As the Philippine population increases, so does the demand for food—especially rice, which is a staple in the country.
Palay production in the Philippines reached 20.06 million metric tons in 2023—the highest volume of palay harvested in the country since 1987. This is a 1.5 percent increase from the previous year’s output of 19.76 million metric tons, according to the Philippine Statistics Authority (PSA).
Central Luzon was the top producer of palay, with 3.64 million metric tons. The region alone accounted for a substantial 18.1 percent of the total palay production in the country for 2023.
This is not at all surprising, considering that Nueva Ecija, known as the “Rice Granary of the Philippines,” is located in the region. Data from the Philippine Rice Research Institute show that in 2023, tens of thousands of rice farmers in Nueva Ecija produced 1.84 million metric tons of palay from nearly 300,000 hectares.
Rice farmers play a crucial role in President Ferdinand Marcos Jr.’s vision of a food-secure Philippines, where the food supply is sufficient, and the price of farm commodities is fair.
To maximize income, proper drying and storage of palay are essential to improving grain quality and milling efficiency. However, all major rice-producing provinces face inadequate storage facilities, and while milling capacity has exceeded palay supply, most milling facilities are single-pass mills with recovery rates no higher than 55%, far below the ideal 65-70%.
The Marcos administration, through the Department of Agriculture (DA), is establishing a network of rice processing systems (RPS) in major rice-producing provinces to enhance productivity, rice recovery, and farmers’ incomes.
RPS is one of the mechanization initiatives supported by the Rice Competitiveness Enhancement Fund (RCEF), which aims to modernize rice farming in the Philippines. The initiative, launched in 2019, is being implemented by the DA’s Philippine Center for Postharvest Development and Mechanization (PHilMech). The six-year program, originally scheduled to conclude in 2024, has been extended for another six years with the amendment of the Rice Tariffication Law, which uses import duties on rice to fund the RCEF.
According to Agriculture Secretary Francisco P. Tiu Laurel Jr., the distribution of RPS is in line with the Marcos administration’s vision of increasing farm yields, lowering input costs, and raising farmers’ incomes. The RPS program also seeks to improve the quality of rice while reducing the amount of grains wasted post-harvest, he added.
“The government is giving back to farmers what is due them, and with the help of our legislators, we can provide rice producers more assistance to enhance their competitiveness through the extension of the Rice Tariffication Law,” Secretary Tiu Laurel said.
According to PHilMech, the program involves the distribution and establishment of three types of Rice Processing Systems (RPS), each tailored to meet varying production capacities:
- RPS 1 includes a multi-stage rice mill with a processing capacity of 1.5 tons per hour, along with two recirculating dryers, each capable of handling 6 tons per batch.
- RPS 2 features a multi-stage rice mill with a capacity of 2–3 tons per hour and is complemented by two recirculating dryers with a 12-ton per batch capacity.
- RPS 3 comprises a high-capacity multi-stage rice mill that can process 4–5 tons per hour, along with three recirculating dryers, each with a 12-ton per batch capacity.
Since the implementation of the RCEF (formerly known as the Rice Fund), a total of 158 units of RPS have been strategically allocated to qualified farmers’ organizations and local government units across the country to enhance post-harvest efficiency and rice quality. These units include 99 RPS 1 facilities, 53 RPS 2 facilities, and 6 RPS 3 facilities, each designed to address specific processing requirements. As of this report, 55% of the allocated units have been fully established and are operational. The delivery and installation of the remaining units are currently in progress, with all units expected to be completed and fully operational by the first quarter of the year.
Among the provinces that received an RPS in 2024 is Nueva Ecija. As the primary rice producer in the country, there is a significant need to improve the machinery used by farmers in Nueva Ecija to enhance productivity.
In the towns of Jaen and Guimba, the DA distributed ₱135.8 million worth of post-harvest facilities and financial assistance to farmers and farmers’ groups.
The facilities and financial assistance covered two farmers’ cooperatives with a total membership of 344 farmers, tilling a combined total of 476 hectares in the two municipalities.
In Jaen, the Pakul Primary Multi-purpose Cooperative was provided with an RPS that includes a multi-stage rice mill with a capacity of two to three tons per hour. The rice mill also includes a pre-cleaner, de-stoner, huller, mist polisher, length grader, color sorter, blending tank, automatic packing machine for milled rice, rice hull bin, dust collection system, and an air-conditioned control room. Additionally, the cooperative was provided with a recirculating dryer with a drying capacity of 12 tons per batch. Another recirculating dryer with a 6-ton per batch drying capacity was also distributed to the cooperative.
A similar RPS, along with three 12-ton recirculating dryers, was also given to the Cooperative Enterprise for True Economic Reform in Guimba town.
An RPS was also given to the Piddig Basi Multi-purpose Cooperative in Ilocos Norte, which is expected to lower the price of rice as well as the cost of production for farmers.
Felix Cid, president of the farmer’s cooperative, said that farmers there no longer need to worry about drying their palay since they can easily access the modern rice mill even on rainy days.
“We have dreamed of this modern facility, and through hard work and dedication, we made it happen under the RCEF mechanization program,” Cid said.
In the province of Quirino, the government also inaugurated a rice processing facility and turned over several pieces of machinery worth ₱96 million that are expected to boost productivity and income for farmers there.
The RPS, which includes a rice mill and dryers, was awarded to the Diffun Saranay and Development Cooperative, which counts 2,320 farmers as members, managing a total of 3,502 hectares of rice fields in the province.
An RPS valued at ₱114.5 million was also awarded in Naguilian town, Isabela.
An Important Aspect of the Value Chain
The establishment of RPS is also part of the government’s ultimate goal of achieving food security in the country.
For President Marcos, RPS is one of the most important aspects of the value chain.
He lamented how, in the provinces, the drying of harvested palay usually takes place along roads or in basketball courts, often leading to wastage due to the palay being destroyed by natural factors.
“Kung maaalala ninyo, noong pinag-uusapan namin bago pa ako umupo ay pinag-uusapan ko na talaga na kailangan buuhin ang value chain mula sa pagsaka, hanggang sa processing, hanggang sa marketing, lahat-lahat dapat buuhin natin nang maganda para streamlined ito, hindi bumubukol ang mga gastos sa bawat hakbang,” President Marcos said.
“Pag mag-processing, magbabayad ka na naman. Pag i-hauling mo, magbabayad ka na naman. Pag dadalin mo sa palengke, magbabayad ka na naman. Ngayon, hindi na,” he added, explaining that through the RPS provided to the FCAs, it is now the cooperatives that will shoulder the costs.
According to President Marcos, the government is aiming to provide more RPS and other agricultural machinery to more provinces in the Philippines.
“Alam niyo po, napakanipis lamang ang kita sa palay at saka… Kaya’t magkabagyo lang nang kaunti, kailangan — tumaas ang presyo ng krudo, lumayo, masira ‘yung processing, malayo ang pupuntahan, wala na, nawawala kaagad ‘yung kita,” President Marcos said.
“Kaya’t nandito na ito, mas lalapad ang kita, mas maganda ang magiging hanapbuhay ng ating mga magsasaka,” the President added. (end)
