Authors :
Joshua G. Onia; Marietta J. Ablaza; John Ervin C. Garcia; Kymber M. Lapuz; Joyce I. Penas; Fernando T. Saturno Jr.; Roselle Marie B. Salazar; Rein Chester A. Sawi; Mark Eldrin C. Ting; Ryan V. Tipay; Ryan Carlo A. Uy; John Michael S. Villanueva
Volume/Issue :
Volume 10 - 2025, Issue 12 - December
Google Scholar :
https://tinyurl.com/mrxyw67f
Scribd :
https://tinyurl.com/4dkb7d5x
DOI :
https://doi.org/10.38124/ijisrt/25dec476
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Abstract :
Rice serves as a staple food and a critical component of the Philippine economy, making its pricing a matter of national
and local concern. This study analyzed the influence of market structures on rice pricing in San Jose City, Nueva Ecija, a
major rice-producing and trading hub in Central Luzon. Employing a descriptive-correlational research design, the study
surveyed 40 key participants in the rice value chain, including farmers, wholesalers, retailers, and consumers, using a
structured questionnaire and key informant interviews. Data was analyzed through descriptive statistics, reliability testing,
correlation, and regression analysis to examine the relationships between market structures, pricing behaviors, stakeholder
perceptions, and rice prices.
Findings revealed that while the market superficially appeared competitive due to the presence of multiple sellers,
actual control over volume, supply, and wholesale pricing was concentrated among a few traders and millers, limiting
competition and creating high entry barriers. Farmgate prices were found to be moderately aligned with production costs,
and wholesale and retail prices responded more predictably to supply fluctuations. Stakeholders expressed moderate
concerns about fairness and government monitoring of pricing. Statistical analysis confirmed a strong and significant
positive relationship between market structure and rice pricing (r = 0.61, p < 0.01), with regression results indicating that
market structure accounted for 39% of price variability (β = 0.68, p < 0.01). Consequently, the null hypothesis stating no
significant relationship between market structure and rice prices was rejected.
The study concluded that rice pricing in San Jose City is heavily influenced by structural market factors rather than
solely by supply and demand dynamics. To improve price fairness and market efficiency, it recommends strengthening
farmer capacity, reducing entry barriers, enhancing government monitoring, and promoting transparency across the rice
value chain. These findings provide actionable insights for policymakers, market participants, and consumers while
contributing to a deeper understanding of local rice market dynamics.
References :
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- Arcalas, J. (2021, November 3). Cost of palay production rises on higher fertilizer, labor expenses. BusinessMirror.
- Bathan, B. M. (2024). Spatial price transmission in the retail rice markets of the Philippines (Conference paper). ASEAN University for Sustainable Food System.
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- Chavez, L. (2025). In Nueva Ecija, agents are getting bolder in setting palay prices. Philippine Center for Investigative Journalism.
- Chupungco, A. R., Nguyen, M. R., Rabang, J. M. M., Foronda, C. A., & Umali, M. G. (2013). Rice marketing in Southern Luzon, Philippines. Philippine Journal of Crop Science.
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- Fackler, P., & Goodwin, B. (2001). Spatial price analysis. In Handbook of Agricultural Economics.
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- Freedman, A. (2013). Rice security in Southeast Asia: Beggar thy neighbor or cooperation? The Pacific Review, 26.
- Hilado, A. R. A., Hugo, J. S., Kodama, H. D., Lebite, J. P., & Fronda, J. G. (2023). Rice value chain analysis: Rice seed production as a profitable agribusiness in Nueva Ecija. International Journal of Advanced Engineering, Management and Science.
- Intal, P. S., Jr., & Garcia, M. C. (2005). Rice and Philippine politics (PIDS Discussion Paper No. 2005‑13). Philippine Institute for Development Studies. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps0513.pdf PIDS+1
- Kwan, R., Badua, A., Lagasca, A., Mercado, J. J., Baltazar, E., Mercado, T. J., Pagaduan, N., & Orden, E. (2025). Promotion of special purpose rice production technology in selected municipalities in Nueva Ecija, Philippines.
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- Nocum, P., & Pastorfide. (2025). Profitability at the starting line: New entrants in rice trading in Nueva Ecija.
- Philippine Statistics Authority. (2024, August 15). Palay production cost and returns in the Philippines, 2023–2024 (OpenStat Report). https://psa.gov.ph
- Santos, C. G. (2018). A comparative analysis of farmgate and regulated prices of palay in Nueva Ecija, Philippines: A policy revisited.
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Rice serves as a staple food and a critical component of the Philippine economy, making its pricing a matter of national
and local concern. This study analyzed the influence of market structures on rice pricing in San Jose City, Nueva Ecija, a
major rice-producing and trading hub in Central Luzon. Employing a descriptive-correlational research design, the study
surveyed 40 key participants in the rice value chain, including farmers, wholesalers, retailers, and consumers, using a
structured questionnaire and key informant interviews. Data was analyzed through descriptive statistics, reliability testing,
correlation, and regression analysis to examine the relationships between market structures, pricing behaviors, stakeholder
perceptions, and rice prices.
Findings revealed that while the market superficially appeared competitive due to the presence of multiple sellers,
actual control over volume, supply, and wholesale pricing was concentrated among a few traders and millers, limiting
competition and creating high entry barriers. Farmgate prices were found to be moderately aligned with production costs,
and wholesale and retail prices responded more predictably to supply fluctuations. Stakeholders expressed moderate
concerns about fairness and government monitoring of pricing. Statistical analysis confirmed a strong and significant
positive relationship between market structure and rice pricing (r = 0.61, p < 0.01), with regression results indicating that
market structure accounted for 39% of price variability (β = 0.68, p < 0.01). Consequently, the null hypothesis stating no
significant relationship between market structure and rice prices was rejected.
The study concluded that rice pricing in San Jose City is heavily influenced by structural market factors rather than
solely by supply and demand dynamics. To improve price fairness and market efficiency, it recommends strengthening
farmer capacity, reducing entry barriers, enhancing government monitoring, and promoting transparency across the rice
value chain. These findings provide actionable insights for policymakers, market participants, and consumers while
contributing to a deeper understanding of local rice market dynamics.