JICA Grant to Establish Modern Rice Processing System in Isabela

The Japan International Cooperation Agency (JICA) is providing a JPY 1.7 billion grant (approximately PHP 652 million) to support the establishment of a modern Rice Processing System (RPS) in Cauayan City, Isabela. The grant agreement was formalized by Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. and JICA Chief Representative BABA Takashi during a signing ceremony on February 16, 2026 in Quezon City.

Extended under Japan’s Economic and Social Development Program, the grant will be implemented in partnership with the Department of Agriculture (DA) through the National Food Authority (NFA). The NFA is primarily mandated to procure palay (unhusked rice) exclusively from local farmers, maintain rice buffer stocks and play a central role in ensuring the country’s food security, particularly during emergencies and supply disruptions. The grant aims to reduce rice losses and improve farmer incomes in one of the country’s largest rice-producing provinces.

Government studies estimate that around 16% of rice is lost during post-harvest handling, with drying and milling accounting for the largest share. In Cauayan City, one of the top 3 rice-producing municipalities in Isabela, limited access to modern postharvest facilities has constrained farmers’ earnings and reduced NFA’s ability to purchase palay during peak harvest seasons.
This grant aligns with the DA’s priority to modernize rice postharvest and storage systems in the country through the provision of advanced postharvest equipment, including mechanical grain dryers, multi-stage rice mill, and grain silos at NFA Cauayan. The Philippine government will provide counterpart support for the construction of a warehouse that will house this equipment, as well as other essential infrastructure, utilities, and personnel.

The project is expected to directly benefit at least 5,000 individual rice farmers in Cauayan City and nearby municipalities through increased participation in NFA procurement programs.

JICA Chief Representative BABA Takashi said, “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.”

For decades, JICA has supported the modernization of rice production through initiatives such as constructing and rehabilitating national irrigation systems and advancing rice research, which has boosted rice productivity in rural areas. The establishment of a RPS represents a new milestone in JICA’s commitment as the Philippine's long-standing partner in fostering a resilient, food-secure nation.

(Photos Courtesy of the Department of Agriculture)