ANALYZING THE IMPACT OF RICE PRICE INCREASE ON CONSUMERS

FINANCES IN MAYANA, CITY OF NAGA

___________________________________________________

A Research Paper

Presented to

Mayana National High School- Senior High School

Mayana, City of Naga, Cebu

_______________________________________________

In Partial Fulfillment

Of the Requirements of the Course

Practical Research 1

____________________________________________

By

Angel Gentugao

Reynier Cañaveral

Jeremy Abado

Niel Cantorne

Mary Jean Omaque

November 2023
 APPROVAL SHEET

This research entitled “ Analyzing the Impact of Rice Price Increase on

Consumers Finances” prepared and submitted by Angel Gentugao, Mary Jean

Omaque, Jeremy Abado, Reynier Cañaveral, and Niel Cantorne in partial

fulfillment of the requirements for the course Practical Research 1 is hereby

accepted and recommended for oral examination.

ROMEO A. ROBISO JR. MARIE CHRIS V. CONSTANTINO

Member Member

MARIDEL P. ABAYATA

Subject Teacher

ACCEPTED as partial fulfillment for the requirements of the course Practical

Research 1

MARIDEL P. ABAYATA

Subject Teacher , Mayana National High School – Senior High School

APPROVED by the tribunal at the Oral Examination with the grade of PASSED

ROMEO A. ROBISO JR. MARIE CHRIS V. CONSTANTINO

Member Member
 MARIDEL P. ABAYATA

Subject Teacher

Final Examination PASSED

CORAZON A. TEREC

School Head, Mayana National High School -Senior High School

 Chapter 1

INTRODUCTION

This chapter discusses the Rationale of the Study, Conceptual Framework,

Statement of the problem, Assumption of the Study, Scope and Delimitation,

Significance of the Study, and, the Definition of Terms.

Rationale of the Study

Rice is a staple food that holds significant importance in many cultures,

including Mayana City of Naga. It is a cereal grain that is a primary source of

carbohydrates and provides essential nutrients such as vitamins, minerals, and

dietary fiber. Rice serves as a fundamental part of the local diet and is consumed

by a large portion of the population in Mayana City of Naga. The price of rice

directly affects consumers' finances in Mayana City of Naga. As rice is a staple

food, any increase in its price can have a considerable impact on household

budgets. When the cost of rice rises, consumers in Mayana City of Naga may

need to allocate a larger portion of their income to purchase rice, especially if it is

a significant part of their daily meals. This can result in a reduced budget for

other essential expenses such as education, healthcare, or savings. For low-

income households in Mayana City of Naga, who already spend a significant

proportion of their income on food, an increase in rice prices can be particularly

burdensome. It can lead to higher levels of food insecurity, forcing families to

compromise on the quantity or quality of their meals. As a result, individuals and

households especially the consumers in Mayana, City of Naga may face

challenges in maintaining a balanced and nutritious diet. Moreover, rising rice

prices can contribute to inflationary pressures in Mayana City of Naga. This can

affect the overall cost of living, including the prices of other goods and services. If

wages or income do not rise at the same rate as the increased rice prices,

consumers may experience a decline in their purchasing power. This can further

strain their ability to meet their basic needs and may lead to financial difficulties.

This study aims to analyze the impacts of rice price increase on consumers

finances in Mayana, City of Naga. It will lays out on how the consumers can

sustain their finances as rice price increases.

According to Murshid and Yunus (2016), rice cultivation accounts for 48

percent of total rural employment which is expected to rise even more if rice

trading, transport, and processing activities are also taken into account.

Furthermore, rice provides two–thirds of the caloric needs of the nation along

with half the protein consumed. Also, the contribution of rice to agricultural GDP

is about 70% while its share of national income is one-sixth. Therefore, rice is

playing a robust role in Bangladesh even though the long–term trajectory is one

of declining (Faruqee R, 2012). In recent times, more than 13 million farms grow

rice covering some 10.5 million hectare (M. Hossain, 2011). Despite rice

production has increased in the last couple of decades with selfsufficiency in rice

food security, the availability of rice to consumers has not been stabilized. As a

result, the fluctuations have been seen as a common phenomenon in the price of

rice by days and even by minutes in Bangladesh. Additionally, the supply chain

of rice does not meet the requirement at the right time at the right place, which

creates an artificial crisis and price volatility. Moreover, the supply of paddy is

significantly affected by natural calamities such as drought and flood (Murshid &

Yunus, 2016).

As stated by the author, rice is the most staple food in our daily lives that

can help us sustain in our daily living. As rice price increase the consumers got a
problem on how they can sustain their daily living. Consumers who don’t have a

stable work can’t sustain enough of their other needs due to rice price increases.

Their old habits of having a lot of nutritious food serve in the table changes

because they can’t afford to buy the other needs. Same with other people in

another countries, fluctuations of rice price is a common problem that everyone is

experiencing. The availability of rice to consumers is not stable and it is

insufficient so that’s why the rice price increases and the consumers finances got

affected.

Through this study, this can help the consumers know the impact of rice

price increase on their finances. This study will help the consumers sustain their

finances despite of the rice price increase. This study, will help the consumers

understand how the fluctuations of rice price impacts their finances. It is

important that consumers are aware of the impacts of rice price increase. Thus,

this study has become the major focus on the impacts of rice price increase on

consumers finances and how they can sustain their finances.

Conceptual Framework

The study is anchored on "The Demand and Supply Theory" by Alfred

Marshall. This theory explores the relationship between the supply and demand

of goods and services in the market, and how it influences prices. According to

Marshall's theory, an increase in the supply of a product, such as rice, can result

in a decrease in its price. Conversely, a decrease in supply can lead to a price

increase. Based on this theory, the conceptual framework for this study examines

the impact of rice price increase on consumers' finances. The diagram illustrates

the potential consequences of a price increase in rice. It starts with the increase

in the supply of rice, which leads to a rise in its price. This, in turn, results in a

decrease in consumers' purchasing power. The decrease in purchasing power

has several effects, including decreased ability to meet basic needs and financial

difficulties. Consumers may be forced to compromise on the quantity or quality of

their meals, leading to higher levels of food insecurity. Additionally, the decrease

in purchasing power can result in reduced budgets for essential expenses,

making it challenging for consumers to maintain a balanced and nutritious diet.

Furthermore, the increase in rice prices can contribute to inflationary pressures,

leading to an increased cost of living. This, combined with the decreased

purchasing power, can further exacerbate financial difficulties for consumers.

Overall, this study utilizes the Demand and Supply Theory to understand the

potential impacts of rice price increase on consumers' finances, highlighting the

interconnectedness of supply, price, purchasing power, and the ability to meet

basic needs.
Figure 1. Schematic Presentation of The Demand Theory is applied to our study

Impacts Of Rice Price Increase On Consumers Finances In Mayana City Of

Naga.
 Consumer Surplus

Another important contribution that Alfred Marshall made to the field of

economics was a concept he termed consumer surplus. In the Principle of

Economics, Marshall said that “the excess of price which he would be willing to

pay rather than go without the thing, over that which he actually does pay, is the

economic measure of this surplus satisfaction.” 9 What this meant is that often,

many people would actually be willing to pay more than the market price for a

good because they perceive a high utility that they derive from the product, as

shown by the graph. These consumers, therefore, enjoy an extra benefit, which

is demonstrated through the shaded region in the graph to the left. An example of

consumer surplus would be to imagine that you wanted a new hockey stick and

were willing to pay $80 for it. The actual market price is $65, so the consumer

surplus is $15. While today, this might seem like a relatively understood concept,

in Marshall’s time, economic models hadn’t properly taken into account the

different beliefs, preferences, and budgets of different people. Instead, they

believed all consumers would behave the same. As many cognitive biases

demonstrate, these perfect economic models often do not fully account for the

way that the world works. Marshall used his ideas about consumer surplus to

discuss market welfare, which is the study of how the allocation of economic

goods and resources determine the overall well-being of society.10 He was

therefore able to analyze how taxation and price shifts would affect the overall

wellbeing of consumers.3 It is clear that from principles like consumer surplus,

Marshall was interested in democratizing economics and felt that economics

could be approached with ethical values in mind.

Statement of the Problem

The aim of the study is to know the impacts of rice price increase on

consumers finances in Mayana, City of Naga. Specifically, it seeks to answer the

following questions:

1. What are the impacts of rice price increase on the consumers finances in

Mayana, City of Naga?

2. How does increase of rice price affects the other needs of the consumers in

Mayana, City of Naga?

3. What are the strategies do consumers in Mayana, City of Naga employ to

cope with rising prices?

4. Based on the findings of the study, what can be proposed to sustain the

consumers finances in Mayana, City of Naga due to rice price increase?

Assumptions of the Study

In performing this research “ Analyzing the Impact of Rice Price Increase

on Consumers Finances in Mayana, City of Naga” the assumptions we have are

the following:

1. It is assumed that after conducting this study, the consumers will be aware

about the impact of rice price increase on their finances.

2. It is assumed that all the respondents will participate properly and answered

honestly in our research when it comes to responding the guide questionnaires

that the researchers provided.

3. The researchers are also looking forward to know about the impact of rice

price increase on consumers finances.

4. It is assumed that after conducting the research the researchers will get the

right answer honestly from the respondents respectively and responsibly.

Scope and Delimitations

This study associated with the impact of rice price increase on consumers

finances in Mayana, City of Naga. This study will be conducted during the month

of November 2023- 2024. This study is for the consumers/respondents in

Mayana, City of Naga. As respondents coming from Mayana, City of Naga, each

respondents were given more than enough time to answer the structured

questionnaires.

Significance of the Study

This research can assist students will be beneficial to the following:

Researchers. This research is going to be a primary source of

enlightenment that will surely needed for future studies. It will be an instrument

that will navigate and guide them in finding relevant, reliable, and credible

information, by these means they could attain relevant data to the study they

want to conduct which can be also be used for further studies. Researchers

would know the challenges faced by the consumers as the rice price increases

and how they overcome it.

Consumers. The consumers can benefits from this study as they are the

one experiencing this problem and who are involved in this study. Consumers

can use the study to gain a deeper knowledge of understanding the impact of

rice price increase to their finances. This study can be beneficial to the

consumers because they can gain knowledge from this and they can make

alternative actions on how they can sustain their finances.

Future Researchers. This study will serve as a guide to those who would

like to pursue the same study for it’s betterment and further development. It can

be used as a reference data to those who will undergo the same research study

in the future as additional information. This study would provide them with a
research ideas for their future research study. This would also serves as a guide

for them to conduct their research properly and wisely.

Mayana National High School. The outputs of this research is significant

to the school, as it may serve as a guide also for future researchers in doing

their research paper. This can also be added to the school’s reference for the

future learners of Mayana National High School.

Definition of Terms

Caloric

Refers from the word “calories” that refer to the energy people get from

the food and drink they consume, and the energy they use in physical activity.

Cultivation

In agriculture and horticulture, it is the loosening and breaking up ( tilling)

of the soil or, more generally, the raising of crops.

Fluctuations

The changes of price. The irregular level of price and shifting back of

prices.

Inflationary

The increase in sustained level of prices of goods and services in

economy.
Paddy

Harvesting. Paddy harvesting of rice crops. It include the reaping,

stacking, handling, threshing, cleaning, and hauling.

Proportion

A part or share or number considered in comparative relation to whole.

Robust

Strong and healthy and unlikely to break.

Self-sufficiency

Total financial revenue as a percentage of. The sum of financial expense,

operating expense and loan loss provision expense.

Trajectory

Defines the flight path of an aircraft or transportation to another.

Volatility

Low large an assets prices swing around the mean price. The quality or

state of being likely to change suddenly, especially by becoming worse.

Chapter 2

RESEARCH METHODOLOGY
This chapter discusses the specific methods chosen and used in this research

paper. This chapter also discusses the encompasses about theoretical concepts

that further provide information about the method selections and applications.

Research Design

This research used a quantitative method. As stated by John Creswell

(2014) Quantitative research as an inquiry into a social or human problem, based

on testing a theory composed of variables, measured with numbers, and

analyzed with statistical procedures, in order to determine whether the predictive

generalizations of the theory hold true.

Quantitative research is the process of collecting and analyzing numerical

data. It can used to find patterns and averages, make predictions, test causal

relationships, and generalize results to wider populations. Quantitative methods

emphasize objective measurements and the statistical, mathematical, or

numerical analysis of data collected through polls, questionnaires, and surveys,

or by manipulating pre-existing statistical data using computational techniques.

Quantitative research focuses on gathering numerical data and generalizing it

across groups of people or to explain a particular phenomenon ( Babbie, 2010 ).

Research Respondents

The respondents of this study are the consumers of Mayana, City of Naga.

It’s either female or male in Mayana.

In this data, we are using random sampling in this study.

Random sampling is a method of data collection and analysis designed to select

a representative sample of respondents out of a larger population. Random

sampling is named as such because the data set is chosen via random selection,

where every member of the population has an equal probability of being

selected. This classifies it as a probability sampling method. The opposite is a

non-probability sampling method, where not all members of a population have an

equal chance of being chosen. When properly conducted, random sampling

results should be representative of the population at large. Researchers study

those respondents and then extrapolate a set of inferences about the entire

population based on data analysis of those sampled. Random sampling, or

probability sampling, is a sampling method that allows for the randomization of

sample selection, i.e., each sample has the same probability as other samples to

be selected to serve as a representation of an entire population. Random

sampling is considered one of the most popular and simple data collection

methods in research fields (probability and statistics, mathematics, etc.). It allows

for unbiased data collection, which lets studies arrive at unbiased conclusions

The most fundamental form of probability sampling—where every member of a

population has an equal chance of being chosen—is called random sampling.

Learn about the four main random sampling methods used in data collection.

According to Cresswell (2012, p.143), any individual has the same

probability to be the participants. The intent of simple random sampling is to

choose individuals to be sample who is representative of the population. So, the

researcher use simple random sampling to choose the sample which means that

every first grade students are potential to be chosen as sample. Although there

are several different types of random sampling, simple random sampling appears

to be used commonly in implementing research. Random sampling is considered

one of the most popular and simple data collection methods in research fields

(probability and statistics, mathematics, etc.).

Research Location

The research study will be conducted at Barangay Mayana, City of Naga

located in between Highway, Lutopan and Barangay Uling, City of Naga, Cebu.
This place offered a pre-school, elementary and high school. It is a 30-minutes

walk from Highway Lutopan, 30 minutes ride from Toledo City, 25 minutes ride

from Naga proper,5 minutes ride from Lutopan to reach the place. The most

suitable and affordable means of transportation available to reach the place are

motorcycle ‘habal-habal’ and some pick up cars or van. There is no extreme

traffic in the area.

Different landmarks can be seen before reaching the location. DAS school

is just a 5 minutes ride to reach the location. Don Andres Soriano Fire Substation

is just 2 km northeast before reaching the location. San Roque Parish Church is

2 km east, Uling covered court 2 km southeast, Uling Barangay Hall is just 2 km

southeast before arriving to the research location. Mayana Covered Court is just

a walking distance from the location. Mayana Barangay Hall is the main

landmark of our location.

Figure 2: Shows the Vicinity Map of Mayana, City of Naga.
Research Tools

We used a structured interview questionnaires made by the researchers.

The interview questionnaires contains questions related to the impact of rice

price increase on consumers finances. The researchers will use structured

questionnaires during the survey interview session.

As stated by Tegan George and Julia Merkus (2022) Structured

interviews are the most systematized type of interview. In contrast to semi-

structured or unstructured interviews, the interviewer uses predetermined

questions in a set order. Structured interviews are often closed-ended. They can

be dichotomous, which means asking participants to answer “yes” or “no” to each

question, or multiple-choice. While open-ended structured interviews do exist,

they are less common. Asking set questions in a set order allows you to easily

compare responses between participants in a uniform context. This can help you

see patterns and highlight areas for further research, and it can be a useful

explanatory or exploratory research tool.

To evaluate the quality of research, it’s important to consider reliability

and validity to indicate how well a method, technique or test measures

something. Reliability is about the consistency of a measure, and validity is about

the accuracy of a measure.

Data Gathering Procedure

When we conduct this research, we first made a letter. We made a letter

stating that we are asking permission to the school principal to conduct a

research study. The message contains some ethical considerations during the

survey. Then, prepare the survey questionnaires for the respondents of our

study. Information will be distributed that there should be confidentiality

especially to the personal information of the respondents so that they will not

hesitate to answer our questions as well as to answer.The respondents will be

informed on how the survey will be conducted. It shall be a group activity in

conducting this survey where respondents are present during this time. The

respondents were asked to put a check mark to their preferred choice. All
respondents were given more than enough time to answer their given

questionnaire. After the respondents answered the self-made questionnaires

then it was collected and kept by the researchers. The researchers will ask the

respondents for any comments or necessary modifications after they have

completed the self-made survey questionnaire, in order to further develop the

instrument. Based on the responses and suggestions of the sample respondents,

the researcher will alter the questionnaire's content. The results of the survey

questionnaires were tabulated, analyzed, and interpreted to come up with

findings, possible recommendations, and conclusions. All the data gathered from

the questionnaires were kept confidential.

Data Gathering Procedure is the process of gathering and measuring

information related to study variables in an established and systematic fashion

that helps in answering research questions, aid in testing hypotheses and

evaluating outcomes (Konar, 2011).

Data Analysis

The researchers will collect and document the information. The

information obtained from the survey will be examined and distributed by

percentage. The information obtained from the consumers at the Mayana, City of

Naga pertaining to the impact of rice price on their finances was used to collect

primary data. Pieces of information gathered from the questionnaire were

statistically using simple percentage distribution using this formula: %=f/N (100).

To be able to get the result of the study, the researchers will find the frequency

distribution which is form the total tally data. Frequency distribution, according to

(Wyckoff 2000), is a graphical or tabular presentation that shows the number of

observations inside a certain interval. In frequency distributions, the total score of

each choice is divided by the total score of the same choices before being

multiplied by the total number of respondents to calculate the percentage.

 To gather the study's results, the researchers will calculate the frequency

distribution from total tally data. Then, the researcher will then perform a ranking,

which is a data transformation in which numerical or ordinal values are arranged

according to their rank. Ranks are associated with the order statistics index list,

which is made up of the original data set reorganized in ascending order.

Ethical Consideration

While gathering the data we observed that there are some ethical

considerations needed to notice and follow.

I. Risk- Benefit Assessment

Risks Assessment

This are the following risks of our research study:

1. The difficulty in completing the study was already anticipated by the

researchers and it will be inconvenient due to lack of time and financial

considerations in acquiring information for the survey.

2. Due to time constraints and the lengthy data collection process, the

researchers had difficulty finishing the study.

Benefits Assessment

This are the following benefits of our study:

1. The researchers will benefits from this study as they are the one who

will be conducting this study and the researchers put their effort and

time in creating this paper.

2. Students will be able to know what is the impact of rice price increase

to consumes finances and how the consumers sustain it. With these,

they will be aware of what are that preparation they need, and this will

serve as a guide in making their own research faster and easier.

 3. This research will benefit and will be useful to the Mayana National

High School and Senior High, students and to the future researchers.

4. After completing the study, the researcher will be able to form their

thoughts in order to become a professional researcher.

II. Content and Documentation of Informed Consent

The researchers will secure the following considerations:

Content

The researchers conducted the study based on the three important

aspects: What are the impacts of rice price increase on the consumers finances

in Mayana, City of Naga?

How does increase of rice price affects the other needs of the consumers in

Mayana, City of Naga?

What are the strategies do consumers in Mayana, City of Naga employ to cope

with rising prices?

Documentation of Informed Consent

In conducting the study the researchers made sure that the respondents

are participating in their own will and consent and is not hesitating to participate.

The contents of the study that the researchers employed are appropriate. The

procedures that the respondents need to know are that they will be answering

the researcher’s self-made survey questionnaire and that they will be given

enough time to answer the self-made survey questionnaire, preferably 20-30

minutes to answer the self-made survey questionnaire then after the

questionnaire will be collected back coding, analyzing and interpreting the data

gathered. Another part of informed consent is the voluntary participation of the

respondents. The respondents showed their commitment through answering the

given questions voluntarily with sincerity and honesty which made the realization

of the research undertaking possible.

III. Authorized to Access to Private Information

In gathering the data the researchers will have to manage in avoiding to

access private information from the respondents through allowing them to

continue or not if the study and the researchers are crossing their privacy. The

researchers will access the private informations after the permission will be

granted used the needed information vital in the research undertaking provided

that the respondents voluntarily answer the survey guide questions.

IV. Confidentiality Procedure

According to Baez, (2002) the convention of confidentiality is upheld as a

means to protect the privacy of all persons, to build trust and rapport with study

participants, and to maintain ethical standards and the integrity of the research

process. The researchers need to ensure confidentiality of the responses of the

respondents from their answers in the self-made survey questionnaire after is

has been presented, analyzed and interpreted. The entire procedures that the

researchers do and acquire are treated as confidential. During implementation of

the study, there’s no other person that is allowed to intervene the researchers

and respondents. Only the respondents and the group of the researchers will

know the process. The researchers conduct the study inside the respondents

chosen classroom to secure privacy. After the respondents answer the self-

made survey questionnaire, the researchers will collect it back and get the result

then, it will be set aside for safe keeping. It is in keeping guidelines of IRB to

justify our Certificate of confidentiality.

IV. Debriefing and Communications

In keeping the study to be informative and accurate, the researchers will

do a briefing to the respondents for them to answer the survey guide questions
and were answered and after it has been presented and analyzed and

interpreted in all honesty and without reservations and to understand the nature

of the research undertaking open for comments and feedbacks. The researchers

will have some exchange information from the expert of the study for the

researchers to make it precise.

V. Incentives, Compensations and Conflict of Interest

Incentives

In conducting the study there will be no prevision of incentives,

compensation, snacks or any form of incentives to the informants.

Compensation

The researchers formally asserted no conflict of interest for the study as well

the respondents.

References