Government considers converting 4Ps cash assistance to rice

The government is exploring a proposal to convert cash assistance under the government's Pantawid Pamilyang Pilipino Program to rice provided by the National Food Authority, a Department of Agriculture official said on Tuesday.

This suggestion, presented to President Ferdinand Marcos Jr. in a sectoral meeting, aims to address two concerns: ensuring food security for beneficiaries and potentially reducing inflationary pressures on rice prices.

During the Palace briefing, Agriculture Undersecretary Roger Navarro said supplying rice directly to 4Ps beneficiaries, who represent 20 percent of the vulnerable poor nationwide, could slow down the rice inflation in the Philippines.

Data from the Philippine Statistics Authority showed that rice inflation hit 22.6 percent last January 2024, its highest mark since March 2009.

Navarro said that providing rice directly would shield beneficiaries from market price fluctuations and inflationary pressures.

The Agriculture official explained that the 4Ps beneficiaries receive cash and buy rice at market prices, which adds to inflationary pressures.

He added that the government can take the beneficiaries "out of the equation" and potentially stabilize prices by providing rice directly.

"We told the President that if we can convert the 4Ps instead of money, it should be on rice form, supplied by NFA. So we will take them out in the price pressures of the market in terms of buying high-priced rice," Navarro said.

"The President is saying that we will consider the proposal, and they will look at how to implement it," Navarro added.

Following the signing of Republic Act No. 11310, also known as "An Act institutionalizing Pantawid Pamilyang Pilipino Program" on 17 April 2019, the 4Ps became the government's plan to reduce poverty across the country. It is run by the Department of Social Welfare and Development.

This program gives people cash grants if they meet certain requirements set by the program. It is based on the conditional cash transfer plan used in other developing countries.