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SUPPLY OF RICE
The agricultural labor force had been drastically declining. As a result, there is a decline in supply which caused the supply curve to shift leftwards. This is mainly caused by decrease in number of sellers which is a non-price determinant.

1.     Number of sellers

The Philippines government is importing rice from other countries to meet the needs of the locals. This results in increase in the number of sellers and causing the supply to increase and supply curve to shift slightly towards the right.

As a result of this, the price of rice in Philippines would decrease while the quantity of rice increases. This is not beneficial for local farmers as they would have to lower their prices as the price of the imported rice would be lower and thus to stay competitive, they would have to lower their prices even lower. This resulted in an even larger decrease in local farmers causing number of sellers to decline by a larger percentage and supply to decrease and supply curve to shift leftwards.

There is a shortage in the supply of rice in the Philippines due to a typhoon which has damaged the fields and then affected the yield of rice, ultimately decreasing in the number of sellers/ farmers/ producers which then led to a further decrease in the supply of rice, and due to the shortage of rice, there has been a high demand for rice in the Philippines, thus causing sellers to increase the prices of rice.

DEMAND OF RICE
There is an increase in supply of rice which is cause by an increase in number of buyers which is a non - price determinants which caused the supply curve to shift rightwards.

1.  Number of buyers
The rising population of Philippines caused an increase in the number of buyers.  thus having a larger population will lead to higher demand.

2. Taste and Preferences
Rice is a staple and popular food in the Philippines
As seen from the article, the country’s total rice consumption for 2017 and 2018 is forecasted to increase by 2.22 percent to 13.8 MMT, from 13.5 MMT recorded demand in 2016 and 2017, according to the FAO. Therefore, indicating that a Filipino would eat 115.2 kilograms of rice in 2017 and 2018, which is 700 grams more than the 114.5 per kilogram per-capita consumption in 2016 and 2017.
Thus, showing how the demand for rice in the Philippines is very high as it is a staple good thus being the taste and preference of the people in the Philippines.

Quantity Demand of Rice
Due to the increasing prices, it would then reduce the purchasing power of of the incomes of the poor families. Thus when the good increases in price, the quantity demanded would then be less.

https://businessmirror.com.ph/phl-rice-production-seen-reaching-12-9-mmt-in-2018/

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Metro Manila (CNN Philippines) - Ordinary Filipinos have had to scrimp on their meager budgets for the past eight months as prices of goods and services surged to a nine-year-high at 6.4 percent in August.

Prices of consumer goods have risen consecutively from 3.4 percent in January.

That's why economic managers have come up with measures to flood the market with rice, a main driver of inflation. They want to lift rice import limits and allow the private sector to bring more of the staple subject to a 35 percent tariff.

This means, the country can now boost imports of rice stocks, instead of restricting shipments based on minimum access volume.

But how does an agricultural country like the Philippines end up relying more on rice imports to meet demand?

According to the World Bank, Philippine agriculture output has been on the decline over the years. Philippine data show the sector grew by an anemic 0.58 in January to June this year -- a big setback from the 5.73% growth recorded in the same period of 2017.

Authorities admit local rice production alone can't feed more than 100 million Filipinos, so they resort to more imports from Vietnam and Thailand.

Government data show, the country had increasingly imported rice for the past 5 years.

This has contributed to more imports than exports, resulting in an agriculture trade deficit of $5.2 billion or ₱275.6 trillion as of 2017, from only $1.5 billion or ₱63.6 trillion 5 years ago.

But importing more rice will happen at the expense of Filipino farmers. Imported rice is cheaper, so consumers would prefer it over local produce.

A government think tank said, local farmers will suffer a 29% income loss if the floodgates are opened to rice imports.

It doesn't help that the agricultural labor force has been on a drastic decline, losing over 1.5 million workers in the past five years alone. This means lower production as more farmers, fishermen, and workers look for other means of livelihood.

Our rice-producing neighbors like Vietnam and Thailand, produce an average of 5-8 tons per hectare at ₱5 to ₱9 per kilogram. But, we only produce 3-6 tons at higher costs of ₱11 to ₱14 per kilogram, not to mention additional costs imposed by middlemen.

Experts have listed a number of proposals to improve agricultural output. These include improvement in research and development, quality infrastructure for farming, climate-resilient farming technology, and quality irrigation systems for higher yield, among others.

Filipinos are complaining about the lack of cheap rice, and the government responds with more imports. It's a stop-gap move to appease immediate consumer concerns. But authorities should make sure long-term measures are in place, to feed an ever-growing population at an affordable price.

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Why is there a rice crisis in the Philippines?

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Metro Manila (CNN Philippines) - Ordinary Filipinos have had to scrimp on their meager budgets for the past eight months as prices of goods and services surged to a nine-year-high at 6.4 percent in August. Prices of consumer goods have risen consecutively from 3.4 percent in January.

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There is a shortage in the supply of rice in the Philippines due to a typhoon which has damaged the fields and then affected the yield of rice, which then caused a further increase in the price of rice, thus reducing the purchasing power of of the incomes of the poor families.
The typhoon has caused a further decrease in the number of sellers/farmers/producers which then led to a further decrease in the supply of rice,and due to the shortage of rice, there has been a high demand for rice in the Philippines, thus causing sellers to increase the prices of rice.

In order to solve this issue, the government came up with certain ideas in order to increase supply of rice and tried implementing measures to control the prices of rice in order to prevent the prices of rice from increasing even further in order to make rice more affordable
for people of lower income families as rice is a necessity for people in the phillipines

http://www.pna.gov.ph/articles/1051951
The government in the Philippines tried to solve this issue by stabilising the prices of rice by imposing a
price ceiling and also by importing rice from another country.

On top of this, the government had also thought of increasing the supply of rice by improving the way rice is produced by investing in technology [machines ]

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MANILA, Philippines - How much a kilo of rice costs has a major impact on how Filipino families eat, or if they will eat at all.

In November 2017, a kilo of rice cost P42.17. This has increased since, rising to P49.37, even to as much as P55 to P66 in some provinces as of the 4th week of September.

Despite the price increases, the President and his spokesperson have denied there is a rice shortage in the country. But should we get worried?

Take a quick look at the numbers and controversies revolving around our staple food.
Rice crises, past and present
Rice available in the market has two types: regular milled rice (RMR) and well-milled rice (WMR). The latter is more expensive, but the prices for both have been increasing since 2007. Rice prices data with the Philippine Statistics Authority (PSA) go back to January 2007 only.

RMR is rice in which 10%-30% of the lengthwise streaks of the bran layer (hard external layer) are still present on the kernel, while WMR has only less than 10% of bran layer presence. In short, RMR is less polished than WMR.

In July 2008, a global rice crisis occurred from January to May. The year started with the WMR retail price pegged at P25.67 in January reaching P39.76 in July. This subsequently decreased to P32.50 in December. Globally, the cost of a ton of rice increased by 300% ($300 to $1,200) in the first 4 months of 208.

A 2009 research done for the Center for Global Development attributed the escalating prices during the crisis to 4 reasons:

government failed to secure adequate amount of stock rice

statements and actions of government officials "encouraged" long lines and hoarding

government set a low buying price for domestic rice during the dry seasons, resulting in low stocks

the National Food Authority's (NFA) decisions "destabilized" both the local and global market

The Arroyo administration in April 2008 launched P43.7-billion worth of agricultural assistance named "Fields" to ensure food security (fertilizer, irrigation, extension and education, loans and insurance, dryers, and seeds).

There was also a spike in rice prices in 2014 during Benigno Aquino III's administration. The year started with increasing prices since May 2013. WMR retail was at P39.49 in January 2014 and reached its highest on September 14 at P44.02. Since then, prices have decreased till January 2018.

The Aquino government resorted to importing 500,000 metric tons (MT) in addition to the 800,000 MT for the year 2014. Rice hoarding also reached 2.3 million MT under Aquino from 2011-2014. At the end of his administration, RA 10845 or the Anti-Agricultural Smuggling Act of 2016 was signed into law.

According to economist JC Punongbayan, the 2008 rice crisis was more global in nature while the crises in 2014 and 2018 were "self-inflicted" due to bad policies and corruption.

According to the rice and corn price index of PSA, as of the 4th week of September 2018, for RMR, the wholesale and retail prices of rice stand at P43.12 and P45.83 per kilo, respectively. WMR wholesale and retail prices were pegged at P46.04 and P49.37, respectively.

Since January 2007, the highest price for retail WMR was felt in the 4th week of September, when it reached a national average of P49.37. For Metro Manila alone, it was P48.

In 2018, the province of Sulu in Mindanao had the highest price of retail WMR at P66 per kilo as of the 4th week of September, almost P17 higher than the national average. Second is Zamboanga del Norte at P58 and third are Mountain Province, Palawan, Bohol, Iloilo, and Southern Leyte, each at P55 per kilo. The cheapest price is in Tawi-Tawi at P34 per kilo.

But with rice shortage, surging prices, and weevil-infested rice, a crisis was again felt in the country.
Do we have enough rice?
The National Food Authority (NFA) is the public agency tasked to store stocks of rice and stabilize rice prices in the country to ensure food security. However, in early April, rice stocks of the agency were " completely gone." During that time, the rice reserve went down to two days' worth of supply instead of 15 days which the NFA is required to maintain.

The NFA rice is subsidized by the government, therefore making it cheaper. Household rice is what people stock for themselves while commercial rice is what can be bought in the market.

To replenish the supply, the agency can buy from local farmers or import from foreign suppliers. The NFA said they cannot buy from local farmers since they would rather sell their yield to other buyers instead of the agency which has a low buying price of P17 per kilo. Selling to private entities can yield as high as P29 per kilo.

Instead, the NFA chose to import 250,000 metric tons of rice from Vietnam and Thailand. The latter delivered 133,000 sacks of rice on August 2 in Subic Bay Freeport Zone.

Later on, the majority of the sacks were discovered to have been infested with rice weevils.

Since 2012, "NFA rice" or the cheaper version of commercial rice reached its lowest stocks inventory level yet in June 2018 according to the agency's Beginning Rice Stock Inventory, reaching up to only 21,000 metric tons.

There was also the issue of weevil infestation. On August 22, NFA authorities said that at least 100,000 sacks of imported rice from Thailand were infested by bukbok or rice weevil.

The NFA said that rice is safe to eat after fumigation. Department of Agriculture (DA) Secretary Manny Piñol even did a demo on live television on August 31, showing that eating the rice is safe.

The President initially denied the problem of rice shortage and said there is "ample" rice supply. He later admitted that prices of goods, particularly rice, have increased and suggested ancient barter trade as a solution.
Is rice still affordable?
While denied by Piñol, there are reports of the price of rice reaching as much as P70 per kilo in Zamboanga City. Rice prices have been on a steady increase since the start of 2018. (READ: Rice prices soar as Duterte marks 2nd year in office)

This could be traced back to low supply and the administration's Tax Reform for Acceleration and Inclusion (TRAIN) law as mentioned by a 2018 study by the Philippine Rice Institute (PhilRice) under the DA. The study found that operational expenses of farmers increased (including the cost of gasoline used for machines), while decreasing profit by 10%.

An increase in operational expenses leads to an increase in market price as well.

The PSA announced that the inflation rate which hit a 9-year high of 6.7% in September also affected rice prices.
How do leaders propose to solve the crisis?
The crisis has elicited various solutions from lawmakers and experts. (READ: Taming rice prices: What lawmakers, experts say)

House Speaker Gloria Macapal Arroyo wants to import more rice and file charges against smugglers, which is different from Piñol's suggestion of legalizing rice smuggling.

Senator Cynthia Villar proposes to declare a state of calamity on rice, impose price controls, and put a high tariff on high imports while providing subsidies to local farmers to make them competitive with foreign suppliers. A tariff is a payment on imports or exports that enter and exit a country's market.

There are also calls to abolish the NFA and fire its executives, along with Piñol.

On October 8, 2018, President Rodrigo Duterte decided to greenlight the lifting of restrictions on rice importation following a "fierce" discussion between Piñol and Finance Secretary Sonny Dominguez during a Cabinet meeting.

Dominguez reportedly pushed for lifting restrictions, while Piñol wanted to impose an obligation for rice to be sold at certain prices. - Rappler.com

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FAST FACTS: Rice prices in the Philippines

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MANILA, Philippines - How much a kilo of rice costs has a major impact on how Filipino families eat, or if they will eat at all. In November 2017, a kilo of rice cost P42.17. This has increased since, rising to P49.37, even to as much as P55 to P66 in some provinces as of the 4th week of September.

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https://business.inquirer.net/260545/rice-import-rebidding-fails-prices-still-easing
SHORTAGE OF RICE
There is a shortage of supply of rice in Philippines due to a typhoon which has damaged the fields, thus affecting the yield of rice. This caused rice to retail at a very high price, making it unaffordable for the locals.

GOVERNMENT SUBSIDIES
To tame the high retail prices of rice and ease the burden of consumers from the high rice costs, the Philippines government decided to allocate P18 billion worth of subsidy for the importation program. The importation program consist of bidding on the price of rice with Thailand and Vietnam. Bidding onthe price of rice in auctions will increase the volume of rice imports. Rice imported are also at a more affordable price.  Subsidies are provided to producers. With rice imported at a more affordable price, sellers will have a decrease in cost of production, and are more able and willing to sell more rice. Thus, increasing the supply of rice in Philippines, to meet the high demand.

MOVING TOWARDS MARKET EQUILIBRIUM
Since the implementation of the importation program, leading to the arrival of rice imports, rice prices have been going down for a month and are expected to decline further, with more arrivals of rice which are more affordable for the locals. This shows the market adjusting to equilibrium.

FAILED BIDDING
However, government of Thailand and Vietnam did not agree to the reference price set by the National Food Authority and offered rice at prices which were much higher than National Food Authority's guidelines. Hence, this led to a failed bidding, where the rice bid in this auction was supposed to cover the remaining volume that was not obtained during the previous auction.

EFFECT OF FAILED BIDDING
The failed bidding would delay the arrival of imports, causing a delay in the increase of supply of rice in Philippines. Which leads, to a delay in the decrease of retail price of rice.

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The governments of Thailand and Vietnam did not agree to the reference price set by the National Food Authority (NFA) for the supply of 203,000 metric tons (MT) of rice on Tuesday, which led to the failure of the second round of bidding.

The failed rebidding was supposed to firm up the remaining volume that was not procured during the previous auction, wherein only 47,000 MT of rice were bought.

Both Thailand and Vietnam's price offers at $480.80 and $483 a ton, respectively, were higher than the NFA's reference price of $447.88 a ton.

Under the NFA's guidelines, both parties may make another offer within the day, but even the countries' second price offers were still too high at $480.50 and $481.50.

In an interview with NFA assistant administrator Maria Mercedes Yacapin, she said that the agency's reference price-described by traders who talked to the Inquirer as "too low"-were based on the prevailing trends in the international market.

"This is based on our study. We do our own world market monitoring of prices," she said.

Asked whether the failed bidding would affect the arrival period of the imports, Yacapin said they would have to consult the NFA Council.

Under NFA's terms, the volume should arrive in the country in two tranches-the first no later than Dec. 15 and the second must arrive no later than Dec. 31.

An additional 500,000 MT of rice are also set to be procured next week under the open tender scheme, wherein the government will transact with the private sector.

About P18 billion worth of subsidy from the government's treasury is expected to be allocated for the importation program.

Since the arrival of rice imports, rice prices have been going down for four consecutive weeks now and these are expected to decline further with the arrival of more affordable rice.

As of the third week of October, data from the Philippine Statistics Authority showed average retail price for regular-milled and well-milled rice at P45.72 and P48.83 a kilo, respectively. These were lower by 0.33 percent and 0.35 percent from a week ago, but were still higher by 20.22 percent and 15.68 percent from the previous year.

While prices may not go back to its previous levels, the Department of Agriculture is banking on the imposition of the suggested retail price on rice varieties as a measure to tame prices and ease the burden of consumers from high food costs.

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Rice import rebidding fails; prices still easing

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The governments of Thailand and Vietnam did not agree to the reference price set by the National Food Authority (NFA) for the supply of 203,000 metric tons (MT) of rice on Tuesday, which led to the failure of the second round of bidding.

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INELASTICITY
Both consumption and prices of rice in Philippines had increased in the recent years. There is an increase in the total consumption of rice from 2017 to 2018 by 2.22 percent.  As for rice prices, there is an even greater overall increase by more than 10 percent in recent years. The magnitude of price elasticity of rice in Philippines is lesser than 1.
Thus, it can concluded that rice in Philippines is an inelastic good.

As mentioned in the article, poorer families might change the amount of rice they consume due to the increase in rice prices. However, for families that are able to afford the increased price of rice, they would not reduce their consumption for rice.

Explanation:
Rice is considered a necessity in Philippines and it is one of the most widely consumed staple food. Thus, even if there is an increase in the price of rice, the demand for rice will roughly not have much differences or there will be a smaller change as compared to the changes in prices.
Since price increases while demand remains the same, there will be more sellers in this industry, selling the same rice. Hence perfect competition is present
Articles:
https://businessmirror.com.ph/snapshot-of-rice-consumption-data-remains-grainy-as-pinoys-grapple-with-supply-prices/

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The country's rice output this year could rise by 1.6 percent to a record high of nearly 13 million metric tons (MMT) on the back of favorable weather conditions and high farm-gate prices, according to the Food and Agriculture Organization (FAO).

In its biannual food outlook report, the FAO projected that total Philippine milled-rice production in 2018 would reach 12.9 MMT, 200,000 MT more than the 12.7 MMT recorded output in 2017.

"Asia is expected to drive the global production expansion of 2018, harvesting a record 461.9 million tons, up 1.2 percent from 2017," the FAO said in the report published recently.

"Current prospects also point to Cambodia, Indonesia, the Philippines, Myanmar and Thailand producing more in 2018, but the outlook is less buoyant elsewhere in Asia," it added.

Despite the record-high harvest, Manila's rice imports this year would expand by half to 1.5 MMT, from 1 MMT a year ago, as the government seeks to beef up the National Food Authority's (NFA) depleting stockpile and keep retail prices of the staple within affordable level.

"Asian import demand looks set to remain strong in 2018, amid efforts by countries such as Indonesia and the Philippines to shore up reserves and contain increases in local prices," the FAO said.

The hike in the country's rice imports, along with additional volumes purchased by Bangladesh and Indonesia abroad, would sustain the upward trend of the staple's global prices amid currency depreciation in various exporting countries.

"The upward trajectory exhibited by international rice prices since late-2016 held during the first half of 2018, as reflected by the FAO All Rice Price Index [2002-2004=100] rising by another 6 percent since December, to reach 232 points in June 2018. At this level, the index stood at its highest since November 2014, and 11 percent above its value a year earlier," the FAO said.

"The gains have been demand-driven, coming in the aftermath of large purchases by Bangladesh, Indonesia and the Philippines, although in the case of Vietnam, increases tended to be accentuated by tighter availabilities following a shift away from cultivation of lower-grade Indica varieties in the country," the FAO added.

The FAO projected that the Philippines's total year-end rice inventory this year would settle at 2.4 MMT, 100,000 MT higher than the 2.3 MMT recorded stocks last year.

The country's total rice consumption for 2017 and 2018 is forecasted to increase by 2.22 percent to 13.8 MMT, from 13.5 MMT recorded demand in 2016 and 2017, according to the FAO. This indicates that a Filipino would eat 115.2 kilograms of rice in 2017 and 2018, which is 700 grams more than the 114.5 per kilogram per-capita consumption in 2016 and 2017.

In April Agriculture Secretary Emmanuel F. Piñol said the country's unmilled rice or palay production could rise by nearly 3.11 percent to a record high of nearly 20 MMT on the back of higher yield and better farm-gate prices.

"This year rice production is expected to grow by about 600,000 metric tons, stimulated mainly by good palay-buying prices, favorable climate and the increase in the adoption of good quality and hybrid seeds by farmers," Piñol said.

Rice output last year grew by 9.3 percent to 19.28 MMT, from 17.63 MMT recorded in 2016, according to the Philippine Statistics Authority (PSA). The 9.3-percent increase in palay output last year allowed the country to reach a 96-percent self-sufficiency in rice, according to the DA.

"Last year the country posted its highest rice harvest in history at 19.28 million metric tons, which reduced the country's dependence on imported rice from over 2 million metric tons in 2010 to only about 600,000 to 800,000 metric tons this year," Piñol said.

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PHL rice production seen reaching 12.9 MMT in 2018

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The country's rice output this year could rise by 1.6 percent to a record high of nearly 13 million metric tons (MMT) on the back of favorable weather conditions and high farm-gate prices, according to the Food and Agriculture Organization (FAO).

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MARKET CHARACTERISTICS
When we look at the market structure of rice in Philippines, we have to consider the factors such as the number of sellers and buyers in the market, product uniformity , ease of entry and exit and as well as information available in the market.

1. Number of Sellers and Buyers
Rice accounts for 20% of Philippines gross value added agriculture. This shows that rice makes up a considerable portion of the agriculture industry in Philippines.

Rice is also one of the main staple food in Philippines that is most commonly consumed.

It can be inferred that there are many rice sellers and buyers in Philippines.

2. Information in the Market

From the article, we are able to gather many information and statistics about rice prices. Rice prices in Philippines from the past decade is shown in the article. This shows that buyers and sellers have high level and quantity of information.

3. Product Uniformity
According to the article, there are 2 types of rice available in the market and these are regular milled rice and well milled rice. Rice sellers in Philippines mainly supply these two types of rice. There is no differences in the rice supplied by different sellers in Philippines due to the fact that it is an agricultural product. Hence, rice supplied in Philippines by different sellers is exactly the same.

PRICE TAKER
According to the article, Philippines government uses tariff to control rice prices. In addition, buyers have near perfect information about rice prices and supply in Philippines. These factors made rice sellers in Philippines as price takers.

Hence, it can be concluded that characteristics of rice in Philippines resembles a perfect competition market.
http://www.fao.org/fileadmin/user_upload/bodies/CL_149/SideEvents_CL149/Rice/Presentation_RRI-Philippines.pdf

https://www.philstar.com/business/2018/08/03/1839054/rice-prices-remain-high-next-3-years

https://www.philstar.com/headlines/2018/08/22/1844786/rice-prices-8th-straight-month

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MANILA, Philippines - How much a kilo of rice costs has a major impact on how Filipino families eat, or if they will eat at all.

In November 2017, a kilo of rice cost P42.17. This has increased since, rising to P49.37, even to as much as P55 to P66 in some provinces as of the 4th week of September.

Despite the price increases, the President and his spokesperson have denied there is a rice shortage in the country. But should we get worried?

Take a quick look at the numbers and controversies revolving around our staple food.
Rice crises, past and present
Rice available in the market has two types: regular milled rice (RMR) and well-milled rice (WMR). The latter is more expensive, but the prices for both have been increasing since 2007. Rice prices data with the Philippine Statistics Authority (PSA) go back to January 2007 only.

RMR is rice in which 10%-30% of the lengthwise streaks of the bran layer (hard external layer) are still present on the kernel, while WMR has only less than 10% of bran layer presence. In short, RMR is less polished than WMR.

In July 2008, a global rice crisis occurred from January to May. The year started with the WMR retail price pegged at P25.67 in January reaching P39.76 in July. This subsequently decreased to P32.50 in December. Globally, the cost of a ton of rice increased by 300% ($300 to $1,200) in the first 4 months of 208.

A 2009 research done for the Center for Global Development attributed the escalating prices during the crisis to 4 reasons:

government failed to secure adequate amount of stock rice

statements and actions of government officials "encouraged" long lines and hoarding

government set a low buying price for domestic rice during the dry seasons, resulting in low stocks

the National Food Authority's (NFA) decisions "destabilized" both the local and global market

The Arroyo administration in April 2008 launched P43.7-billion worth of agricultural assistance named "Fields" to ensure food security (fertilizer, irrigation, extension and education, loans and insurance, dryers, and seeds).

There was also a spike in rice prices in 2014 during Benigno Aquino III's administration. The year started with increasing prices since May 2013. WMR retail was at P39.49 in January 2014 and reached its highest on September 14 at P44.02. Since then, prices have decreased till January 2018.

The Aquino government resorted to importing 500,000 metric tons (MT) in addition to the 800,000 MT for the year 2014. Rice hoarding also reached 2.3 million MT under Aquino from 2011-2014. At the end of his administration, RA 10845 or the Anti-Agricultural Smuggling Act of 2016 was signed into law.

According to economist JC Punongbayan, the 2008 rice crisis was more global in nature while the crises in 2014 and 2018 were "self-inflicted" due to bad policies and corruption.

According to the rice and corn price index of PSA, as of the 4th week of September 2018, for RMR, the wholesale and retail prices of rice stand at P43.12 and P45.83 per kilo, respectively. WMR wholesale and retail prices were pegged at P46.04 and P49.37, respectively.

Since January 2007, the highest price for retail WMR was felt in the 4th week of September, when it reached a national average of P49.37. For Metro Manila alone, it was P48.

In 2018, the province of Sulu in Mindanao had the highest price of retail WMR at P66 per kilo as of the 4th week of September, almost P17 higher than the national average. Second is Zamboanga del Norte at P58 and third are Mountain Province, Palawan, Bohol, Iloilo, and Southern Leyte, each at P55 per kilo. The cheapest price is in Tawi-Tawi at P34 per kilo.

But with rice shortage, surging prices, and weevil-infested rice, a crisis was again felt in the country.
Do we have enough rice?
The National Food Authority (NFA) is the public agency tasked to store stocks of rice and stabilize rice prices in the country to ensure food security. However, in early April, rice stocks of the agency were " completely gone." During that time, the rice reserve went down to two days' worth of supply instead of 15 days which the NFA is required to maintain.

The NFA rice is subsidized by the government, therefore making it cheaper. Household rice is what people stock for themselves while commercial rice is what can be bought in the market.

To replenish the supply, the agency can buy from local farmers or import from foreign suppliers. The NFA said they cannot buy from local farmers since they would rather sell their yield to other buyers instead of the agency which has a low buying price of P17 per kilo. Selling to private entities can yield as high as P29 per kilo.

Instead, the NFA chose to import 250,000 metric tons of rice from Vietnam and Thailand. The latter delivered 133,000 sacks of rice on August 2 in Subic Bay Freeport Zone.

Later on, the majority of the sacks were discovered to have been infested with rice weevils.

Since 2012, "NFA rice" or the cheaper version of commercial rice reached its lowest stocks inventory level yet in June 2018 according to the agency's Beginning Rice Stock Inventory, reaching up to only 21,000 metric tons.

There was also the issue of weevil infestation. On August 22, NFA authorities said that at least 100,000 sacks of imported rice from Thailand were infested by bukbok or rice weevil.

The NFA said that rice is safe to eat after fumigation. Department of Agriculture (DA) Secretary Manny Piñol even did a demo on live television on August 31, showing that eating the rice is safe.

The President initially denied the problem of rice shortage and said there is "ample" rice supply. He later admitted that prices of goods, particularly rice, have increased and suggested ancient barter trade as a solution.
Is rice still affordable?
While denied by Piñol, there are reports of the price of rice reaching as much as P70 per kilo in Zamboanga City. Rice prices have been on a steady increase since the start of 2018. (READ: Rice prices soar as Duterte marks 2nd year in office)

This could be traced back to low supply and the administration's Tax Reform for Acceleration and Inclusion (TRAIN) law as mentioned by a 2018 study by the Philippine Rice Institute (PhilRice) under the DA. The study found that operational expenses of farmers increased (including the cost of gasoline used for machines), while decreasing profit by 10%.

An increase in operational expenses leads to an increase in market price as well.

The PSA announced that the inflation rate which hit a 9-year high of 6.7% in September also affected rice prices.
How do leaders propose to solve the crisis?
The crisis has elicited various solutions from lawmakers and experts. (READ: Taming rice prices: What lawmakers, experts say)

House Speaker Gloria Macapal Arroyo wants to import more rice and file charges against smugglers, which is different from Piñol's suggestion of legalizing rice smuggling.

Senator Cynthia Villar proposes to declare a state of calamity on rice, impose price controls, and put a high tariff on high imports while providing subsidies to local farmers to make them competitive with foreign suppliers. A tariff is a payment on imports or exports that enter and exit a country's market.

There are also calls to abolish the NFA and fire its executives, along with Piñol.

On October 8, 2018, President Rodrigo Duterte decided to greenlight the lifting of restrictions on rice importation following a "fierce" discussion between Piñol and Finance Secretary Sonny Dominguez during a Cabinet meeting.

Dominguez reportedly pushed for lifting restrictions, while Piñol wanted to impose an obligation for rice to be sold at certain prices. - Rappler.com

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FAST FACTS: Rice prices in the Philippines

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MANILA, Philippines - How much a kilo of rice costs has a major impact on how Filipino families eat, or if they will eat at all. In November 2017, a kilo of rice cost P42.17. This has increased since, rising to P49.37, even to as much as P55 to P66 in some provinces as of the 4th week of September.