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PN 2016-20: Compensatory Payment Scheme for Rice Farmers after Tariffication

In 2017, the special treatment in rice granted to the Philippines that allows the country to maintain its import monopoly will expire. This lifting is expected to result in massive fall in domestic prices, which will reduce farmers' income. This Policy Note assesses the agricultural support options for rice farmers upon the expiration of the special treatment. It identifies decoupled payment, a form of assistance to farmers in their transition to a free market, combined with a 35-percent tariff equivalent as a possible support. Assessment shows that this compensatory transfer scheme can operate at a feasible cost, with 35-percent tariff rate applied. It also finds earmarked rice tariff revenue as a feasible funding strategy to pay for the compensation scheme.

Philippine Institute for Development Studies
Authors Keywords
Briones, Roehlano M.; Tolin, Lovely Ann C.; Philippines; agriculture sector; rice farmers; rice tariffication; direct payment scheme; quantitative restriction;
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Published in 2016 and available in the PIDS Library or can be downloaded as full text Downloaded 1,127 times since November 29, 2016