Marcos will launch a national subsidized rice program amid risks of inflation
PRESIDENT Ferdinand R. Marcos, Jr. he said his administration plans to expand the subsidized rice distribution program across the country, positioning it as a hedge against rising food prices and external shocks related to volatile oil markets around the world.
Speaking at the launch of “Biyayang Bigas para sa Maynila” in Manila on Thursday, Mr. Marcos said the program will be scaled up nationwide, with local government units (LGUs) taking the lead in identifying beneficiaries and distributing aid.
“We will do this all over the country,” he said in Filipino, adding that the goal is to ensure that “all our people have at least food.”
The release of the plan comes as the Philippines remains under a year-long national emergency triggered by the US-Israel war against Iran, which has disrupted global fuel supply chains and driven up oil prices.
Rising fuel costs have raised concerns about inflationary pressures, particularly on food, as higher transport and production costs are passed on to consumers.
Mr. Marcos acknowledged that the government has the power to control global oil prices but said he could intervene to ease the burden on households through food aid programs.
“We know that when oil prices rise, everything follows, especially food,” he said. “That’s why we are keeping a close eye on it so that the impact on the community is not great.”
So far, the government has allocated approximately P15 billion to the program through the Local Government Support Fund, which allows for the immediate release of resources directly to local governments.
Mr. Marcos said the expansion of implementation will help avoid delays related to national procurement and distribution programs, noting that LGUs are in a better position to identify vulnerable households and maintain a new list of beneficiaries.
Under this program, eligible families will receive 10 kilograms of rice six times a year. In its first phase, about 80,000 families in Manila are expected to benefit before the program is expanded to the rest of the country.
The plan is part of the government’s broader response to rising costs driven by the country’s electricity crisis.
Earlier this week, Mr. Marcos has approved the suspension of excise taxes on gasoline and kerosene, which are often used by households, to help with rising prices.
However, he has yet to decide whether to extend the same tax break to diesel and petrol, which has a wider impact on transport and overall inflation.
Inflation rose to 4.1% in March, the highest in two years, driven largely by higher fuel prices.
Some lawmakers have proposed suspending the 12% value-added tax on fuel products to boost spending, but administrations have warned that the move could significantly reduce government spending needed to fund social programs.
Mr. Marcos said the rice subsidy program reflects the government’s effort to provide immediate assistance to vulnerable sectors while managing the wider economic impact of land supply disruptions.
FEES OF CONDITIONS
Meanwhile, Chief Secretary Ralph G. Recto ordered local governments to work closely with transportation and energy agencies to expedite the issuance of fuel subsidies and fare discounts.
In the statement, Mr. Recto said the LGUs, in collaboration with the Department of the Interior and Local Government (DILG), should coordinate with the Department of Energy (DoE), the Department of Transportation (DoTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) to ensure the “seamless implementation” of the transportation assistance package.
The order followed an April 15 meeting with the agencies managing the service contract program, where officials finalized key implementation details ahead of a wider rollout.
“In line with the whole-of-government approach, the DoTr and the LTFRB need to work closely with the DILG, LGUs and DoE to ensure that all the intended beneficiaries are able to avail themselves of the financial support under the program and that these beneficiaries offer a 20% fare discount to all their passengers,” said Mr. Recto.
Under the program, drivers of public utility vehicles and drivers will receive subsidies ranging from P40 to P100 per kilometer. When exchanging, they must offer passengers a 20% discount on top of the existing privileges for students, seniors and people with disabilities.
The LTFRB is expected to release a standardized fare matrix this week to guide implementation.
Once fully implemented, the program is expected to benefit about 50,000 drivers and up to 15 million passengers, while helping to curb the effects of second-round inflation driven by high transportation and logistics costs.
The order comes as the government tries to expand the program beyond its implementation in Metro Manila, with phased implementation across the country planned for key urban centers and provincial routes.
Officials said the plan is part of the administration’s efforts to reduce the impact of the global oil market disruption caused by the Middle East war.
Although crude prices have eased after the temporary ceasefire, officials have warned that pump prices remain at risk of a rebound after the US and Iran failed to reach a long-term deal. – Chloe Mari A. Hufana
