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Publication Detail
DP 2015-04: Competition Reform in the Philippine Rice Sector

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.

Philippine Institute for Development Studies
Authors Keywords
Briones, Roehlano M.; Dela Pena, Beulah; competition policy; Philippines; rice policy; agricultural marketing; welfare analysis;
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