Economic analysis of certified seed-usage in rice production in the Philippines
2000
Francisco, S.B. | Casiwan, C.B. (Philippine Rice Research Inst., 3119 Maligaya, Munoz 3119 Nueva Ecija (Philippines))
Most of the rice farmers in the country are still using homegrown seeds or farmers' home saved seeds exchanged with other farmers. A survey of rice-based farm households in 30 strategic rice areas showed that although nearly 100% are using modern rice varieties, less than 20 percent are using quality seeds. In addition, the average seeding rate is more than 150 kilograms per hectare. This study presents the farm-level profitability analysis of using certified seeds, and a cost-benefit analysis of providing seed subsidy to increase certified seed-usage in the country. Analysis shows that use of certified seeds has a 15% yield advantage. This will result to an aggregate additional production of more than one million metric tons enough to cover the highest importation we have had (except in 1998). The aggregate benefit is about P9 B with a cost of more than P2 B if the seeds are directly subsidized. This level of investment required for the government is about 3% of the GVA of palay
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