X - Northern Mindanao XI - Davao XII SOCCSKSAR GEN XIII - Caraga ARMM
84.5 89.7
81.9 84.5 84.2
X - Northern Mindanao XI - Davao XII SOCCSKSA 16.9 1.1 RGEN 14.1 1.4 XIII - Caraga 15.7 0.1 ARMM Note: based on author’s estimation Source of basic data: 2006 FIES 7.5 6.1
8.0 4.2
4.5 5.1
2.8 2.4
14.9 8.4
4.1 2.5 3.0
6.0 3.1 3.0
2.0 1.5 0.1
As mentioned earlier, among all poor households (who are supposed to benefit from subsidized NFA rice), only 24.0 percent purchase NFA rice. This is an indication of the extent of NFA interventions in the country. Assuming that all poor households would consume NFA rice only, their NBRs would slightly change (Table 21). Although NBRs of poor households remain to be negative (i.e., -0.063), there would be a slight positive effect in their net position. This means that, given their level of production and consumption, poor households would benefit if they could access the subsidized NFA rice. On the other hand, if non-poor households are limited to buying commercial rice and are not allowed to access the highly subsidized NFA rice, results confirm that there would be a decrease in their NBRs by about 0.014, reflecting a decline in their welfare status. This is primarily because they would now face a higher price for purchasing commercial rice instead of the much cheaper NFA rice in the market. Table 21. NBRs of poor and non-poor households
Poor Non-poor
NBR (Original) -0.113 -0.025
NBR (Scenario 1) -0.063 -0.039
Difference in NBR 0.051 -0.014
Notes: Scenario 1 assumes that all poor households purchase NFA rice only while non-poor households buy non-NFA rice. The provincial average prices of fancy and premium rice are used to proxy commercial price of rice.
3.3.6 Impact of Rice Price Increases on Rice Farm Households Net Position of Rice Farm Households One important result is that although most of the rice farm households in the Philippines in 2006 are net producers of rice (78.0%), the proportion of net consumers is also fairly large (22.0%) (Table 22). It is possible that the income derived by these households from rice production is not sufficient to support their home consumption. In some cases, rice producers sell their palay produce in order to have cash which they can use to finance other households expenses. Some farmers are also forced to sell their palay produce to traders who dictate the buying price (which is usually lower than the market rate). Although some of them reserve a certain amount of their harvest for own consumption, most of then also purchase rice from the market later on as need arises.
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