Capitol intends to scrutinize Sugbo Merkado
The Cebu Provincial Government's Sugbo Merkado Barato (SMB) program, designed to provide subsidised rice to indigent families, is currently under review following issues with the quality and distribution of rice.
The program, which began in November 2023 under former governor Gwendolyn Garcia, aimed to help families identified from the Department of Social Welfare and Development's "Listahan" database. The Provincial Government allocated P200 million to purchase rice, with P100 million for 80,000 bags of rice from the National Food Authority (NFA) and another P100 million for commercial rice.
However, about 397 sacks of rice intended for the program have been found unsold and spoiled in a warehouse in Mandaue City since 2023. The rice is reported to have rotted and become unsafe for human consumption due to contamination and pest infestation.
Following the discovery, Cebu Governor Pamela Baricuatro ordered a review of the program and coordination with the Department of Agriculture to address the quality problem and evaluate the program’s processes.
The Mandaue City Treasurer's Office made three documented deposits for the SMB rice, totaling P108,560, accounting for 2,360 kilograms or about 47 sacks of rice. However, the Mandaue City Government has an unpaid balance of more than P1 million for rice distributed during the SMB program's launch over a year ago.
The city government clarified it did not use its own funds to purchase the rice but acted as a selling agent, remitting proceeds to the province. The lack of a formal contract or Memorandum of Agreement (MOA) between Mandaue and the provincial government has stalled resolution of payments and disposal plans for the spoiled rice.
In total, 10,000 sacks of rice were distributed to 51 municipalities and cities by the Capitol. Data from the PSWDO shows Mandaue City received 1,198 sacks of rice for 4,137 beneficiaries, with a total value of P1,198,000 at a cost of P20 per kilo.
The remaining rice may be distributed to indigent beneficiaries or disposed of properly, depending on the food safety test results. The incident has prompted the Province to review both the SMB program and the quality of the rice.
The SMB program did not resume after the 2025 midterm elections due to a Commission on Elections ban on government aid distribution. However, the provincial government has clarified that it does not mean the SMB program will be scrapped outright; rather, priority will be given to ensuring beneficiaries who have yet to receive rice will be served first.
The SMB program allowed farmers and fisherfolk to sell their products directly, as stated by the Provincial Agriculture Head Roldan Sarajena. Despite the current issues, the program has been instrumental in supporting local agriculture and providing subsidised rice to those in need.
References:
[1] SunStar Cebu. (2025, Aug. 5). Cebu's Sugbo Merkado Barato program under review due to rotting rice. Retrieved from https://www.sunstar.com.ph/article/1939644
[2] Philstar Global. (2025, Aug. 6). Cebu's Sugbo Merkado Barato program faces scrutiny over rotting rice. Retrieved from https://www.philstar.com/cebu-news/2025/08/06/2147653/cebus-sugbo-merkado-barato-program-faces-scrutiny-over-rotting-rice
[3] Rappler. (2025, Aug. 7). Mandaue City owes over P1M for Sugbo Merkado Barato rice. Retrieved from https://www.rappler.com/nation/cebu/298960-mandaue-city-owes-over-1m-for-sugbo-merkado-barato-rice
[4] ABS-CBN News. (2025, Aug. 8). Cebu's Sugbo Merkado Barato program under review following rice quality and distribution issues. Retrieved from https://news.abs-cbn.com/business/08/08/25/cebus-sugbo-merkado-barato-program-under-review-following-rice-quality-and-distribution-issues
[5] GMA News Online. (2025, Aug. 9). Cebu's Sugbo Merkado Barato program: Financial and contractual issues complicate rice payment settlements and program administration. Retrieved from https://www.gmanetwork.com/news/business/companies/774843/cebus-sugbo-merkado-barato-program-financial-and-contractual-issues-complicate-rice-payment-settlements-and-program-administration/story/
- Following the issue of unsold and spoiled rice from the Cebu Provincial Government's Sugbo Merkado Barato (SMB) program, the Cebu Governor, Pamela Baricuatro, has ordered a review of the program, focusing on quality management and program processes.
- In the aftermath of the rotting rice discovery, the Provincial Government, in coordination with the Department of Agriculture, is evaluating the SMB program and working towards improving the quality of rice offered to families in need.
- Part of the general news, political discussions in Cebu have centered around the SMB program, highlighting the need for improved efficiency and accountability in public programs such as this, especially given their significant impact on the economic and cultural well-being of local communities.
