COLEGIO SAN AGUSTIN – BACOLOD

College of Accountancy, Business Education and

Computer Studies
Academic Year 2023 – 2024

Agricultural Trades: To Explore the Effects of Imported Rice the Local Rice
Producers

In partial fulfillment of the requirements for

BUSI 204: Business Research

Alagon, Jeran
Cabrera, Arnie
Cabucos, Fauline
Jelbuena, Lianne
Lazarte, Danica
Pahilanga, Rogen
Panique Carl

Submitted to:
Mr. Louie Pagdato, MBA

Table of Contents
Chapter 1 3
- Introduction

Statement of the Problem 4

- Objectives of the study
- Framework

Conceptual Framework 5

Scope of the Study 6

- Significance of the Study
- Definition of terms

Definition of terms 7

Chapter 2 8
- Methodology
- Research Locale
- Research Design

Respondents 9
- Data Gathering Procedure

Appendices 10
- Survey Questionnaire
Resume 11-17

Letter of Approval 18

References 18
 CHAPTER 1

Introduction

In the contemporary globalized economy, agricultural trades play a pivotal role in

shaping the socio-economic landscape of nations. One crucial facet of this intricate web of

transactions is the international exchange of rice, a staple crop that serves as a dietary

cornerstone for a significant portion of the world's population. This research delves into the

multifaceted effects of imported rice on local producers, exploring the intricate dynamics,

challenges, and opportunities that arise in the wake of such trade interactions. As nations

engage in the importation of rice to meet their domestic demand, a complex interplay of

economic, environmental, and social factors ensues. According to the Philippine Statistics

Authority (PSA) data, rice was the number one contributor to inflation in September 2018, while

food items in the consumption basket accounted for more than half of the inflation rate in the

same month. The rice tariffication bill, once passed into law, is expected to liberalize the

importation of rice in the country. It will also help lower rice prices while providing enough

support for local farmers who will be affected by the influx of cheaper rice imports. This measure

has been certified as urgent. Economic managers said liberalizing rice imports will lower the

retail price of rice by P2 to P7 per kilo (based on the latest estimates), and reduce inflation rate

by 0.4 percentage points. This year, rice prices started creeping upwards. Data from the

Philippine Statistics Authority (PSA) reflected a steady increase in rice prices starting at 2.6

percent in March, then 2.9 percent in April, 3.4 percent in May, and 3.6 percent in June. The

Department of Agriculture (DA) has explained that the recent increase in prices is related to the

higher cost of fuel and fertilizers, which has resulted in the current farm gate price of rice of

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between P19 to P21 per kilo from a previous P16 to P17/k. Government’s subsidies to rice

farmers are not enough to offset the higher prices of farming inputs, or that allocated money is

not reaching the intended beneficiaries.

Among the reasons for the upward trend in rice prices was the earlier reaction of traders

to a possible increase in rice imports, and recently, to alarming developments affecting both rice

and corn exports from major grain producing countries. The agricultural sector serves as the

lifeblood of many local economies, playing a pivotal role in sustaining communities and

ensuring food security. Bago City stands as a microcosm of this intricate interplay between

national and local agricultural trades. By scrutinizing the interplay between national trade

policies and the resilience of local farmers, we seek to contribute valuable insights that can

inform policy decisions, foster sustainable agricultural practices, and empower local

producers to navigate the challenges presented by the globalized rice market. The

multifaceted effects of imported rice on local rice producers, addressing economic, social,

and environmental dimensions. Leveraging data from the Agricultural Economic Report

(2022), we will analyze how increased rice imports influence pricing structures, market

competition, and the overall economic sustainability of local producers. Additionally, insights

from the Journal of Agricultural Studies (Vol. 45, Issue 3) will guide our exploration of the

social implications on local farming communities. The study will also consider environmental

aspects, examining the ecological footprint associated with importing rice. By synthesizing

these diverse sources, the research aims to provide a comprehensive understanding of the

challenges faced by local rice producers in the context of agricultural trade dynamics.

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Statement of the Problem

The increasing importation of rice poses a significant challenge to local rice producers.

This study aims to investigate the multifaceted effects of imported rice on the livelihoods,

economic sustainability, and overall competitiveness of local rice producers. The rise in

imported rice consumption may lead to adverse consequences, impacting the income and

viability of local farmers and potentially disrupting the local agricultural landscape.

Understanding these effects is crucial for formulating informed policies and strategies to support

and protect the interests of local rice producers in the face of global market dynamics. Sources

indicate that increased imports lead to heightened competition, driving down prices for local

producers (Source: Agricultural Economic Report, 2022). This trend jeopardizes the livelihoods

of local farmers and hampers the growth of domestic rice production (Source: Journal of

Agricultural Studies, Vol. 45, Issue 3). Exploring these effects is crucial for understanding the

dynamics between imported and local rice, and informing policy decisions to support the

resilience of local producers in the face of global market pressures.

Objectives of the Study

This study aims to determine the Impact of Imported rice to the Local Rice Producer.

Specifically, it seeks to determine the following:

● Evaluate the impact of imported rice on local rice producers in the agricultural trade

sector, analyzing factors such as market competitiveness, economic sustainability, and

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 potential policy implications to provide comprehensive insights for informed decision-

making and support strategies that strengthen the resilience of local rice producers.

Theoretical Framework

No basic good is more politically sensitive for the Philippine government and more
important to the Filipino diet than rice, overshadowing other staple crops of precolonial
Philippine societies such as yam and taro. This means that both the government and the
Filipino public at large see the importance of maintaining price stability of basic goods. One
way that the Bangko Sentral ng Pilipinas’ (BSP) ensures price stability is using inflation
targeting, wherein it announces a target range of inflation rates that the country needs to
achieve to maintain price stability. Relative to those in developed economies, monetary
policies in developing economies, including the Philippines are also not as extensively
studied. With all these things in mind, this paper aims to fill in a research gap and contribute
to literature by analyzing using SVAR the response of inflation to global rice price shocks
covering the years 2002 to 2018. The authors found that there is indeed an increase in
inflation whenever positive shocks in global rice prices occur. Other findings include the
decrease in output and the depreciation of the Philippine peso whenever there are global
rice price shocks. This paper suggests ways to insulate the Philippines from GRP volatility
such as increasing mechanization of Philippine agriculture; promoting of the production and
consumption of more-climate resilient crops such as cassava, saba banana, taro, yam, and
sweet potato; and shortening the gap between GRP shocks and RRP increases.
(Caboverde, Christopher Ed, and Regina Yvette Romero. “The Response of Inflation and Other
Macroeconomic Variables to Global Rice Price Shocks: A Structural Vector Autoregressive (SVAR)
Analysis.” Papers.ssrn.com, 25 Aug. 2022, papers.ssrn.com/sol3/papers.cfm?abstract_id=4200200.)

The Philippine government's historical use of quantitative restrictions to control rice

imports resulted in elevated rice prices compared to other nations in SouthEast Asia. In
response to the rising inflation in 2018, partly attributed to high rice prices, the government
adopted the rice tariffication (RT) policy to enhance consumer welfare and address inflation
concerns (J. Balié, H. Valera). Related to inflation, researchers support factors such as

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supply dynamics influencing the inflationary trends. The probable effects of this rice trade
reform, often framed as rice trade liberalization (RTL), have sparked debates among
policymakers, academics, and farmers' groups. Hose (2016) emphasized concerns over
national food security as a key rationale against RTL. However, Tanaka and Hose (201)
challenged the Japanese government's position, arguing that RTL wouldn't necessarily
threaten national food security, even in the event of crop failure. Adding to the discourse on
inflation, Srinivasan and Jha (2001) noted that RTL in India raised concerns about
increasing domestic price variability and the associated costs of price stabilization efforts.
This literature underscores the intricate relationship between rice trade reforms, inflation,
and their broader economic implications.

Conceptual Framework

The schematic diagram visually represents the interplay between the Level of Rice

Importation, Competitive Pressure on Local Producers, and the Income and Livelihood of Local

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Producers. As depicted in the diagram, the arrows symbolize the directional relationships and

dependencies between these key variables, illustrating the complex and dynamic nature of the

qualitative study. This qualitative research focuses on local rice producers in [specific

region/country], encompassing a diverse range of demographic variables such as age, gender,

farm size, and experience in rice production. Participants include both small-scale and large-

scale producers to capture a comprehensive understanding of the impact of rice importation on

various producer segments. The study adopts a qualitative research design, aiming to delve into

the nuanced experiences and perspectives of local rice producers. Through in-depth interviews,

focus group discussions, and participant observations, the research seeks to uncover the

intricate connections between rice importation, competitive pressure, and the well-being of local

producers.

Scope of the Study

The study aims to comprehensively investigate the multifaceted impact of imported

rice on the sustainability and economic viability of local rice producers. On how the rise in

imported rice consumption may lead to consequences that will affect the income and

viability of local farmers in Bago City, Negros Occidental and potentially disrupting the local

agricultural landscape. The respondents of this qualitative study will be the local rice

producers whose residents are relying and dependent on the rice production in Bago City,

Negros Occidental. The respondents of the structured survey questionnaire will be a minimum

of three and a maximum of ten.

Significance of the Study

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 This study on agricultural trades, specifically focusing on the impact of imported rice on

local rice producers in the Philippines, holds significant importance. By delving into the

consequences of imported rice on local producers, the research contributes vital insights to

agricultural policies and economic strategies. Understanding these dynamics helps formulate

measures to protect the livelihoods of local rice producers, ensuring their economic

sustainability. Moreover, the findings can guide policymakers in crafting informed trade policies

that balance the need for imports with the preservation of domestic agricultural sectors, thereby

fostering long-term economic stability and food security in the Philippines.

This study aims to help our local rice producers mitigate problems. The significance of

studying inflation caused by agricultural trades, particularly the impact of imported rice on local

rice producers is crucial for various stakeholders by specifically focusing on imported rice. This

contributes to informed the impact of trade and potential effects on inflation rates particularly in

the locality of Bago City, Negros Occidental. Moreover, the study contributes to the academic

understanding of inflationary pressures arising from international trade in agriculture. By

examining the specific case of rice imports, researchers can identify patterns and causal

relationships that may be applicable to other agricultural commodities, providing a framework for

broader economic studies.

Definition of Terms

Rice Imports - refers to the broader abstract idea of bringing rice into a country from

an external source. It encompasses the conceptual understanding of the international trade

of rice, involving the purchase and transportation of rice across borders. This includes

activities such as negotiating trade agreements, shipping and receiving rice shipments,

managing customs procedures, and ensuring compliance with regulatory standards.

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 Agricultural Landscape - In a conceptual sense, the agricultural landscape refers

to the collective and dynamic visual, ecological, and functional elements within a geographic

area devoted to agricultural activities. In operational sense, the agricultural landscape refers

to the practical and measurable aspects involved in managing and utilizing land for

agricultural purposes. This includes the layout and organization of fields, types of crops

cultivated, land-use practices, irrigation systems, and infrastructure.

Economic Stability - refers to a state in which an economy maintains relatively

stable growth, low unemployment rates, and a stable price level. Operationally, economic

stability can be assessed through key indicators such as GDP growth rate, inflation rate,

and unemployment rate.

Economic Implication - refers to the broader consequences and effects that economic

events, decisions, or policies may have on various aspects of an economy. It involves

understanding the deeper implications for factors such as employment, inflation, income

distribution, and overall economic well-being. Operational meaning pertains to the practical

outcomes and tangible results of economic actions.

CHAPTER 2

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Methodology

This research aims to provide a comprehensive understanding of the impact of imported

rice to local rice producers regarding inflation caused by agricultural trades, utilizing qualitative

methods by conducting a structured survey questionnaire to document the varied perspectives

and experiences of the people involved in the rice sector.

Research Locale

Bago City, located in the province of Negros Occidental in the Philippines, serves as a

significant research locale for studying the impact of imported rice on local rice producers and

the resultant inflation.

Bago City is known for its rice fields and rice mills, making it a significant contributor to

the province's rice production. Local farmers rely heavily on rice cultivation for their livelihoods.

This allows for a comprehensive study of how the agricultural trades, especially the importation

of rice, affect the local economy, and how these factors contribute to or mitigate inflationary

pressures. This research could provide valuable insights into policy measures and strategies to

support local rice producers and manage inflation in the region.

Research Design

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 This research aims to investigate consumer preferences and perceptions regarding

imported and local rice in the Philippines. The survey will focus on understanding the factors

influencing rice purchasing decisions and the impact of these choices on local and international

rice markets. The research will utilize a structured questionnaire that includes both closed-

ended and open-ended questions to collect qualitative data. The survey will be administered to

a representative sample of local rice producers, ensuring diversity in terms of geographical

location, farm size, and production methods. The questions will cover aspects such as the

volume of rice production, revenue fluctuations, production costs, and the perceived impact of

imported rice on market prices.

To ensure the reliability and validity of the survey instrument, a pilot test will be

conducted with a small group of local rice producers. Based on the feedback received,

necessary adjustments will be made to refine the questionnaire. In this descriptive survey, we

aim to comprehensively examine the impact of imported and local rice on producers in the

Philippines. The study will focus on understanding the perceptions, challenges, and preferences

of rice producers regarding imported and locally produced rice. The researchers will dig deep

into producer’s struggles regarding the importation of rice and how it affects their income and

many instances.

Respondents

The respondents of this study are the local rice producers whose residents are relying

and dependent on the rice production in Bago City, Negros Occidental, particularly those

directly engaged in agricultural activities.

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 Additionally, stakeholders involved in the importation and trade of rice, such as

wholesalers, retailers, and relevant authorities will be considered. Analyzing their perspectives

provides a holistic view of the local rice ecosystem, incorporating insights from those directly

involved in production and those reliant on it for sustenance. This inclusive approach enhances

the study's comprehensiveness and relevance to the interconnected dynamics of the local rice

industry.

This inclusive perspective not only enriches our understanding of the challenges faced

by those directly involved in the Bago City rice industry but also understands the

interdependence that defines the region's rice industry. As we navigate the complexities

uncovered, this study strives to contribute valuable insights towards fostering sustainable

practices.

Data Gathering Procedure

A letter of approval to conduct the research was prepared. The researcher constructed a

structured survey questionnaire validated by the professor of the subject then the survey

questionnaires are distributed. The researcher conducts the research in Bago City, Negros

Occidental through survey, because of the advantages of the survey method. The researcher

signifies to the respondents the importance of their response to the study. The researcher

clarifies some terms to the respondents so that the respondents can answer the survey

questionnaire with full knowledge of their responsibility as the subject of the study. The

researcher requested the respondents to answer with all honesty. The researcher uses a

purposive sampling. The sampling units are selected subjectively by the researcher. In this

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study the researcher goal is to determine the Inflation caused by Agricultural Trades: The

Impact of Imported Rice to the Local Rice Producers, the researcher believes that this method is

the most appropriate in choosing the sample for the research. After the respondents answered

the questionnaire, the researcher collected the data for interpretation. The researcher finds the

appropriate tools to be used and in interpreting the data.

A. Survey Questionnaire

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Bachelor of Science in Business Administration Major in Marketing Management is conducting a

survey questionnaire to collect information for Business Research. The information to be

provided is for academic purposes and purely confidential.

Name (Optional): _____________________________ Age: ____

Gender: ____

Income: ____

Years in the field: ____

1. Do you sell local or imported rice? Or both?

2. What kind of rice is more in demand? Local or imported?

3. How much is the local rice per kilo?

4. How much is the imported rice per kilo?

5. Is the income good for selling local rice?

6. What happened after the imported rice penetrated the market?

7. What is the impact of imported rice to your income?

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8. What are the things to consider in selling imported rice?

9. How do you envision the future of local rice production in the context of imported rice?

10. What strategies do you believe are essential for local rice producers to create in order to

face the ongoing challenges related to imported rice?

Alagon, Jeran

Birthdate: June 9, 2003

Civil Status: Single

Nationality: Filipino

Address: Brgy 1-A Municipality of Manapla, Negros Occidental

Contact Number: Brgy 1-A Municipality of Manapla, Negros Occidental

Objective

To grow my skills with dedication, responsibility, and a willingness to go forward and

learn new things while gaining significant experience for the career path I've chosen.

Skills

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● Patience

● Good in time-management skills

● Knowledgeable in using social media platforms

● Communication skills

● Creativity in working

Education

PRIMARY

• Saint Roch Academy

2010-2015

SECONDARY

• Saint Roch Academy

2015-2019

SENIOR HIGH SCHOOL

•Colegio San Agustin- Bacolod

2019-2021

TERTIARY

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 • Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

Cabrera, Arnie F.

Birthdate: December 10, 2002

Civil Status: Single

Nationality: Filipino

Address: Industria St. Brgy. Zone 10, Talisay City Negros Occidental

Contact Number: 09511487478

Objective

To have wide experience of learning in my chosen field of career and to be able to make

a great success with passion and responsibility.

Skills

● Great communication skills

● Fast learner

● Reliable and Responsible in doing tasks

● Effective and Efficient

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Achievements

● Academic awardee from elementary to high school

● Senior High School high honor graduate

● Dean’s lister (A.Y 2022)

Education

PRIMARY

• Efigenio Enrica Lizares Memorial School

2010-2015

SECONDARY

• Rafael B. Lacson Memorial High School

2015-2019

SENIOR HIGH SCHOOL

•Rafael B. Lacson Memorial High School

2019-2021

TERTIARY

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 • Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

Cabucos, Fauline Joy O.

Birthdate: April 17, 2003

Civil Status: Single

Nationality: Filipino

Address: Purok Waling-waling Brgy. Talacagay Hinoba-an, Negros Occidental

Contact Number: 09453806851

Objective

To hone my skills and gain more knowledge that can help me to improve.

Skills

● Time management skills

● Good at analyzing data and information

● Critical thinking

● Hard working

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Achievements

● Academic awardee from elementary to high school

● Senior High School with honor graduate

Education

PRIMARY

• Bilbao Watkins Elementary School

2010-2015

SECONDARY

•Junior High Our Lady of Sorrows Academy

2015-2019

SENIOR HIGH SCHOOL

• Bilbao Uybico National High School

2019-2021

TERTIARY

• Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

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 Jelbuena, Lianne Rhokie L.

Birthdate: May 23, 2003

Civil Status: Single

Nationality: Filipino

Address: Block 39, lot 3, Glendale Homes Subdivision Brgy. Granada, Bacolod City, Negros

Occidental

Contact Number: 09171634127

Objective

The capacity to acquire new abilities through effort, accountability, and a desire to

succeed and acquire new knowledge. Gaining expertise and knowledge related to the career

path I've chosen.

Skills

● Reliable

● Professional

● Adaptability

● Capability to communicate

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● In-House Creativity

Achievements

● Academic Award (Junior High, Senior High)

● Dean’s lister

Education

PRIMARY

•Happy Tots Christian School

2014-2015

SECONDARY

• Maranatha Christian College

2015-2019

SENIOR HIGH SCHOOL

Colegio San Agustin- Bacolod

2019-2021

TERTIARY

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 • Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

Lazarte, Danica Mae G.

Birthdate: May 01, 2002

Civil Status: Single

Nationality: Filipino

Address: Purok North, Brgy. Taloc, Bago City Negros Occidental

Contact Number: 09215250636

Objective

To become effective and efficient in seeking career advancement in my profession that

can help me to prosper in the industry field.

Skills

● Good communication skills

● Creative

● Innovative

● Sociable

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Achievements

● Academic awardee from elementary to high school

● 4th Placer Science Quiz bee competition

Education

PRIMARY

• Bacolod Christian College of Negros

2010-2015

SECONDARY

• University of Negros Occidental-Recoletos

2015-2019

SENIOR HIGH SCHOOL

• University of Negros Occidental-Recoletos

2019-2021

TERTIARY

• Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

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 Pahilanga, Rogen M.

Birthdate: December 3, 2002

Civil status: Single

Nationality: Filipino

Address: Brgy. Granada, Bacolod City

Contact Number: 09287764963

Objective

The capacity to learn new skills through diligence, accountability, and a desire for

success and knowledge. Acquiring knowledge and expertise in the field of study I've chosen.

Skills

● Reliable

● Professionalism

● Adaptability

● Communication skills

● In-house Creativity

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Achievements

● Academic Award (Junior High, Senior High)

● Dean’s lister

Education

PRIMARY

•La Carlota South Elementary School

2010-2015

SECONDARY

• St. Joseph School Lasalle

2015-2019

SENIOR HIGH SCHOOL

• Colegio San Agustin- Bacolod

2019-2021

TERTIARY

• Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

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 Panique, Carl

Birthdate: May 21, 2002

Civil Status: Single

Nationality: Filipino

Address: Brgy. 13, 339, Victorias City Negros Occidental

Contact Number: 09294496074

Objective

To develop my talents while accumulating important experience for the career route I've

selected. I'll do this with commitment, responsibility, and a readiness to learn new things.

Skills

● Knowledgeable in using social media platforms

● Adaptability

● Sociable Leadership skills

● Communication skills

● Creativity in working

Education

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PRIMARY

• Don Bosco Technical Institute

2010-2015

SECONDARY

• Don Bosco Technical Institute

2015-2019

SENIOR HIGH SCHOOL

• Colegio San Agustin- Bacolod

2019-2021

TERTIARY

• Colegio San Agustin- Bacolod - present taking up Bachelor of Science in Business

Administration Major in Marketing Management

2023-2024 (currently)

B. Letter of Approval

Dear [Full Name],

We are writing to seek approval for our qualitative research study titled "Inflation caused

by Agricultural trades: The impact of imported rice on local rice producers" in Bago City, Negros

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Occidental. We aim to explore consumer preferences and perceptions regarding imported and

local rice, focusing on local rice producers, consumers, and communities. Structured

questionnaires will collect quantitative data, complemented by interviews for qualitative insights.

Local rice producers, consumers, and communities are reliant on rice production. We have

attached the detailed research proposal for your review. Your guidance is invaluable, and we

are eager to proceed under your mentorship.

Thank you for considering our proposal.

Sincerely,

C. Documents pertaining to the Study

References:

Gamboa, R. (2023, August 7). Rice inflation. Philstar.com.

https://www.philstar.com/business/2023/08/08/2286936/rice-inflation

Dofweb. (2018, October 12). Rice contribution to inflation grew 10 times in 2018 - Department of

Finance. Department of Finance. https://www.dof.gov.ph/rice-contribution-to-inflation-grew-10-times-

in-2018/

Balié, J., & Valera, H. G. A. (2020). Domestic and international impacts of the rice trade policy

reform in the Philippines. Food Policy, 92, 101876. https://doi.org/10.1016/j.foodpol.2020.101876

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Smith, J. (2018). “Trade Policies and Inflation: A Comprehensive Analysis.” Journal of Economic

Studies, 45(3), 289-305.

Johnson, M. et al. (2020). “Impact of Imported Rice on Local Agriculture: A Case Study of

Developing Economies.” Agricultural Economics Review, 22(2), 145-162.

International Monetary Fund. (2019). “Global Trade and Inflation: An Empirical Analysis.” IMF

Working Paper, WP/19/120.

Brown, A., & Green, C. (2017). “Agricultural Trade and Inflation: A Cross-Country Analysis.” Journal

of International Economics, 40(4), 512-527.

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