The Department of Agriculture (DA) is seeking up to $500 million from Japan International Cooperation Agency (JICA) to facilitate its project to reduce post-harvest losses and bolster rice production.

DA Assistant Secretary and Spokesperson Arnel de Mesa said details on the proposed funding were finalized during Agriculture Secretary Francisco Tiu Laurel’s meeting with JICA officials in Japan on Tuesday, March 11.

This discussion followed the conclusion of the study conducted by Sanyu Consultants Inc., the firm JICA tapped to review the project’s feasibility.

“Kahapon diniscuss ‘yung detalye noong project, ano ‘yung best way forward for this. At nakapag-sunduan naman ano ‘yung mga dapat na hakbangin para magtuloy-tuloy ‘yung proyektong ito,” said De Mesa.

(Yesterday, the details of the project were discussed, including the best way forward for this. An agreement was also reached on the necessary steps to ensure the project's continuity.)

De Mesa said the DA is looking into a $200 million to $500 million loan agreement with JICA, with a potential project launch in 2026 or 2027.

The post-harvest facilities project covers rice mills, warehouses, rice dryers, and other related agricultural infrastructure.

This will primarily benefit the National Food Authority (NFA), which oversees the stability of rice supply, as well as local rice cooperatives and associations.

“Ang mga ganitong project will help reduce post-harvest losses and will eventually mapataas ‘yung ating production and, of course, mapataas din ‘yung income ng ating mga farmers,” said De Mesa.

(These kinds of projects will help reduce post-harvest losses and will eventually increase our production and, of course, also raise the income of our farmers.)

Based on data from the Philippine Center for Post-Harvest Development and Mechanization (PhilMech), the country sustains losses of 15 to 17 percent due to post-harvest issues.

The NFA earlier announced that half of its ₱10-billion modernization fund will be allocated for the construction and expansion of post-harvest facilities.

New drying facilities, for instance, are expected to help stabilize rice prices since they would maintain a consistent quality in rice that keeps prices in check.

While the DA’s proposed project would be implemented across the country, a special emphasis will be placed on rice-producing areas to help support the NFA.

To recall, the NFA is intensifying its procurement of rice stocks from local farmers to fulfill its required rice buffer stock of 880,000 metric tons (MT) of palay or unmilled rice this year as mandated by the Amended Rice Tariffication Law.

The agency has a buying price of ₱18 per kilo for wet palay and ₱24 per kilo for dry palay.