MANILA — The Department of Agriculture (DA) and the Japan International Cooperation Agency have signed a JPY1.7-billion grant agreement to build a modern rice processing system in Cauayan City, Isabela, aimed at strengthening the buffer stocking capability of the National Food Authority (NFA) in one of the country’s top rice-producing regions.

The facility, to be implemented by the DA through the NFA, will feature high-capacity mechanical grain dryers, a multi-stage rice mill, and grain silos designed to handle larger procurement volumes with greater efficiency.

Government studies estimate that about 16 percent of rice output is lost during post-harvest handling, with drying and milling accounting for the largest share. The new processing hub is expected to cut these losses, improve milling recovery rates, and raise the overall quality of rice distributed through disaster relief and government programs such as Benteng Bigas and Meron Na!, the flagship food program of President Ferdinand Marcos Jr..

“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.

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.”

The project is expected to directly benefit at least 5,000 rice farmers in Cauayan City and nearby municipalities by allowing expanded participation in NFA procurement programs. Increased drying and milling capacity will enable the agency to buy more palay at fair prices during harvest time, providing farmers with a reliable institutional buyer.

The new facility is also projected to bolster year-round buffer stocks, reduce dependence on private drying and milling services, and contribute to stabilizing 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.

NFA Administrator Jason Lacson said the agency is committed to transparency and accountability in implementing the project and completing the rice processing system swiftly for the benefit of Isabela farmers and consumers.