The Department of Agriculture and the Japan International Cooperation Agency have sealed a JPY1.7-billion grant agreement to build a modern rice processing system in Isabela, a move aimed at sharpening the buffer stocking capability of the National Food Authority in one of the country’s most productive rice belts.

The facility will rise in Cauayan City, one of the top three rice-producing areas in Isabela, and will be implemented by the DA through the NFA. It will feature high-capacity mechanical grain dryers, a multi-stage rice mill and grain silos designed to handle larger procurement volumes with greater efficiency.

Beyond infrastructure, the project carries direct income implications. At least 5,000 rice farmers in Cauayan City and nearby municipalities are expected to benefit through expanded participation in NFA procurement programs. With more drying and milling capacity, the agency can buy more palay at fair prices during harvest time, providing farmers with a reliable institutional buyer.

The new processing hub is also expected to bolster year-round buffer stocks, reduce dependence on private drying and milling services and contribute to stabilizing rice prices, particularly during lean months. ### (Photos by Joseph Henry Elamparo, DA-AFID)