This special treatment for rice expired in 2005, but the government requested an extension of QR to maintain protection until 2012. According to the administrator of the National Food Authority (NFA), the country has filed a petition regarding the extension of QR for rice imports.
Background on the Philippine rice trade policies
Background on the Philippine rice trade policies 1
NPR was negative in the second half of the 1970s and the first half of the 1980s. The main culprits are the increase in the world price of rice and the depreciation of the Philippine currency.
Background on the Philippine rice trade policies
Discussion
Rice imports are auctioned to the private sector for a service fee and subject to the 40% import tariff. The duty-free import quota allocated to the private sector mentioned in the paper is a tax expenditure subsidy.
Background on the Philippine rice trade policies
Open
Should the Philippines extend ( again ) its special treatment on rice ?
Should the Philippines extend (again) its special treatment on rice ?
Discussion
This is the trend in the real price of rice: the green and the red is the real price of wheat since the 1900s. Then the next graph, what I tried to do is add the cost of NFA A, which is the green one. part.
Slide 16
In the middle of the field, we saw a flatbed dryer which does not work when all the wet rice is spread all over the road. You can see here that there is very little increase in the actual irrigated area at the time when we were spending a lot of money. My other desk service area and selected National Irrigation System (NIS) performance measures by quality.
You can see here that the performance of the National Irrigation System built over time has deteriorated. This is the table in which we assessed ourselves according to Ferguson's theorem, which only goes back to 1983. Agriculture in the Philippines is only 0.43% of agricultural gross value added, compared to Malaysia, which is almost 2 %.
It is very clear that the existing studies on rates of return for research have been quite high; talking about 60% on average;. There is indeed a need to improve our efficiency in the management or governance of public goods in the irrigation system.
Open
Competitiveness of the philippine rice industry vis-a-vis southeast
Even Vietnam, which has the lowest per capita production of these five countries, has more than double the amount of rice production per person in the Philippines. In terms of harvested area per person, Cambodia is the leader, which is 296% higher than that of the Philippines (almost four times more). On this count, the Philippines has the highest ratio of any of the eight countries.
Thus, the reasons for the low cultivated area of rice per person in the Philippines are the suitability of the land for rice cultivation and population pressure. The product of these two factors is lower for the Philippines than for any other country in the table. While we certainly need better data on post-harvest losses, it is not at all clear to me that the situation in the Philippines is significantly worse than in other ASEAN countries.
Note: The wet season in the Philippines is from July to December; in Thailand it is "important rice". The dry season in the Philippines is from January to June; in Thailand it is "second rice".
Discussion competitiveness of the philippine rice industry vis-a-vis southeast asian nations
Based on the comments above and on the demand side, how would population structure affect self-sufficiency indices? This may not be useful in the study, since the basis for competitiveness here is the ability to be self-sufficient in rice. But at the end of the day, what we should really care about is the farmer and his .. household.. the sufficiency of the country may not fully translate into self-sufficiency at the household level.
Even if the wording is supplemented with proposed changes, the Philippines' competitiveness compared to other ASEAN countries may still be exactly the same – and that is on the low side. One is about the structure of the population, how that could influence consumption and that is particularly interesting. I don't know how that would affect things, but it's something that's often overlooked. And you're right: it's important, in terms of total crop area, that I was just adding the harvested area for all the crops one by one.
The government's political distortion, I think one thing I would like to say about it is that when I argued that the proportion of cropland devoted to rice actually drives a large part of the production per person if you look at the share of the crop area. devoted to rice, you can see it. as we have previously seen in some of the work of Ramon and Tina, importers will encourage nominal production coefficients to be higher than 1; whereas the exporters have the reverse.
Open
Roehlano M. Briones, PhD 16
Since 2010, it has awarded the bulk of rice imports to the private sector through a tendering process. In fact, the duty on imports has been waived since 2006 through a simultaneous tax subsidy given to the NFA. The state may feel that these goals are too important to leave to the market.
This served well in avoiding price spikes during the severe drought of 1997-98, but eventually left the country in the dubious position of being the world's largest rice importer. The reference scenario concerning the status quo (no rate reduction); ii) Tariff reduction scenario: the rate falls from the baseline to 35%, by 3 percentage points per year from 2012 to 2017. However, it does not fall to zero, contrary to the government's target of 100% self-sufficiency in the beginning. like 2013.
The decrease compared to the baseline is due to the aggressive expansion of rice supply due to the FSSP. The producer price is already falling under the reference scenario due to the productivity-enhancing instruments under the FSSP.
Discussion
In the case of rice, we have a non-tariff barrier at a tariff rate quota (TRQ) where you have a minimum access quantity (MAV) that is charged and taxed at 40%, and the excess imports out. MAV or in addition to MAV charges 50%, this is the current situation. If you have high tariffs, there may be retaliation that can cause imports and. In addition, it also increases the prices of other goods and services, as rice is also an important component of the consumer's food basket.
There is inefficiency in production because the farmers are protected by the tariff, but inefficiency in consumption is due to the higher price of rice resulting in lower rice consumption. In the case of quotas they have the same effect, except that this part (c) can go to the government and the private sector or even abroad. If the import permit is given to someone else outside the country, it means a loss to the government.
Furthermore, even if the government were to allow other sectors such as the private sector to import, it is possible that the amount of taxes or the amount of royalty that they can get by allowing the private sector to import may not be equivalent to or may be lower than what is collected when you have tariffs. Accession and membership of the WTO means that we follow the order of the WTO that sets tariffs and we are focused on tariffs because as other speakers have mentioned, we cannot constantly ask for extensions of our QRs.
ForumOpen
Future directions of the rice trade in the philippines
Cheryl C. Launio, PhD 19
We found that the domestic wholesale price increases by 0.38% for every 1% increase in the import price, which is defined as the world price plus the duty imposed. To help them, there is a need to increase non-agricultural employment opportunities, especially in the industrial sector. To help them adjust in the event of rice trade liberalization, there should be transaction costs of switching to other crops.
To do this, R&D must be continuously funded and the extension system in the country must be strengthened. This is one of the reasons why the market margins for rice in the Philippines are high. However, they will be worse off in the short term while the country imposes tariffs.
The tendency of the domestic wholesale price is to follow the trend of the world price and rise. Estimates of Supply and Demand for Major Agricultural Commodities in the Philippines: National and Regional Estimates.
Discussion
The focus of the paper on the future direction of the Philippine rice trade is the advantages and disadvantages of rice trade tariff and argues that it is inevitable. If this is the assumption, it is different from the dream and promise of the current administration. The analysis of the future rice trade scenario could have been who benefits when we become self-sufficient and beyond.
Part of the publication addressed the issue of “Unraveling the Puzzle of Poverty and Rice Insecurity in the Philippines.” In the Indonesian case cited in the present article, on free trade and privatization of a state-owned enterprise, it appears that tariffs have minimal effect on domestic price increases, due to the weak institution and the inability of the Indonesian government to curb rice smuggling. fuses. In the Indonesian case cited in the article below. During the discussion about free trade and privatization of a state-owned enterprise, it appears that tariffs have minimal effect on the increase in domestic prices, due to the weak institution and the inability of the Indonesian government to stop rice smuggling. comparing national performance, the Philippines tends to suffer.
We expect that the surplus provinces will supply rice to the inferior provinces. If the vision for the future of Philippine rice is one of no more imports, then yes.
ForumOpen
Appendix A. Program of Activities
Appendix B. List of Participants
Appendix C. Policy Research and Advocacy Team
Appendix D. Editorial Team
