Rice Distribution Structure: The Reality or Political Propaganda of Php 20.00/Kilo Price of Rice in the Market?

This multi – phased case study research principally aims to investigate the possibility of attaining the Php 20.00 per kilo price of milled rice in the market. The study explores the nature and structure of the Supply Chain distribution of Rice, tracing the changes in the level of prices in Pampanga. Relevant Quantitative cost data were derived from 10 farmers in Pampanga, who are farming land from 1 to 2 hectares. Other relevant data that make up the distribution system of rice in the market were sourced from the interviews conducted with agents, millers, wholesalers and retailers in the province. Secondary data from related literature, government and other agencies in agriculture and cooperatives were also interviewed for the needed data in the study. Results show that the estimated total cost of milled rice is Php 17.17 (manual) and Php17.28 (tractor), without yet the mark-up for profit, taking into account that farmers take the role of producers and sellers to end- users. If farmers choose to sell their produce at Php 20.00 kilo, the estimated profit is total to Php 8,490.00 (manual) and Php 8, 160.00 (tractor) for one hectare of land in one cropping which falls under the income range of Filipino families living under poverty threshold. Thus, satisfying the call for Php 20.00/kilo of rice, will further sink the Rice farmers’ families into the pit of poverty. The study recommends that the Department of Agriculture encourage the concept of direct marketing by the farmers themselves and look for ways to further decrease the actual cost incurred in production to retailing of rice.