Jica extends P643-M grant to build Isabela rice facility
Japan International Cooperation Agency (Jica) has extended a 1.7-billion Japanese yen grant (P643.57 million) to the Department of Agriculture (DA) to build a modern rice processing system in Isabela, one of the country’s largest rice producers.
The DA, through the National Food Authority (NFA), will implement the project to boost the grains agency’s buffer stocking capacity.
The planned facility will rise in Cauayan City, one of the province’s top three rice-producing towns, designed to reduce postharvest losses and enhance the quality of palay or unmilled rice.
The government will provide counterpart support for the construction of a warehouse to house this equipment, along with other essential infrastructure, utilities and personnel.
“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,” Agriculture Secretary Francisco Tiu Laurel Jr. said during signing ceremonies at the House of Representatives on Monday.
“This modern RPS will strengthen NFA’s mandate to maintain adequate rice buffer stocks, while reducing postharvest losses and improving grain quality. Ultimately, the grant aims to contribute to a food-secure and resilient Philippines, with empowered and prosperous farmers,” Jica Chief Representative Baba Takashi said in a statement.
In a Viber message, NFA Administrator Larry Lacson said that construction will begin soon, although he did not provide a specific timeline.
The rice processing system is supported by Japan’s Economic and Social Development Program, which will feature high-capacity mechanical grain dryers, a multistage rice mill and grain silos to handle larger procurement volumes with greater efficiency.
According to government estimates, about 16 percent of rice production is lost during postharvest handling, with drying and milling holding the largest share.
The facility is expected to boost year-round buffer stocks, reduce dependence on private drying and milling services and help stabilize rice prices, particularly during lean months.
About 5,000 rice farmers in Cauayan City and nearby municipalities are expected to benefit from the rice processing system, enabling the NFA to purchase more palay (unmilled rice) at fair prices during harvest.
