By: Jordeene B. Lagare

MANILA, Philippines — The Department of Agriculture (DA) has earmarked P3.3 billion to improve rice yield and reduce postharvest losses over the next three years.

In a statement on Thursday, the DA said the budget allocation will be used to set up 300 drying systems across the archipelago.

The DA is targeting the completion of 145 rice processing systems nationwide this year to address “the chronic lack of drying and milling facilities” that still affect local rice farmers.

To date, 118 rice processing systems have been established nationwide. The agency said the delivery, installation and commissioning of the remaining 27 facilities will be completed by December.

Agriculture Secretary Francisco Tiu Laurel Jr. said the completion of 145 rice processing systems in three years is “a scale of investment” unmatched in the DA’s history.

‘Legacy investment’

“This is a legacy investment,” Tiu Laurel said. “One that finally gives our farmers the tools to compete and thrive.”

Citing industry estimates, the DA noted that the rice sector loses up to 16 percent of potential yield due to postharvest inefficiencies.

“This aggressive infrastructure build-out could mark a turning point for the country’s beleaguered rice industry. Postharvest losses, inefficiencies in the supply chain, and poor access to processing facilities have long eroded farmer income and inflated consumer prices,” it added.

The DA is undertaking the development of these processing systems through the mechanization component of the Rice Competitiveness Enhancement Fund (RCEF). The fund intended to boost rice farmers’ income and productivity.

According to the DA, more investments are being prepared to sustain the momentum in the remaining half of President Marcos’ term.

Data from the Philippine Statistics Authority (PSA) showed that palay production in the third quarter of this year is estimated at 3.93 million metric tons (MT).

This represents an increase of 18.1 percent from the actual output of 3.33 million MT in the same period a year ago.

The DA previously slashed its palay output forecast for 2025 due to widespread flooding in key agricultural areas. This now ranges between 20.09 million MT and 20.39 million MT.

If attained, it would still breach the 2023 record high of 20.06 million MT.

Published Date: October 17, 2025