Distributional impact of the rice tariffication policy in the Philippines

In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of t...

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Autores principales: Balié, Jean, Minot, Nicholas, Valera, Harold Glenn
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/143545
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author Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_browse Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_facet Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_sort Balié, Jean
collection Repository of Agricultural Research Outputs (CGSpace)
description In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production.
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spelling CGSpace1435452025-12-02T21:02:52Z Distributional impact of the rice tariffication policy in the Philippines Balié, Jean Minot, Nicholas Valera, Harold Glenn price elasticities policies agricultural policies households welfare rice food security food prices poverty governance tariffs In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production. 2020-09-01 2024-05-22T12:14:59Z 2024-05-22T12:14:59Z Working Paper https://hdl.handle.net/10568/143545 en https://doi.org/10.1016/j.eap.2020.12.005 Open Access application/pdf International Food Policy Research Institute Balié, Jean; Minot, Nicholas; and Valera, Harold Glenn. 2020. Distributional impact of the rice tariffication policy in the Philippines. IFPRI Discussion Paper 1962. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.133994.
spellingShingle price elasticities
policies
agricultural policies
households
welfare
rice
food security
food prices
poverty
governance
tariffs
Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
Distributional impact of the rice tariffication policy in the Philippines
title Distributional impact of the rice tariffication policy in the Philippines
title_full Distributional impact of the rice tariffication policy in the Philippines
title_fullStr Distributional impact of the rice tariffication policy in the Philippines
title_full_unstemmed Distributional impact of the rice tariffication policy in the Philippines
title_short Distributional impact of the rice tariffication policy in the Philippines
title_sort distributional impact of the rice tariffication policy in the philippines
topic price elasticities
policies
agricultural policies
households
welfare
rice
food security
food prices
poverty
governance
tariffs
url https://hdl.handle.net/10568/143545
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