Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization

The Rice Tariffication Law or RA 11203 was created for the purpose of achieving food security, lowering prices at the consumer level, and making the rice industry more competitive. The opening up of the domestic rice market led to the removal of the National Food Authority’s (NFA) licensing & re...

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Main Authors: Santos, Mary Gillian G, Cororaton, Caesar, inocencio, arlene, Tiongco, Marites M.
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Published: Animo Repository 2024
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Online Access:https://animorepository.dlsu.edu.ph/ber/vol34/iss1/17
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Institution: De La Salle University
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spelling oai:animorepository.dlsu.edu.ph:ber-10162024-08-08T07:00:04Z Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization Santos, Mary Gillian G Cororaton, Caesar inocencio, arlene Tiongco, Marites M. The Rice Tariffication Law or RA 11203 was created for the purpose of achieving food security, lowering prices at the consumer level, and making the rice industry more competitive. The opening up of the domestic rice market led to the removal of the National Food Authority’s (NFA) licensing & regulatory powers which shifted their mandate solely on maintaining an optimal level of buffer stock primarily for emergency situations. To fulfill this mandate, the NFA must anticipate and account for emergencies & uncertain events in their current operations. This paper presents an application of a Partial Equilibrium Rice Model to determine which regions NFA should purchase palay/rice to maintain the optimal level of buffer stock. Without additional imports, if a 10% disruption in palay production in region 3 was introduced, the palay reduction is 4.75% relative to the base, amounting to 27,409 MT in Semester 1 and 53,662 MT in Semester 2. In this scenario NFA had to procure palay from increases its procurement in regions 1, Region 2, Region 4b, Region 6, & Region 12 to maintain the buffer stock in Sem 2 to maintain the buffer stock at its optimal level. In the event of a disruption in production during the year, the Model can guide policy makers where to procure depending on which region will be badly hit by any type of calamity. 2024-01-01T08:00:00Z text https://animorepository.dlsu.edu.ph/ber/vol34/iss1/17 DLSU Business & Economics Review Animo Repository Buffer Stock Partial Equilibrium Public Stockpiles Optimization Farmgate price Wholesale Price Disaster Affected Population Economics
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
topic Buffer Stock
Partial Equilibrium
Public Stockpiles
Optimization
Farmgate price
Wholesale Price
Disaster Affected Population
Economics
spellingShingle Buffer Stock
Partial Equilibrium
Public Stockpiles
Optimization
Farmgate price
Wholesale Price
Disaster Affected Population
Economics
Santos, Mary Gillian G
Cororaton, Caesar
inocencio, arlene
Tiongco, Marites M.
Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
description The Rice Tariffication Law or RA 11203 was created for the purpose of achieving food security, lowering prices at the consumer level, and making the rice industry more competitive. The opening up of the domestic rice market led to the removal of the National Food Authority’s (NFA) licensing & regulatory powers which shifted their mandate solely on maintaining an optimal level of buffer stock primarily for emergency situations. To fulfill this mandate, the NFA must anticipate and account for emergencies & uncertain events in their current operations. This paper presents an application of a Partial Equilibrium Rice Model to determine which regions NFA should purchase palay/rice to maintain the optimal level of buffer stock. Without additional imports, if a 10% disruption in palay production in region 3 was introduced, the palay reduction is 4.75% relative to the base, amounting to 27,409 MT in Semester 1 and 53,662 MT in Semester 2. In this scenario NFA had to procure palay from increases its procurement in regions 1, Region 2, Region 4b, Region 6, & Region 12 to maintain the buffer stock in Sem 2 to maintain the buffer stock at its optimal level. In the event of a disruption in production during the year, the Model can guide policy makers where to procure depending on which region will be badly hit by any type of calamity.
format text
author Santos, Mary Gillian G
Cororaton, Caesar
inocencio, arlene
Tiongco, Marites M.
author_facet Santos, Mary Gillian G
Cororaton, Caesar
inocencio, arlene
Tiongco, Marites M.
author_sort Santos, Mary Gillian G
title Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
title_short Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
title_full Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
title_fullStr Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
title_full_unstemmed Rice Buffer Stock Maintenance Post-Rice Tariffication Law (RA11203): An Application of a Partial Equilibrium Model for Buffer Stock Level Optimization
title_sort rice buffer stock maintenance post-rice tariffication law (ra11203): an application of a partial equilibrium model for buffer stock level optimization
publisher Animo Repository
publishDate 2024
url https://animorepository.dlsu.edu.ph/ber/vol34/iss1/17
_version_ 1808616368448208896