Japan to provide P665M for modern rice processing system in Cauayan City, Isabela
The Japanese government will extend approximately P665 million in funding for the establishment of a modern rice processing system in Cauayan City, Isabela to support the Philippine government’s buffer stocking program.
The Department of Agriculture (DA), through the National Food Authority (NFA), signed the grant agreement with the Japan International Cooperation Agency (JICA) under Japan’s “Economic and Social Development Programme.”
The funding will be used to procure four mechanical grain dryers with a capacity of 30 metric tons each, one multi-stage rice mill with a processing capacity of 10 tons per hour, and four grain silos with a capacity of 1,000 metric tons each.
The project is scheduled for implementation from 2026 to 2027.
The facility will be built on an NFA-owned site in Cauayan City, one of the leading rice-producing areas in Isabela. The warehouse is currently under construction through government counterpart funding.
According to the DA, the new system is expected to enhance NFA’s capacity to receive and process larger volumes of palay, reduce postharvest losses, improve milling recovery rates, and produce higher-quality rice for government programs and disaster response.
Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that the grant reflects the strong partnership between the Philippines and Japan in strengthening the agriculture sector and advancing national food security.
Governor Rodito T. Albano expressed gratitude to the Japanese government and the Department of Agriculture for the support extended to the province of Isabela, saying it would significantly boost palay production and improve farmers’ livelihoods.
At least 5,000 rice farmers in Cauayan City and nearby municipalities are expected to directly benefit from the project through expanded NFA procurement at fair prices during harvest season.
NFA officials assured transparency and accountability in the project’s implementation to ensure that farmers and consumers in Isabela will promptly benefit from the new rice processing system. – Isabela PIO