DA, JICA seal over P640-M grant for modern rice processing hub in Isabela

The Department of Agriculture (DA) and the Japan International Cooperation Agency (JICA) have signed a ¥1.7-billion (approximately P644 million) grant agreement to establish a modern rice processing system in Isabela, strengthening the buffer stocking capacity of the National Food Authority (NFA) in one of the country’s top rice-producing provinces.

The new facility will be constructed in Cauayan City and implemented by the DA through the NFA. It will be equipped with high-capacity mechanical grain dryers, a multi-stage rice mill and grain silos designed to accommodate larger procurement volumes and improve operational efficiency.

The investment seeks to address long-standing post-harvest losses in the rice sector. Government estimates show that roughly 16 percent of rice production is lost during post-harvest handling, with drying and milling accounting for the bulk of the losses.

By enhancing its internal processing capabilities, the NFA is expected to reduce wastage, improve milling recovery rates and raise the quality of rice distributed through disaster response efforts and state-backed food initiatives, including the Benteng Bigas, Meron Na! program under President Ferdinand Marcos Jr.

“We are strengthening NFA’s capacity to handle larger volumes of palay, reduce post-harvest losses, improve milling recovery and deliver higher-quality rice to our people,” Agriculture Secretary Francisco Tiu Laurel Jr. said during the signing ceremony held at the House of Representatives.

He added that the grant “reaffirms our shared commitment to strengthen the Philippine agriculture sector and showcases the strong and enduring partnership between the Philippines and Japan.”

Beyond infrastructure upgrades, the project is expected to generate direct economic benefits for farmers. At least 5,000 rice growers in Cauayan City and nearby areas are projected to benefit from expanded NFA procurement activities.

With increased drying and milling capacity, the agency will be able to purchase more palay at fair prices during harvest season, providing farmers with a steady institutional buyer.

The processing hub is also projected to help maintain year-round buffer stocks, reduce reliance on private drying and milling services and contribute to stabilizing rice supply, particularly during lean months.

“Ultimately, this translates to a more stable supply for consumers and better income for our farmers,” Tiu Laurel said.

NFA Administrator Lacson, for his part, said the agency is committed to ensuring transparency and accountability in implementing the project and completing the rice processing system promptly for the benefit of farmers and consumers in Isabela.