DA: ¥1.7B grant signed for Isabela rice facility

LocalBusiness & Finance
17 Feb 2026 • 12:18 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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THE Department of Agriculture (DA) on Monday announced that the Japan International Cooperation Agency (JICA) has signed a ¥1.7-billion (P642.74 million) grant to build a modern rice processing system in Isabela province.

JICA implements Japan’s Official Development Assistance (ODA) in developing countries, supporting socioeconomic development, recovery, and stability by offering technical cooperation, concessionary loans (ODA loans), and grants to address challenges in infrastructure, health care, education, and disaster risk reduction.

The rice processing facility — to be built in Cauayan City, a top rice-producing urban center in Isabela — will have high-capacity grain dryers, a multistage mill, and grain silos that could handle large volumes of the crop, all of which will enhance efficiency in rice milling, the DA said.

Milling and drying are persistent weak links in the rice supply chain, the DA noted, explaining that about 16 percent of output is lost in post-harvest handling.

The project will boost the National Food Authority’s buffer rice stock capability in Isabela and reduce post-harvest losses, increase milling recovery rates, and enhance the overall quality of rice distributed in disaster relief operations and other government initiatives, including the P20-per-kilogram rice (Benteng Bigas, Meron Na!) program, said Agriculture Secretary Francisco Tiu Laurel Jr.

The grant demonstrates the enduring relations between the Philippines and Japan, highlighting their shared commitment to support the agriculture sector, the DA said, pointing out that the project stands to benefit at least 5,000 rice farmers in Cauayan City and nearby municipalities.

It would also allow the A to buy more palay from farmers at fair prices, especially during harvest season, said the DA.

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

The project will be implemented by the DA through the A.

A Administrator Larry Lacson vowed to observe transparency and accountability in the project.