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Competition Reform in the Philippine Rice Sector

Author

Listed:
  • Briones, Roehlano M.
  • Dela Pena, Beulah

Abstract

The rice sector is regulated by the National Food Authority, with imports under a statutory monopoly. Consistent with previous studies done on the rice supply chain, a rapid appraisal finds that the domestic paddy and rice supply chain is highly competitive. Entry into import business is however severely curtailed. Welfare analysis indicates that in 2013, if quantitative restrictions were eliminated and rice imports were allowed to freely enter the country, rice imports would have increased tenfold, bringing down the retail price of rice to PHP 19.80/kg from PHP 33.08/kg. Consumer surplus would have increased by PHP 178 billion, compared to a PHP 34 billion reduction in producer surplus, for a net social benefit of PHP 138 billion. This paper recommends tariffication, i.e., liberalized importation policy with moderate tariffs.

Suggested Citation

  • Briones, Roehlano M. & Dela Pena, Beulah, 2015. "Competition Reform in the Philippine Rice Sector," Discussion Papers DP 2015-04, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2015-04
    as

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    File URL: https://www.pids.gov.ph/publication/discussion-papers/competition-reform-in-the-philippine-rice-sector
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    References listed on IDEAS

    as
    1. Intal, Ponciano Jr. S. & Garcia, Marissa C., 2005. "Rice and Philippine Politics," Discussion Papers DP 2005-13, Philippine Institute for Development Studies.
    2. repec:ags:inpuer:188857 is not listed on IDEAS
    3. Dawe, David C. & Moya, Piedad F. & Casiwan, Cheryll B. & Cabling, Jesusa M., 2008. "Rice marketing systems in the Philippines and Thailand: Do large numbers of competitive traders ensure good performance?," Food Policy, Elsevier, vol. 33(5), pages 455-463, October.
    4. Briones, Roehlano M. & Galang, Ivory Myka R., 2012. "Assessment of Prospective Impact of Fruits and Vegetables Research at the Industry Level in the Philippines: the Case of the ACIAR-PCAARRD Horticulture Project," Discussion Papers DP 2012-40, Philippine Institute for Development Studies.
    5. Intal, Ponciano Jr. S. & Cu, Leah Francine & Illescas, Jo Anne, 2012. "Rice Prices and the National Food Authority," Discussion Papers DP 2012-27, Philippine Institute for Development Studies.
    6. Briones, Roehlano M., 2014. "The Role of Mineral Fertilizers in Transforming Philippine Agriculture," Discussion Papers DP 2014-14, Philippine Institute for Development Studies.
    7. repec:phd:pjdevt:jpd_2000_vol__xxvii_no__1-c is not listed on IDEAS
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    Cited by:

    1. Maligalig, R. & Umbeger, W. & Demont, M. & Peralta, A., 2018. "Farmer preferences for rice varietal trait improvements in Nueva Ecija, Philippines: A latent class cluster approach," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277476, International Association of Agricultural Economists.
    2. Rio Maligalig & Matty Demont & Wendy J. Umberger & Alexandra Peralta, 2021. "Understanding Filipino Rice Farmer Preference Heterogeneity for Varietal Trait Improvements: A Latent Class Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 134-157, February.

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    Keywords

    competition policy; Philippines; rice policy; agricultural marketing; welfare analysis;
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