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Shorten Intro For Checking 2023 Aug

The Philippines passed the Rice Tariffication Law in 2019 to increase rice supply by easing restrictions on rice imports. While this benefited consumers by lowering rice prices, it negatively impacted domestic rice farmers by reducing their income and profits. Several studies have shown that as a result of lower rice prices due to higher imports, many small-scale rice farmers now struggle with low income and difficulty affording agricultural inputs, threatening the future of domestic rice production in the Philippines. This paper aims to further analyze the impact of the law on local rice producers to help them achieve sustainable growth under the new policy.

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Jo A Lyn
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23 views2 pages

Shorten Intro For Checking 2023 Aug

The Philippines passed the Rice Tariffication Law in 2019 to increase rice supply by easing restrictions on rice imports. While this benefited consumers by lowering rice prices, it negatively impacted domestic rice farmers by reducing their income and profits. Several studies have shown that as a result of lower rice prices due to higher imports, many small-scale rice farmers now struggle with low income and difficulty affording agricultural inputs, threatening the future of domestic rice production in the Philippines. This paper aims to further analyze the impact of the law on local rice producers to help them achieve sustainable growth under the new policy.

Uploaded by

Jo A Lyn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

The Philippines promulgated a bill called Rice Tariffication Law (RTL) that eased the restriction
of imported rice to increase the supply of rice in the Philippines. Former President Rodrigo
Duterte signed the bill into Law February 14, 2019, as RA 11203. This aims to protect the Rice
security of the country from rice shortage as it is the main staple of the Filipinos Casinillo
(2020). However, it drastically changed the state of domestic rice producer in the country, and
the impact of the reform appears through prices Balié et al. (2020). The reform leads to lower
domestic rice prices, resulting in reduced income for rice farmers but increased purchasing
power for rice consumers Balie and Valera (2020).
 
A study showed that the impact on rice farmers in the country negatively affected their economic
profit under the policy as opposed to the previous cropping season before the reform was
promulgated. Casinillo (2022). In a study conducted by Cororaton and Yu (2019) supported by
Balié et al. (2020) and Briones (2018 - 2019), the overall effects of Rice Tariffication Law are
beneficial to the general since the effects spread widely across the population. Unfortunately,
since rice growers are net sellers, they are negatively impacted by the policy reform. As it put
pressure on the domestic rice producers. While the reform may benefit society, it may vary
among the income groups and farmer groups in the country Balié et al. (2020) and Briones
(2019).

Domestic rice producers are having a hard time compensating for their expenses in farm inputs
due to the low marketability profit of their rice outputs Balié (2020). This results in farmers'
inability to acquire agricultural inputs since their prices are also rising over time. A recent study
conducted by Pacheco (2023) the adverse effects of the reform on the local rice producers'
economic profit as domestic prices of rice decreases their income leading to declining numbers
of rice production as rice farmer would have a hard time competing due to the struggle of staying
profitable. Farmers' well-being is adversely affected by low prices of rice outputs due to the
volume of imported supply brought by the Rice tariffication Law in the country Olorunfemi et al.
(2020)
According to Calicdan et al.(2020) and Casinillo (2020), most of the small-scale rice farmers'
well-being is negatively affected because of low income from rice production during the
implementation of the Rice Tariffication Law. Several studies have shown that the reform
decreases the rice prices for both producers and consumers which greatly affects the production
and consumption of every household in the country Olorunfemi et al. (2022

This is to avoid the crisis and the declining numbers of Domestic rice producers and to continue
serving the primary commodity of every family in the country for the future without relying on
rice importation. While it has been heavily debated, other potential effects of the reform have not
been extensively studied to date Balié et al. (2020). Only a few studies analyzed the potential
effect of the reform in the country. Thus, this fills the gap in the literature to help affected
domestic rice producers achieve sustainable economic growth in the rice production sector under
the Rice Tariffication Law policy in Marilog, Calinan Davao City. This paper aims to provide
more significant insights for policymakers in the Philippines on the actual effects of this reform.
The findings are relevant beyond the Philippines as other countries in the region are
contemplating reforming their rice price policy Balié et al. (2020).

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