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Why 20 pesos na bigas is impossible. #ToGoodToBeTrue
- The Philippine population is increasing rapidly, putting more pressure on the demand for rice. Many families have more than three children, which adds to the consumption of rice. To lower the demand, people should limit their family size and practice responsible parenthood.
- The amount of land that can be used for rice farming is decreasing due to industrialization and conversion. Some developers, such as Villar, are building housing projects on former agricultural lands, reducing the supply of rice. To increase the supply, the government should protect and preserve agricultural lands from urbanization and land grabbing.
- The average age of rice farmers in the Philippines is 57 years old, and many of them are retiring or dying without successors. The younger generation is not interested in farming as a livelihood, preferring to work in other sectors or migrate abroad. To attract more young farmers, the government should provide incentives, training, and support for them to engage in modern and profitable farming.
- The Philippines does not have its own fertilizer manufacturing industry, and relies on importing 99% of its fertilizer needs from other countries. This makes the cost of fertilizer high and dependent on external factors, such as exchange rates, tariffs, and global supply and demand. To reduce the cost of fertilizer, the government should invest in developing a local fertilizer industry that can produce affordable and quality fertilizers for farmers.
- The logistics and infrastructure for delivering and storing rice are inadequate and inefficient in the Philippines. There are many middlemen in the production chain who take advantage of the farmers and consumers by charging high fees and commissions. This increases the price of rice from farm to market. To improve the logistics and infrastructure, the government should build more roads, bridges, warehouses, and markets that can facilitate the movement and storage of rice. The government should also regulate and monitor the activities of middlemen to prevent exploitation and corruption.
- The Philippines is prone to natural calamities such as typhoons, floods, droughts, and pests that can damage or destroy rice crops. These calamities reduce the yield and quality of rice, and sometimes cause shortages or emergencies. To cope with these calamities, the government should implement disaster risk reduction and management measures, such as early warning systems, crop insurance, irrigation systems, pest control, and emergency relief.
- The level of mechanization in rice farming in the Philippines is low compared to other countries. Many farmers still use traditional methods and tools that are labor-intensive and time-consuming. This affects the productivity and efficiency of rice farming, and limits the potential for increasing output. To enhance mechanization, the government should provide subsidies, loans, and technical assistance for farmers to acquire modern machines and equipment that can improve their farming operations.
- Many rice farmers in the Philippines do not own the land they till, but rent it from landlords or cooperatives. This makes them vulnerable to eviction or exploitation by their landowners, who can dictate the terms and conditions of their tenancy. This also discourages them from investing in improving their land or adopting new technologies that can increase their income. To secure their land rights, the government should implement agrarian reform programs that can distribute land to farmers or provide them with legal titles or certificates.
- The Rice Tariffication Law (RTL) was enacted in 2019 to liberalize the importation of rice in the Philippines. The law aimed to lower the price of rice by increasing competition from foreign suppliers, while providing support for local farmers through a Rice Competitiveness Enhancement Fund (RCEF). However, the law has had little effect on lowering the price of rice or improving the welfare of farmers. In fact, some studies have shown that the law has harmed local farmers by exposing them to unfair competition from cheaper imported rice that has flooded the market. Moreover, the law will expire in 2025 unless extended by Congress. To address these issues, the government should review and amend the law to ensure that it protects local farmers from dumping and smuggling of imported rice, while ensuring that RCEF funds are used effectively and efficiently for their intended purposes.
- For rice to be sold at 20 pesos per kilo, the production cost should be at 9 pesos per kilo. This is impossible given the current situation of rice farming in the Philippines. The production cost of rice varies depending on various factors such as location, season, variety, input use, labor cost, etc., but it is estimated to range from 12 to 18 pesos per kilo on average. This means that selling rice at 20 pesos per kilo would result in a loss for most farmers or a very low profit margin at best. To make rice more affordable for consumers without hurting farmers' income, the government should implement policies that can lower production costs while increasing farm gate prices.