P40B sought for disaster response, rice subsidy
The Department of Agriculture (DA) and the National Food Authority (NFA) are requesting for 2026 budget summing up to about P40 billion to support the government’s disaster response and selling of subsidized rice.
In a hybrid press conference on Wednesday, NFA Administrator Larry Lacson said the proposed budget of P27 billion for next year would be primarily for the procurement of additional palay (unmilled rice) for buffer stocking.
If approved, this represents a 200-percent surge from its current allocation of P9 billion this year.
Lacson said the grains agency intended to purchase 900,000 metric tons (MT) of palay from local farmers to maintain an inventory equivalent to 15 days of national rice consumption.
He said this would cover stock requirements under the government’s Benteng Bigas Meron Na (P20 per kilo of rice) program.
Part of the budget will also be used to buy 150 new trucks to address logistical issues and ensure continuous palay procurement, even in remote areas.
“As we know, it’s not really given in full anyway so, at least, when the proposed budget is reduced, there’s still a little left,” Lacson said in Filipino.
The NFA is mandated by the Rice Tariffication Law (RTL) to maintain an optimal level of rice buffer stock sourced solely from local farmers. This is for distribution in times of emergency or calamity situations, sustaining disaster relief efforts.
The amended RTL signed by President Marcos last December, empowers the DA to release the NFA’s rice stocks to address extraordinary price increases. Rice is sold to the public through government agencies, local government units and Kadiwa outlets.
For its part, the DA is seeking a P15-billion budget in 2026, much larger than the P5-billion allotment this year, to sustain the subsidized rice program as what had been unveiled in Cebu early this month.
However, Agriculture Assistant Secretary Arnel de Mesa said that the proposed budget for this initiative may be slashed to P10 billion to help manage operations.
The DA is gearing up to implement the next phase of this initiative by next month. It aims to include many parts of Mindanao, focusing on areas with high poverty incidence rate.
The rice stocks currently being sold for P20 per kilo come from the NFA’s buffer, which is equivalent to 10.7 days of national rice consumption. Its inventory stands at 409,000 metric tons or 8.187 million 50-kilogram bags of rice as of writing.
The Food Terminal Inc. purchases rice from the grains agency and offers the grains to vulnerable sectors— indigents, senior citizens, persons with disabilities and solo parents—through Kadiwa stores.
Participating LGUs hold the discretion to determine eligibility of the beneficiaries.
Currently, the purchase limit is 30 kg of rice per household.
