Regional welfare effects of the 2019 rice tariffication law among rice consumers and rice producers in the Philippines, 2023

Date

1-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cenon D. Elca

Committee Member

Julieta A. Delos Reyes, Ma. Angeles O. Catelo

Abstract

The importance of the Philippine rice industry cannot be overemphasized. It is the main staple food of Filipinos and provides employment and livelihood opportunities to the whole country. A landmark legislation in 2019 called the Rice Tariffication Law marked a policy shift in rice trade policy from combined quantitative restriction and tariffs to full tariffication without import limitation. This study aimed to evaluate the welfare effects of the Rice Tariffication Law on the rice industry at the regional island grouping and national level. The three regional island groups, namely, Luzon, Visayas, and Mindanao, were selected for the study. Data on rice production, rice demand, imports, net supply, and self-sufficiency rate were collected and analyzed from 2014 to 2022. The results showed that there was an increasing trend on domestic rice supply, rice demand, rice imports, and deficits on rice net supply, and a decreasing trend on the rice self-sufficiency rate. These findings were consistent across the regional island groupings and on the national level. Using a partial equilibrium analysis, the policy simulations conducted in this study, included both conversion of quantitative restrictions to tariffs and the elimination of tariffs on rice. Results showed that both scenarios are beneficial to rice consumers, while rice producers are worse off. The government benefitted from the policy shift of conversion from quantitative restriction to tariffs, since this entailed that the government could collect revenue from tariffs and invest back to rice farmers in the form of rice-related government programs. An overall net gain or improvement of the Philippine rice industry was recorded on both scenarios, across regional island groups and on a national level. Based on the results of the study, it is therefore recommended to: (1) improve rice production in the Visayas and Mindanao regions, (2) promote programs and policies to slowdown the increasing rice demand, (3) incorporate regional-level impacts of RTL to future impact evaluation activities, (4) target a 70-80 percent rice self-sufficiency rather than a 100 percent self-sufficiency in rice, and (5) lower the tariff rates of non-ASEAN countries to explore other sources of rice imports.

Language

English

LC Subject

Rice Trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 V37

Notes

B.M. Gonzales Best Thesis in Agricultural Policy

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Document Type

Thesis

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