PRICE HIKE OF RICE AND ITS EFFECTS TO THE CONSUMER IN PUBLIC

MARKET OF IRIGA CITY.

A Research Study

Presented to

The Senior High School Department of

ACLC CLLEGE OF IRIGA, INC.

2/F JASACA Center, Highway 1,

San Miguel, Iriga City

In Practical Fulfillment of the

Requirements in

Inquiries, Immersion, Investigation

Researchers:

Barroga, Clydie Queen

Bigcas, Kimberly*

Chavez, Jose Mark Louie*

De lima, Kaye

Estaniel, Jommel

Magpantay, Guilrose
Nacario, Paul Christopher

Tagum, Leo Jhay*

Regala, Chris Ann

 TABLE OF CONTENTS

CHAPTER I

THE PROBLEM AND ITS SETTING

IntroductiIon _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1

Setting of the Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _2

Statement of the Problem _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3

Assumption of the Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __4

Significance of the Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __5

Scope and Delimitations _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ 6

Endnotes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7

CHAPTER II

REVIEW OF RELATED LITERARTURE AND STUDIES

Review of Related Literature (Foreign) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8

Review of Related Literature (Local) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _9

Review of Related Studies (Foreign) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10

Review of Related Studies (Local) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 11

Synthesis of the State-of-the-Art _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 12

Gap Bridged by the Study _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Theoretical Framework _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Conceptual Framework _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Definition of Term _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Endnotes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

CHAPTER III

RESEARCH DESIGN AND METHODOLOGY

Research Design _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Sources of Data _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Population of the Study_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Research Instrument _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Validation of Research Instruments, Data Gathering Process &Statistical Tools _ _ _ _ _

Endnotes _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
 CHAPTER IV

PRESENTATION, ANALYSIS, AND RECOMMENDATION OF DATA

Table 1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _

Table 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Table 3_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Table 4_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Figure 1_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Figure 2 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Summary of Findings, Conclusions & Recommendations 1 & 2 & 3 _ _ _ _ _ _ _ _ _ _

Summary of Findings, Conclusions & Recommendations 4& 5 _ _ _ _ _ _ _ _ _ _ _ _

Bibliography_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _

Appendices_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _

Appendix A_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _

Appendix B _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Curriculum Vitae_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
 ACKNOWLEDGEMENT

With the guidance from the Holy Spirit and the encouragement and assistance

from so many helpful and kind people, this research study has finally seen the light of the

day. Among the greathearted people who provide much needed encouragement and

support, the researchers would like to acknowledge the following very special people:

To our Parents/Guardians, for being so considerate for their unending support

and guidance, morally and financially that contributed a lot to finish the research study.

To the Classmates/Friends, for comforting words, cheer optimism and

reassurance for the completion of this work.

To the Respondents, selected students, of ACLC College of Iriga Inc. For their

cooperation and support, for honestly answering the questionnaire prepared by the

researchers.

To Mr. Danilo Ramirez, our 3 I’s teacher, encouraged the researchers to pass it

within the period of time, for guiding and correcting our mistakes, for sharing her

knowledge and suggestions to improve our research.

And also to our Almighty God, for giving us strength and knowledge to make

this research successful and giving us patience while we were busy doing this kind of

activity.
 ABSTRACT

PRICE HIKE OF RICE AND ITS EFFECTS TO THE CONSUMER IN PUBLIC

MARKET OF IRIGA CITY.

 CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

Rice is life. Cultivated in 144 million rice farms across all continents except

Antarctica, rice provides nourishment to almost half of the population worldwide. The

human intake of rice is about 78% of the total rice produced globally, higher than wheat

and maize; thereby providing 19% of human per capita energy and 13% per capita

protein in 2009 (GRiSP, 2013). Thus, it is hard to imagine dining without rice since it is

considered to be the staple food for the greater population in the world.

Culturally, rice has been part of human social systems. Rice cultivation employs

laborintensive processes which involve men and women working together to reap better

harvests. Spiritual and cultural activities also involve the use of rice in its various forms,

like rice bread, porridge, and cake, used in West Africa for weddings and funerals.

Festivities before and after rice cultivation are also being done to ensure a bountiful

harvest.

Rice farming is a major economic activity in the rural areas, especially in

developing countries. Many farmers depend on rice as a major source of income and

food. Rice is also transformed into different products for further profitability and use.

Glutinous rice is used to make sweets and other delicacies. Alcoholic beverages can also

be made from rice like beer and wine in China, Japan, and the Philippines. Medicine and

cosmetic products can be made from different varieties of rice, and is being done in

Japan, Korea, the Philippines, and Thailand. Milk for lactose intolerant people can also
be produced from rice, and is being improved in the United States and Thailand. Rice

bran is used as livestock feed and pickling medium. The hulls and husks are used for fuel,

as bedding material, seedbed medium, and in some textile products. Rice straw is also

used as roofing material, fuel, and fertilizer.

However, a number of challenges and issues beleaguer the rice industry. This

includes insufficiency and low productivity, impacts of climate change and extreme

weather events, importations and international commitments to the global trade regime,

lack of financial resources and access to modern equipment, and the persistent presence

of rice cartels and hoarders. Still, rice farming remains significant to the Philippine

population, both for food and income. A number of opportunities are already available

and some are about to unfold. Climate change resistant varieties are already available,

and are also being improved; the practice of organic farming is at hand, and

advancements in technology through research and development enhance the chances of

farmers to achieve better income, and consumers to receive quality rice products. With

policy reforms sustained by ample budgetary support from the government, the promise

of a rice self-sufficient- and food secure- Philippines is at hand.

Based on archaeological evidence, rice could have already been cultivated in the

Philippines as early as the second millennium B.C. The Cordillera rice terraces are

believed to have been constructed 2,000 to 3,000 years ago (de Leon, 2012). In

Southeast Asia, rice was originally grown in dry land areas before it occupied river

deltas; migrants from Southern China or perhaps northern Vietnam carried the tradition

of wetland cultivation to the Philippines during the second millennium B.C. (GRiSP,

2013
Setting of the Study

Public Market of Iriga rests as its commitment to service the clients or consumer through

the provision of our environment where there would be helpful to the consumer and to

support all the needs, to an active role in marketing and supply of the goods through the2

help of the Local Government Unit.

The Public Market of Iriga is located at San Francisco, Iriga City, province of

Camarines Sur. The Public Market located near at the different establishments of store

and fast food chain, including LCC, Jolibee, Chowking and etc.

Statement of the Problem

This study aimed to determine the effects of price hike of rice to the consumer in

public market of Iriga City. This study answers the following questions.

1. What is the demographic profile of respondents in terms of:

a. Name (optional)

b. Age

c. Sex

d. Civil Status

e. Educational Attaintment.

f. Occupation
 g. Monthly Salary,( of parents if not yet working)

2. How many members of the family are the respondents within the household?

3. What are the other alternatives they used as a substitute for rice?

4. What are the solutions suggested to solved the problems regarding the effects of

price hike of rice to the consumer in public market of Iriga City?

Assumptions of the Study

3
The following assumptions are made regarding to this study.

1. That the respondents profile may vary in terms of Age, Sex, Civil status,

Educational Attaintment, Occupation and Monthly Salary.

2. That there are problems perceived by the consumers regarding to the inflation rate

3. That there are continuously effects of price hike to the consumer.

4. That there

5. That there suggested solutions or recommendations that can help to solved the

problems regarding the effects of price hike of rice to the consumer in public

market of Iriga City.

Significance of the Study

The result of this study will help the following in widening their knowledge to

solved the problems in continuously increasing of the primary needs including the rice;
the mostly benefited by this is the household consumers and the merchandiser .

Moreover, this could contribute and offer new knowledge, skills and ideas in this area: .

Consumers: This study will show them the effective way of being a sapient consumer

and this will also give them idea on how to support all their needs properly.

Farmer: The findings of this study will be gaining insights to help the farmers in

effective and efficient way of farming and supplying rice to the consumer.
4
Governmnet: This study will be the basis if the country is really prepared for a big shift

in Rice Production and also this will identify if this system really offers opportunities for

the consumers and national economy.

Researcher: This refers to the students conducting the study. This study will inspire the

researcher to be more innovative and carry out the programs of the Government.

Future Researcher: This research will help them as their guide or framework that could

contribute additional information and ideas if they will also make the same study.

Scope and Delimitation

This study is conducted to investigate the effects of price hike of rice to the

consumer in public market of Iriga City. The study will be conducted in selected 10

consumers among the merchandiser and consumers in the city of Iriga. The researchers

will provide questionnaire to the respondents to gather the data that will contribute to the

study.

This study will also aim to identify if the respondents are agree about the system

that the Government has implemented, nowadays. The topics that will be discussed in
this study are the problems of the consumer regarding to the price hike of rice, and the

possible solutions or recommendations to solved the program among the respondents.

5
 Endnotes

Barrett CB, Li JR: Distinguishing between equilibrium and integration in spatial market
analysis. Am J Agric Econ 2002, 84(2):292–307. 10.1111/1467-8276.00298

Chan LY: Price instability in the international rice market: its impact on production and
farm prices. Dev Pol Rev 1997, 15: 251–276. 10.1111/1467-7679.00035

Chand R: International trade, food security and the response to the WTO in South Asian
countries: discussion paper No. 2006/124. Helsinki, Finland: UN University-World
Institute for Development Economics Research (UNU-WIDER); 2006.
 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents and discuss the various theories, concepts, research findings 6

and output from both foreign and local perspective which are relevant and supportive to

the proposed study.

Foreign Literature

Price transmission 

Price transmission in developed countries

The link between agricultural commodity prices and consumer food prices

The rise in the volatility of world agricultural commodity prices in recent years has been

followed by the increase of the variability of food price inflation in developed countries.

The rise of agricultural commodity prices translates into a rise of food prices at the

domestic level. The literature suggests that the relationship between world commodity

prices and domestic prices can be weak (McCorriston, 2012) and that the relationship

between world agricultural commodity prices and domestic producer prices appears to be

stronger than that between international commodity prices and retail prices in the United

Kingdom (UK) (Davidson et al 2011). A similar finding holds for wheat in the UK,

France and Poland (Lloyd et al 2012). In addition, and according to these authors, the

prices of raw agricultural commodities tend to be more volatile than food retail prices.

According to Apergis and Rezitis (2011) higher food prices translate into higher inflation.
So the link among the two is obvious and will depend on the process of price

transmission in which many factors are involved.

It is well known that price shocks pass through to consumer prices to a given extent

(Ferrucci et al 2010). Consumers do not purchase agricultural commodities at world

prices (Dewbre et al 2008), but purchase processed consumer products at retail prices.

The degree to which both prices are related depends on horizontal and vertical price

transmission (Ferrucci et al, 2010; Lloyd et al 2012). The impact on consumers depends

on the extent of price passthrough from agricultural commodity prices to retail prices and

this transmission is usually not complete limiting the impact of food price volatility

(Gilbert and Morgan, 2010).

Horizontal price transmission refers to the co-movement of prices between spatially

differentiated markets at the same stage of the supply chain (spatial price transmission)

oracross different agricultural or non agricultural commodities markets. Non agricultural

markets may concern as well other commodities or financial markets (Listorti and

Esposti, 2012). The transmission of prices across borders does not require physical flow

of goods and services, the flow of price information is sufficient (von Braun and Tadesse,

2012). This relates to the extent to which markets are integrated, and in the case of price

transmission from world agricultural commodity prices to food consumer prices to the

extent to which world and domestic markets are integrated (Lloyd et al 2011).

According to Dewbre et al.  (2008), world to agricultural domestic prices will be

completely transmitted only if countries maintain open borders and do not intervene

actively in commodity or exchange rate markets. Second, vertical price transmission

refers to the price linkages along the supply chain. These depend on the magnitude, speed

and nature of the adjustments which take place along the supply chain to respond to

market shocks (Vavra et al 2005).

Commodity raw material is processed to different degrees until it reaches consumers,

adding different services (Lloyd et al 2011). Commodities typically make up only a small

share of processed food in developed countries, so the volatile or high agricultural

commodity prices are expected to be translated into consumer food prices to a lower

degree, due to the fact that the share of agricultural raw materials in food production costs

is small (European Commission (EC), 2008). The share of the commodity in final

consumer food prices is lower, as the extent of processing increases (Dewbre et al 2008).

According to these authors agricultural products´ prices represent on average 25-35% of

the final price paid by consumers in developed countries. Table 1 shows the share of farm

value in consumer prices of food in the UK and the United States (US). There are

significant differences between products. While the share of wheat of the price of a white

loaf slice accounts for only 11% in the UK, the share of the agricultural value of milk can

exceed 50% in the US.

According to the International Monetary Fund (IMF) (2008b), domestic production costs

play a very important role in the magnitude and speed of the pass-through to retail prices,

especially in developed countries. Labour, transportation and retailing costs account for a

large part of production costs, while the share of commodities in production costs may be

modest in relation (IMF, 2008b).

 Apergis and Rezitis (2011) note that the fact that persistent food price increases

will translate into higher inflation can lead to higher wages and inflationary expectations,

as well as reduced real consumption, savings and investments, which in turn can

contribute to slow down aggregate demand.

Recent developments in food price inflation

Although most of the literature that assesses the impacts of food commodity

prices on consumers focuses on international food prices of commodities, these impacts

are best measured by changes in the food component of the consumer price index (CPI),

which accounts for changes in the prices paid for food products by consumers (Dewbre

at al 2008). Heady and Fan (2010) agree on the fact that the food CPI approximates better

welfare costs, especially if it is deflated to measure real food price movements.

Yet, Dorward (2011) states that there is a "downward bias in estimated real food-price

changes for low-income groups when these are calculated using a CPI calculated for

higherincome groups" (p. 650).

Changes in CPIs affect the real purchasing power of consumers and their welfare. The

change in the cost of living is defined to know the additional income that consumers will

need to compensate changes in prices (Boskin et al 1997). The European harmonized

index of consumer prices (HICP) is calculated according to a harmonized approach and a

single set of definitions in European Union´s (EU) Member States (MS), making it easier

to compare price developments between them. The basket of goods and its weighting are
updated regularly based on budget household surveys and other sources, in order to

reflect changes in consumer patterns (European Central Bank (ECB), 2012).

Following the 2006/2008 commodities price shocks, core inflation, which excludes food

and energy prices, continued to be generally stable in advanced countries, although it

increased in the rest of the world (IMF, 2008b).

Busicchia (2013) examines food price fluctuations and developments related to

international shocks and how food price inflation is managed in Australia, France and the

UK. While food consumer prices did not undergo a sharp rise in these countries, they

remained high even though world agricultural commodity prices decreased in 2009.

Busicchia (2013) notes that in the EU the rise of international agricultural commodity

prices was rapidly followed by rises in food producer and consumer prices but the easing

of international commodity prices did not spill over domestic food producer and

consumer prices. Both producer and consumer prices took more time to stabilize (around

6 months for producer prices and one year for consumer prices) and at a higher level

(10% higher for consumer prices) (Busicchia, 2013).

In the face of the global rise of food commodity prices, Lloyd et al (2012) review the

developments of food price inflation across the EU. These authors note that in OECD

countries general inflation volatility begins to rise from the mid-2000´s onwards. When

looking at food price inflation - a part of general inflation - in the EU they see that it is

higher and more volatile than non-food price inflation. Figure 1 reports overall and food

inflation developments in the EU for the period 2000-2011, showing that food inflation

volatility is considerably higher than that of overall inflation.

 According to Lloyd et al (2012), food price inflation has been higher and more

variable in the EU than in Japan and tends to be more similar to that of the US. These

authors note that changes of food price inflation differ significantly across MS, in level

and variability. Most countries experienced high levels and variability of food price

inflation from mid-2007 onwards. Many of the recently acceded MS presented also high

and volatile food price inflation over the 1990s and 2000s during the transition period,

which distinguishes them from the EU-15 MS.

In addition, Bukeviciute et al. (2009) find that there are significant differences between

MS both in the magnitude of pass-through of agricultural commodity prices to consumer

food prices and in the transmission of price asymmetries. This may be potentially due to

the fact that markets in the EU MS are fragmented.

These differences give rise to important issues, such as the factors which determine the

dynamics of food price inflation across different countries (Lloyd et al 2012). In this

background, the case of the EU MS needs special attention because even in the context of

common trade and agricultural policies and the existence of the single market and

common monetary and exchange rate adjustments in some countries (Lloyd et al 2012),

as happens in the EU, the EU still presents significant differences between MS. These

authors mention as potential reasons for these disparities between MS the following: (a)

the relative exposure of the different MS to world shocks, which depends on their

reliance on imports; (b) the exchange rate, referring to the currencies used in each MS

(whether the MS uses or not the euro); (c) the imperfect pass-through of exchange rate

changes; (d) and the nature of price transmission, related to differences across MS in the

shares of raw commodities in food costs, market power or market structure.

Larger increases of food price levels occurred in the recently acceded MS after the

2006/2008 commodity price rise (Bukeviciute et al 2009). These may be due not only to

the higher levels of wage and price inflation in these countries but also to market

conditions and to the greater weight of agricultural commodities in food production costs

(Bukeviciute et al 2009). In this sense, and according to these authors, consumers in the

more recently acceded MS will be more vulnerable to increases in agricultural

commodity prices. Besides, the share of food in household consumption is typically

higher in these countries, and so will be the contribution of food price inflation to general

inflation.

Food price inflation followed a decreasing trend in practically all MS after peaking in

2008. Following the decline in agricultural prices, in some countries food price inflation

adjusted rather quickly while in others it took more time to react (Bukeviciute et al 2009).

Price transmission in the European Union

Historically, world prices of certain commodities largely produced in the EU have

been lower and substantially more volatile than those of the EU (Ferrucci et al 2010).

According to these authors this can be due to a large extent to the Common Agricultural

Policy (CAP), which has traditionally mitigated price transmission of world agricultural

commodity shocks into the EU. But no longer does it, due to the sharp rise in world

agricultural prices and in certain occasions to the decrease in guaranteed prices that have

occurred in the EU (National Bank of Belgium, 2008).

Different studies have evaluated the pass-through from agricultural commodity prices to

food consumer prices in advanced economies, showing a rather weak relationship

between both series of prices (see for example IMF, 2008a1 and IMF, 2008b2).

The National Bank of Belgium (2008) studied inflation and price level

developments in processed food in Belgium and in the Euro Area, indicating that the food

price rises in the second half of 2007 were related to the 2006/2008 increase in

agricultural commodity prices but consumer food prices presented a less marked increase

than commodities due to the fact that they comprise a small part of consumer prices.

Bank’s researchers used vector autoregressive models (VAR) (see Sims (1980) for

origins of this) to describe the dynamic relationship between firstly, international food

commodity prices and EU producer and consumer prices for the product categories which

increased their prices at the end of 2007 - milk, cheese and eggs, oils and fats and bread

and cereals. And secondly, EU internal market prices and EU producer and consumer

prices for the same product categories. They find that the internal market price is the

appropriate variable for evaluating developments in processed food prices in Europe

instead of the world market price. Using internal market prices rather than commodity

prices, they see that the growth in inflation in the milk, cheese and eggs category in

Belgium and in the Euro Area is due to the increase in prices of skimmed milk powder on

the internal market, which in turn are more responsive to developments in world prices

than in the past. In the oils and fats category, the developments of consumer prices in

Belgium are due to the higher prices of butter on the internal market. In the Euro Area,

inflation of the oils and fats category is lower, as the higher prices of butter are offset by

negative contributions from the fall in olive oil prices in the internal market. In the bread
and cereals category, the developments of consumer prices in Belgium are due to shocks

to the internal market price of wheat, but also to upward shocks concerning producer and

consumer prices. IMF (2008a) notes that the pass-through from world to domestic food

inflation has strengthened in Europe´s advanced economies since the mid-1990s,

nevertheless the pass-through to core inflation is small for most countries. According to

the author, a possible explanation for the larger pass-through could lie on the reforms that

the CAP has undergone. The impact on food price inflation in some of Europe´s

emerging countries is larger, estimating that around 10% of the volatility in domestic

food prices are due to fluctuations in world food prices. 2 IMF (2008b) shows that the

pass-through from international to domestic food prices and from domestic food prices

into core inflation was much higher in emerging economies than in advanced economies

and that about one half of the shocks to domestic food prices passes through to core

inflation in emerging economies, while less than one quarter passes through in developed

countries. This is consistent with the differences in the share of food in consumption

baskets and the relative importance in production costs between developed and

developing countries.  

Ferrucci et al (2010) extends the National Bank of Belgium’s analysis and argue that the

study of the price pass-through from international to domestic prices in the Euro Area has

to take into account the distortions introduced by the CAP, as a way to obtain a

statistically significant pass-through. They use VAR models which investigate the

relationship between commodity prices, producer prices and consumer prices for

different food categories. Ferrucci et al (2010) find that a product specific approach

shows important differences in the pass-through for the various food categories. Lastly,
when testing the extent to which the sharp increases in retail prices were due to the

2006/2008 rise in agricultural commodity prices, they point out the strong influence of

EU agricultural commodity prices on consumer food prices.

Porqueddu and Venditti (2012) analyze the relationship between agricultural commodity

prices and consumer food prices in the Euro Area and test whether consumer food prices

respond asymmetrically to agricultural commodity prices. They extend the study of

Ferrucci et al. by including the analysis of the price pass-through in Germany, Italy and

France to test whether there are significant differences in the price pass-through between

MS. It differs from the approaches of the studies by National Bank of Belgium and by

Ferrucci et al. in that it does not include producer prices. They find that food prices in the

Euro Area are affected by commodity prices and emphasize considerable heterogeneity

across countries and products. At the country level, consumer food prices are generally

more responsive in Germany than in Italy and France. These authors note that a recent

study suggests that different features of the distribution sector might play a role in these

different patterns between countries (see ECB, 2011). At the product level, oils and fats

and milk, cheese and eggs consumer prices respond more strongly to commodity shocks

than bread and cereals and coffee, tea and cocoa.

Gabrijelcic et al (2012) assess the extent of pass-through of food commodity prices to

consumer food prices in Slovenia using world, EU and Slovenian commodity prices.

They show that the shock in food commodity prices in 2010/2011 affected the rise of

Slovenian food prices to a larger extent than that of 2007/2008.

Davidson et al (2011) address the issue of modeling other factors that may drive food

prices, apart from world and domestic producer prices, using a cointegrated VAR model.

They find that the main drivers of UK food inflation are world commodity prices and the

dollar/pound exchange rate, while manufacturing costs, unemployment and earnings are

less important. Oil prices also affect retail food inflation, but indirectly due to its impact

in world agricultural commodity prices. In this case, authors find a link between world

commodity prices and retail  prices and show that the effect on domestic food inflation

depends on the duration of the shocks on world commodity prices.

Finally, Apergis and Rezitis (2011) assess the behavior of food price volatility and

whether the short-run deviations between relative food prices and specific

macroeconomic factors have effects on food price volatility in Greece using GARCH and

GARCH-X models. The results show that there is a significant effect of the deviations on

the volatility of relative food prices, implying greater uncertainty about future prices and

market risks. According to these authors, increased food price volatility can reduce the

precision of producers´ and consumers´ forecasts of prices and reduce their welfare.

The non-linearities in the transmission of prices

In asymmetric price transmission, the transmission of prices varies according to

whether prices are increasing or decreasing (Meyer and von Cramon-Taubadel, 2004).

According to Stigler (2011), volatility presents asymmetric behavior because positive or

negative shocks can have different impacts on the market. Price increases generate higher

volatility than price decreases.

Bukeviciute at al (2009), when studying the pass-through from farm prices to consumer

prices in the EU, find that the magnitude of the transmission is similar in the case of a

price increase and a price decrease in the Euro Area. But in the recently acceded MS the

magnitude of the pass-through of producer to consumer prices is greater when prices rise.

According to the EC (2009), food processors and distributors reacted in a slower and

weaker way to the decrease in agricultural commodity prices than to the rise of

2006/2008. This may have had negative effects on the food supply chain, according to the

author, because consumers cannot benefit from lower prices and it curtails the recovery

of commodity prices due to decreased demand for food products.

Ferrucci et al (2010) hold that another reason for not finding a stronger relationship

between world food commodities and consumer prices in the Euro Area, apart from the

need to take into account the CAP, is the fact that the pass-through between prices may

be non-linear and depend on the sign, size and volatility of the shock. They find that non-

linearities are statistically significant, and therefore ought to be considered for in order to

measure more accurately the effect of commodity price shocks on consumer prices. The

non-linear specifications perform better than the linear specification and result in a higher

economic pass-through of variations in commodity prices to consumer prices. The

specification that takes into account volatility is preferred for most of the disaggregated

products - cereal, coffee, fats and meat.

According to Ferrucci (2012), this may be due to the fact that price uncertainty depends

on the specific food product and may not be captured properly by an aggregate approach.
However, Porqueddu and Vendetti (2012) find very little evidence of asymmetries,

except for some evidence of asymmetries in the case of milk, cheese and eggs and oils

and fats in Germany.

Belgium and Euro Area

"The effects of the food commodity price increase recorded since mid 2007 have

been substantial, by historical standards. The main reason is that the CAP no longer

smoothes out world market price fluctuations" (p. 10). 

National Bank of Belgium (2008)

Euro Area Cumulated impact of 0.33% on food consumer prices in the fourth quarter

after a unit shock to commodity prices in linear specification. Large differences across

food items (from 0.01% for sugar to 0.74% for dairy products) Non-linear specifications

yield on average higher elasticities, for example: Cumulated impact of 0.35% on food

consumer prices in the fourth quarter after a unit shock to commodity prices in the non-

linear specification which takes into account the volatility of commodity prices. Large

differences across food items (0.24% for cereals, 0.14% for coffee, 0.74% for dairy,

0.22% for fats, 0.31% for meat and 0.00% for sugar).

Ferrucci et al. (2012)

UK Long-run effect of 10% increase in world agricultural prices associated with 6.34%

increase in retail food prices "A 10% increase in world agricultural prices lasting for one

month will increase retail food inflation by 0.28% while the same shock lasting for 18

months will increase food price inflation by 2.42%" (p.3)

Local Literature

According to de Leon (2012), rice used to be grown in the uplands “as a

component of shifting and subsistence farming”. During pre-colonial times, rice was

most commonly produced in the uplands through dry seeding. Eventually, rice culture

spread to the lowlands along the coastal areas and riverbanks. Those producing rice in the

lowlands transplanted seedlings to the soil but since the water could not be controlled, the

rice plants were always in danger of getting drowned (Aguilar, 2008).

Rice, as a wet season crop, is planted in June and harvested in November to

December (de Leon, 2012). This is to make the growth phases of the rice plant and their

corresponding water needs synchronous with the amount of rainfall during the period.

Figure 3 shows how much rice was produced and the amount of area it took to produce

rice.

According to Intal and Garcia (2008), nearly two-thirds of the land for rice

cultivation is cultivated by tenants under a shared cropping arrangement. This means that

as payment for the use of land, the farmer pays a certain percentage of the harvest to the

landlord. However, when the produce is not enough especially during crop failure, the

farmer acquires financial resources from the landlord, traders, and other lending

institutions in order to purchase inputs to production and for other needs. This is usually

interest-bearing and will be further subtracted from the harvest.

Foreign Studies

A continuous substantial rise in the general price level is injurious for

community's socio-economic interest, both in terms of current welfare and future

economic development. Consumers' real disposable personal income and

consequently their spending capacity are significantly affected by the change in

prices. During the regime of the last caretaker government (CG), the prices of

essentials have escalated day by day. The life of the low income and middle income

group has affected very much because of the rising trend of the prices of the

essentials. The consumers have either bound to cut their expenditure or lend money

to manage their excessive expenditure due to price hike.

Govemment was blaming the 'syndicate' of businessmen for artificial price

hike. They tried to identiff the responsibles and to encourage the other businessmen

to take initiative to overcome the situtaion. Experts are saying that the drive of the

CG against the importers in the early months discouraged the importers and

businessmen. The drive was made for illegally holding rotten foods and grains in

their godowns, many staffs and executive of different companies were alrested then.

Later the CG tried to ensure the businessmen not to take any drastic action against

them. But the response was not satisfactory for long time. Experts also blame the

uprooting of the temporary hats and bazaws by the CG in its drive to clean the

illegal temporary structures. That may disrupt the distribution chain of supply of

the different food items in the country. The CG didn't continue the cleansing

program further. In the budget of June 2007,the Finance Adviser withdrew taxes

from the import of essential items and tried to give support to our farmers in many
ways. Interestingly, the price of the items from which the tax was exempted, didn't

go down even after the budget. The Finance Adviser put the question to the business

leader also. In response, the business leaders also demanded punishment to the

wrongdoers. It is also found that prices of the local commodities at the production

level are low but increase many fold at cities and towns at the consumer end.

Authority identified this as the maneuver of the middlemen and is trying to address.

Govemment is also increasing the number of the wholesale markets and retail

markets in the capital and other parts of the country. Government's most recent

move is to engage Rapid Action Battalion (RAB) to monitor the market.

Year-2007 recorded high economic fallout with price lines of essentials

keeping a high inflationary pressure. The English calendar year ended with mass

agony. Height ended inflationary pressure caused the soaring price hike. Measures

failed to stave off fire in the consumers market. Less entrepreneurship development

marked lives with unabated crises with supply stress offood and non-food items. The

new regulation failed to show maximum flair in the backdrop ofstrongly chained

trading syndicates. Low income generating avenues bore all the burnt ofthe

sluggishness. It touched all sections oflives. Price hike ofessentials challenged the

new regulatory leadership. It was a great failure ofthe interim regime. The level

playing field in politics and socio-economic areas happened to topple down. It took a

bearing tool in living standard ofpeople.

The overall inflation rate was 11.21 percent in November 2007 (BBS, 2007),

which was the highest in last twenty years in Bangladesh. Inflation on food item was

also alarming in the year 2007 reaching 13.80 percent in November from 6.65
percent in January (BBS, 2007). It means the overall price of food product has

become doubled in less than one year. According to Bangladesh Bank, average wage

increase was 4.5 percent in the financial year 2006-07 (Bangladesh Bank, 2007).

Considering this account inflation has increased three times higher than ayerage

wage. Inflation has decreased the real income of the limited income people

Local Studies

“The increases in the price in the local market is one of the major reasons for the

spike in hunger incidence during the period. Another key factor affecting hunger

incidence is the availability and the quality of jobs,” Dr Dennis Mapa of UPSS said on

Wednesday, September 23, in the symposim “Towards Zero Poverty.” Data from the

government and private institutions showed a “very slow reduction” in hunger incidence

in the last 5 years. According to the Philippine Statistics Authority (PSA), the percentage

of “extremely poor” Filipinos decreased slightly from 10.9% of the population in 2009 to

10.4% in 2012.These, despite the fact that the country had experienced “respectable”

growth in its gross domestic product (GDP) from 2010 to 2014 under the Aquino

administration. (READ: SONA 2015: The state of agriculture, fisheries under Aquino)

Rice inflation

According to the study, the rise in the price of rice affects the poorest Filipino

families. The price of rice, considered a staple in most Filipino households, had been

steadily increasing the past years. Inflation, Mapa said, should be checked on two levels.
“We only focus on headline inflation when we should also be looking at the consumer

price index (CPI),” he added. 

The CPI looks at inflation in reference to the poorest 30% of Filipinos. For example, the

study found that inflation rate among the poorest 30% in the 3rd quarter of 2008 was

19.3% compared to the headline inflation of 13.9% that was reported. Mapa said this is

because poor families spend 70% on food, with 23% of that expenditure spent on rice,

while families in the middle and upper classes spend only 30% on food.

“The shock in the rise of the price of rice in a quarter increases the total hunger incidence

in the next quarter,” Mapa, citing the study, said.

The study noted that the impact of the change on the price of rice on hunger incidence

almost doubled after the global rice price crisis in 2008. (READ: The problem with rice)

Job misery index

The study also found a relationship between job misery index (JMI) and hunger

incidence. 

JMI is considered the sum of employment and unemployment rates. It looks at both the

quantity and quality of jobs. 

As in rice inflation, an increase in the JMI in one quarter leads to an increase in hunger

incidence in the next quarter, the study found. The country’s high JMI also means that a

large percentage of labor resources are underutilized.

Innovations in rice
FIGHT AGAINST POVERTY. (L-R) Dr Dennis Mapa of UPSS, Dr Roehlano Briones,

Dr Rafaelita Aldaba of the Department of Trade and Industry, and Dr Bruce Tolentino of

IRRI answer questions from the audience during the Towards Zero Poverty symposium.

Photo by Bea Orante/ Rappler

“Our farmers respond to what is happening around them. They respond to incentives,

policy…trying their best to survive the best they can,” he said.

Tolentino added that land reform sped up starting 1987. The number of owned farm lands

is increasing, while shared tenancy is decreasing. While wet season yields plateaued at 4

tons per hectare (t/ha), dry season yields almost doubled in the past 5 decades.

The Philippines is also the lowest user of insecticides among other rice-producing

countries like Thailand, Vietnam, Indonesia, and China.

Compared to Vietnam and Thailand, however, the growth of the Philippines harvested

rice area remained slow. Vietnam’s rice harvested area increased from 4.7 million

hectares (mh) to 7.7 mh from 1961 to 2012, Thailand from 6.1 mh to 10.8 mh, the

Philippines from 3.2 mh to only 4.7 mh.

Challenges

Big challenges remain for the rice industry, according to IRRI. One is the effect of

climate change, which worsens flooding during the wet season.

While IRRI had invented rice breeds that can survive 17 to 21 days of floods, Tolentino

said the floods can still be avoided.

“We call it man-made disasters. Floods are worsened by infrastructures like poultry farms

and highways that block water flow,” he said. (READ: Making rice cultivation more eco-

friendly)

The number of high school and college graduates among young farmers and farmers’

children has also been increasing in 5 decades. While this might seem to be a good thing,

it might be troubling seen farming has now become just a side business.

“In 1979, the average age of farmers was 43. In 2011, it was 59,” Tolentino said, noting

that many farmers’ children now take

Synthesis of the state of the art

Each literature and studies come from literature, articles, thesis-dissertations and

post research studies that are related to our study. As a whole, the foregoing literature and

studies were supportive of the variables used in this study.

According to de Leon (2012), rice used to be grown in the uplands “as 15

a

component of shifting and subsistence farming”. During pre-colonial times, rice was

most commonly produced in the uplands through dry seeding. Eventually, rice culture

spread to the lowlands along the coastal areas and riverbanks. Those producing rice in the

lowlands transplanted seedlings to the soil but since the water could not be controlled, the

rice plants were always in danger of getting drowned (Aguilar, 2008).

Rice, as a wet season crop, is planted in June and harvested in November to

December (de Leon, 2012). This is to make the growth phases of the rice plant and their

corresponding water needs synchronous with the amount of rainfall during the period.
Figure 3 shows how much rice was produced and the amount of area it took to produce

rice.

Conclusion

The proposal that pointed out by de Leon (2012) is the important details of the

resources including the rice. He also stated that, “rice used to be grown in the uplands,

“as a component of shifting and subsistence farming”.

According to Intal and Garcia (2008), nearly two-thirds of the land for rice

cultivation is cultivated by tenants under a shared cropping arrangement. This means that

as payment for the use of land, the farmer pays a certain percentage of the harvest to the

landlord. However, when the produce is not enough especially during crop failure, the

farmer acquires financial resources from the landlord, traders, and other lending

institutions in order to purchase inputs to production and for other needs. This is usually

interest-bearing and will be further subtracted from the harvest.

Gap Bridge by the Study

In the review of related literature and studies, all literature and studies are centered

on the different per caption about the Price Hike of Rice and how to solved the problem.

The presented related literature and studies are said to be closely related to this study the

careful, in depth search and thorough analysis done by the researchers, there is no study

in ACLC College of Iriga Inc. School Year 2019-2020 that is the same about the “Price

Hike of Rice and its effect to the consumers in the Public Market of Iriga City”
17
 The researcher prove that we are the first researcher ;s conducting a survey about

it.

Theoretical Framework

This study is anchored on the “Price Hike of Rice and its effect to the

consumers in the Public Market of Iriga City”. The theories that throw light on this

problems are appraised below.

Market-Power Theory of Inflation:

In an economy, when a single or a group of sellers together decide a new price that is
different from the competitive price, then the price is termed as market-power price. Such
groups keep prices at the level at which they can earn maximum profit without any
concern for the purchasing power of consumers.

For example, in the past few years, the prices of onion were very- high in India. The
soaring price of onions was the result of the group action of onion producers. In such a
situation, people in middle and low income groups reduced the consumption of onions.
However, onion producers earned high profits from higher income group.

According to the advanced version of market power theory of inflation, oligopolists can
increase the price to any level even if the demand does not rise. This hike in price levels
occurs due to increase in wages (because of trade unions) in the oligopolistic industry.

The increase in wages is compensated with the hike in prices of products. With increase
in the income of individuals, their purchasing power also increases, which further results
in inflation.

Apart from this, some economists concluded that fiscal and monetary policies are not
applicable in practical situations as these policies are not able to control rise in prices
levels. These policies would work only when prices rise due to an increase in demand.

Moreover, these policies cannot be applied to oligopolistic rise in prices, which is due to
increase in the cost of production. Monetary policy can reduce the rate of inflation by
raising the interest rate and regulating the credit flow in the market. However, it would
have no effect on the oligopolistic price as the cost is transferred to the prices of goods
and services.

Conventional Demand-Pull Inflation:

The market power theory of inflation represents one extreme end of inflation. According
to this theory inflation exists even when there is no excess in demand. On the other end,
the conventional demand-pull theorists believed that the only cause of inflation is the
excess of aggregate demand over aggregate supply.

In full employment equilibrium condition, when demand increases, inflation becomes

unavoidable. In addition in full employment condition, the economy reaches to its
maximum production capacity. At this point, the supply of goods and services cannot be
increased further while the demand of products and services increases rapidly. Due to this
imbalance between demand and supply, inflation takes place in the economy.

Structural Theories of Inflation:

Apart from the two extreme ends mentioned in the above, there is a middle group
of economists called structural economists. According to structural theory of inflation,
market power is one of the factors that cause inflation, but it is not the only factor. The
supporters of structural theories believed that the inflation arises due to structural
maladjustments in the county or some of the institutional features of business
environment.
 . Figure 2
Market-Power Conventional Structural Theories
Theory of Inflation: Demand-Pull of Inflation:
Inflation:

“Price Hike of Rice and its effect to the consumers in the Public
Market of Iriga City”

Figure 2

Theoretical Paradigm

Conceptual Framework

The inputs are the selected consumers and merchandiser of Iriga, Inc. the main

respondents for this study come from the public market , and they answered a

questionnaire prepared by the researchers.

20
 In process, the researcher used the descriptive survey method of questionnaire the

data gathered will be analyzed using simple statistical tools which were for purposive

sampling.

The result of the output identities the “Price Hike of Rice and its effect to the

consumers in the Public Market of Iriga City”. It shows the possible solutions that can

help or solved the problem of Price Hike of Rice.

The Concept Paradigm is shown below

INPUT PROCESS OUTPUT

 “Price Hike of  Descriptive  “Price Hike of

Rice and its method of Rice and its
effect to the research effect to the
consumers in  Questionnaire consumers in the
the Public  Frequency count Public Market of
Market of Iriga Iriga City.
City.  Possible
 Selected solutions that can
consumers and help to solved
merchandiser of the problem in
Iriga City public price hike of
market. rice.

FEEDBACK

21
 Figure 3

Conceptual paradigm

Definition of Terms

For the purpose of clarification, the important term used in the study have been defined:

The following terms are:

Inflation- is a quantitative measure of the rate at which the average price level of a

basket of selected goods and services in an economy increases over a period of time.

Fertile-bearing, producing, or capable of producing vegetation, crops, etc., abundantly

Labor-intensive -needing a large workforce or a large amount of work in relation to

output

Import-is a good or service bought in one country that was produced in another. Imports

and exports are the components of international trade.

Sufficient- enough to meet the needs of a situation or a proposed end

Production-the action of making or manufacturing from components or raw materials, or

the process of being so manufactured.

Agriculture-the science or practice of farming, including cultivation of the soil for the

growing of crops and the rearing of animals to provide food, wool, and other products.
 Endnotes

Lozada D. (2015), Rice price hike, ‘job misery’ major causes of hunger in PH Retrieved
from: http://www.hubrural.org/IMG/pdf/ricestudy.

Article in journal of food agriculture and environment

January (2015), Rice price inflation and its impact on poverty and livelihood: insights
rom Bangladesh Retreved from: https://www.google.com/amp/s/amp.rappler.com/move-
ph/issues/hunger/106853-rice-price-hike-job-misery-hunger-philippines

Anderson JD, Hudson D, Harri A, Turner S: A new taxonomy of thin markets. Mobile,
Alabama: Paper presented at the annual meeting of the Southern Agricultural Economics
Association; 2007. 4–7 February 2007 4-7 February 2007

Barrett CB, Li JR: Distinguishing between equilibrium and integration in spatial market
analysis. Am J Agric Econ 2002, 84(2):292–307. 10.1111/1467-8276.00298

Chan LY: Price instability in the international rice market: its impact on production and
farm prices. Dev Pol Rev 1997, 15: 251–276. 10.1111/1467-7679.00035

Chand R: International trade, food security and the response to the WTO in South Asian
countries: discussion paper No. 2006/124. Helsinki, Finland: UN University-World
Institute for Development Economics Research (UNU-WIDER); 2006.

Cramer G, Wailes EJ, Shui S: Impacts of liberalizing trade in the world rice market. Am J
Agric Econ 1993, 75: 219–226. 10.2307/1242970
 Chapter III 23

RESEARCH DESIGN AND METHODOLOGY

This chapter presented the research design of the study which included

description of the respondents, instrument used, validation of the research instrument,

producers followed and the statistical tool utilized for the data analysis and interpretation.

Research Design

This study used the descriptive method because is widely accepted method for

describing human experiences. This study made used of quantitative research design. The

design varies depending, on the method used, which could be telephone interviews, face

to face interviews, online surveys, or surveys by post for instance. This design aimed at

discovering how people think, act or feel in a specific way, it involves large sample sizes,

concentrating on the quantity of responses, as opposed to gaining the more focused or

emotional insight that is of qualitative research. The standard format in quantitative

research design is for each respondent to be asked the same questions, which ensures that

the entire data sample can be analyzed fairly. The data is supplied in a numerical format,

and can be analyzed in a quantifiable way using statistical methods. Specifically, this

study used phenomenological qualitative research design, wherein primarily concerned

with the systematic reflection on the study of the structure of consciousness. In this kind

of the study the research conducting phenomenological studies are interested in the life

experiences of humans. This type of research can be applied to wide variety of situation

and phenomena.

25
Sources of Data

This research has two sources of data, primary and secondary. The primary source

of data is derived from the questionnaires that will be given to the randomly selected

consumer and merchandiser of Iriga City Public Market. The secondary source of data is

the internet, such as online journals, thesis, and books that serves as the literature and

studies related to this research.

Population of the Study

The population of the study will be the selected 20 consumers of Iriga City Public

Market. who have been invited to participants in a particular study and have been actually

taken part of the study. Respondents are divided from the sample that is constructing for a

quantitative study.

The Table shows the Respondents of the study

Table A

Respondents of the study

Respondents Frequency Percentage

Male 5 50%
Female 5 50%
Total 10 100%

Research Instrument

26
 This study made use of Survey Questionnaire for the data gathering process to get

quantitative data. The respondents are going to check out on preferred answers, the

questionnaire composed about the personal information or background of the respondents

including their name, age, and sex. This questionnaire will be used to solved the problem

in Price Hike of Rice.

Validation of Research Instruments

To prove that instrument that used valid, the researcher conduct and given sample

questionnaire to the selected consumers and merchandiser, respondents will be able to

answer the questionnaire easily to gained new knowledge, ideas and skills which could

help them to solved the problem.

Data Gathering Process

Data gathering process will soon as the questionnaire is finalized. Then the

researcher starts the actual-fieldwork. As soon as the questionnaires are retrieved the

responses of the respondents were processed and generalize to data analysis. The findings

will be extracted and analyzed based on the processed data.

Statistical Tools

The researcher used data gathered statistically through the technique to determine

the percentage. The quantitative statistical technique provides a summary of the orderly

sequential data obtained from the sample through the data gathering instrument used. The

result of the data analysis reveals the following aspects of an item in asset of data.

Formula: P= n/N × 100

27
Where:
P = Percentage

n = Number of Response

N = Total Number of Respondents

28

Endnotes
Conforti P: Price transmission in selected agricultural markets: FAO Commodity and
Trade Policy Research working paper No. 7. Rome: Basic Foodstuffs Service,
Commodities and Trade Division, Food and Agricultural Organization; 2004.

Dawe D: Have recent increases in international cereal prices been transmitted to domestic
economies? The experience of seven large Asian countries. Rome: ESA working paper
No. 08–03, Agricultural Development Economics Division, The Food and Agriculture
Organization of the United Nations; 2008.

Dawe D, Slayton T: The world rice market in 2007–08. In Safeguarding food security in
volatile global markets. Edited by: Prakash A. Rome: Food and Agriculture Organization
of the United Nations; 20

Demeke M, Pangrazio G, Maetz M: Country responses to turmoil in global food markets.

In Safeguarding food security in volatile global markets. Edited by: Prakash A. Rome:
Food and Agriculture Organization of the United Nations; 2011:183–210.Dorosh

PA: Price stabilization, international trade and national cereal stocks: world price shock
response in South Asia. Food Secur 2009, 1: 137–149. 10.1007/s12571-009-0013-3

Chapter IV
 PRESENTATION, ANALYSIS AND RECOMMENDATION OF DATA

This chapter contains the discussion about the “Price hike of rice and its effect to the

consumer of Iriga City Public market” .

1.The demographic Profile of the selected respondents .

The demographic profile of the respondents was discussed in Figure 1 Showing

the data in terms of age, sex, civil status, educational attaintment, occupation and

monthly salaryof the respondents. This part of their discussion about the result gathered

by the researchers.

A.Age

Age Frequency Percentage

15-35 9 45%
36-65 11 55%
Total 20 100%
Based from the table ,out of 20 respondents, 36-65 years of age got the highest

range with a frequency count of 11 and with a percentage of 55%. This was followed by

15-35 years of age got the lowest range with a frequency count of 9 and with a

percentage of 45%.

This indicate that majority of the respondents are around 36-65 years old.

B.Sex

Sex Frequency Percentage

Male 13 65%

Female 7 35%
 Total 20 100%

Based from the table, out of 20 respondents, Male got the highest range with a

frequency count of 13 and with a percentage of 65%. This was followed by female got

the lowest range with a frequency count of 7 and with a percentage of 35%.

This indicate that majority of the respondents are male.

C. Civil Status

Civil Status Frequency Percentage

Married 13 65%
Single 7 35%
Total 20 100&
Based from the table ,out of 20 respondents, married got the highest range with a

frequency count of 13 and with a percentage of 65%. This was followed by single got the

lowest range with a frequency count of 7 and with a percentage of 35%.

This indicate that majority of the respondents are married.

D.Educational Attainment.

Educational Attainment Frequency Percentage

High School Graduate 9 45%

 College Graduate 8 40%

Student 3 15%

Total 20 100%

Based from the table ,out of 20 respondents, high school graduate got the highest

range with a frequency count of 9 and with a percentage of 45%. This was followed by

college graduate with a frequency count of 8 and with a percentage of 40%, this was

followed by student with a frequency count of 3 and with a percentage of 15%.

This indicate that majority of the respondents are high school graduates.

E.Occupation

Occupation Frequency Percentage

Vendor 5 25%

Rice Retailer 5 25%

None 4 20%

Student 4 20%

Others 2 10%

Total 20 100%

Based from the table ,out of 20 respondents, vendor and rice retailer got the

highest range with a frequency count of 5 and with a percentage of 25%. This was

followed by none and students with a frequency count of 4 and with a percentage of 20%.

Lastly others got a frequency count of 2 and with a percentage of 10%

This indicate that majority of the respondents are vedor.

F.Monthly Income,( of parents if not yet working)

Monthly Income Frequency Percentage

5,000-10,000 10 50%

11,000-20,000 8 40%

21,000+ 2 10%

Total 20 100%

Based from the table ,out of 20 respondents, 5,000-10,000 got the highest range

with a frequency count of 10 and with a percentage of 50%. This was followed by

11,000-20,000 with a frequency count of 8 and with a percentage of 40%, this was

followed by 21,000+ with a frequency count of 2 and with a percentage of 10%.

This indicate that majority of the respondents are earned around 5,000-10,000.

2.How many members of the family are you in your household?

Members Frequency Percentage

1-5 13 65%

6-10 7 35%

Total 20 100%

Based from the table,out of 20 respondents, there are 1-5 of the family members

leaving within the household got the highest range with a frequency count of 13 and with

a percentage of 65%. This was followed by 6-10 of the family members leaving within

the household got the lowest range with a frequency count of 7 and with a percentage of

35%.
 This indicate that majority of the respondents are 1-5 are leaving with their family

within the household.

3. What are the other alternatives that you used as a substitute to the rice?

Alternatives Frequency Percentage

Root Crops 5 25%
Bread 5 25%
None 4 20%
Fruits 3 15%
Pansit (Noodles) 1 5%
NFA Rice 1 5%
Biscuit 1 5%
Total 20 100%
Based from the table, out of 20 respondents, the root crops and bread got the

highest range with a frequency count of 5 and with a percentage of 25%. This was

followed by fruits as a substitute to the rice with a frequency count of 3 and the

percentage of 15%. lastly

This indicate that majority of the respondents are 1-5 are leaving with their family

within the household.

Chapter V

SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

37
This chapter presents the summary of findings, conclusions and recommendations from
the.
Problem 1: What is the demographic Profile of the respondents .

Summary of Findings: Majority of the respondents are female, around 36-65 years of
age, vendor and a rice retailer, earned 5,000-10,000 and a college graduate.

Conclusions: Therefore majority of the respondents are in a stable economy.

Recommendations: Respondents should finds an alternative jobs that will be their

additional source of income.

Problem 2: How many members of the family are you in your household?

Summary of Findings: Based on our research, majority of the respondents are leaving
within the household with members of 1-5.

Conclusions: Respondents are having difficulties in proper consuming and purchasing of

rice because of the inflation rate.

Recommendations: The respondents should have a proper budgeting, time management

Problem 3: What are the other alternatives that you used as a substitute to the rice?

Summary of Findings: Based on our study, majority of the respondents are consuming a
root crop and breads instead of rice.

Conclusions: Respondents are having difficulties for finding alternatives to be

consumed.

Recommendations: Government should stop from importing rice from the other
countries, considering that it is one of the reasons why price of rice continuously inflating
or increasing.

Problem 4. What are suggestions and recommendations to solved the problem about to
the continuously price hike of rice.?

Summary of Findings. Majority of the respondents are suggesting that the government
should stop from importing, and should implement a program that will encourage to the
farmers to plant more rice and other alternatives including corn, root crops and etc.

Conclusions. The farmers and the government should have a proper connection, in order
to be more productive.

Recommendations. The government must need to purchase the rice directly to the
Filipino farmers, in order to fulfil the satisfaction of the consumers and the merchandiser.
 APPENDICES
Appendix A

March 8, 2020

DR. EMMALYN P. SIRIOS

School Directress
ACLC College of Iriga Inc.

San Miguel, Iriga City

Madam,

Good Day!

We will conduct a research entitled “Price Hike of Rice and Its Effect to the
consumer of Iriga City public market”. In practical fulfillment of the requirements in 3
I’s

In this view, may we have the honor to have your permission to conduct a survey
questionnaire from the senior high school students of ACLC College of Iriga Inc.?

Rest assured that we will be held strictly confidential in keeping the collected data
and these purposely for academic use only. Hoping that this request will value your
favorable action and approval.

Thank you and more power:

Very truly yours,

The Researchers

Appendix B

Dear Respondents,

Greetings!
We the Group 1 of GAS 12-A students of ACLC COLLEGE of IRIGA
CITY Inc. conducting a study entitled, “Price Hike of Rice and Its Effect to the
consumer of Iriga City public market”.
 You are kindly requested to assist in providing sincere opinion or
response to the questions in this questionnaire, your positive response in this
request will be valuable contribution for the success of the study and highly
appreciated.
Thank you very much for your considerations…
Sincerely,
The
Researcher

Directions: Fill up the questions in each items that corresponds to your answer.

1. What is your demographic profile in terms of:

Name (Optional):_________________________

Gender: _____________

Age:__________

Educational Attaintment___________________

Occupation:_____________________________

Monthly Income:(of parents if not yet working)__________________________

2. How many members of the family are you in your household?

3.What is the other alternatives that you used as a substitute to the rice?

4.What is your suggestions and recommendations to solved the problems about to

the continuously price hike of rice?

________________________________________________________________________
______

Curriculum Vitae

Name:

Address:
PERSONAL INFORMATION

Age:

Birthdate:

Birthplace:

Gender:

Status:

Weight:

Height:

Citizenship:

Religion:

Mother’s Name:

Father’s Name:

EDUCATIONAL ATTAINMENT:

Elementary School:

Junior High School:

Senior High School:

Dear Respondents,

Greetings!
 We the Group 1 of GAS 12-A students of ACLC COLLEGE of IRIGA
CITY Inc. conducting a study entitled, “Price Hike of Rice and Its Effect to the
consumer of Iriga City public market”.
You are kindly requested to participate in providing sincere opinion or
response to the questions in this questionnaire, your positive response in this
request will be valuable contribution for the success of this study and highly
appreciated.
Thank you very much for your considerations…
Sincerely,
The
Researcher

Directions: Fill up the questions in each items that corresponds to your answer.

1. What is your demographic profile in terms of:

Name (Optional):_________________________

Gender: _____________

Age:__________

Educational Attaintment___________________

Occupation:_____________________________

Monthly Income:(of parents if not yet working)__________________________

2. How many members of the family are you in your household?

3.What is the other alternatives that you used as a substitute to the rice?

4.What is your suggestions and recommendations to solved the problems about to

the continuously price hike of rice?

________________________________________________________________________
______