2 iii rice industry in the philippines a background

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III. RICE INDUSTRY IN THE PHILIPPINES A. Background The major rice-producing parts of the country are Central Luzon (18.7%), western Visayas (11.3%), Cagayan Valley (11%), Ilocos region (9.8%), SOCCSKSARGEN (7.5%), and Bicol region (6.8%). SOCCSKSARGEN is a newly created region in central Mindanao comprising North Cotabato, Sarangani, South Cotabato, and Sultan Kudarat provinces. Almost 70% of the total rice area is irrigated and the remaining 30% is rainfed and upland. Much of the country’s irrigated rice is grown on the central plain of Luzon, the country’s ricebowl. Rainfed rice is found in the Cagayan Valley in northern Luzon, in Iloilo Province, and on the coastal plains of Visayas and Ilocos in northern Luzon. Upland rice is grown in both permanent and shifting cultivation systems scattered throughout the archipelago on rolling to steep lands. B. Market/Industry Needs Although rice is the main staple in the country, it is a highly political commodity. The Philippine rice sector has always been the center of the government’s agricultural policies. The focal points of the policies revolve around promoting rice self- sufficiency and providing high income to farmers while making rice prices affordable to consumers. 3
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C. Analysis of Case Indeed, rice self-sufficiency has been an objective enshrined in all government programs for the agricultural sector since the early 1960s. To achieve the objective, the Government has intervened in the marketplace to affect virtually all segments of the supply chain, including importation, and of the demand spectrum. Yet, self-sufficiency has remained elusive. The population is far from being more food-secure now than a decade or two ago. Over the years, rice has become more expensive in the Philippines than in most developing countries of Asia. This has caused reduction in the purchasing power of the incomes of the poor, including landless farmers and urban poor workers whose spending on rice constitutes about 22% of their total household expenditure. Arguably, this could partly explain the much higher incidence of absolute poverty in the Philippines than in Indonesia, Thailand, and even Vietnam. D. Key Issues/Goals Climate change, growing population, declining land area, high cost of inputs, and poor drainage and inadequate irrigation facilities are the major constraints to rice production in the Philippines. Some of these constraints are interrelated. Unabated conversion of some agricultural land to residential, commercial, and industrial land reduces the area devoted to rice 4
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production, which leads to a shortage in domestic supply.
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  • Fall '19
  • Provinces of the Philippines

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