ECONOMIC of RICE

 Rice Tread

We import rice to support the demand of the country’s growing population. Also, we export rice because there is surplus in rice. We export special rice varieties with are of good quality. These can be sold at higher prices.

            Quantitative restriction- refers to a limit in the volume of rice that our country can import and sell at the market at current prices.

            Tariff- is another made of trade protection. It is a form of imposed on the imported rice to equalize its price with that of domestic ones, making the latter competitive to the farmer.

Gatt

          The General Agreement on tariffs and trade is an agreement between states and other entities on the rules for trade. It is the foundation of the World Trade Organization Trading System.

            Farmers have to sell their palay immediately even at law price to buy food for their family to provide their education or heath and medical needs and to pay their depts. Millers have to mix. What they get first to make their milling operation efficient.

Lending

          Farmers borrow money from the informal sector because of the faster and timely releases of icons. But informal lenders change as high as 20% interest rates to cover the first of not being able to called payment from the borrowers.

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