for five days.’ But then this truth is so much duller than the fiction.”
“So ang bottom line, suwerte ka na kung makinabang ka sa P20 na bigas,” he added.
(So the bottom line is, you’re lucky if you even get to benefit from the P20 rice.)
He added that while food prices can be lowered, it will require a long-term strategy focused on steady protection and subsidies for small farmers. The current rollout, he said, is just another “cynically superficial and tokenistic measure,” lumped with programs like Kadiwa, food stamps, and maximum suggested retail prices.
Still, the Department of Agriculture has acknowledged the program’s limits and said the initial P4.5 billion was only a pilot phase.
For 2026, the DA and National Food Authority are seeking a significantly larger allocation—P40 billion in total. Of this, P27 billion will go to buying palay from farmers, and P13 billion will fund logistics. The department says this expanded budget is crucial if the program is to meet its long-term goals.
READ:
Graphics by Ed Lustan/Inquirer.net
To address concerns over the program’s limited reach, House Speaker Martin Romualdez proposed a four-year “phase-in plan” to scale the P20 rice initiative sustainably.
“In 2025, the program will cover only the bottom 20 percent of the population, requiring about P17 billion. In 2026, it will expand to the bottom 35 percent, costing P30 billion,” Romualdez said in public statements.
“By 2027, it could reach the bottom 50 percent, with the full P51 billion requirement,” he added, emphasizing that government agencies should optimize the system and integrate the rice subsidy with other food aid programs by 2028.
Government’s optimism: Sustaining the P20 rice program
Despite criticisms labeling the P20-per-kilo rice initiative as unsustainable, Marcos remains steadfast in his commitment to the program.
He has publicly vowed to maintain the subsidized rice price until the end of his term in May 2028, challenging skeptics by stating, “Watch me sustain it, and then we will talk in May of 2028.”
The administration attributes the program’s feasibility to recent reforms aimed at stabilizing rice supply and prices. These include cracking down on rice smuggling and hoarding, implementing bureaucratic and legislative changes to boost production, and entering into agreements with other countries to ensure a steady rice supply.
READ: Marcos vows to sustain P20/kg rice until 2028
To further broaden the program’s reach, the DA and the Department of Labor and Employment (DOLE) are finalizing mechanisms to include approximately 120,000 minimum wage earners nationwide. Eligible workers will be allowed to purchase up to 10 kilos of rice per month at the subsidized price, providing additional support to those struggling with the high cost of living.
READ: DSWD integrates P20/kilo rice program into Food Stamp Program
President Marcos has emphasized that the government’s ability to provide affordable rice without compromising farmers’ welfare marks a significant achievement.
He stated, “Whatever happens down the road, the fact remains that we are able to do it now. We can now easily do this P20 rice,” highlighting the administration’s efforts to balance consumer needs with agricultural sustainability.
But for farmers like Satulan, the balance remains fragile.
“Kaunting pagtingin lang sana sa aming mga producer ng palay, bigas,” Satulan said. “Sana naman eh malingon din kami.”
(We just hope for a little attention to be given to us, the producers of palay and rice. Hopefully, the government turns its gaze our way, too.)
