NFA opens P355.4-M Iloilo grain facility to boost rice procurement
Agriculture Secretary Francisco P. Tiu Laurel Jr. inspects freshly milled rice during the inauguration of the National Food Authority's new P355.4-million integrated grains facility in Dumangas, Iloilo, a project designed to expand palay procurement, improve post-harvest handling, and strengthen the country's rice buffer stock.
Photo courtesy of DA.
The government has stepped up efforts to strengthen the country's rice supply with the opening of a P355.4-million integrated grains facility in Dumangas, Iloilo, aimed at expanding the National Food Authority's (NFA) palay procurement and improving post-harvest operations.
Located in one of Western Visayas' major rice-producing municipalities, the new complex is expected to more than double the NFA's annual palay procurement in the area while reducing post-harvest losses through modern drying, milling, and storage facilities.
The project includes a modern warehouse, a 10-ton-per-hour rice mill, and a mechanical grain dryer capable of processing up to 240 tons of palay daily.
Agriculture Secretary Francisco P. Tiu Laurel Jr., who chairs the NFA Council, said the project is an investment in both farmers and the country's food security.
"This is an investment in food security as much as it is an investment in our farmers," Tiu Laurel said.
"Modern post-harvest facilities allow the NFA to procure more palay, cut post-harvest losses, improve grain quality, and build stronger buffer stocks. Every bag we save and every bag we procure strengthens the country's ability to keep rice affordable and available, especially during supply disruptions," he added.
NFA Administrator Larry R. Lacson described the Dumangas complex as a major upgrade to the agency's operations in Western Visayas.
"This isn't just a new warehouse—it is a productivity and food security investment," Lacson said.
"Modern equipment allows us to buy more palay, reduce waste, and move grain into our buffer stocks faster. Farmers gain a dependable buyer, while consumers benefit from a stronger and more reliable rice supply," he added.
The facility is expected to expand support to more than 1,000 additional rice farmers while complementing services already provided to 804 farmers and 41 farmers' organizations with about 2,000 members.
It will also serve major rice-producing areas, including Anilao, Banate, Barotac Nuevo, Dingle, Dueñas, Dumangas, Passi City, and San Enrique, which collectively produce around 4.85 million bags of palay annually.
According to the NFA, the new complex will increase daily palay procurement by about 3,600 bags, equivalent to roughly 324,000 bags over two cropping seasons. The expansion is expected to raise the agency's palay absorption rate in the covered areas to between 10 percent and 12 percent.
The Dumangas facility is part of the government's broader program to modernize post-harvest infrastructure, strengthen domestic rice reserves, and reduce dependence on imported rice while building a more resilient food supply system.