The Effects of Mandatory Rice Price Cap To Rice Retailers In Mangaldan, Pangasinan
INTRODUCTION
Rice is a staple food in the Philippines and our country heavily relies on rice production for its
income, and the government plays a significant role in ensuring fair pricing for consumers and fair
returns for rice growers through proper pricing incentives, ensuring that the country's most important
agricultural crop remains accessible and sustainable. The government implemented a mandatory rice
price cap, aiming to make this essential commodity more affordable for consumers. While this policy is
intended to benefit the public, its effects on rice retailers, who are key players in the rice supply chain,
remain largely unexplored.
Price controls, such as mandatory price caps, are often implemented by governments to protect
consumers from price fluctuations and ensure affordability of essential commodities. However, these
policies can have unintended consequences on market participants, particularly retailers.
MATERIALS AND METHODOLOGY
The researchers will investigate the impact of the rice price cap in Mangaldan Public Market by
examining effects in market dynamics, rice retailers behavior, and the perspectives of local
vendors,considering economic conditions, government policies, and consumer preferences.
The intervention will involve an in-person survey administered to participants. The survey will
include open-ended questions about participants experience and perception or the Effects of Mandatory
rice price cap.
Data will be collected through the in-person survey as administered to participants. The survey
will be designed to elicit rich qualitative data about participants experience and perception of rice
retailers in mandatory rice price cap. The survey data will be analyzed to identify common themes and
patterns.
The research design for this study will be a qualitative exploratory case study. The study will explore the
experience and perception of rice retailers in mandatory rice price cap.The study will include rice
retailers in Mangaldan, Pangasinan who have consented to participate in the study. Participants will be
selected using purposive sampling to ensure a diverse range of experience and perspectives.
RESULTS AND DISCUSSION
The participants' responses on the sudden implementation of a rice price cap reveal a range of
perspectives. Some see it as necessary for consumer protection, while others express concerns about
supply and financial strain on retailers. The lack of communication and suddenness of the
implementation are common themes, emphasizing the need for transparent and considerate policy
processes. The price cap has environmental impacts on sustainability practices, presenting challenges in
acquiring supplies and potential disruptions in the supply chain. Retailers have experienced limited
availability, decreased sales, and financial losses, while some consumers have benefited from lower
prices. The pricing changes have also affected budgeting and financial planning for businesses, leading to
adjustments in purchasing quantities, pricing strategies, and capital allocation. Emotional responses vary
among retailers, with some feeling satisfaction and happiness, while others express disappointment or
concerns. To maintain profitability, retailers employ strategies such as price adjustment, inventory
management, and prioritizing customer service. Satisfaction with the price cap varies, influenced by
factors like stability, affordability, and enforcement. Overall, the responses highlight the importance of
considering the implications, effects, and diverse approaches to the rice price cap.
The participants' responses reveal the strategies employed by rice retailers to maintain or enhance
profitability under the mandatory rice price cap. These strategies include price adjustment based on
capital, offering low-cost items with perceived value or uniqueness, compliance with the price cap,
proactive inventory management, maintaining customer trust through honesty, taking advantage of
price drops, diversifying sourcing strategies, prioritizing customer service, and prioritizing honesty in
pricing. The participants' satisfaction with the rice price cap and its impact on achieving its intended
goals varied, with some expressing satisfaction and recognizing positive outcomes, while others
expressed dissatisfaction and suggested areas for improvement. Factors such as stability, affordability,
growth, and enforcement influenced their perceptions. Overall, the findings highlight the diverse
approaches employed by retailers and the varying levels of satisfaction with the price cap.
