FOR the second time in just over a week, Cebu City’s plan to roll out the sale of rice at P20 per kilo has hit another snag after the City Council once again deferred approval of the agreement that would authorize its implementation.
In its regular session on Tuesday, Aug. 19, 2025, the Council held off passing a resolution that would allow Mayor Nestor Archival to sign a Memorandum of Agreement (MOA) with Food Terminal Inc. (FTI), a government-owned corporation under the Department of Agriculture.
The MOA is a requirement for the City to take part in the Marcos administration’s Kadiwa ng Pangulo and P20 rice initiative, which promises subsidized rice for low-income sectors.
The latest deferral stemmed from the observation of Minority Floor Leader Councilor Sisinio Andales that the draft MOA cited four annexes; but these were not attached to the document received by the Council for review.
Andales said the MOA’s approval should be deferred until all the required documents, including the annexes, are completed and submitted.
He also raised concerns over vague provisions, such as order requirements that listed only the quantity of rice but not its quality or weight, as well as the lack of a clear timeline for delivery.
With questions left unanswered, proponent Councilor Pastor “Jun” Alcover Jr. moved to schedule an executive session on August 26, where representatives from FTI and the City Legal Office are expected to address the issues raised.
This means residents eager to buy rice at P20 per kilo will have to wait at least another week before the Cebu City Government can roll out the program.
This was not the first time the measure was put on hold. Last August 12, the same resolution was deferred after Andales and Councilor Francis Esparis questioned legal and procurement aspects of the draft MOA.
Esparis also noted that the FTI should produce a board resolution formally authorizing its president to sign the MOA.
Despite these concerns, the City Legal Office has maintained that there are no legal impediments to the agreement.
‘Aboveboard’
In a legal opinion issued on Aug. 5, approved by City Legal Officer Briccio Joseph Boholst, lawyer Bernard Inocentes Garcia said the deal was aboveboard, provided that procurement rules were observed.
The mayor has certified the matter as urgent, hoping for swift action so the City could begin distribution within the month of August.
Under the proposed arrangement, the FTI will supply Cebu City with well-milled NFA rice bought at P33 per kilo.
The rice will then be sold at P20 per kilo to indigent households, registered senior citizens, persons with disabilities, solo parents, disaster victims, and indigenous peoples.
The P13 subsidy per kilo will be split equally between the national government and Cebu City at P6.50 each.
Apart from the flagship P20 rice, the FTI has also offered to supply rice under its FTI-25 and Rice for All-25 programs, priced at P35 per kilo.
The FTI would handle procurement and delivery to designated distribution points, while the City Government would manage logistics and beneficiary identification.
The P20-per-kilo rice program is one of President Ferdinand Marcos Jr.’s flagship projects officially launched nationwide in May 2025 as part of the Kadiwa ng Pangulo initiative. / CAV