ISSN 20944-9200

Philippine Rice Research Institute

Copyright © 2011

i
philippine rice industry
primeR series
ta b l e o f c o n t e n t s
Paddy Rice (Palay) Production, 1970-2010 1
Growth in Paddy Rice Production, 1970-2010 2
Growth in Paddy Rice Production, by Semester/Ecosystem, 2000-2010 3
Area Harvested to Paddy Rice, 1970-2010 4
Growth in Area Harvested to Paddy Rice, 1970-2010 5
Growth in Area Harvested to Paddy Rice, by Ecosystem/ Semester, 2000-2010 6
Comparative Area Harvested to Paddy Rice, Selected Asian Countries, 2009 7
Ratio of Population to Rice Area Harvested, Selected Asian Countries, 20098
Yield of Paddy Rice, 1970-20109
Growth in Yield of Paddy Rice, 1970-20101 0
Comparative Yield of Paddy Rice, Selected Asian Countries, 2000 and 20091 1
Comparative Growth in Yield of Paddy Rice, Selected Asian Countries, 2000-2009 12
Yield Gap Analysis13
Factors Affecting Yield14
Inputs in Paddy Rice Production: Seeding Rate, 2009 15

iii
 16
Inputs in Paddy Rice (Palay) Production: Fertilizer Rate, 2009
Costs of Paddy Rice Production, 2009 17
Returns to Paddy Rice Production, by Ecosystem, 2009 18
Farmgate Price of Paddy Rice, Selected Asian Countries, 2008 19
Breakdown of Rice Utilization, 2009 20
Rice Net Exports, Selected Southeast Asian Countries, 1960-2008 21
World Rice Export Supply and Import Demand, 1960-2008 22
Domestic and World Prices of Rice, 2000-2009 23
Imports of Non-traditional Rice-eating Countries, 1960-2008 24
Rationale for Self-Sufficiency in Rice25
Per Capita Rice Consumption, by Region, 1990/00 and 2008/09 26
Rice Import Dependency and Self-Sufficiency Ratios, 1990-20102 7
The Food Staples Sufficiency Program, 2011-20162 8
Projected Paddy Rice Requirement and Production, 2011-20163 0
References3 1

iv
A b b r e v i at i o n S a n d a c r o n y m s u s e d :
M Million
mt metric ton (1000 kg)
ha hectare (10, 000 m2)
kg kilogram
MRR Milling Recovery Rate
BAS Bureau of Agricultural Statistics
FAO Food and Agriculture Organization
PH Philippines
USDA United States Department of Agriculture
BSP Bangko Sentral ng Pilipinas
FSSP Food Staples Sufficiency Program
NFA National Food Authority

v
Foreword
In 2009, the PhilRice Corporate Strategic Plan was crafted to serve
as a guide in identifying priority areas in research and development
(R&D) activities of the institute from 2010 to 2013. The Strategic Plan
documents three national goals on which the institute can have
an impact. These are attaining and sustaining rice self-sufficiency;
reducing the incidence of poverty and malnutrition; and achieving
competitiveness in agricultural science and technology.

In line with the Plan, this primer on the Philippine rice industry was
prepared to help researchers understand the trends and current status
of the rice sector, the recipient of their research results. This may be
useful in dovetailing rice research objectives with the current situation
of the industry.

This primer contains data and information on the country’s rice

production, area harvested, yield, farmgate prices, input-use,
production costs and returns, rice utilization, rice imports and exports,
and the Food Staples Sufficiency Program, 2011-2016. Comparisons of
area harvested, populations, yields, prices, and net exports of selected
Asian countries are also included. These data and information will be
updated every three years.

This publication is an initiative of the Impact Evaluation, Policy Research

and Advocacy Program of the Philippine Rice Research Institute
(PhilRice). It can serve as a reference material not only for researchers,
but also for extension workers, farmers, policymakers, and other rice
industry stakeholders.

Eufemio T. Rasco Jr., PhD
Executive Director

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Pa d dy R i c e ( pa l ay ) P r o d u c t i o n , 1 9 7 0 - 2 0 1 0

Production of paddy rice in the Philippines (PH) peaked in 2008 at 16.82 M mt

harvest, which is thrice as much as that obtained in 1970 (5.32 M mt). However,
production consistently declined in succeeding years due to natural calamities.

In 2010, the country harvested 15.77 M mt only, which is 6.2% less than the
production level in 2008. This resulted from the drought brought by the El Niño
phenomenon in the first semester and strong typhoons in the fourth quarter of
2010.

Production in irrigated areas is growing. From 55% in 1970, the contribution of

irrigated areas to the total production increased to 76% in 2010. On the other
hand, the share of rainfed areas to total production declined from 45% in 1970
to only 24% in 2010 as a result of expanded irrigation coverage.

1
 G r o w t h i n Pa d dy R i c e P r o d u c t i o n , 1 9 7 0 - 2 0 1 0
Growth in Production (in mt)
Period/Ecosystem
January-June July-December January-December
1970-1984      
Irrigated 92,570 109,023 201,594
Non-irrigated 19,437 13,074 32,511
All Ecosystems 112,008 122,097 234,105
1985-1999      
Irrigated 99,776 87,594 187,370
Non-irrigated (10,804) (15,654) (26,459)
All Ecosystems 88,972 71,940 160,911
2000-2010      
Irrigated 149,027 165,089 314,115
Non-irrigated 38,828 74,987 113,815
All Ecosystems 187,855 240,076 427,930
Source of basic data: BAS

From 2000 to 2010, the annual growth in paddy rice production in all
ecosystems had far exceeded the annual growths observed during the 1970-
1984 and 1985-1999 periods. In 2000-2010, production in all ecosystems grew
by 427,930 mt, which is 83% and 166% higher than those in the 1970-1984
and 1985-1999 periods. This growth in paddy rice production is equivalent to
268,954 mt annual increase in milled rice production.

Production in irrigated areas grew in all periods. It slowed down in non-

irrigated areas in 1985-1999, chiefly due to shrinking area.

2
G r o w t h i n Pa d dy R i c e P r o d u c t i o n ,
by S e m e s t e r , 2 0 0 0 - 2 0 1 0

In 2000-2010, the growth of paddy

rice production was higher in
July-December than in the
January-June period. Fifty-six
percent of the overall growth
in all ecosystems is produced
in the second semester; 44% is
produced in the first semester.

The wet season generally occurs in

the second semester. As supply of water
is abundant, much more areas are planted during this season
thereby increasing production.

G r o w t h i n Pa d dy R i c e P r o d u c t i o n ,
by E c o s y s t e m , 2 0 0 0 - 2 0 1 0

From 2000 to 2010, 73% of the

production increase came from
irrigated areas; 27% came from
non-irrigated areas. To maximize
the opportunity to further
increase production, the current
AgriPinoy (Agrikulturang Pilipino)
Rice Program framework aims to
develop new and improve existing
irrigation facilities.

3
 A r e a H a r v e s t e d t o Pa d dy R i c e , 1 9 7 0 - 2 0 1 0

Source of basic data: FAO

Area harvested in all ecosystems follows the trend in non-irrigated areas from
1970 to 1999 but reflects the upward trend in irrigated areas in later years. Total
area harvested depends on area of cultivated land and on cropping intensity.
Investments in irrigation facilities during 2000-2010 have intensified cropping
system, thus expanding the effective area for rice production.

So far, intensified cropping compensates for the reduction in physical area due
to conversion of land for other agriculture and non-agriculture uses. From
2003 to 2007, an average of 9000 ha or 0.36% of total rice area harvested were
converted annually (Francisco and Mataia 2009). Land conversion has to be
managed very well to avoid negating irrigation investments and prevent further
reduction in rice area.

4
G r o w t h i n A r e a H a r v e s t e d t o Pa d dy R i c e ,
1970-2010
Period/Ecosystem Growth in Area Harvested (in ha)
January- July- January-
June December December
1970-1984      
Irrigated 13,666 11,828 25,494
Non-irrigated 1,642 (31,505) (29,863)
All Ecosystems 15,308 (19,677) (4,368)
1985-1999      
Irrigated 26,089 24,402 50,491
Non-irrigated (7,415) (8,928) (16,343)
All Ecosystems 18,674 15,474 34,148
2000-2010      
Irrigated 15,337 23,318 38,655
Non-irrigated 3,008 6,110 9,118
All Ecosystems 18,345 29,428 47,773
Source of basic data: BAS

From 1985 to 2010, the yearly growth in area harvested to paddy rice
in all ecosystems and seasons was positive. The highest growth was
recorded in the 2000-2010 period. In the1970-1984 and 1985-1999
periods, non-irrigated ecosystem shrank, affecting the growth of area
harvested in all ecosystems.

In 2000-2010, investments in irrigation systems have resulted in improved

growth of area harvested. This growth offset the increasing rate of rice
land conversion in that period.

5
G r o w t h I N A r e a H a r v e s t e d t o pa d dy
r i c e , by e c o s y s t e m , 2 0 0 0 - 2 0 1 0

Overall, 81% of the increase

in area harvested from
2000 - 2010 was due to
expansion of irrigated
areas while 19% was due to
expansion of non-irrigated
ecosystems.

G r o w t h i n A r e a H a r v e s t e d by
semester, 2000-2010

Seasonal growth in area

harvested shows that in
the 2000-2010 period, 62%
of increase in total area
harvested was gained in
July-December (wet season)
while 38% was gained in
January - June.

6
C o m pa r at i v e A r e a H a r v e s t e d t o Pa d dy
Rice, Selected Asian Countries, 2009

Source of basic data: FAO

The area harvested to rice in the Philippines is very small compared to major
rice-producing countries in Asia. In 2009, the Philippines harvested only 4.53 M
ha, which is 58.7% and 39.1% lower than in Thailand and Vietnam, respectively.
The Philippines is an agricultural country that has limited land resource to
produce its rice requirement. This leads to insufficient domestic production
relative to utilization, necessitating rice importation.

7
 R at i o o f P o p u l at i o n t o R i c e
Area Harvested, Selected
Asian Countries, 2009

Source of basic data: FAO

Supplying Filipinos with enough rice pressures hard the domestic rice industry
especially when the population is rising at an average rate of at least 2% per
annum. The Philippines feeds more people per unit area compared to Thailand
and Vietnam, which are rice-exporting countries.

In 2009, the country feeds 20 persons per hectare of rice area harvested. In
contrast, Thailand and Vietnam only feed 6 and 12 persons, respectively. These
countries are able to export their produce because of their relatively lower
domestic demand for rice.

8
Y i e l d o f Pa d dy R i c e , 1 9 7 0 - 2 0 1 0

Despite the limited land resource, paddy rice yield in the Philippines has more
than doubled since 1970. Yield peaked in 2007 at 3.80 mt/ha in all ecosystems
but declined since then because of natural calamities that hit the country.

In 2010, yield in all ecosystems slightly recovered by 0.83% from its slump in
2009 (3.59) as it averaged 3.62 mt/ha. Yields in irrigated and non-irrigated areas
were 3.99 and 2.81 mt/ha.

9
 G r o w t h i n Y i e l d o f Pa d dy R i c e , 1 9 7 0 - 2 0 1 0
Growth in Yield (kg/ha)
Period/Ecosystem January- July- January-
June December December
1970-1984      
Irrigated 88 90 89
Non-irrigated 33 51 46
All Ecosystems 70 76 74
1985-1999      
Irrigated 14 8 11
Non-irrigated 3 4 4
All Ecosystems 24 14 18
2000-2010      
Irrigated 67 50 59
Non-irrigated 67 65 66
All Ecosystems 69 58 62
Source of basic data: BAS

Since 1970, average annual growth in yield in all ecosystems had been
positive, which pushed up total paddy rice production. Highest growth
in yield was observed in the 1970-1984 period courtesy of the Green
Revolution interventions. However, yield growth reduced to 18.1 kg/ha
in the 1985-1999 period. Paddy rice yield recovered in 2000-2010 with an
annual increment of 62.5 kg/ha.

From 1970 to 1999, growth in yield in irrigated areas was higher than in
non-irrigated areas. This was reversed in the 2000-2010 period when yield
growth in non-irrigated areas (65.7 kg/ha) overtook that in irrigated areas
(58.7 kg/ha).

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C o m pa r at i v e Y i e l d o f pa d dy r i c e , S e l e c t e d
Asian Countries, 2000 and 2009

Source of basic data: FAO

Thailand and India have bigger rice areas harvested than the Philippines but the
latter is more productive per unit area compared to the two countries. In 2009,
the Philippines had an average yield of 3.59 mt/ha while Thailand and India had
only 2.87 and 2.98 mt/ha, respectively.

However, the Philippines still needs to catch up with other nations like
Indonesia and Vietnam, which are also tropical countries.

11
 C o m pa r at i v e G r o w t h i n Y i e l d o f pa d dy r i c e ,
Selected Asian Countries, 2000-2009

Source of basic data: FAO

In the period 2000-2009, the Philippines had higher growth rate in yield (2.19%),
compared to exporting countries such as Thailand, India, and China. If the
Philippines did not experience natural calamities in 2009, this growth could
have been better.

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Y I E L D G A P A N A LY S I S

Source: Sebastian, L.S., F.H. Bordey, and V.L.E.B. Alpuerto. 2006. “Research and
development.” In Securing Rice, Reducing Poverty, A.M. Balisacan and L.S. Sebastian
(eds.) Science City of Muñoz: Philippine Rice Research Institute.

The national average yield in all ecosystems, which is 3-4 mt/ha, is not even
half of the scientifically attainable yield if only Good Seeds* of modern inbred
rice varieties are used as planting materials. And yet, yields of 6-7 mt/ha were
attained in on-farm demonstration trials that used Good Seeds but with best
crop management practices. Thus, the country’s total production of paddy
rice can be increased further if the national average yield is raised through
sustained use of best crop management practices.

* Note: Good Seeds are produced from varieties not yet approved by the
National Seed Industry Council but meet the standards prescribed by the
certifying agency. Additionally, any class of certified seeds that does not
conform to the Council’s standards may qualify as Good Seeds.

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 Fa c t o r s a f f e c t i n g y i e l d
FACTORS CONTRIBUTION
R&D 25%
Seeds (biotechnology, hybrid rice, certified seed nutrition) 10%
Integrated Crop Management 10%
Mechanization 5%
Infrastructure 40%
Irrigation 25%
Farm-to-market roads 5%
Transportation 5%
Postharvest 5%
Extension 15%
Environmental Factors 20%

Source: Balisacan, AM and LS Sebastian. 2006. “Challenges and Policy Directions: Overview”
In Securing Rice, Reducing Poverty, AM Balisacan and LS Sebastian (eds.). Science City of Munoz: Philippine
Rice Research Institute.

The factors that can collectively and significantly improve average yield at the
national level are infrastructure, research and development (R&D), extension,
and environmental factors. Irrigation has the biggest impact contributing 25%
on yield improvement; R&D, through better seed quality, crop management
practices, and mechanization contribute 25%.

Among the four major factors, extension service itself has the least estimated
influence on yield (15%). However, without it, the 25% contribution of R&D
cannot be realized.

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I n p u t s i n Pa d dy R i c e P r o d u c t i o n :
S e e d i n g R at e , 2 0 0 9
Seed Class Seeding Rate (kg/ha)
  Direct-seeded Rice Transplanted Rice Average
Hybrid - 22 22
Inbred      
High-quality seedsa 82 56 69
Low-quality seeds 108 75 91
Good Seeds 105 70 88
Farmer Seeds 115 80 97
Native Seeds 104 74 89
”-” no data
a
- includes Certified, Registered, and Foundation seeds.
Source of basic data: PhilRice-BAS compiled data

91 kg/ha of low-quality seeds 40 kg of Certified Seeds cost

cost P1,365/ha. P1,200/ha

In 2009, the average seeding rate using high-quality inbred seeds was
69 kg/ha. Although lower than in 2008 (88 kg/ha), the 2009 seeding rate is still
higher than the recommended rate of only 40 kg/ha. Most farmers sow extra
seeds to replace those that may be damaged by pests during the seedling and
vegetative stages.

Average seeding rate is even higher for low-quality seeds (91 kg/ha). Higher rate
is to compensate for low germination and other possible losses.

In terms of cost, using low-quality seeds can entail higher cost per hectare
(P1,365/ha at P15/kg) than high-quality seeds (P1,200/ha at P30/kg). Thus,
farmers can save on seed cost if they would follow the 40-kg certified seeds
recommendation.

15
 I n p u t s i n Pa d dy R i c e P r o d u c t i o n :
F e r t i l i z e r R at e , 2 0 0 9
Fertilizer Fertilizer Rate
Grade Irrigated Rainfed
  Jan-Jun Jul-Dec Jan-Jun Jul-Dec
Fertilizer (in 50-kg bags/ha)    
Urea 2.34 2.30 1.21 1.71
Ammosul 0.43 0.48 0.39 0.49
Ammophos 0.66 0.57 0.30 0.50
Complete 1.49 1.51 0.66 1.18
Component Nutrients (in kg/ha)    
Nitrogen 74 73 39 57
Phosphorus 17 16 8 13
Potassium 10 11 5 8
Source of basic data: BAS
Nutrient conversion used: 46-0-0 for urea, 21-0-0 for ammosul, 16-20-0 for ammophos, and 14-14-14
for complete.

In both semesters, farmers in irrigated areas apply more fertilizers than those in
rainfed areas.

Fertilizer rate in irrigated areas during the dry season (Jan-Jun) is not
significantly higher than in the wet season (Jul-Dec) despite greater economic
benefits of applying more fertilizers in the DS. Increasing fertilizer rate during
the DS can further increase yield and production. This should be given attention
in extension and information dissemination.

Rainfed farmers apply more fertilizers in the WS when water is more available.
Although it is theoretically more efficient to apply more fertilizers during the
DS, water constraint could easily result in under-application of fertilizers. The
low fertilizer application of rainfed farmers during the DS could be one of their
risk-mitigating measures. Water source must be reliable so rainfed farmers can
optimize fertilizer use.

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C o s t s o f Pa d dy R i c e P r o d u c t i o n , 2 0 0 9
Amount % of Total Variable
Variable Cost
(Pesos/ha) Cost
Seeds
Fertilizers and Soil Ameliorants 1,903 7
Pesticides 4,725 18
Rental of Machines, Tools, and 1,069 4
Animals Including Repairs and 1,830 7
Depreciation
Irrigation 678 3
Interest Payment on Crop Loan 2,158 8
Labor 11,522 45
Others (fuel & oil, food, transpo, 1,691 7
etc.)
Total variable cost (P/ha) 25,576 100
Source of basic data: BAS

In 2009, labor accounted for the largest share (45%) in the total variable cost of
rice production. This indicates that rice production can be more competitive if
we reduce labor cost.

17
 Returns to Paddy R i c e P r o d u c t i o n , by
E c o sys t e m , 2 0 0 9
All Non-
Items Irrigated
Ecosystems Irrigated
Yield (kg/ha) 3,587 3,952 2,833
Farmgate price (P/kg) 15 15 15
Gross returns (P/ha) 52,478 57,818 41,447
       
Total variable cost per hectare (P/ha) 25,576 27,934 20,130
Returns to land (P/ha) 6,694 7,370 5,139
Returns to own labor (P/ha) 20,208 22,514 16,178
Returns above variable cost (P/ha) 26,902 29,884 21,317
       
Variable cost per kg of yield (P/kg) 7 7 7
Returns to land per kg of yield (P/kg) 2 2 2
Returns to own labor per kg of yield (P/kg) 6 6 6

Source of basic data: BAS

In 2009, average net returns above variable costs were positive. Irrigated
farmers obtained better returns than non-irrigated farmers.

At the farmgate price of P15.00/kg, if a farmer is the landowner he would

receive a net return of P8.00 per kg of paddy rice produced. Six pesos of which is
returns to own labor and two pesos is the returns to land. If the farmer is a land
renter/lessee, the return would be slightly lower at P6.00/kg.

Since Filipino rice farmers cultivate only a hectare of land on individual average,
income from rice farming is still not enough to sustain a household even
though the return per kilogram of paddy rice is high.

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Fa r m g at e P r i c e o f Pa d dy r i c e ,
Selected Asian Countries, 2008

Source of basic data: FAO

The farmgate price of paddy rice in the Philippines is higher than those in
China, Thailand, and Indonesia. In 2008, Filipino farmers sold their produce at
US$319/mt while Thai, Indonesian, and Chinese farmers sold theirs at US$267/
mt, US$280/mt, and US$278/mt, respectively.

Nevertheless, the farmgate price in PH is lower than in India (US$386/mt).

19
 B r e a k d o w n o f R i c e U t i l i z at i o n , 2 0 0 9

Source of basic data: BAS

Eighty-nine percent of all rice is used as food. Seeds account for 2% of total
utilization, processed rice products for 3% , and feeds and wastes for 6% .

MRR is one of the factors that affect the amount of milled rice available for
utilization; based on the study of Vallesteros (2010), MRR is only 62.85%. This
means that it will take almost 160 kg of paddy rice to produce 100 kg of milled
rice. If MRR is improved to 65%, only 154 kg of paddy will produce 100 kg of
milled rice.

20
Rice Net Exports, Selected SouthEast Asian
Countries, 1960-2008

Source of basic data: FAO

Many Filipinos wonder why they import rice when they even host the
International Rice Research Institute, which is the source of modern rice
technology for many exporting countries in Southeast Asia like Thailand. Trends
show that PH had been importing rice and Thailand had been exporting even
before the advent of modern rice technology. The ability to export rice does not
rest on technology alone.

Dawe (2006) says exporting countries (Thailand, Vietnam, Cambodia, Myanmar)

occupy river deltas with large areas suitable for rice production. On the
contrary, importing countries have less arable land per person and more varied
landscape, which favors alternative crops such as corn, palm oil, or coconut.
Indonesia and the Philippines are islands, while Malaysia is part island and part
narrow peninsula. Thus, natural endowments of land and water are strong
forces that determine the ability of a nation to export rice.

21
 W o r l d R i c e E x p o r t S u p p ly a n d I m p o r t
Demand, 1960-2008

Source of basic data: USDA

The gap between world rice export and import has widened since 2000. Yet,
net world supply is still very thin, indicating vulnerability of world rice prices to
supply and demand shocks.

The recent Australian drought and the shift in land use toward energy crops in
the USA are examples of supply shocks.

The persistent shift in preference of African nations toward rice consumption is

an example of a demand shock.

22
 Domestic and World Prices of Rice, 2000-2009

Source of basic data: PhilRice-BAS, FAO, USDA, BSP

Since 2000, the world price of rice had been generally stable and lower than the
domestic price. All this changed in 2008 when the world price sharply increased
during the first semester creating a crisis. World price receded toward the end
of 2008 but did not return to pre-crisis level.

Dawe and Slayton (2010) said market fundamentals were not the cause of
the 2008 rice crisis. External factors such as rising oil prices since 2004, weak
US dollar, biofuel mandates and tariffs that contributed to rising maize and
soybean prices, and weather-induced decline in world wheat production
altogether set the stage for the crisis.

Policies of exporting and importing countries that lead to market uncertainty

and panic caused the surge in the world price of rice. India and Vietnam
decided to ban their exports. Thailand did not restrict their exports but their
policy statements on doing so contributed to uncertainty in the world market.
On the other hand, the Philippines put out larger tenders and agreed to buy at
high prices, which fueled further speculations. Malaysia and Nigeria joined PH
in stockpiling. All this shows the vulnerability of the world rice market to price
shocks.

23
 I m p o r t s o f N o n -t r a d i t i o n a l R i c e - E at i n g
Countries, 1960-2008

Source of basic data: USDA

*Middle East refers to Iran, Iraq, and Saudi Arabia

Changes in world demand also affect the volume of rice available in the
international market. An example of this is the increasing demand for rice of
non-traditional rice-eating countries such as those in Africa, Middle East, South
America, and the USA. The demand of these countries competes with traditional
rice-eating countries in Asia. Except for high-income China and Japan, rice
consumption in Asian countries have not declined significantly.

24
R AT I O N A L E F O R S E L F - S U F F I C I E N CY I N R I C E

T h i n World Supply

rice

^ ^ ^
E X P ORT BANS self-sufficiency

Increasing
d emand from
n o ntraditional
rice-eating
countries

Dependence on imports holds the country vulnerable to supply and demand

shocks that can cause significant changes in the world price of rice. With the
occurrence of thin world stocks, export bans during times of volatility in the
world market, and the increasing demand from non-traditional rice-eating
countries, growing reliance on local rice production would help shield the
country from the negative effects of the fluctuations in the world price of rice.
Hence, the quest for self-sufficiency in rice.

25
 P e r C a p i ta R i c e C o n s u m p t i o n , By R e g i o n ,
1990/00 and 2008/09.

Region Per Capita Rice Consumption (kg) Percent

  1999/00 2008/09 Change
Philippines 106 119 13
NCR 90 101 12
CAR 121 132 9
Ilocos Region 118 125 6
Cagayan Valley 116 122 6
Central Luzon 111 123 11
CALABARZON 108 113 4
MIMAROPA 108 136 26
Bicol Region 111 124 12
Western Visayas 122 134 10
Central Visayas 67 95 41
Eastern Visayas 113 127 13
Zamboanga Peninsula 90 109 21
Northern Mindanao 91 116 28
Davao Region 108 113 5
SOCCSKSARGEN 103 137 32
Caraga 114 128 13
ARMM 122 145 18

Per capita rice consumption (PCRC) in the Philippines has risen by 13% from
106 kg/year in 1999/2000 to 119 kg/year. PCRC rose in all regions, with Central
Visayas increasing the largest (41%) and CALABARZON region the least (4%).
Central Visayas has a large population that are traditionally corn-eaters.
Consumer preference has shifted from white corn to rice. The increasing
urbanization in CALABARZON can be the cause of its tempered increase in
PCRC.

In 2008/2010, Central Visayas region has still the least PCRC at 95 kg/year while
ARMM has the highest at 141 kg/year.

26
R I C E I m p o r t D e p e n d e n cy a n d s u f f i c i e n cy
R at i o s , 1 9 9 0 - 2 0 1 0

Source of basic data: BAS

Despite our relatively high production, the Philippines contends with a

declining level of self-sufficiency and increasing dependence on imports.
From 91% in 1990, our level of self-sufficiency decreased to 80% in 2010.
This is because of the fast-increasing population and rising per capita rice
consumption.

27
 T h e f o o d s ta p l e s s u f f i c i e n cy
program (2011-2016)

The Department of Agriculture and its bureaus and attached agencies working
on the development of the rice sector crafted the Food Staples Sufficiency
Program (2011-2016). The following outlines its basic strategies to achieve self-
sufficiency in rice:

1 . P r i o r i t i z e investments that can increase and sustain

p r o d u c t i o n growth
A. Production interventions. Expansion of area harvested and
improvement of yield or productivity per unit area can increase paddy
rice production. The FSSP for 2011-2016 outlines the following basic
interventions that have long-term positive effects on productivity:

a. Development and maintenance of irrigation systems

b. Increase farmers’ access to high-quality seeds
c. Research, development, and promotion of appropriate technologies
d. Extension and farmers’ education

B. Creation of enabling mechanisms. These are support services that aim

to engender a favorable environment that will entice farmers to increase
investments in rice farming. These services are expected to provide
economic incentives that can stimulate farmers’ interest to further raise
their production.

a. Reform the National Food Authority (NFA) – increase its domestic

palay procurement; phased increase of selling prices of NFA rice;
replacement of untargeted consumer subsidy by conditional cash
transfer; and focused role on buffer stocking and price support to
farmers.

28
 b. Increase credit guarantee fund – this will encourage private banks to
cater to credit needs of farmers, thus, leading to better credit access to
formal lenders.
c. Increase number of farmers covered by crop insurance – this will ease
production risks like typhoons that burden the farmers.

2 . I n t e n s i f y fa r m mechanization and reduce postharvest

losses
A. Farm mechanization. Efficiency and timeliness of farm operations can be
attained if farm mechanization is intensified. This will be helpful in times
of labor shortage and in areas where labor cost is expensive.

B. Modernization of postharvest facilities. Current postharvest processes

such as drying and milling can lead to palay losses estimated at 16.47%
of total production. Reducing postharvest losses is one way of increasing
available rice for consumption.

3 . M a n ag e m e n t o f Consumption
The following strategies to attain an ideal demand level for rice can also
contribute to the attainment of self-sufficiency in rice:

A. Promoting the consumption of brown rice. Since brown rice is

unpolished, its production can lead to higher milling recovery as rice
bran is retained on the grains, making it even more nutritious.

B. Reduction of rice wastage. Families are encouraged to cook and eat just
the right amount of rice every meal, thus, reducing table wastage. This
can further increase the availability of rice for consumption.

C. Diversification of staples. Increasing the production and market

availability of alternative staples (i.e., white corn, kamote, cassava,
and banana) can make the prices of these substitutes affordable to
consumers. This will trigger a shift of consumption from rice to other
staple foods, hence, reducing the demand for rice.

29
References:
Balisacan, A.M. and L.S. Sebastian [2006] “Challenges and Policy Directions:
Overview”, in A.M. Balisacan and L.S. Sebastian, eds., Securing Rice,
Reducing Poverty: Challenges and Policy Directions. Los Banos, Laguna:
Southeast Asian Regional Center for Graduate Study and Research in
Agriculture. pp. 1-19.

Bangko Sentral ng Pilipinas (BSP) [n.d.] Monetary, External, and Financial

Statistics, http://www.bsp.gov.ph/statistics/statistics.asp Accessed
August 2010.

Bureau of Agricultural Statistics (BAS) [n.d.] Database, http://countrystat.bas.

gov.ph/index.asp, Accessed August 2010.

Dawe, D. [2006] “The Philippines Imports Rice Because it is an Island Nation”, in

D. Dawe, P.F. Moya, and C.B. Casiwan, eds., Why Does the Philippines
Import Rice? Manila: International Rice Research Institute. pp. 3-7.

Dawe, D. and T. Slayton [2010] “The World Rice Market Crisis of 2007-2008”, in D.
Dawe, ed., The Rice Crisis. London and Washington DC: The Food and
Agriculture Organization and Earthscan, pp. 16-28.

Food Staples Self-Sufficiency Program, 2011-2016. Department of Agriculture

2011.

Francisco, S.R. and A.B. Mataia [2009] “Policy Advocacy”, in, The Philippine Rice
R&D Highlights 2008. Munoz City, Nueva Ecija: Philippine Rice Research
Institute. pp. 319-321.

Sebastian, L.S., F.H. Bordey, and V.L.E.B. Arpuerto [2006] “Research and
Development”, in A.M. Balisacan and L.S. Sebastian, eds., Securing
Rice, Reducing Poverty: Challenges and Policy Directions. Los Banos,
Laguna: Southeast Asian Regional Center for Graduate Study and
Research in Agriculture, pp. 39-69.

United States Department of Agriculture (USDA) [n.d.] Agriculture Data and

Statistics, http://www.usda.gov/wps/portal/usda/usdahome, Accessed
August 2010.

Vallesteros, R., Jr. [2010] The New National Rice Milling Recovery Rate: Its Effect
on the Level of Rice Per Capita Consumption in the Philippines, CY
2000-2008. Paper presented at the 23rd National Rice R&D Conference
of the Philippines held in IRRI, Los Baños, Laguna. 4 March 2010.

30
 Credits:
Subject Matter Specialists
Flordeliza H. Bordey, Ph.D.
Aileen C. Castañeda

Managing editor/Layout artist

Alfred Caballero

Editorial Adviser
Eufemio T. Rasco Jr., Ph.D.

Consulting Editor
Constante T. Briones

31
notes

32
 PHILIPPINE RICE RESEARCH INSTITUTE RICE SCIENCE FOR DEVELOPMENT

We are a chartered government corporate entity under the Department of Agriculture. We

were created through Executive Order 1061 on 5 November 1985 (as amended) to help
develop high-yielding, cost-reducing, and environment-friendly technologies so farmers can
produce enough rice for all Filipinos.

We accomplish this mission through research and development work in our central and
seven branch stations, coordinating with a network that comprises 57 agencies and 70 seed
centers strategically located nationwide.

To help farmers achieve holistic development, we will pursue the following goals in 2010-
2020: attaining and sustaining rice self-sufficiency; reducing poverty and malnutrition; and
achieving competitiveness through agricultural science and technology.

We have the following certifications: ISO 9001:2008 (Quality Management), ISO 14001:2004
(Environmental Management), and OHSAS 18001:2007 (Occupational Health and Safety
Assessment Series).

You may visit our websites:

www.philrice.gov.ph
www.pinoyrkb.com

or text:
PhilRice Text Center: 0920-911-1398

PhilRice Stations:

Central Experiment Station Maligaya, Science City of Muñoz, 3119 Nueva Ecija•Trunklines: (44)456-
0258; -0277, -0285•0920-970-2629 (only for connection to local#) •Email: prri@email.philrice.gov.
ph•PhilRice Agusan Basilisa, RTRomualdez, 8611 Agusan del Norte•Tel: (85) 818-4477; 343-0778•Tel/
Fax: 343-0768•Email: agusan@email.philrice.gov.ph•PhilRice Batac MMSU Campus, Batac City,
2906 Ilocos Norte•Tel/Fax: (77) 792-4702;670-1867•Email: batac@email.philrice.gov.ph•PhilRice
Bicol Batang, Ligao City, 4504 Albay•Cell:0908-884-0724•PhilRice Isabela Malasin, San Mateo, 3318
Isabela•Tel: (78) 664-2954 • Tel/Fax: 664-2953•Email: san_mateo@email.philrice.gov.ph•PhilRice Los
Baños UPLB Campus, Los Baños, 4030 Laguna•Tel: (49) 536-8620•501-1917•Email: los_banos@email.
philrice.gov.ph•PhilRice Midsayap Bual Norte, Midsayap, 9410 North Cotabato•Tel: (64) 229-8178 •
Tel/Fax: 229-7242•Email: midsayap@email.philrice.gov.ph•PhilRice Negros Cansilayan, Murcia, 6129
Negros Occidental•Cell: 0928-506-0515•Email: negros@email.philrice.gov.ph•PhilRice Field Office CMU
Campus, Maramag, 8714 Bukidnon•Tel/Fax: (88) 222-5744