Cristobal, Marc Ryan V.

Madela, Jhemaeca M.
Olivares, Maria Sofia M.
Pablo, Gniro B.
BS in Econ 3-B

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CITATION (include CONCEPT/THEME/ NOTES 1 NOTES 2 GAPS IN RESEARCH QUOTATION
page #s) MAIN IDEA

Balisacan, A. M., & Price Intervention Because of the political In the late 1990’s, By addressing the “The inefficient
Hill, H. (2003, p. 184). Policies: The NFA significance of rice as a National Food Authority challenges and limitations management of
The Philippine staple food and as the (NFA) trade policies identified in this analysis, rice-importing
Economy: single most important were implicitly taxing the NFA can continue to and buffer stock
development, policies, crop grown by the consumer to protect play a valuable role in operations
and challenges. farmers, government the producer. supporting rice farmers often led to
policy aims to achieve and ensuring a stable abnormal
the inherently supply of rice to seasonal price
conflicting objectives The common consumers in the fluctuation. “
of low and stable misconception that Philippines.
(Bouis 1982;
prices for the benefit private traders extract
David 1996)
of consumers and monopoly profits from
sufficiently high and farmers during harvest To improve the
stable prices for the season, especially in the effectiveness of the NFA, it
benefit of the farmers. more remote areas, and is essential to address the
from consumers when limitations highlighted in
rice is scarce, has been this analysis. This may
The NFA domestics justified by the NFA’s involve reforms to the
market operations continued monopoly NFA's procurement
widened, rather than control over policies, greater
narrowed, regional international trade in transparency in its
price differences; that rice and domestic operations, and increased
regional rice markets marketing operations to coordination with other
were temporally price- minimize seasonal and government agencies
efficient; that paddy- geographical price involved in the rice sector.
trading and retail-level margins. Additionally, exploring
markets were alternative approaches,
competitive; and that such as direct income
the structure of the support for farmers or
milling industry and targeted price subsidies,
government policy could be considered. The
created barriers to gaps in research includes:
entry that worked
against competition at
the mill level. Umali  How do these price
(2009) differences affect
economic
activities, poverty
levels, and food
security in
different regions?

 How do these price

differences affect
economic
activities, poverty
levels, and food
security in
different regions?

 How could the

 government foster
a more competitive
and efficient rice
market by
encouraging
greater private
sector
involvement?

Raman, S. PhD (2006, General Framework This framework can be The sustainability of a The framework doesn't As Raman
p. 61) Agricultural for Sustainable used to analyze the small farm depends on address how farmers states, “For the
Sustainability: Agriculture stability of farms in maintaining a balance adapt to changing PEST farm to be
Principles, Processes relation to its between productivity factors, particularly in economically
and Prospects. socioeconomic and and profitability under changing environments. profitable, the
ecological stable biophysical and What strategies do nature and
environments. socioeconomic resourceful farmers use to volume of
conditions. While these mitigate negative impacts inputs and
conditions can range of political or economic outputs have to
The human-imposed from highly favorable to instability? be properly
socioeconomic unsustainable, the balanced.”
environment within farmer's
which the farm resourcefulness, There is no examination of
operates also has a attitude, ethics, and how short-term decisions
number of control values often play a driven by PEST factors
factors, broadly more crucial role. Many affect long-term
categorized as “PEST” traditional farmers sustainability, especially
factors: POLITICAL, manage to sustain their among commercial
ECONOMICAL, farms even in difficult farmers focused on profit-
SOCIOLOGICAL, conditions, while some driven practices.
TECHNOLOGICAL. commercial farmers
 exploit favorable
circumstances for short-
How do PEST factors
term profits, leading to
influence sustainable
long-term damage.
decision-making by
farmers? For example,
how does access to
technology (or lack
thereof) change farmers’
approaches to balancing
profitability and
sustainability?

Ellis, F. (1993, p. 55). Factors Influencing The NFA’s Many farmers feel that The effects of farmers' Fixed prices
Agriculture Policies in NFA Policies procurement policies relying on the traders dependence on traders on almost certainly
Developing Countries are designed to limits their options for their ability to diversify will lead to a
stabilize prices, but selling rice, which can their crop allocations and misallocation of
they can make them more look into other markets resources, given
unintentionally create vulnerable. This can are not often addressed. that they will
a dependency for make them reliable as it The gap raises the alter the
farmers. This may also prevent them following questions: relative terms of
dependence may from diversifying their trade among
 Does this reliance
hinder their ability to crops, impacting their products and
prevent them from
adapt market changes, sustainability and the sectors.
developing greater
affecting their overall resilience in the long
adaptability and
income. run.
versatility?
 How does that
affect their
sustainability as a
whole?
  Do farmers refrain
from exploring
new things or
taking chances that
might prove
advantageous if
they believe their
selling possibilities
are limited?

Ramesh, Umrani C.K. Food and The conditions of The food system By engaging with the "Sustainability
Jain (2010, p. 09): Agricultural Policies agricultural labor are extends far beyond the challenges and limitations rest on the
Sustainable Impacting generally far below farm and involves the outlined in this analysis, principle that
Agriculture Sustainable accepted social interaction of the state and local we must meet
Agriculture: A standards in other individuals and government policies the needs of the
Broader forms of employment. institutions with shapes agricultural present without
contrasting and often practices and support
Perspective Policies and programs compromising
competing goals sustainable farming and
are needed to solve the ability of
including farmers, outcomes. However, price
legal problems, retailers, consumers, controls often benefit future
working toward and policymakers. large-scale producers generations to
socially just and safe Relationships among rather than marginalizing meet their own
employment that these actors shift over smallholder farmers and needs" said by
provides adequate time as new resulting inequity. This can Ramesh Umrani
wages, working technologies spawn lead to reduced
conditions, health economic, social and production, limited
benefits, and chances political changes. market access, and
for economic stability. ultimately threaten food
The needs of migrant security in local
A wide diversity of communities.
labor for year-around strategies and
employment and approaches are
adequate housing are necessary to create a
 particularly crucial more sustainable food How can giving small-scale
problems needing system. These will range farmers access to low-
immediate attention. from specific and interest loans help them
To be more concentrated efforts to thrive and support
sustainable over the alter specific policies or sustainable farming
long-term, labor must practices, to the longer- practices? With a low-
be acknowledged and term tasks of reforming interest loan, it empowers
supported by key institutions, farmers to innovate,
government policies, rethinking economic implement eco-friendly
recognised as priorities, and practices, and improve
important constituents challenging widely-held their livelihoods. In turn,
of land grant social values. Exploring sustainable farming
universities, and the socioeconomic and practices foster healthier
carefully considered. environmental ecosystems and
implications of food contribute to a more
systems, such as food equitable food system.
security, access to
healthy food, and the
effects of climate
change, can provide a
comprehensive
understanding of how
these dynamics interact
and transform over
time.

Balisacan, A. M., & Price Intervention The country’s Current rules on the The Rice Tariffication Law “Not only was
Hill, H. (2003, p. 195). Policies: World membership of the reduction of aggregate (RTL), enacted in 2019, rice exempted
The Philippine Trade Agreement WTO could have set a of aggregate measures marked a significant policy from
Economy: decisive path toward of support and the shift in the Philippines, tariffication, but
elimination of export replacing the quantitative
development, policies, and efficient price subsidies will not restrictions on rice the NFA’s direct
and challenges. policy framework for significantly affect world imports with tariffs. The involvement in
Philippine agriculture, prices because they research gaps that could importation was
while improving the apply to aggregate and be explored in this study extended to
market access and not individual are: other
world prices of commodities, allowing  Impact on farmers commodities
some major traded  Consumer welfare
agricultural exports. subject to an
products to retain high  Trade relation
MAV provision,
domestic support and  Long-term impacts
export subsidies. on the Philippine such as sugar
The specific agreement economy and corn.”
reached and the The implementation
manner of their guidelines for the MAV
implementation on selected
facilitated an increase commodities in effect
in tariff protection of ensured the
major import- continuation of QRs
competing despite tariffication
commodities. because the volume
could be increased
temporarily whenever
there were domestic
supply shortages
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CITATION (include CONCEPT/THEME/ NOTES 1 NOTES 2 GAPS IN RESEARCH QUOTATION

page #s) MAIN IDEA

Novel Bangsal. (2011, Licensing and Other NFA intervention in The NFA regulates rice NFA’s distribution system Despite NFA's
December). Welfare Regulatory rice markets is trading by way of may be inefficient, leading support price on
Effects of National Functions: Palay premised on two granting licenses to to delays in the release of palay
Food Authority Procurement objectives: food businessmen and rice to the market and procurement,
Market Interventions. security and price implementing standards potential hoarding by the agency has
ResearchGate; stabilization. To pursue in grain milling, handling deceitful traders. This can not effectively
unknown. these ends, the NFA and packaging. It further exacerbate price stabilized farm
https://www.research administers a "buy implements projects to fluctuations and limit the price levels. It
gate.net/publication/3 high, sell low" policy support rice production availability of affordable showed the
26369573_Welfare_E that allows it to and marketing rice to consumers. insignificant
ffects_of_National_Fo procure palay at a improvements such as influence of the
The NFA's support
od_Authority_Market relatively high price encouraging the NFA's support
programs may not
_Interventions while selling milled rice organization of farmers, price on the
adequately reach small-
at a low price. providing post-harvest farmgate price.
‌ scale farmers, who often
facilities like (Bordey, 2011)
struggle with limited
warehouses, and
resources and market
implementing input
access and not benefit
(seed and fertilizer)
fully from the agency's
subsidy schemes. The
interventions, hindering
NFA likewise regulates
their ability to improve
and participates in corn
their livelihoods.
trading, but this has
been greatly reduced in A lack of transparency and
the past decade. accountability in the
implementation of NFA
programs and policies may
lead to corruption and
 misuse of funds. This can
undermine public trust
and hinder the
effectiveness of the
agency's interventions.

Department of Stabilization of The DA, NFA, and LGUs Long-term support, cost “We hope to
Agriculture. (2023). Palay Prices work together to The partnership among reduction, technological institutionalize
LGUs partner with DA, procure palay directly LGUs, the DA, and the adoption, and market our partnership
NFA to buy palay, from farmers, NFA serves to establish positioning are all topics with the LGUs
assuring farmers guaranteeing that they a stable, fair market for that raise sustainability and FCAs, as it
reasonable prices receive fair prices palay, directly concerns. offers a win-win
addressing the financial situation for
Department of despite market
strain on farmers While it offers farmers farmers, not
Agriculture, instability caused by
caused by declining immediate financial relief, only during
Philippines. Retrieved rice imports and harvest of rice,
farmgate prices. This there are concerns
from competition. but also of corn
collaboration provides regarding its long-term
https://www.da.gov.p and other crops,
farmers with alternative viability and usefulness in
h/lgus-partner-with- providing them
buyers and more addressing the larger
da-nfa-to-buy-palay- assured market
consistent pricing amid economic difficulties faced
assuring-farmers-of- and reasonable
increased competition by rice market
reasonable-prices/ for their
from imported rice, a deregulation. Farmers, for produce,”
consequence of the rice example, may continue to (Department of
tariffication law. The confront income instability Agriculture
government-led and market volatility if Chief, 2023)
intervention aims to comprehensive measures
mitigate income losses, addressing production
promote financial costs, technology
stability for rice adoption, and competitive
farmers, and support positioning are not
the continuity of implemented.
sustainable agriculture
 Additionally, it is
in the country. necessary to investigate if
this collaboration
generates adequate
resilience in the
agriculture sector to
compete with imported
rice. Further research
might look into the
adaptability of this
approach across
geographies, as well as its
potential to increase
farmer productivity and
profitability in a liberalized
market.

Aquino, A. P. (2013, NFA’s Role in Price The NFA's primary To carry out its duties, The National Food “The NFA aims
December 16). Stability and Food objectives are food the NFA imports rice Authority (NFA) plays an to achieve its
National Food Security security and rice price during shortages and important role in food twin mandates
Authority: Its role in stability. It buys rice works with other security and rice price through the
price stability and from local farmers at government agencies to stability in the Philippines regulation of
food Security. FFTC government-mandated oversee rice supply by purchasing rice from factors that
Agricultural Policy
prices, intending to chains and maintain farmers at fixed rates and affect the
Platform (FFTC-AP).
protect farmers' post-harvest facilities, storing buffer stocks for demand and
https://ap.fftc.org.tw/
article/595 incomes while therefore reducing low-income households. It supply of rice.
ensuring domestic supply disruptions and works with government To date, the
supply. This technique stabilizing consumer agencies to manage agency
comprises keeping prices. supply chains and stabilize performs
buffer stocks and consumer pricing in order various
distributing subsidized to benefit both farmers activities and
rice to low-income and individuals in need. strategies to
 households. However, funding limits intervene
and shifting market directly in the
conditions pose a barrier rice market
to the NFA's capacity to which include
consistently achieve these procurement of
objectives. Limited finance paddy from rice
limits its ability to respond farmers,
effectively to price subsidized
variations, and current retailing of rice
procurement practices to low-income
may not adequately consumers,
support small-scale buffer stocking,
farmers. Addressing these and importation
weaknesses could improve of rice during
the NFA's ability to shortage
balance social welfare period.”
with market stability.
Mehta, A. and S. Jha. The Case of Rice The rice subsidy Being the single largest However, while the NFA The NFA rice
2008. The rice Subsidy in the program run by the rice importer in the rice program is a universal program can
subsidy program Philippines NFA is an important world, the Philippines is program with unlimited better reach the
budget for the safety net in the among the countries purchase, it is used by only poor if its
Philippine's National
Philippines, receiving most affected by high about 16% of the inclusion and
Food Authority(NFA)
the largest share of global prices. The population. One reason exclusion errors
.https://serp- government subsidy government has could be high participation are reduced, its
p.pids.gov.ph/ among all government explored bilateral deals, costs, especially for the access and
publication/public/ corporations. The NFA lowered rice import poor. The targeting availability to
view?
endeavors to satisfy tariffs, and allowed effectiveness of the the poor
slug=effectiveness-
multiple, often limited imports of rice program is low as improved, and
of-public-spending-
the-case-of-rice- conflicting, objectives by the private sector, it reflected in high exclusion the quality of
subsidies-in-the- to achieve food also scaled up the and inclusion errors. As governance
philippines security in the country, distribution of would normally be bolstered. In
including price support subsidized rice and the expected, higher incomes times of volatile
to consumers and sale of buffer stocks for are associated with lower and
producers and price stabilization. Food odds of participating in unprecedented
stabilization of market subsidies can provide an the NFA rice program. food price
prices. Its key feature invaluable option to Farmers participate less in increases,
is an untargeted assist the poor facing the program, presumably strengthening
transfer of subsidized high food prices. because they are more food-based
rice to households Provision of subsidized self-reliant where rice is safety nets for a
across the country. food frees up income concerned. High inflation more effective
Sales from NFA and for other uses, thereby induces more households and efficient
consumer price improving household to consume NFA rice—an role in shielding
subsidy were purchasing power, unsurprising, but salient the poor is
significantly enhanced which is of immense fact given the recent more important
in 2008 in view of value when inflation is volatility in food prices in than ever.
escalating rice prices, high. Food subsidy the Philippines.
raising NFA costs to programs thus play a Participation varies with
about 2.5% of GDP. crucial role in protecting the demographic
households from composition of
imminent poverty and households as would be
in enhancing their long- expected: the presence in
term development. the household of many
infants, older workers, or
members of working age
reduces participation,
while the presence of
teenagers boosts
participation. The
performance of food-
based safety-net programs
has not always been
satisfactory, often
 reflecting high
administrative costs,
corruption, and leakages
to the nonpoor. There are
several factors that could
make food-based
programs successful.

Marcos, I. 2024. IMEE: Senate of the 1. What are the “The

CUT OUT RICE Philippines. Press Calls to expand the The senator called negative effects of government's
MIDDLEMEN AND Release. NFA's mandate attention to her the RIce price monitors
REVIVE NFA-FTI-KADIWA emerged in the House amendments to Tariffication Law won't need to
SYSTEM of Representatives this Republic Act 8178 or (RTL) on farmers, play cat-and-
week as it started a the Agricultural and how can we mouse with wet
https://
review of the Rice Tariffication Act, which quantify these market
legacy.senate.gov.ph/
press_release/ Tariffication Law (RTL). she proposed in Senate impacts across retailers, thus
2024/0504_marcosi1.as Bill 642. different farmer better
"Cut out the
p demographics, guarantee the
middlemen and revive The bill emphasizes the
the long-neglected need for financial particularly those lowest rice
NFA-FTI-KADIWA assistance to farmers most affected by prices”
system," Marcos displaced by wholesale importation?
asserted, citing the importation. 2. What is the current
national food security role of middlemen
program in the 70's When an excessive in the rice supply
that involved the NFA's supply of imported or chain, and how do
direct purchase of local rice causes a crash they influence
local agricultural in prices, the bill also prices, farmers’
produce, their gives the President income, and
centralized collection power to stop efficiency of rice
and distribution by the importation until both distribution?
Food Terminal Inc., supply and prices 3. How does
and their sale at consumer behavior
 regarding prices
discounted prices at stabilize. vary, and to what
KADIWA retail stores. extent do price
"We should not forget
"The government's the interests of farmers changes affect
price monitors won't when consumers clamor purchasing
need to play cat-and- for lower prices," decisions? What
mouse with wet Marcos pointed out. insights can
market retailers, thus provide for shaping
better guarantee the effective pricing
lowest rice prices," the strategies?
senator explained.