The facility will be built in one of the country’s most productive rice belts, the department told.
On Monday, February 16, the Department of Agriculture announced that it has signed a deal with the the Japan International Cooperation Agency (JICA) for a new grant agreement.
Worth JPY1.7 billion (~PHP642 million), it will fund the construction of a modern rice processing system in Isabela for the benefit of National Food Authority (NFA), which looks to improve its buffer stocking capability
The facility will rise in Cauayan City and will feature high-capacity mechanical grain dryers, a multi-stage rice mill and grain silos designed to handle larger procurement volumes with greater efficiency.
The project will be implemented by the DA through the NFA and is expected to bolster year-round buffer stocks, as well as reduce dependence on private drying and milling services. Ultimately, that will contribute to stabilizing rice prices, particularly during lean months, according to the agency.
“We are strengthening NFA’s capacity to handle larger volumes of palay, reduce postharvest losses, improve milling recovery and deliver higher-quality rice to our people,” said Agriculture Secretary Francisco Tiu Laurel Jr.
He added, this “reaffirms our shared commitment to strengthen the Philippine agriculture sector and showcases the strong and enduring partnership between the Philippines and Japan.”
The government also noted that the investment targets a persistent weak link in the rice supply chain, as according to government studies, an estimated 16 percent of rice output is lost during post-harvest handling, with drying and milling accounting for the largest share.
By upgrading its in-house capabilities, the NFA is said to be significantly cutting those losses, improve milling recovery rates and raise the overall quality of rice released through disaster relief and government programs such as Benteng Bigas, Meron Na! or the P20 rice program.
5,000 rice farmers in Cauayan City and nearby municipalities are also seen to benefit through expanded participation in NFA procurement programs.
The DA explained that with more drying and milling capacity, the NFA can buy more palay at fair prices during harvest time, providing farmers with a reliable institutional buyer.
“Ultimately, this translates to a more stable supply for consumers and better income for our farmers,” Tiu Laurel furthered.