THE Department of Agriculture (DA) has earmarked P3.3 billion to build an additional 300 drying systems nationwide by 2028 to reduce postharvest losses.
Agriculture Secretary Francisco Tiu Laurel Jr. said the rice processing systems (RPS) would address the country’s chronic lack of drying and milling facilities that continue to plague farmers.
The DA said the additional drying systems could raise rice drying capacity to as much as 40 percent during the wet season.
Such an increase could be ‘game-changing’ for a sector that loses up to 16 percent of potential yield due to postharvest inefficiencies, citing industry estimates.
‘This aggressive infrastructure build-out could mark a turning point for the country’s beleaguered rice industry,’ the DA said.
‘Postharvest losses, inefficiencies in the supply chain, and poor access to processing facilities have long eroded farmer income and inflated consumer prices.’
The RPS is implemented by the Philippine Center for Postharvest Development and Mechanization (PhilMech) through the Rice Competitiveness Enhancement Fund (RCEF) mechanization program.
Under the first phase of RCEF, the government has established 151 RPS nationwide, 145 of which were completed under the current administration.
Currently, 118 RPS have been inaugurated, with the delivery, installation, and commissioning of the remaining 27 expected to be completed by yearend.
Under the amended Rice Tariffication Law, the amount earmarked for RCEF tripled to P30 billion from P10 billion until 2031 to fund the rice industry’s programs, such as farm mechanization.
The mechanization program is expected to provide free agricultural machinery to all rice-producing provinces while aiming to cut postharvest losses to as much as 8 percent from the current 5 percent.
Economists, however, warned that while RPS investments are a crucial milestone, broader reforms must follow, such as in land consolidation, irrigation development, and market access.
‘The Philippines has underinvested in postharvest systems for decades,’ Agriculture economist Noel Provido said. ‘This is a strong step forward, but structural issues in rice production can’t be solved by drying facilities alone.’
‘There must be parallel moves to ensure access to inputs, mechanization, and fair pricing mechanisms,’ he added.
Despite this, the DA chief stressed that the government is keen on setting the groundwork to bolster the country’s rice sector.
‘This is a legacy investment. One that finally gives our farmers the tools to compete and thrive,’ Tiu Laurel said.