Importing system and investments in rice production in the Philippine

Rose Mae R. Umali

St. Joseph Academy of Sariaya, Quezon

In partial fulfilment of the requirements for English 10

Submitted to:

Mrs. Maria C. Magboo

English Teacher

March ___, 2019

Table of content
Title Page…………………………………………………………………………………………..i

Table of Content…………………………………………………………………………………..ii

Abstract…………………………………………………………………………………………...iii

1. Introduction……………………………………………………………………………………..1

1.1 Background of the Study…………………………………………………………………...

1.2 Significance of the Study…………………………………………………………………...

1.3 Definition of Terms………………………………………………………………………....

1.4 objectives of the Study……………………………………………………………………...

1.5 Scope and Limitation………………………………………………………………………..

1.6 Time and Place of the Study ……………..…………………………………………………

2. Review of Related Literature………………………………………………….............................

2.1 History of the Rice Crisis……………………………………………………………………

2.2 Reasons behind Rice Crisis………………………………………………………………….

2.3 Why Philippines import rice? .................................................................................................

2.4 Effects of Rice Crisis……………………………………………………………………….

 2.5 Solutions for the Rice Crisis………………………………………………………………...

3. Summary and Conclusion…………………………………………………………………….....

4. Recommendations……………………………………………………………………………....

5. References ……………………………………………………………………………………...

ii
 Abstract

This is a comprehensive study of the importing system and investments in the rice production in

the Philippine. I examined that the importing system in the Philippine from 1946 to 2019 by

gathering a data of the history of rice crisis in the Philippine. Using an information gathered I

analysed that the importing system cannot resolve if there’s no action imply and give more

assistance in the issue like investing and giving it more time to conduct an effective solution. So

what should be the solution we may invest? This suggests that reforms in the current extension

system and a reorientation of the irrigation development strategies should be implemented in order

to reap the potential benefits from these investments. Results indicate that non-conventional

inputs such as irrigation, cultivation, adoption of hybrid and third generation modern inbred

varieties, attendance at rice production training sessions, use of high quality seed, and machine

ownership were the main sources of production growth in these periods. This study was

successfully done with the information I gathered from the affected people and based on the books,

magazines, newspaper, TV news and internet data. I used my knowledge, my experienced, my

deep learnings and understanding that came up with the conclusion that the rice production in the

Philippine is falling due to the climate changes and in industrial states that can solve by investing

and proper addressing in the rice crisis.

iii
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1. Introduction

Food and agriculture are important areas in achieving genuine development for the people.

But right now, the world is facing an ever-worsening environmental, social and economic crisis.

These crisis put food and agriculture in peril, and with it the lives and welfare of millions of people.

Agriculture is the main source of income in many developing countries and

increased agricultural productivity has the potential to increase farming income and

alleviate poverty in rural areas. Rice is the single most important agricultural crop in the

Philippine, and is therefore a major source of income for millions of Filipino farmers

(Bordey, 2010; Koide, et al., 2013).

Rice crisis in the Philippine is due to the consumption continues to grow and production

isn’t growing fast enough. It is also due to the seasonal production because of the weather and

climate changes. Sadly, we tend to act only during the most acute stages of the crisis, by which

time we are left with limited, stop-gap options, namely price controls, emergency importation.

1.1 Background of the Study

Rice is one of the most important food for the Filipino for it is their every day’s food.

Philippine is known to have a wide land area for agricultural sector. And by having a wide land

area Philippine was given a title as the 9th largest rice producer in the world. Why most of Filipino

plant a rice? Because rice is the most important agricultural crop in the Philippine and a staple

food in most of the country. Rice is the most important in the Filipino, they can eat only with rice
 2

not minding if they don’t have a dish. It is more important to buy a rice than other food because

we can eat rice even we don’t have other dishes, rice can fill our hunger and can satisfy us (Umali,

personal communication, February 17, 2019). Rice is a psychological needs that our body needs,

if the body lacks any of these, the individual tends to develop an appetite or a partial hunger for

the missing food or minerals. In addition, food and agriculture are important areas in achieving

genuine development for the people. But right now, the world is facing an ever-worsening

environmental, social and economic crisis. These crisis put food and agriculture in peril, and with

it the lives and welfare of millions of people. As the time goes by the crisis became a biggest

country’s issue. Through the history Philippine was given a title in importing rice. Philippine

became the world’s top importer of milled rice for 2007 and in 2010 as the world’s largest importer.

Philippine is purchasing between 1 and 2 million each year. The rice importation was all started

since Spanish era. But not only the Philippine was having a rice crisis, the world is also

experiencing global food crisis. Based on the analysis Filipino consumes 33,000 tons daily, 80%

of the total population spends almost ¼ of their income on rice. But over the past 20 years, the

country lost nearly half of its irrigated area due to the rapid urban development. The land area were

converting into industrial state. This is one of the reason why we are suffering in rice crisis. And

also the calamities especially when El Nino and Typhoon strike. Actually in Palayan City it is

12,558 hectares of agricultural lands and when some calamities strike there it will affect us because

the production of rice will decrease due to the destroyed field that the calamities made. For

example in the year of 1970 a strong storm strikes the Philippine that have a tremendous damage

in agricultural sector. In 1972 the Philippine was in the great crisis due to the Luzon great flood

from the result of the typhoon Edeng and Gloring and in Mindanao the Tungro, rice infecting pest.
 3

In the year 1973 it was report in New York Times report that the rice stocks were almost gone it

was disappearing in the market particularly the white rice. By all of this matter that we are facing

the production of rice is now little by little decreasing. From the government data from the past 5

years we are losing 1.5 million of worker farmers. And results to a great importation of rice. From

the history of rice from Roxas administration (1946-1948) to the present administration of Duterte.

Time passed and many proposed a solution for the crisis and until now there is no great addressing

action that the rice production is increasing due to the solution they implied. According to Duterte

(2018), May be laws ate weak or unenforceable. All we have to do is to improve on those laws,

not necessarily fire people. We can solve the problem if we are taking action and imply the solution

that was proposed and more important is to invest in production to be successful in achieving the

high quality of production and by that to increase our income and help our Filipino farmers to help

them for their works. And also we can attain to sustain the needs of the Filipino to satisfy their

needs and to have a rice stocks for emergency use like for calamities and other situations so that

even when people where in the state of panic buying we have the stocks for any shortage problem.

But we can achieve the good production if we have a cooperation with each other we should be a

wise consumer, because a wise consumer knows what is necessary and not to consume. By that

we aren’t facing a great crisis. For us to have an enough rice production, in the Agricultural Sector

they promote the 3 major patterns of agricultural development: traditional, modernizing and

modern agriculture. In traditional also known as subsistence farming it is stated here that planting

rice is primarily for feeding every families and also using a traditional methods in cultivations,

irrigation and planting. For example, according to Alcala (2014), The role of family farmers has

always been vital because of their contribution to the national economy. Through them, the quality
 4

and quantity of farm yields continue to increase which required in bolstering the livelihood in the

rural areas. The modernizing method the family farmers is not only just planting for themselves

but also to trade it to the market for also some financial income. And also they already using more

fertilizers and mechanized tools for cultivation, harvesting and irrigation. While the modern

method is a method for the improvement of the economics and production of rice. In this method

the labour productivity is already very high and they are also using highly mechanized farm system

and also using a high quality of fertilizers and high-yielding varieties of seeds to make farming

maximally productive. We cannot make everything like a CD player which you can fast forward

the scenario, we should make things step by step so that the production will be high and also it is

based on the condition of nature and farmers. And also for the farmers to have a good strategies in

planning and making decision, can conclude to a good productions because if you are aware with

the weather and climates it can lead in not losing the planted rice. Because every dust, particles

and any different things small or big useful or not is important because it is included in God’s

creation. It is like a rice, your life won’t be complete if you did not eat rice it is like a homologous

structure of the body that have a unique function in our body system. Care for something because

it will benefit you so be reminded that consuming rice and eating rice are important so get only

what is enough for ourselves because many people is now suffering in poverty.
 5

1.2 Significance of the Study

Rice crisis has a great impact in the millions of Filipinos. Rice shortage is a big issue for

the Philippines because it is a staple food. By this crisis the poverty in the Philippine is increasing

due to the high prices of products mostly in rice. We all know that Filipinos were consuming rice

¼ of their income because we are used to eat rice 3x per day of rice unlike the Westerners who

prefers that most of their meal that they consumed was bread and cereals while Filipinos cannot

go on a full day without eating rice. Rice is considered the nation’s most important food crop.

Therefore, learning that the country still imports rice just to sustain the rice demands if its people

is somewhat disheartening. So we need to know how our country solving the crisis to help the

government in their actions. Because this low supply in rice could be the culprit for the

continuously increasing price of this commodity. We have learned in school that if the supply of a

product is low, then its demand will increase, increasing as well its price. As a normal citizen we

can help to increase the rice production by not wasting rice and taking only what we can consume,

we could help lower the demand of rice, and in turn, lower its price. We need to be a wise

consumer, be savvy or knowledgeable because it has benefits like saves money and time. The wise

consumer was defined when you:

 Don’t immediately believe in bulk information that leads to panic buying and also results

in the shortage production and for the others are hunger or poverty.

 Are not impulsive buyer, you don’t buy products or services that is not really necessary in

the situation.

What each of us have to do is to be conscious about where our food comes from (Chit, 2018).
 6

Buying local already supports a local farmer and farming is not an easy thing to get into, so

you must really give it to the farmers who continue, carry on, and grow our food … It really

matters when we eat less imported food (Chit, 2018).

And especially we should entertain first the local products of our country before the other

international products of other country so that the income of our local farmers will increase and

make it as their capital again in planting rice and support the rice production in the Philippines.

According to Villar (2018), “Buy rice in local farmers to increase income of local farmers to meets

it required buffer stock”. As a farmer, it’s cool to make money from local customers because it is

more efficient (Almendral, 2018). By this we might not suffer in rice shortage and our farmers can

supply us the rice we need for our daily lives. But [it’s] even cooler if you can sell it to the rest of

the world and make more money and bring in more money to the Philippine in return (Almendral,

2018). Just be a concern citizen in the issue and we will achieve what we want to achieve. Investing

is not hard but suffering, being problematic and hunger is harder than anything else. The help of

everyone when you sum it will solve a big problem it is like a performance task, the contribution

of every members in the task can finish the task given earlier than anything else and solve the task

with cooperation. Cooperation makes everything successful even it is hard or not if you really have

the determination to follow the right rules and have the discipline in every action everything will

be possible. The policy of government can’t resolve it when the community doesn’t have discipline

in consuming rice. Because every Filipino is wasting 14 grams of milled rice per day, which is

equivalent to about 3 tablespoons per person per day. We need to know every issue in our country

to be aware and to know what to do in facing the situation. So may not make to increase the

problem. To be a contributor for the great start and change for the better tomorrows.
 7

1.3 Objectives of the Study

The main aims of this study is to make a summary of the problem and also to make the

Filipinos aware about the great issue that our country is facing nowadays that might still continue

in the next years. To let others know how to address the crisis and can also help in increasing the

rice production in the Philippines. This research wants a development and actions in the near

future. To also give some background study in how to seal the broken production in the rice. This

was made due to the impact in the economy. It wants to preserve the culture and traditions that the

country had because Philippine was known as an agricultural sector and it is a big issue if the

economy in the agriculture especially in rice production fall that can results to a poor land and

poverty. A start research and development in the Philippine was the aim in this gathered

information for a better future. Knowing the patterns and sources of rice production growth in the

recent years can provide insights to alternative ways of increasing rice production in immediate

future.

1.4 Definition of Terms

 Agrarian Reform – improvements in the entire agrarian structure such as agricultural or

general education of rural populations; improvement of working conditions and social

status of all classes of farm workers; improvement of farm credit conditions; establishment

of cooperative societies for production; establishment of industries, processing and

marketing of farm products and purchase of farm supplies; technical advice to farmers; and

numerous other types of farm community or individual services.

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 Bell Trade Act (1946) – it was written on the law that Philippine should have a commercial

exchange for the good of the economics.

 CARP – Comprehensive Agrarian Reform Program (1988) R.A. no. 6657 also known as

Comprehensive Agrarian Reform Law it aims to promote social justice and

industrialization, providing the mechanism for its implementation and for other purposes.

 DA – Department of Agriculture is the executive department of the Philippine government

responsible for the promotion of agricultural and fisheries development and growth.

 DDT – Dichloro-Diphenyl-Trichloroethane a pesticides for rice but it carries diseases like

Malaria.

 El Nino – is a climate cycle in the Pacific Ocean and a great phenomenon on Earth. It

affects the production of rice and corn due to the drought of land area.

 FACOMA - Farmers’ Cooperative and Marketing Association want to organize the farmers

into cooperative one for the good production of rice in the country.

 FAO – Food and Agriculture Organization of the United Nations is a specialized agency

of the United Nations that leads international efforts to defeat the hunger. An expansion of

farm areas planted rice, driven by high prices. Its aim also is to create a world free from

malnutrition and hunger.

 Filipino Retail Nationalization Trade Act – restriction in importation and foreign exchange

 Import Control Law of 1950 - it was made due to the lack of production in the Philippine

so importation was the alternative solution for the problem, it is just for the substitution in

the production of the country.

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 Land Reform Act of 1955 – this law was for the landless farmers who have conflict between

the owners of the land and also known as “plight of the landless farmers”. To bring about

more effective control and use of land for the direct benefit of the agricultural population

and for the indirect benefit of the community as a whole. This includes the redistribution

of agricultural lands among existing or new owners, including the consolidation or

subdivision thereof, development or settlement of holdings; adjustment of rental charges;

compulsory reimbursement of costs incurred by the tenants for improvements made on the

land they cultivate; increase in the security of tenure; adjustment of policy and procedure

in the taxation of agricultural land; and the adjudication and registration of land titles and

deeds.

 MT – Metric Tons of rice, 1t (tons) = 1,000 kg (1 Mg)

 NARRA - National Resettlement and Rehabilitation Administration has the program to give

land to the landless, improve the quality of the farmer’s harvests and extended credits

assistance to them. Farmers’ Cooperative and Marketing Association (FACOMA) want to

organize the farmers into cooperative one for the good production of rice in the country.

 NFA – National Food Authority is an agency under DA responsible for ensuring the food

security of the Philippine and the stability of supply and stability of supply and price of

rice

 PAGASA – Philippine Atmospheric, Geophysical and Astronomical Services

Administration is responsible for the update in the weather and climate changes.
 10

 PhilMech – Philippine Center for Postharvest Development and Mechanization is an

attached agency of the DA created through Executive Order 116 to accelerate the

developments of grains postharvest industry in the country.

 Republic Act No. 10000 – approved by President Benigno on February 23, 2010 an act

providing for an agriculture and agrarian reform credit and financing system through

banking institutions.

 Republic Act No. 3018 – an act limiting the right of not Filipino citizen to engage in the

rice and corn industry.

 Republic Act No. 3452 – the law creates the NFA to but grains of rice and corn from the

farmers and to sell these to consumer at low prices.

 Republic Act No. 8532 – an act strengthening the CARP by providing augmentation fund.

 Republic Act No. 9700 – an act strengthening the CARP, extending the acquisition and

distribution of all agricultural lands, instituting necessary reforms, amending for the

purpose certain provisions of CARP.

 Rice – is the most important agricultural crop, food, a staple food in most of the country.

 Rice Cartel - allies in government include not just the politicians they fund but the

neoliberal technocrats who still believe in the myth of the free market.

 Rice Crisis – is a big issue in rice production, having a shortage in rice that leads to not

sustain the needs of the consumer. The demand in rice is increasing while the supply is

decreasing.

 Rice tarrification - to eliminate government’s control over the volume of rice imports and

just allow market forces to come into play.

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 RPC – Rice Processing Center was constructed for the farmers to make it as their rice

storage.

1.5 Scope and Limitation

This study is focus on the importing system and investing in rice production in the

Philippines. The study was conducted for a reason that the researcher observed and experienced

that the supply of rice is decreasing and the demand and price is increasing that made the economy

of the country fell and the poverty is increasing due to the high prices of rice. Also the researcher

want to know what should do to make the rice supply be stable. In how to solve the crisis in an

easy way that a normal citizen can do. The respondent of the study are composed of some

consumers and families who buy rice in the market and also in the reported matters in the

newspaper, magazines, TV news and even in the internet. The researcher used qualitative research

method using questionnaire checklist to determine the difficulties and solution in importing system

and investing in rice production in the Philippines.

1.6 Time and Place of the Study

This research was conducted from January to March, 2019 and it was held in St. Joseph

Academy of Sariaya, Quezon.

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2. Review of Related Literature

We noticed that there’s a rice shortage in the Philippine that results to fail serving in

Filipino’s needs. It might blame all in the government policies and lack of investments in the

agricultural sector. The rice crisis is happening because the government is unduly interfering with

the market (Guilas, 2018). Based on the economics of our country even if the product with low

supply and high demand, will have higher prices because it reflects its scarcity especially that rice

has an inelastic demand which means that despite higher prices, people won’t switch to a substitute

good.

Rice is more than food, it is a political commodity, embedded in our politics and culture.

Because this is the most important food, a staple food in the most country. So the government is

researching for the better solution for solving it. According to Pangilinan (2014), Rice self-

sufficiency remained an important target. And also other politician said that the start of investing

rice production is through the small community like family. So Agriculture Chief Proceso J. Alcala

instituted the International Year of Family Farming in the year of 2014.

According to Alcala (2014), The role of family farmers and fishers has always been

vital because of their contribution to the national economy. Through them, the quality and

quantity of farm yields continue which required in bolstering the livelihood in the rural

areas. And also, according to Fernandez (2014), Family farming: feeding the world, caring

for the earth has been chosen to raise the profile of farming and small holder farmers.

It is essential in preserving and caring for the environment, agricultural practices are passed

from generation to the next. We need to be independent in producing our daily needs because every
 13

year there is unexpected situation so we need to be ready in every circumstances that we will be

facing.

The centrality of rice in the government’s food security policy is understandable given the

commodity’s dietary and economic importance. Because rice is the most important commodity

diet, accounting for 45% of caloric intake and 24% of protein consumption, therefore it is a major

source of income for millions of Filipino farmers. Rice is cultivated in about 30% of the country’s

total agricultural harvested area and it is the major source of income for 2 million paddy farmers

(Dawe, 2003).

Due to the lack of agriculture development the country needs to import rice. In government

data last five years, the country increasingly imported rice. It is also because of losing over 1.5

million workers. Government leaders and agencies argued about rice in the country, there’s a rice

crisis. Experiencing 9 years high inflation, causing the prices of goods to rise.

There are laws also that were created for the food security especially in rice production in

our country like R.A. No. 3108, R.A. No. 3452, R.A. No. 10000, R.A. No. 9700, and R.A. No.

8532. But also even this were created it cannot solve the problem in the reason of there’s no

restriction in policy. May be laws are weak or unenforceable. All we have to do is to improve on

those laws (Duterte, 2018).

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Source: IRIN News

History of the Rice Crisis

 Roxas administration (1946-1948), President Manuel Roxas was the one who declared as

the law the Bell Trade Act (1946) – it was written on the law that Philippine should have a

commercial exchange for the good of the economics. The Roxas administration was after

the World War II which all the resources and environment are destroy due to the Great

War.

 Quirino administration (1948-1953), President Elpidio Quirino declared the law of Import

Control Law of 1950 - it was made due to the lack of production in the Philippine so

importation was the alternative solution for the problem, it is just for the substitution in the

production of the country.

 15

 Magsaysay administration (1954-1957), President Ramon Magsaysay approved the Land

Reform Act of 1955 – this law was for the landless farmers who have conflict between the

owners of the land and also known as “plight of the landless farmers”. National

Resettlement and Rehabilitation Administration (NARRA) has the program to give land to

the landless, improve the quality of the farmer’s harvests and extended credits assistance

to them. Farmers’ Cooperative and Marketing Association (FACOMA) want to organize

the farmers into cooperative one for the good production of rice in the country.

 Garcia administration (1957-1961), President Carlos P. Garcia promotes the policy of

“Filipino First” he also declared as a law the R.A. No. 1180 - Filipino Retail

Nationalization Trade Act due to the increasing balance of payments. He restricted the

importation and foreign exchange and he restricted ownership in retail trade to Filipinos

except in specifically designated areas, foreigners could invest only through joint ventures

with Filipino capitalists.

 Macapagal administration (1962-1965), President Diosdado Macapagal was the one who

declared the Agricultural Land Reform Code of 1963 as a law to remove the system of

shared tenancy and replaced leasehold.

 Marcos administration (1965-1986), President Ferdinand E. Marcos, in his administration

the Green Revolution was started [it is the high yielding of the varieties of rice. And also

the Martial Law, by this the Philippine experienced the dwindling rice supply due to the

political and environment factors. In Marcos administration in the year of 1970 the
 16

Philippine experienced a tremendous damage agriculture sector because of the strong

storm. In 1972 the Luzon great food has happened because of the Typhoon Edeng and

Gloring and the Mindanao political tension due to the Tungro- the rice infecting pest that

result to the heavy import of rice that rises to 455,000 tons but still failed to address the

problem. In 1973 the rice stocks are almost gone in the world that also reported in New

York Times report that the white rice was disappeared in the market.

 Aquino administration (1986-1992), President Corazon Aquino handled the rice crisis due

to the great effect of El Nino that ends to import rice. The PAGASA reported that the

effects of El Nino is drought of rice and corn area that totalled to 283,562 hectares that also

resulted to the increased of rice price. PhilMech is an attached agency of the DA created

through Executive Order 116 to accelerate the developments of grains postharvest industry

in the country. The Comprehensive Agrarian Law R.A. No. 6657 was signed by President

Corazon on June 10, 1988. It aims to promote social justice and industrialization, providing

the mechanism for its implementation and for other purposes.

 Ramos administration (1992-1998), President Fidel V. Ramos try to solve the rice crisis

but in 1995 the demand in rice was just increased so Sec. Roberto Sebastian import 300,000

tons to satisfy the needs of the Filipino but as expected the import rice was not enough to

support the needs of the Filipino because the Filipino was bothered that they might not buy

rice so they panic buying that results to the shortage. In the years of 1997 the rice imports

increased in 722,000 MT and in 1998 is 2.17 million MT. The millions of Filipinos queued
 17

for hours at NFA’s Bigasang Bayan just to buy a rice, the cheaper rice was priced in just

P10.25 per kilo and the commercial rice was P21-28 per kilo.

 Estrada administration (1998-2001), President Joseph Estrada approved the Medium Term

Development Plan for 1999-2004 that consist of 6 Priority Sector. In his administration

after President Ramos suffered in El Nino that affect the palay production so President

Estrada try to manage to increase tice production growth to 12.47% and the import was

went in low level in the next 2 years at 800,000 MT. But the year average importation of

rice was 1.02 million MT doubled in Ramos’ time which is only 520,562 MT. But in this

administration the Philippine was declared as a second largest importer of rice.

 Arroyo administration (2001-2010), President Gloria Macapagal-Arroyo faced the 2008

global rice supply crisis that results to the problem of high priced in rice that increased at

50% so most of the Filipino family endure the poverty and hunger. The solution she implied

was to import 2.2 million MT rice from Vietnam, the highest in a decade.

 Benigno administration (2010-2016), President Benigno “Ninoy” Aquino III promised to

achieve 100% rice self-sufficiency by 2013 but failed but also there are changes like the

rice production was increased and became stable for 2 years but also import 1.3 million to

660,000 MT. In 2014 the rice begun to rise prices so they solution it in the way of more

import rice that was reach into 500,000 MT. The rice smuggling was more prominent

during Aquino’s time at 2.3 million tons from 2011-2014 and in the year 2015 Philippine

was hit by El Nino that made the rice self-sufficiency fell to 88.93% from 96% in the year

of 2013 but also boost to 95% in 2016 the end of his term.
 18

 In current administration, Rodrigo Duterte administration (2016 – current year 2019),

meanwhile President Duterte denied that the Philippine is not facing a rice shortage.

President Rodrigo Duterte's administration was mired in rice problems during his second

year in office, pulling it away from his target of 100% rice self-sufficiency by the end of

the year. The Filipinos in the past year 2018 and in the current year 2019 were worried

that they are experiencing soaring prices, weevil infestations, and the depletion of

reserves in several areas. National Food Authority (NFA) Administrator Jason Aquino

revealed that the agency had only less than two days’ worth of buffer stock. In the previous

year in the month of October, he discouraged rice importation in order to protect local rice

farmers. The rice situation seemed to have eased, when Duterte finally lifted restrictions on

rice imports to reduce inflation. But before this the Filipinos were experienced the high

prices of rice that reach up to P46 for well-milled rice, and P43 for regular milled rice. And

still increased in the next year (2019).

Source: Rappler. com

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2.2 Reasons behind Rice Crisis

The Philippines has intrinsic disadvantages in the production of rice. The rice was started

in the reasons of:

 First, we are consuming more than we are producing.

 Annual growth in yielding is slowing.

 We did not invest enough in agriculture.

 We have not given them the appropriate levels of investment and policy support.

 Reduced public investment in agricultural research, development, and infrastructure.

 Extreme weather and climate changes due to geographic location.

 Rapid growth development.

 Due to the reports of the media about the crisis it tends to be a big issue, so the producers

hoard their supplies while the consumers tend to panic-buy

 Poor farming law.

 Eating habit of Filipinos like unli rice.

 Maintaining the rice importation.

 Lacks of water sources for its cultivation.

 The land areas are scattered all over the country, it means that transportation, cultivation,

maintenance and production are quite expensive.

 Government negligence, wrong intervention and mishandling in the matter that could

become even worse.

 Decreasing of interest of Filipinos in agriculture farming.

 Creating awareness and consciousness in the rice crisis.

 20

 Giving information in education that the DepEd should approved.

 Intelligent and creative management in policies and strategies.

 Addressing the issue with innovation and creative thinking.

 Less consume of rice like alternative foodstuff other than rice on each meal.

 Bring down farmer’s cost of production.

 Government corruption.

 Abrupt price increase in rice.

High prices of agricultural inputs, limitations on land ownership and rising

population, that set the Philippines back in its rice self-sufficiency efforts-resulting in

higher rice imports. The Philippines high dependence on rice imports exposes the country

to international market shocks and may have a serious risk for food security (Dawe, et al.,

2006; Timmer, 2012).

According to Ofreneo (2014), Philippine agriculture sector, which experiences low

productivity, limited mechanization, weak infrastructure such as irrigation systems, low

research and development and propagation of science and technology knowledge and poor

and underdeveloped agri-processing, cannot compete with its Southeast Asian neighbors.

Source: cnnphilippines.com

Source: 2008 Global Rice Crisis

 21

2.3 Why Philippines import rice?

Philippines import rice due to the lack of rice supply that cannot attain to sustain the needs

of the Filipino families. It is also because of the agricultural lands that are converting into market

roads, subdivisions and industrial state.

Rice importing countries including the Philippines, are island nations that do not have the

natural advantages of the Himalayan system of rice exporting Asian countries like Vietnam or

Thailand (Dawe, 2006). The supply of the local farmers was low in reasons of some financial state

and production because of not modern machines they are using in irrigation and cultivation. The

rapid population growth of the Philippines. While the supply of rice is decreasing the demand is

still increasing. The local farmers cannot produce rice for the Filipino because of not enough

resources, equipment and support from government.

Actually we shouldn’t facing this kind of crisis but because of the overreaction of the media

they making it a big issue so in return the consumer will panic-buying and the producer will hoard

their supply then when it needed the most the producer will sell it in a high prices.

According to Castelo (2018), The inflation rice was triggered by the declaration by

NFA that there was no more rice supply. Yes, it was out in the media, it was speculation.

But coming officially from the NFA administrator was the main trigger for the inflation.
 22

Source: FAO, Agriculture Database, USDA FAS, 2009 Source: Philippine Statistic Authority

2.4 Effects of Rice Crisis

The rice crisis has a great impact in the Philippines. In how the Philippine affected by the

rice crisis? The rice crisis results to a high poverty in the Philippine. It is like the poor family can

only afford rice, so they only eat rice with salt due to the high prices of rice in the market. They

cannot afford any other food for the reason of low income. By this the economy of the Philippine

is falling due to the decreasing of labor force. The Philippine is facing this kind of crisis because

of being dependent upon imports to provide rice which leads to high prices. In the economy of

the Philippine the production is decreasing and the income in agriculture is also decreasing. Most

of the people, they cannot eat unli rice because of the rice shortage. Many people is suffering from

hunger and malnourishment. Higher prices increase the number of poor people and push people
 23

deeper into poverty and hunger, forcing them to sacrifice essentials such as more nutritious food,

health care, and children’s education—thus condemning future generations to a vicious poverty

cycle.

Source: philstar.com

2.5 Solution in the Rice Crisis

The Philippine should take care the agricultural sector. It must give importance in a way of

giving it a life and support to grow. This will happen in the process of planning a solution and take

an action. The solution is to develop agricultural systems that can help millions of rural poor lift

themselves out of poverty. Urgent actions from national governments and international agencies

are needed Technological opportunities for increasing rice yields and policy reforms to improve

poor people’s food entitlements. Investing in rice production is the solution that the country can

do, like:

 Importation of rice from other countries is one proper way to address this problem.
 24

 Developing a new generation of rice scientists and researchers for the public and private

sectors.

 Increase rice yield to keep up with population growth while lowering the cost of

production.

 Regulate the price of rice.

 Supplement local production by importing rice at the right amount at the right time.

 Flooding the market with more supply of rice, provided the amount is significant, could

influence the market price to some degree.

 Revolutionizing the production process and lessening the cost of production.

 Lessen the consumption of rice included in the Filipinos’ diet.

 Agricultural education for farmers and improvement of irrigation and transport systems are

other strategies that could be pursued.

 Agriculture-related technology should be developed so as to increase the quality of rice.

 Government should have a keen eye on unscrupulous hoarders of rice supply, and render

their activities unlawful and detrimental to the economy.

 Acceleration in research on the world’s thousands of rice varieties so scientists can tap the

vast reservoir of untapped knowledge they contain.

 Pesticides like Dichloro-Diphenyl-Trichloroethane

 Strengthening and upgrading the rice breeding and research pipelines.

 Accelerating the introduction and adoption of higher yielding rice varieties.

 Bringing about an agronomic revolution in Asian rice production to reduce existing gaps

between achieved and potential yield.

 25

 Accelerating the delivery of new postharvest technologies to reduce losses.

 Instituting research and development programs directed towards accelerating production

of rice.

 Roll out massive and adequately funded projects and programs to provide farm inputs,

technology and machinery, affordable financing, research and development to our rice

farmers.

 Rehabilitate existing irrigation systems and construct new ones to double or even triple

the yield of existing farms.

 Restriction on rice imports to reduce inflation.

 Reconfigure and complete the agrarian reform program to provide free land to qualified

rice farmers and dismantle the remaining feudal structures and mind sets that discourage

them from tilling the land and adopting better farming technologies.

 Dismantle the cartel and establish policies and mechanisms to prevent cartel-like behavior

and other abuses of market power.

 Institute market reforms so that it will benefit everyone.

 Research and development for the long term viability and productivity of agriculture.

 Expansion of farm areas

 Increasing importance of rice production.

 Highly mechanized farm system.

 Using of high quality of rice, fertilizers, intensive cultivation, high-yielding varieties of

seeds to make farming maximally productive.

 Rice tarrification.
 26

It is also important to help Filipino farmers market their products and strengthen farming

organizations to improve their network. In this solutions that is promoting is for the good

development for the farmer’s works. The power is in our hands because the consumer is always a

co-producer. If you stop it, the farmers will stop planting it but if you keep buying it, they think

that’s what the market wants (Chit, 2018).

Source: cebudailynews.inquirer.net

Source: dhakatribune.com
 27
3. Summary and Conclusion

While we are importing rice we should also start developing our agricultural sector. We

should handle it with proper knowledge. So we need an innovation in research and development

in the production of rice in our country. We cannot solve it if we are not in action and when we

are not in action it may expand into a great poverty, low production and falling of our country’s

economy. Investing is easy, importing is easy but crisis and poverty is not. So grab the opportunity

to innovate all the things that need to be in high-tech.

Every Filipino should cooperate in these particular issue. We may not fully solve the issue

but we can lessen the country’s crisis. We need to have to be an advance thinker for what might

happened in the near future. Be a wise consumer and listener so it won’t end up in a problem. And

also we should change our culture of not consuming unli rice and also we should start eating some

substitute foods like corn and cereal. For the good of all we should adopt some changes in our

society, tradition and culture, especially in addressing the situation, the policies and security.

Source: cnnphilippines.com
 28

4. Recommendations

We must take immediate practical steps that will yield significant benefits in the short-term

recommendations like:

Short-term recommendations

 An information campaign involving all levels of the educational system and public media

should be instituted with the goal of practicing a right consumption and production of rice

in the way of investing in the production.

 Stop the conversion of agricultural land, especially irrigated rice land, to non-agricultural

purposes.

 Organize and provide funding for an appropriate information campaign.

 Develop provincial employment for the plantation of rice fields.

 Present techniques of farming rice need some improvement.

 Make rice affordable and available to everyone.

 Encourage local governments to participate in boosting our agriculture production.

 Irrigation, wet season begins in September, concentrate all support on the 700,000 hectares

of irrigated rice land because of its potential for higher and better yield.

 Post-harvest facilities, start distributing flatbed dryers in the target irrigated areas.

 Used certified seeds that produce high quality supply.

 Extending credit to farmers, government financial institution must support like all support

in rural and development banks of all rice growing province.

 29

 Safety nets for the poor, proposed that the poor should have passbook which they can buy

rice with a fixed price at designated outlets.

According to Glipo (2014), The government should work for the country to become self-

sufficient in rice. It seems like the government has been delaying this to accommodate rice imports.

We should not wait for another year to realize the situation. But sadly, we tend to act only

during the most acute stages of the crisis, by which time we are left with limited, stop-gap options,

namely price controls, and emergency importation.

There are many recommendation to address the crisis like:

Long-term recommendation

 Implementing the rice and corn support policy.

 Proper addression in the shortage of rice in the country.

 Innovation of rice production system.

 Improve the competitiveness of local farmers.

 Help Filipino farmers market their products and strengthen farming organizations to

improve their network.

 Financial support should be channelled to areas that will raise yields.

 Make irrigation free and subsidized farm inputs.

 Invest in agricultural research to help farmers produce more at lower cost.

 Establish a crop insurance system.

 30

 Develop public-private partnership focused on keeping supplies and prices stable and

affordable.

 Consistent and stable agriculture policy

 Government must support the farmers by lending directly to rice and corn growers at a

lower interest rate compared to market rates.

 Quality of infrastructure, irrigation and others for farming.

 Climate-resilient farming technology.

Higher-yielding seeds and more widespread access to irrigation and other support service

should eventually help Filipino rice farmers produce enough for local consumption (Pangilinan,

2014).

Improving rice productivity can contribute to higher yield and in reducing poverty

especially in rural areas, increased productivity may also help in increasing the income and

food security of small farmers who depend on rice production for a living. Irrigation, adaptation

of hybrid and third generation modern inbred rice varieties, training at farmer’s level, use of

high quality seed and use of modern agricultural tools can boost rice production in the

Philippines (Bordey, 2010).

 31

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