(Bloomberg) -- The Philippine government plans to sell some of its rice inventories at heavily subsidized prices in May as residents in the Asian archipelago turn out for midterm elections.
The state-owned National Food Authority will sell at least 370,000 tons of aging kernels from its warehouses at about 20 pesos ($0.36) a kilogram, about half of current market prices, Agriculture Secretary Francisco Tiu Laurel Jr. said at a press conference Tuesday. The government wants to start subsidized sales this week, but may have to wait until after the May 12 vote depending on a ruling from the Commission on Elections, Laurel said.
The program will cost President Ferdinand Marcos Jr.’s government about 10 billion pesos and is designed to help the poor, Laurel said. Vice President Sara Duterte, a former Marcos ally who’s considering a presidential run in 2028, has criticized the subsidies as a tool to boost the government’s slate of candidates in the midterm polls.
Rice is a staple in the Philippines, and households were badly hit when prices surged to a 15-year high in 2024. Costs have been gradually falling this year as production improves, with output in the 2024-25 season expected to hit a record, according to the United Nations’ Food and Agriculture Organization.
The Philippines is targeting production of 20.4 million tons of rough rice this year, up from 19.3 million in 2024. The Southeast Asian nation will likely import 5.2 million tons of rice this year, down 1.9% from a year ago due to a forecast increase in local output and higher stock carryover, US Department of Agriculture data show.
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