The Impact of Government Interventions on the Philippines’ Rice Industries Price Mechanism

This literature review focuses on the Philippines' rice industry's response to government interventions in the price-setting process. Specifically, to determine the price mechanism before and after government intervention, and to identify the effect of government intervention on the price mechanism. Results from research on the NFA's price stabilization goal point to the possibility that the measures might have produced the expected correlations with rice prices. It is crucial to note that this study has several significant limitations. The government's intervention in the production of rice and its wholesaling shows that it is effective in stabilizing producer prices but has had some success in controlling wholesale prices, mostly via the use of its import ban. It was also noted that the intervention of the government in the farmer’s rice production results more effectively since it orderly gives a pricing rate than farmers direct to the market. Based on the analysis conveyed, it can be concluded that there is a significant effect on the farmers and the poor in handling and controlling the price range of rice in the market, and in order to increase prospects for on-farm diversification toward higher-value crops than rice and off-farm income-generating enterprises to supply the products and services required by the agricultural sector, investments and policy support measures are required in rural regions of the Philippines. And lastly, the production of rice in state measures that promote rice production, in the long run, include lowering tax barriers and getting rid of the state's price regulation