CEBU City will begin a pilot phase of its P20-per-kilo rice program before the end of 2025, with 10,000 sacks allocated for initial distribution across select barangays. Mayor Nestor Archival announced on Tuesday, Dec. 16, that the program—supplied by Food Terminal Inc. (FTI)—aims to provide affordable staples to low-income families while testing a system to prevent waste.
“Barangays themselves will set the rules and manage who gets access,” Archival said. “They know their communities best and will ensure the rice goes to those who really need it.”
The program utilizes population-based targeting to prioritize the lowest-income households. The Department of Social Welfare and Services (DSWS) will coordinate with barangay captains to select beneficiaries. Archival also assured senior citizens that they can continue accessing subsidized rice through Kadiwa outlets, including the compound in Barangay Tejero.
Under the agreement, FTI purchases rice at approximately P33 per kilo but sells it for P20. The P13 difference is subsidized jointly by the national and local governments.
Archival emphasized the importance of safeguards to avoid the spoilage issues recently reported in Mandaue City, noting that unsold rice will be promptly reallocated to areas with higher demand.
The rollout follows an amended memorandum of agreement (MOA) with FTI, which classifies the rice as consigned goods. This ensures the city only pays for rice after it is sold, protecting public funds.
City Attorney Briccio Joseph Boholst noted that this arrangement distinguishes the transaction from a standard sale and ensures proceeds are treated as audited trust funds.
The city will start with limited batches to test the distribution process. Archival is optimistic that this 10,000-sack rollout will serve as a blueprint for a larger implementation in 2026. Residents are encouraged to coordinate with their respective barangay offices for distribution schedules. / CAV