Food Sufficiency, Tariffication Policy, and Business Strategy: A New Business Model for the Rice Milling Industry in the Philippines

Sarah Calma Alvarez, Feliciana Jacoba, Olive Chester Cuya Antonio, Arneil Garcia Gabriel, Macky Ciriaco Herezo


Rice is a primary commodity in the Philippines and a staple food for Filipino families. Climate change, low yield, and decreasing number of Filipinos engaged in agriculture lead to the instability in the supply of rice and fluctuation in market price affecting local farmers, rice millers, and consumers. In an attempt to address rice shortage and lower retail prices, Republic Act No. 11203 or Rice Tariffication Law was promulgated. Given the contribution of Nueva Ecija province in the rice economy of the country, it is vital to analyze the impact of the policy in the province, specifically, on the operations of 82 registered rice millers using descriptive method of research. Results indicate that the rice millers observe the traditional practices in trading milled rice. Most of them are not engaged in importation and are facing challenges related to the sudden policy reform. From the findings of the study, a new business model is recommended to help rice millers increase the scope of their operations and acquire necessary funding from banking institutions. The new model is seen to help the rice millers gain income from different ventures, allowing them to expand, grow and help the economy in the long run. Thus, raising sustainable investments in the rice industry in the province and in the Philippines.


Rice Sufficiency; Tariffication; Policy; Reform; Philippines

Full Text:



Balié, J., Minot, N., & Valera, H. G. A. (2021). Distributional impacts of the rice tariffication policy in the Philippines. Economic Analysis and Policy, 69, 289-306,

Bankoff, G. (1996) Legacy of the past, promise of the future: Land reform, land grabbing, and land conversion in the Calabarzon. Bulletin of Concerned Asian Scholars, 28(1), 39-51, https://doi/10.1080/14672715.1996.10416185

Batausa, H. (2003). The Philippine Rice Industry In The Impending Trade Liberalization Program: A Political Economy Approach. Philippine Quarterly of Culture and Society, 31(3), 255-268.

Bautista (2019). Palay Production of the Philippines. Retrieved from:

Burja, C. (2011). Factors Influencing The Companies ‘Profitability. Annales Universitatis Apulensis Series Oeconomica. 2. 3-3. 10.29302/oeconomica.2011.13.2.3.

Co (2019). Rice mills Nationwide Stopped Operation. Retrieved from

Cororaton, CB and Corong, EL. (2009). Philippine Agricultural and Food Policies, Implications for Poverty and Income Distribution

Cororaton, C. Tiongco A, M., Inocencio, A., Siriban-Manalang, AB. and Lamberte, A. (2018). DLSU Business & Economics Review 28(2018), 70–83

Cororaton, C. B. & Yu, K. D. S. (2019). Assessing the Poverty and Distributional Impact of Alternative Rice Policies in the Philippines. DLSU Business & Economics Review 28(2) 2019, 169–182.

David, CC. and Balisacan, A. (1995). Philippine Rice Supply Demand: Prospects and Policy Implications. Makati City: Philippine Institute of Development Studies.

Dawe, E. (2010). The Rice Crisis: Markets, Policies, and Food Security. Earthscan, London, Washington, DC

Ducker (1994). Every Organization, whether a business or not, has a theory of the business. Published by Harvard Business Review.

Inuwa, I., Kyiogwom, U.B., Ala, A., Maikasuwa, M., & Ibrahim, N. (2011). Profitability Analysis of Rice Processing and Marketing in Kano State, Nigeria. Nigerian Journal of Basic and Applied Sciences, 19.

Kikuchi (2014). Evolution and Prospects of the Rice Mill Industry in Uganda. African Journal of Agricultural Research, 2014.

Lambert, S. C., & Davidson, R. A. 2013. Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010. European Management Journal, 31, 668-681.

Moutos, T. (2001) Why Do Poor Democracies Collect a Lot of Tariff Revenue? Economics and Politics, 13(1), 95-112

National Economic Development Authority (2019). Implementing Rules and Regulations of Rice Tariffication Law. Retrieved from:

National Food Authority (2019). Industry Regulation and Development. Retrieved from

National Food Authority (2019). Grains Retailers, Farmers, Consumers Express Support to NFA. Retrieved from

Pascual, M.P., Lorenzo, G.A. and Gabriel, A.G. (2018) Vertical Farming Using Hydroponic System: Toward a Sustainable Onion Production in Nueva Ecija, Philippines. Open Journal of Ecology, 8, 25-41.

Philippine Rice Research Institute (PhilRice) (2012). Proceedings of the Policy Seminar on Philippine Rice Trade Policy and Rice Security: Future Directions. Retrieved from

Rondhi, M., Pratiwi, PA., Handini, VT., Sunartomo, AF, and Budiman, SA. (2018). Agricultural Land Conversion, Land Economic Value, and Sustainable Agriculture: A Case Study in East Java, Indonesia. MPDI land.

Schmidt, E., Dorosh, P., & Gilbert, R. (2021). Impacts of COVID-19 related income and rice price shocks on household welfare in Papua New Guinea. Agricultural Economics. 52 (3), 365-374. Wiley Online Library.

Sobrevinas, AB., De Jesus. J., Reyes, CM., Bancolita, JE. (2009). Analysis of the Impact of Changes in the Prices of Rice and Fuel on Poverty in the Philippines, PIDS Discussion Paper Series, No. 2009-07, Philippine Institute for Development Studies (PIDS), Makati City

Tobias, A. (2019). The Philippine rice tariffication law: Implications and issues. Food and Fertilizer Technology Center for the Asian and Pacific Region (FFTC-AP).

Tolentino, VBJ. and dela Pena, BM. (2020). Deregulation and Tariffication at Last: Saga of Rice Sector Reform in the Philippines. The Asia Foundation

Vertudes, M. F., Musa, C. D., Cosilet, M. A., Salagubang, R., & Balaria, F. (2020). Impact of Rice Tariffication Law in selected Rice Farmers in Nueva Ecija, Philippines. International Journal of Advanced Engineering, Management and Science, 6(3). Retrieved from

World Bank. (2014). Myanmar: Capitalizing on Rice Export Opportunities. Bangkok. Retrieved from

Zia, A. and Nuruzzaman, A. (2013). Why People Buy In Organized Retail Store? SIT Journal of Management, 3(11), 1-10.



  • There are currently no refbacks.

Editorial Office:
Faculty of Economics,
State Islamic University of Maulana Malik Ibrahim Malang
Gajayana Street 50, Malang-East Java, Indonesia 65144
Phone (+62) 341 558881, Facsimile (+62) 341 558881



P-ISSN 2599-3402
E-ISSN 2598-9537

Lisensi Creative Commons

MEC-J is licensed under CC-BY-SA
© All rights reserved 2017.




Member of:


View My Stats