Chapter 1

THE PROBLEM AND ITS SETTING

This chapter covers the introduction, background, problem, objectives, questions, hypothesis, scope
and limitation, significance of the study, conceptual framework, and definition of terms. It covers all the
process of how the study will be created and what could be the possible outcome of this research.

It focuses more on the purpose of this study and aims to resolve such problems that would benefit the
consumer.

INTRODUCTION

Rice is our most important cultivated plant, feeding more people than any other crop. It is a n annual or
short-lived perennial grass species native to Asia. Its domestication (i.e. cultivation and modification by
humans) started 8 to 13 thousand years ago. Much of the world, especially Asia, has rice as its primary
food source and rice production is critical for feeding the world. Rice requires warm, moist conditions for
growth and is grown world-wide in tropical and warm temperate habitats. As is the case in all ‘cereal
grains’ the ‘cereal’— the portion eaten — is a one-seeded fruit with the cells of a very thin fruit fused to
those of the seed coat.

https://milnepublishing.geneseo.edu/botany/chapter/rice/

Rice is life especially for Filipinos and other Asians. Even with the availability of other staple foods
such as noodles and bread, rice remains to be the primary choice for staple food in the Philippines. Rice,
locally known as “Palay” (un-milled rice), “Bigas” (milled rice), and “Kanin” (cooked rice) is much more
than food. However the rice give you bad effects like high blood pressure, high fasting blood sugar, high
triglyceride levels, a big waistline, and low levels of "good" HDL cholesterol are all risk factors. Today's
rice it is the primary source of energy for over half of the world's people.
Background of the Study
In the Philippines, rice cultivation started thousands of years ago. In fact, the rice terraces in Banaue
which were built some 3,000 years ago, were constructed by the people specifically for the cultivation of
rice.

The international rice market is classified as a "thin" market. The volume of exported rice represents
only 11% of global production compared with the figure for wheat at 27%. Even India's rice exports
comprise just 17% of its total production. The rice supply is harder to replace. If El Nino affects more rice
production, it may trigger another round of worries about a global food shortage

https://asia.nikkei.com/Economy/On-topic-How-do-rising-rice-prices-affect-Asia

In this research, researcher they have discuss the increase of the price of rice and consumption
situation in the Philippines. Increase of the price of rice in the Philippines has been increasing since over
the past four decades, the 1960s to 1990s. Increasing price of rice is a very critical issue for citizens and
the cosumser, to help them we gonna gather data and conduct a research how to discrease the price of
rice.

Therefore, studies on the analysis of the local market and the complaints of consumers on the high
price of rice will not help the people. So the researcher conducted survey, questionnaire,and analytical
research in local martket in the (STA,ELENA,CAMARINES,NORTE)

Research Problem
The following are the problems if there an increase of the price of rice in local market.

-There is possibility that the local market will loss profit,beacause the consumer will not buy rice since
the rice of price are increasing.

-There will be fewer buyers in the local market, due to the increase in the price of rice.
Research Question
To address the problem,the following question are needed to answered.

-How do you manage fewer people are complaining about the rise of price?

-Do you still have enough profit despite the increase of the price of rice?

-Do you still have enough money to buy your rice products even though it's price continues to rise?

-What could be the impact of the increasing price of rice to you,and your business.

-How has the increase in the price of rice affected your business?

-How rice pollution affects your business?

Research Objectives
At the end of this study,the following are needed to achieved.

-To find out the possible solution for reducing the price of rice in local market.

-To know what is the reason why rice is increasing.

-To find out the reasons for the increase in the price of rice.

SIGNIFICANCE OF THE STUDY

CUSTOMER-Since rice is a staple food for many people, an increase in its price will lead to higher
grocery bills. This could put a strain on household budgets, especially for low-income families who spend
a significant portion of their income on food.

Consumer-Rice is a crucial source of nutrition for many people, particularly in developing countries.
An increase in rice prices can make it more difficult for low-income households to afford sufficient
quantities of rice, which can have negative impacts on food security and health outcomes.

Store Owner-When the price of rice goes up, the store owner's cost of purchasing rice from suppliers
also increases. This can lead to a decrease in profit margins, as the store owner may have to absorb some
of the increased costs or pass them on to the consumer in the form of higher prices.
Futere researcher-They contribute to the continued development and stability of rice prices by
building on previous studies

Hypothesis of the study

Research Situation
Find out what is the possible solution for increasing the price of rice

Null Hypothesis

The price of rice will increase.

Alternative Hypothesis

The price of rice will not increase.

Scope and limitation

This study will focus on the increasing price of rice in local market among those costumers and owner
around Purok 10 (Poblacion) Sta,Elena, Camarines norte.

Theoritical framework
Theoritical reviews price Main Production.The cost of production according to Mulyadi (2007:10), is a
treatment of sources economic events that are measured in units of money that have occurred or are likely
to occur for obtain income. Wijaksono (2006:10), define priceproduction principal is a number mark
assets, however if year walk assets the used to help generate income. From various opinions experts can
be concluded that the cost of production is all that sacrifice done company to manufacture a product.Price
Commodity Commodity prices in each country have a specialization of export commodities in the
sectorprimarily dependent on natural resources. Next, the lack of funds investment could hinder prospect
growth future economy. BesidesIn addition, fluctuating commodity price movements can also disrupt
several sectors commodity-dependent economy. Uncertainty of macroeconomic conditionsaffect the
movement of commodity prices, which this also has an impact on cycle business global which related
with price commodity, eg marketoil world, agriculture, and industry . Besides that's shock offer and
RequestTraditionally, macroeconomic uncertainty is a factor influencing pricescommodity.Inflation is a
process of increasing prices in general in a countryeconomy.Percentage of the speed of increase in prices
in a certain period named level inflation (Sukirno, 1999). There is type inflation this usually occur
onmoment economy in circumstances full employment accompanied with growth economy which fast.
Inflation insistence cost is something phenomenon in where occur increase in prices caused by an
increase in production costs. Cost increase production will encourage producers to increase prices, even if
they face possible decline request to product which they earn.

Import According to Fauziah ( 2018), Import is process income goods or service foreignfrom outside
country for entered to in country. If a company import sell the product in the country, then company the
get product with better quality and lower price than the product in country .

ACTION PLAN
I.Profile of the •Assessment of
respondents increase of the price of Assessed the status of
rice in Rice store the price of rice
•Gender

•Age
CONCEPTUAL FRAMEWORK
•Monthly income of
the rice store THROUGH

II.Rice
INPUT tarrification
PROCESS •Interview
OUTPUT

•Price Increase •Questionnaire

• Process of increase •Documentary analysis

FIGURE 1: The IPO model illustrates the conceptual framework
The researcher used the Input Process Output (IPO) model where input shows the respondents and the
questionnaire about the local market. The Input includes the profile of the respondents which is the owner
of the store and seller. The Process includes the assessment of the local market and analysis of the data
and information gathered. The Output includes the assessed status of the local market and the comments
and suggestions of the respondents.

The arrows from the input to the process and the output showe the connection and transformation of
the profile and aspects with the actions taken into results that are considered as output.

The arrows from input to output represents feedback which reflects the continuity of the flow and
interconnectedness of the elements.

Definition of terms

FEEDBACK
 CHAPTER 2

REVIEWS OF RELATED LITERATURE AND STUDIES

This chapter represents the related literature

Foreign literature
Global Rice Market Outlook 2018-2023" by Technavio (2018).This report predicts a steady increase
in the global rice market, driven by factors such as population growth, urbanization, and changing dietary
patterns. The report also highlights the impact of factors such as climate change, government policies, and
trade restrictions on the market.

In addition to providing with right price,the local market should be based on good management
procduct and follow the right price.(Asian Development Bank, 2011).This statement explain that the
impact of rice price volatility on food security in Asia, where rice is a staple food for over half of the
population.

Moreover,in providing right price,the local market must do right price optimally,so that the rice will be
well to the customer without complaining.(International Rice Research Institute, 2011).This statement
means that the local market of Asia the impact of rice price volatility on risk management in Asia, where
farmers and traders face significant risks due to price fluctuations.

LOCAL LITERATURE
Local market is a food market that you need every day.(Rice Crisis).The Impact on Filipino Farmers
and Consumers" by Dr. Agnes Calingaan-De Leon, published in the Philippine Daily Inquirer (May
2021). This statement explains the that the ongoing rice crisis in the Philippines has negatively affected
both farmers and consumers due to high prices, low yields, and supply shortages caused by various
factors such as climate change, pests, and policy failures.
 To support our research, according to Dr. Edgar Ibanez and Dr. Rex Victor Cruz, published in
BusinessWorld (January 2019) of (Rice Crisis):"The Role of Technology and Innovation". This statement
explains the importance of a holistic approach to addressing the rice crisis, which involves a combination
of policy reforms, institutional strengthening, and technological innovation. The authors suggest that a
multi-stakeholder approach involving farmers, researchers, policymakers, and industry leaders is
necessary to ensure that technology and innovation are effectively translated into practice on the ground.

LOCAL STUDIES

FOREIGN STUDIES
 CHAPTER III

RESEARCH METHODOLOGY

Research Methodology
This chapter shows the method and the techniques used by the researcher. It presents the instrument
which was used at the research. It includes the approached being used in this research. It also shows the
results on the research wherein the result was rated if it is increase or decrease of rice.

Research Design
This study used a qualitative research. This method is used in various fields such as social sciences
psychology and market research to understand and interpret people's experiencs behaviours and
perceptions through method of survey questionnaires. This study will analyze the increase of the price of
rice on the local market that primary the desire of the consumer and other citizens to buy from the local
market.