DA, JICA ink ¥1.7B grant to boost Isabela rice processing

The Department of Agriculture (DA) and the Japan International Cooperation Agency (JICA) have signed a ¥1.7-billion grant agreement—approximately US$11.5 million or ₱640 million—to establish a modern rice processing system in Isabela.

According to the DA, the project aims to strengthen the buffer-stocking capability of the National Food Authority (NFA) in the province.

The deal will fund high-capacity mechanical grain dryers, a multi-stage rice mill, and grain silos designed to handle larger procurement volumes more efficiently.

“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 the signing ceremonies at the House of Representatives of the Philippines.

Tiu Laurel 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, the project is expected to generate direct income benefits for at least 5,000 rice farmers in Cauayan City and nearby municipalities by expanding their participation in NFA procurement programs.

With increased drying and milling capacity, the agency will be able to purchase more palay at fair prices during harvest seasons, giving farmers a reliable institutional buyer, the DA said.

The new processing hub is also expected to bolster year-round buffer stocks, reduce dependence on private drying and milling services, and help stabilize rice prices, particularly during lean months.

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

The investment targets a long-standing weak link in the rice supply chain. Government studies estimate that about 16% of rice output is lost during postharvest handling, with drying and milling accounting for the largest share, the DA added.—MCG, GMA Integrated News