The Department of Agriculture (DA) and the Japan International Cooperation Agency have signed a ¥1.7-billion grant to build a modern rice processing system in Isabela province to strengthen government rice buffer stocks.
The project will be built in Cauayan City, one of the province’s top rice-producing areas. It will be carried out by the DA through the National Food Authority (NFA).
The new facility will include high-capacity mechanical grain dryers, a multi-stage rice mill, and grain silos. These upgrades are expected to help the NFA handle larger volumes of palay and operate more efficiently.
Government studies show that around 16 percent of rice harvest is lost after harvest, mainly during drying and milling. The new system aims to reduce these losses, improve milling recovery, and raise the quality of rice distributed through disaster relief and government food programs, including Benteng Bigas, Meron Na!, the flagship food initiative of Ferdinand Marcos Jr..
Agriculture Secretary Francisco Tiu Laurel Jr. said the grant strengthens the NFA’s ability to buy more palay, cut post-harvest losses, and deliver better-quality rice to consumers. He added that the agreement reflects the strong partnership between the Philippines and Japan.
At least 5,000 rice farmers in Cauayan City and nearby towns are expected to benefit. With expanded drying and milling capacity, the NFA can purchase more palay at fair prices during harvest season, giving farmers a reliable buyer.
Officials said the new processing hub will help maintain stable buffer stocks year-round, reduce reliance on private facilities, and support efforts to keep rice prices steady, especially during lean months.
