P665M Japan-funded rice processing hub soon to rise in Cauayan City, Isabela

Cauayan City, Isabela – A modern rice processing facility backed by the Japanese government will soon be constructed in Cauayan City, Isabela, to strengthen rice supply management and support local farmers.

According to the Department of Agriculture (DA), the Japanese government is providing 1.7 billion yen, or around P665 million, in grant assistance for the establishment of the facility, which will be operated by the National Food Authority (NFA).

The Provincial Government of Isabela, through its Public Information Office, said the funding will be released by the Japan International Cooperation Agency (JICA) under its Economic and Social Development Program, which supports agricultural infrastructure and food security initiatives in the Philippines.

The facility will be equipped with four mechanical grain dryers, each with a capacity of 30 metric tons, a multi-stage rice mill capable of processing 10 tons per hour, and four grain silos with a storage capacity of 1,000 metric tons each.

Cauayan City was selected as the site for the project due to its strategic location in Isabela, one of the country’s major rice-producing provinces. Once completed, the modern drying, milling, and storage systems are expected to reduce post-harvest losses, improve milling recovery, and ensure better-quality rice for government distribution and emergency response programs.

“The project is expected to benefit at least 5,000 rice farmers in Cauayan City and nearby municipalities,” the Isabela PIO reported. Governor Rodito T. Albano expressed gratitude to the Japanese government and the Department of Agriculture, noting that the facility would significantly boost palay production and improve farmers’ livelihoods.

In a separate report, the JICA Philippines Office confirmed that the project is scheduled for implementation from 2026 to 2027. The grant was formalized by DA Secretary Francisco Tiu Laurel Jr. and JICA Chief Representative Baba Takashi during a signing ceremony in Quezon City on February 16, 2026.

“This facility will significantly boost NFA’s capacity to process palay, enabling more farmers to sell their produce to the agency. Together, we ensure every grain counts toward a more food-secure Philippines,” JICA Philippines said.