The Department of Agriculture and the Japan International Cooperation Agency (JICA) signed a 1.7-billion yen grant agreement to establish a modern rice processing system in Cauayan City to support the National Food Authority’s (NFA) buffer-stocking capacity.
The facility will be built in one of the top rice-producing areas in Isabela province and implemented by the Department of Agriculture through the NFA.
The project aims to address vulnerabilities in the rice supply chain where government data show roughly 16 percent of output is lost during post-harvest handling, with drying and milling accounting for the largest share.
“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,” Department of Agriculture Secretary Francisco Tiu Laurel Jr. said during the signing rites at the House of Representatives.
The project includes the procurement of high-capacity mechanical grain dryers, a multi-stage rice mill and grain silos designed to handle larger procurement volumes with greater efficiency. Upgrading these capabilities is expected to reduce losses, improve milling recovery rates and enhance the quality of rice distributed through disaster response operations and government food programs.
The processing hub is also expected to improve year-round buffer stocks, lessen reliance on private drying and milling services and help stabilize rice prices during lean months.
The project will directly support farmer incomes, with 5,000 rice farmers in Cauayan City and nearby municipalities expected to benefit from expanded participation in NFA palay procurement. This allows the agency to purchase larger volumes at fair prices during peak harvest periods.
NFA administrator Larry Lacson said the agency is committed to transparency and accountability in implementing the project and ensuring the timely completion of the system for the benefit of farmers and consumers in Isabela.
