Name: Petate, Franchesca Isabelle A.

Course and Section: Political Science 31

Subject: Political Economy

Professor: Sir. Jumel G. Estrañero

University: De La Salle University - Dasmariñas

A conscientious look on the Philippines and their dependency on imports

2023
 I. INTRODUCTION

Rice is considered as a staple food for most Filipino people. When you wake up in the
morning, almost every single one of us consume rice before we go to the office or school
to keep us sustained for the rest of the day. Rice is high in carbohydrates, which are the
body's primary fuel source. Without it, you may feel demotivated and unsatisfied in doing
day-to-day tasks. For some, they even consume rice as a snack partnered with various
dishes you can think of, and culturally speaking, rice is regarded as a symbol of both life
and fertility. This is why, during wedding ceremonies, rice is sometimes thrown at the
bride and groom. In other words, our day is not complete without rice. Thus, we can
confidently claim that the majority of the Filipino people are rice eaters!

I. Body

Historical data

For many Filipinos, rice plays a crucial role in Philippine history and culture. In fact, it
has been intricately woven into Filipino culture for years in various parts of Luzon,
Visayas, and Mindanao and is frequently associated with many rituals, traditions, and
cultural practices in the nation.

On the aspect of the Philippine economy, rice is what many farmers grow. Hence, it is
important for people who belong to the lower income levels. Additionally, it can pave the
way for the promotion of agricultural development and in alleviation of poverty. For that
matter, securing the supply of rice at all costs is essential because it is a commodity that
is considered to be socially and politically sensitive. Distinctly, the consumption of rice
has increased since 2003, when it was only 26,000 tonnes, compared to the national daily
consumption of grain, which is now 33,000 tonnes, accounting for 20% of the daily
household budget on average, with each Filipino eating 115 kilograms, or more than two
sacks per year. Apart from being the body’s primary fuel source, rice induces "the
physiological sensation of satiety," according to anthropologists. Rice is consumed by
millions of poor consumers and grown by millions of poor farmers in the Philippines, and
ignoring fairness and equity would devalue the analysis. Furthermore, the Philippines
only produces 90% of its rice demand and imports the remainder from neighboring
countries.

According to the National Statistics Office; a survey conducted in the year 2006, 68
million of Filipinos live on less than $2 per day, and rice purchases account for 12 to 20%
of their total food expenditures.

Prices of rice in the Philippines

In 1986, the prices of rice began to increase up to the present time. Rice prices in the
Philippines and Thailand were comparable in the 1980s, but prices in the Philippines
have rapidly increased since then.

Figure 1 Farm prices for rice, 1980-2005 Figure 2 Wholesale rice prices in Philippines
(Source: IRRI, 2005) and Thailand, 1980-2005
(Source: IRRI, 2005)

Rice production in the Philippines

With the planting areas in the Philippines are nearly exhausted and its rapidly growing
population, the Philippines became the world’s top importer of milled rice for 2007,
ahead of Nigeria, Indonesia, and Bangladesh, according to the US department of
agriculture. Rapid urban development has resulted in the loss of nearly half of the
country's irrigated land over the last 20 years. The Philippines' rice production shortage
has been exacerbated by imports from other Southeast Asian countries, notably Thailand
and Vietnam. The Philippines is the world's largest rice importer, importing between 1
million and 2 million MT per year, primarily from Thailand and Vietnam. This volume is
equal to 10% of total rice consumption in the Philippines.

Figure 3 Rice Importing Countries 2003-2008 Source: FAO, Agriculture Database,

USDA FAS, 2009

Present state

In the year 2022, the local production of palay is expected to reach 19.50 million metric
tons (MMT) or 12.754MMT of rice in spite of the global challenges: the increase in
prices of fuel, fertilizer, and among others. According to the Department of Agriculture’s
2022 rice supply and demand outlook as of September 15, the total annual supply is
17.364MMT, while the total annual usage is 15.137MMT.

Retail prices for imported well-milled and regular milled rice continue to be P39 and
P38 per kilogram, respectively. However, the current prices for local well-milled and
regular milled rice are P40 and P38 per kilogram, respectively. The DA intends to
produce 20.24MMT of palay in 2023 by increasing the Rice Program budget and
implementing the Rice Competitiveness Enhancement Fund. The DA also continues to
implement various projects and support services in order to boost local rice production
and ensure the Philippines' rice security. The organization provides high-quality seeds,
fertilizer coupons, biofertilizers, and farm machinery and equipment. It also helps with
the establishment of facilities and the construction of irrigation projects, among other
things.

As of August 31, 2022, eligible farmer-beneficiaries had received distributions for

1.006 million hectares totaling 527,071 bags of hybrid seeds and 479,483 bags of
certified seeds. The DA Rice Program also provided 442 pieces of production and
post-harvest machinery and equipment, such as tractors, harvesters, rice mills, hauling
trucks, and dryers, as well as the establishment of 24 drying facilities. Furthermore, 282
projects totaling 1,449 hectares were built, including diversion dams, shallow tube wells,
and 6,787 linear meters of irrigation canals. Small-Scale Irrigation Projects were also
rehabilitated, restoring up to 393 hectares of irrigated rice areas. This includes the
restoration of 5,045 linear meters of irrigation canals as well as four diversion dams.
Individual rice farmers are also trained by the DA in leadership and management, soft
skills, project management, digital tools for agriculture, and agri-entrepreneurship.

Aside from that, according to data from the Bureau of Plant Industry (BPI), the
country's rice imports for 2022 totaled 3.7 million metric tons (MMT), nearly 1 MMT
more than the 2.77 million imported during the same period last year.

According to the BPI report, Vietnam remains the Philippines' top source of imported
staple food, with total rice imports of 3.11 MMT, or 24% more than last year's imports.

In 2021, the country imported 2.361 MMT of rice from Vietnam.

 II. ANALYSIS

In comparison, the rice consumption or usage in the year 2003 rose in the year 2022 from
33,000 MT to 15. 137 million MT. Moreover, the Philippines imports on rice also rose from
between 1 million and 2 million to 3.7 million metric tons (MMT) with Vietnam as the country’s
top source of imported staple food including rice imports. Additionally, based from the diagram
listed above (figure 1 and figure 2) the prices of imported well milled and regular milled rice rose
to P39 and P38 per kilogram and the current prices for local well milled and regular milled rice,
rose to P40 and P38 per kilogram.

III. RECOMMENDATION

Rather than increasing imports from various countries, the Philippines should strengthen its
agricultural exports. Being import dependent can indicate an unstable food supply, whereas
exporting more than you import indicates that our country's agriculture is progressing. This will
significantly contribute to the country's overall economic growth because high exports imply a
high level of output from the exporting country. These exported goods are primarily produced by
domestic factories and industrial facilities, which is highly related to job creation. This will
reduce unemployment, which is a major social service concern in many developing Southeast
Asian countries such as the Philippines. Hence, it is better to have enough food supply to avoid
over-dependence.

IV. CONCLUSION

To summarize, rice is very important in the lives of Filipinos, whether for culture,
consumption, nutrition, or labor. As a result, in addition to protecting its value, we should
recognize the efforts of the farmers who work tirelessly to ensure that rice is available on our
tables. Let us help and support them in any way we can, including purchasing their own produce
to help them provide for their families. After all, there is no hunger when there is rice. Support
our farmers by purchasing local rice!
V1. REFERENCES

Cariaso, B. B. (2022, December 31). PH rice imports reach 3.7 MMT in 2022. Retrieved
from https://www.manilatimes.net/:
https://www.manilatimes.net/2022/12/31/business/top-business/ph-rice-imports-re
ach-37-mmt-in-2022/1872294#:~:text=THE%20country's%20rice%20importatio
n%20for,of%20Plant%20Industry%20(BPI).

Council, N. N. (2020, November 27). The importance of Rice to Filipinos’ lives .

Retrieved from https://nnc.gov.ph/:
https://nnc.gov.ph/regional-offices/mindanao/region-ix-zamboanga-peninsula/438
7-the-importance-of-rice-to-filipinos-lives

Council, T. N. (2022, February 4). The Food on My Plate: Rice. Retrieved from
https://nnc.gov.ph/:
https://nnc.gov.ph/regional-offices/mindanao/region-xi-davao-region/7027-the-fo
od-on-my-plate-rice

DA-AFID. (2022, September 28). Phl rice production remains high despite big
challenges. Retrieved from https://www.da.gov.ph/:
https://www.da.gov.ph/phl-rice-production-remains-high-despite-big-challenges/#
:~:text=The%20DA's%202022%20rice%20supply,usage%20is%20at%2015.137
MMT.

Effects of Importation to the Philippine Economy. (n.d.). Retrieved from

https://www.brittany.com.ph/:
https://www.brittany.com.ph/blogs/effects-of-importation-to-philippines/

Tibao, N. Y. (n.d.). Why Does the Philippines Import Rice:. Retrieved from
https://www.nodai.ac.jp/:
https://www.nodai.ac.jp/cip/iss/english/9th_iss/fullpaper/1-1-5nchu-tibao.pdf
Hi Sir. Stranger! Thank you for sharing your knowledge with us and for always saying yes to our
“pakiusap” hehe. You’re not only a professor to us, but a friend as well. Thank you for being the
fun professor. Our onsite classes have never been boring because of your positive attitude. You
never fail to put a smile on our faces. Hopefully, during your short time with us, we’re able to put
a smile on your face as well. This has been a fun semester!

See you when I see you sir! Goodluck on your future endeavors!