The Philippines and Japan are expected to sign a "grant agreement" for a rice processing complex that will be built in the province of Isabela.

In a press conference in Pasay City on Thursday, Assistant Agriculture Secretary Arnel De Mesa announced the signing of the agreement next week.

"It will be in Cauayan, Isabela and we would like to inform you as well that the grant agreement signing will be on October 8th already," he said.

Agriculture Secretary Francisco Tiu Laurel Jr. said the Department of Agriculture and the Japan International Cooperation Agency (JICA) were discussing the grant "for the last year and a half".

"I think it's in its final stages and they will donate a considerable amount but of course initially they'll be setting up one rice mill with driers and silo with a good size," he said.

"We thank Japan for giving this to us and hopefully once the first plant is finished by the end of 2026 they will give a bigger grant for the years to come," he added.

According to Laurel, presently the Philippines can only process or dry 11 percent of its rice production.

"So 11 percent, meaning very small and so we are forced to dry, most of us are paddies or palay in streets, on roads, in basketball courts," he said.

"Especially during our wet season, which is now a rainy season, a lot of our produce gets spoiled. So this is a very welcome gift or grant to the Philippines," he said.

Laurel noted that the agency is targeting to increase its drying capability by up to 35 to 40 percent before the end of his term.

"This year we will be finishing 125 rice processing systems. This investment was not made in the last five administrations only during this administration and there's another 300 drying systems on its way and there will be more in 2026, more in 2027 and more in 2028," he said.

"We aim to be able to dry at least before we step down, up to 35 percent, to 40 percent of our palay during the wet season. So if we can do that, that will help a lot," he added.

In 2024, the agency reported an average rice losses of 342,000 metric tons which is equivalent to P7.89 billion annual post-harvest losses. DMS