TACKLING SELF-SUFFICIENCY CHALLENGES: EMPIRICAL ANALYSIS OF RICE PRICES, PRODUCTION, AND CONSUMPTION IN THE PHILIPPINES

TACKLING SELF-SUFFICIENCY CHALLENGES: EMPIRICAL ANALYSIS OF RICE PRICES, PRODUCTION, AND CONSUMPTION IN THE PHILIPPINES

Written by:
Dr. Cristina Teresa N. Lim
Department of Decision Sciences and Innovation
College of Business
DLSU-Manila

Introduction

Rice is a vital crop in the Filipino table and a backbone of agricultural employment in the Philippines. Despite ongoing government efforts, the nation’s rice self-sufficiency ratio (SSR) fell to 77 percent in 2022—the lowest in over 20 years—making it one of the world’s largest rice importers (Arcalas & Ordinario, 2023). This study analyzed rice production, consumption, and pricing using data from 15 rice-producing regions (2003–2020) and time-series data (1998–2020). It identified production area and irrigation spending as the main factors driving production, while fertilizer costs have minimal impact on rice prices. Granger causality tests showed that consumption significantly influences self-sufficiency, and pricing affects production. This brief provides key policy directions, specifically (1) expanding of rice Farming and irrigation systems, (2) monitoring consumption and buffer stocks, (3) enhancing the competitiveness of the local rice industry, and (4) implementing price stabilization measures.

CBRD BUSINESS NOTES AND BRIEFINGS | Download Paper

The post TACKLING SELF-SUFFICIENCY CHALLENGES: EMPIRICAL ANALYSIS OF RICE PRICES, PRODUCTION, AND CONSUMPTION IN THE PHILIPPINES appeared first on De La Salle University.