The grant agreement was signed on February 16, 2026 by Agriculture Secretary Francisco Tiu Laurel Jr. and JICA Chief Representative Takashi Baba. The project will be implemented by the Department of Agriculture (DA) through the National Food Authority (NFA).

The facility will rise in Cauayan City, one of the top three rice-producing municipalities in Isabela. It will be equipped with high-capacity mechanical grain dryers, a multi-stage rice mill, and grain silos designed to handle larger procurement volumes more efficiently.

Government studies show that around 16 percent of rice production is lost due to poor post-harvest handling, with drying and milling accounting for the biggest share. Limited access to modern facilities in Cauayan has constrained farmers’ earnings and reduced the NFA’s ability to purchase palay during peak harvest seasons.

“This modern RPS will strengthen NFA’s mandate to maintain adequate rice buffer stocks, while reducing postharvest losses and improving grain quality. Ultimately, the grant aims to contribute to a food-secure and resilient Philippines, with empowered and prosperous farmers,” Baba said.

Agriculture Secretary Tiu Laurel said the investment will improve NFA operations and farmer incomes.

“We are strengthening NFA’s capacity to handle larger volumes of rice, reduce post-harvest losses, improve milling recovery, and deliver higher quality rice to our people,” he said.

He added that the grant “reinforces our shared goal of strengthening the Philippine agricultural sector and demonstrates the strong and long-term relationship between the Philippines and Japan.”

The Philippine government will provide counterpart funding for the construction of a warehouse and other necessary infrastructure, utilities, and personnel.

At least 5,000 rice farmers in Cauayan and nearby towns are expected to benefit from expanded participation in NFA procurement programs. With increased drying and milling capacity, the agency will be able to buy more palay at fair prices during harvest, offering farmers a more reliable institutional buyer.

NFA Administrator Larry Lacson said the agency remains committed to transparency and the prompt completion of the Rice Processing System for the benefit of farmers and consumers in Isabela.

Beyond reducing losses, the new processing hub is expected to strengthen year-round buffer stocks, reduce reliance on private drying and milling services, and help stabilize rice supply, particularly during lean months.

In a news release dated January 29, Tiu Laurel said the visiting delegation expressed strong interest in supplying rice to the Philippines, citing surplus production in Pakistan. While welcoming the offer, the agriculture chief stressed that any imports would be carefully calibrated to domestic needs as the country continues to work toward rice self-sufficiency.

“The Philippines welcomes Pakistani rice; but we will limit imports strictly to what the country needs,” Tiu Laurel said. “We will not over-import; food security comes first.”

The Philippines remains one of the world’s largest rice importers, relying on overseas suppliers to plug supply gaps caused by weather disruptions, rising demand, and structural challenges in the farm sector.

Tiu Laurel said the government continues to require reliable international partners while it strengthens local production.

Pakistan’s proposal comes as Manila reviews its sourcing strategy to avoid overdependence on a single supplier.

The agriculture secretary underscored that rice imports would remain a supplement, not a substitute, to domestic output.

Beyond rice, the talks explored two-way trade opportunities in both agricultural and non-agricultural products. Tiu Laurel said Pakistan has requirements for Indian buffalo meat, while expressing openness to importing more Philippine products. These include coconuts, seaweeds, fish, and other agricultural commodities where the Philippines has a competitive edge.

“This is about widening our engagement with countries that are not necessarily our near neighbors, in the spirit of world trade and cooperation,” Tiu Laurel said. “Countries need to help each other by exchanging products to strengthen food security on both sides.”

The Department of Agriculture views such partnerships as part of a broader strategy to stabilize supply chains amid global market volatility, climate risks, and geopolitical uncertainty. By balancing imports with domestic production goals, the government aims to protect consumers from price spikes while safeguarding the livelihood of Filipino farmers.

Any prospective rice imports from Pakistan would still be subject to existing regulatory, sanitary, and quality requirements, the department said, as negotiations and technical discussions continue.

The Department of Agriculture (DA) said Wednesday (Jan. 28) that last year’s expansion was the highest recorded in the past five years, underscoring both the sector’s resilience and its continuing exposure to climate risks.

While crops remain the backbone of agriculture, it was poultry that delivered the strongest and most consistent gains.

In the fourth quarter alone, poultry output jumped 8.9 percent to ₱78.2 billion, while full-year production rose 9.1 percent to ₱304.7 billion, with gains across nearly all commodities except duck eggs. Poultry now accounts for around 16 percent of total agricultural output, solidifying its role as a key growth engine for the sector.

The robust poultry performance provided a crucial buffer as crops faltered under unfavorable weather.

Crop production took the hardest hit toward the end of the year. In the fourth quarter, the value of crops—including rice and corn—fell 2.5 percent to ₱274.3 billion, as weather disturbances disrupted harvests.

For the full year, however, crop output still managed a 2.8 percent increase to ₱986.8 billion, making up 56 percent of total agricultural production.

The figures highlight a long-standing vulnerability: crops remain both the foundation of Philippine agriculture and its most exposed segment when climate shocks intensify.

Agriculture Secretary Francisco Tiu Laurel Jr. said the government is moving to address this structural weakness.

“We’re now laying the groundwork for a smarter, climate-resilient agriculture,” he said, pointing to investments in cold storage, drying facilities, silos, upgraded rice processing systems, greenhouses, and smart irrigation.

The aim, he said, is to cushion the impact of extreme weather, stabilize supply, and help smooth food prices for both producers and consumers.

Elsewhere in the sector, performance was mixed.

Livestock production rose 1 percent in the fourth quarter to ₱68.4 billion, largely driven by swine, but declined 2.3 percent for the full year to ₱246.4 billion, reflecting lingering structural challenges. Still, the hog subsector posted 1.6 percent growth in the fourth quarter—the first expansion since the African swine fever (ASF) outbreak—signaling a sustained recovery.

Fisheries posted a 4 percent increase in the fourth quarter to ₱66.1 billion, but ended the year slightly lower at ₱233.7 billion, down 0.3 percent.

Overall, the data show an agricultural sector that is still growing, but with its trajectory increasingly shaped by climate volatility. Poultry’s strong performance is helping carry the load for now, but without faster adaptation, broader gains—especially in crops—remain vulnerable to the next round of weather disruptions.

Tiu Laurel said the Executive Order formalizing the extension of the import suspension will be released on Monday.

“With the import ban having little impact on retail prices and supply of rice but a significant effect on the farmgate price of palay, President Marcos deemed it necessary to extend the suspension for two more months,” Tiu Laurel said.

The president initially suspended rice imports for two months, until October 31, to counter the sharp decline in palay prices ahead of the wet harvest season. While the measure briefly lifted prices, the gains tapered off as the suspension neared its expiry.

Tiu Laurel said that with harvests still ongoing in several regions, the extended import ban—together with the rollout of the Sagip Saka program and the establishment of a floor price for palay—should help support struggling rice farmers.

In an earlier Senate hearing, the DA chief noted that over-importation and poor-quality harvests in some areas, worsened by bad weather, had depressed farmgate prices.

Department of Agriculture projections show that rice availability will remain adequate even under a 120-day import suspension.

Conservative estimates place supply at 89 days by year-end, while optimistic scenarios project up to 92 days, considering 122.7kg/annum the projected per capita consumption compared with just 58 days’ worth of stocks at the end of 2024.

Tiu Laurel said he recommended the extension to the president as “a necessary measure to provide sustained support to local producers, maintain market stability, and allow a more comprehensive assessment of the policy’s effects.”

Despite the suspension, retail rice prices have remained broadly stable, according to the DA’s Agribusiness and Marketing Assistance Service (AMAS). The agency projects that by November, well-milled rice will average around P42 per kilo, while regular-milled rice will hover near P40.

On October 29, DTI officials conducted an inspection in Makati City, checking the prices and supply levels of basic necessities and prime commodities (BNPCs) such as candles and bottled water, items in high demand during the observance of All Saints’ and All Souls’ Days.

The inspection revealed that all 224 stock-keeping units (SKUs) of monitored goods were within the DTI’s suggested retail price (SRP), reflecting stable market conditions.

DTI Secretary Cristina A. Roque emphasized that the activity underscores the agency’s ongoing commitment to consumer protection and market stability.

“We commend our retailers for upholding fair prices in the interest and welfare of our consumers. Rest assured that the DTI will continue to diligently monitor the markets to keep prices affordable while also ensuring that our businesses remain sustainable and profitable, so that it will be a win-win for all,” Secretary Roque said.

Since the start of October, the DTI has inspected 19 flower shops to ensure compliance with SRPs and to encourage vendors to maintain reasonable pricing amid increased demand.

As Chairperson of the National Price Coordinating Council (NPCC), Secretary Roque also joined Agriculture Secretary Francisco Tiu Laurel Jr. in monitoring wet markets, checking the prices of rice, meat, fish, fruits, and vegetables across 10 market stalls.

These activities form part of the DTI–DA joint efforts to safeguard price stability and supply adequacy of essential commodities nationwide. To date, both agencies have conducted 23 joint market monitoring operations this year, reinforcing their shared goal of keeping consumer goods affordable while supporting fair and responsible business practices.

According to a Department of Agriculture news release, the meeting took place during the state visit of President Ferdinand Marcos Jr. to Cambodia and focused on deepening collaboration in agricultural trade, food security, and market access for farm products.

Minister Dith expressed optimism that Cambodia’s agricultural exports to the Philippines, particularly its premium aromatic rice, would see an uptick, citing growing demand in Manila and other urban areas.

Secretary Tiu Laurel, for his part, acknowledged that Cambodian products such as rice, fish, meat, and vegetables could help meet the needs of the Philippines’ expanding population. He added that the Philippines is preparing to welcome more Cambodian agricultural goods into its domestic market, a move expected to enhance bilateral trade and food supply resilience.

“This bilateral meeting is a step forward to flesh out the agreement signed earlier this year by the Philippines and Cambodia on agricultural trade, cooperation, and knowledge transfer,” said Tiu Laurel.

The talks concluded with both sides reaffirming their commitment to strengthen cooperation in agriculture, ensure mutual food security, and promote sustainable trade between their countries.

In February, the Philippines and Cambodia signed a Memorandum of Understanding (MOU) on Agricultural and Agribusiness Cooperation during the state visit of Cambodian Prime Minister Hun Manet to Manila.

The agreement aims to boost investments in Cambodia’s agriculture sector, especially rice production, and explore trade opportunities in vegetables and meat, while enhancing technical exchange and training.

As part of the ongoing collaboration, Secretary Tiu Laurel and Minister Dith visited the Khmer Food Group and the Tram Bok Modern Agricultural Community to observe best practices in vegetable farming and agri-innovation.

“Our suggestion is a gradual increase…eventually returning to the 35 percent duty,” Secretary Tiu Laurel testified before the House of Representatives’ Murang Pagkain Super Committee, chaired by Albay Rep. Joey Salceda.

Nueva Ecija Rep. Rossana Vergara pushed for higher tariffs, warning that unchecked rice imports are harming local farmers.

The tariff proposal comes amid heightened scrutiny of the Rice Tariffication Law (RTL), initially enacted in 2019 and amended in 2024. While the law liberalized rice imports, it also earmarked tariff revenues for the Rice Competitiveness Enhancement Fund (RCEF), which will increase its annual allocation from ₱10 billion to ₱30 billion under the revised legislation.

The current 15 percent tariff, a temporary measure implemented by President Marcos last July in response to El Niño and India’s rice export ban, remains under review.

In Congress last week (June 11), the DA chief warned that an abrupt 20-percentage-point hike could disrupt the rice market and undermine government efforts to stabilize prices since last year.

“A sudden increase could shock not only the local market but also ripple across the global rice trade,” he said.

As one of the world’s major rice importers, the Philippines plays a significant role in global rice pricing due to its demand-supply as well as regulatory dynamics.

The decision of President Ferdinand Marcos Jr. to reduce the rice tariff to 15 percent in July triggered a series of DA initiatives, including the introduction of a maximum suggested retail price (MSRP) on 5 percent broken imported rice. These measures brought down rice prices and contributed to significantly slowdown inflation.

“To minimize the impact on the local market, we propose timing the tariff hike to coincide with the harvest seasons of our major suppliers—around late September for Vietnam and December for Pakistan,” Tiu Laurel said.

Vietnam remains the Philippines’ largest rice supplier, although President Marcos has directed efforts to diversify sources—including India and Pakistan—to ensure more stable and affordable imports.

While global rice prices remain lower than last year, they have recently begun to rise again, a trend analysts view as a market correction. Even so, the DA still plans to lower the MSRP on imported rice by ₱2 per kilo, reducing it to ₱43 starting July 1.

Since the MSRP was introduced in January, it has been reduced several times from the original ₱58 per kilo, in response to declining global prices and the reduced tariff.

These scholarships support Filipino leaders pursuing postgraduate studies in Australia, with the goal of contributing to Philippine development upon their return. Interested applicants can learn more at www.australiaawardsphilippines.org/scholarships.

As the next generation of scholars prepares to apply, the Australian Embassy in the Philippines recently celebrated the achievements of outstanding alumni at the Australia Alumni Excellence Awards. The annual event honors Australia-educated Filipinos who have made exceptional contributions in innovation, education, and industry.

Australian Ambassador to the Philippines HK Yu PSM, FCPA (Aust), presented the Awards and commended the honorees as talented change-makers, quiet achievers, and established leaders.

“When I travel across the Philippines and meet our alumni, I’m often moved deeply by the impact they’re making with their Australian education,” said Ambassador Yu.

“Their passion and purpose lift both the Australian and Philippine flags higher in the sky. Together, we are building a legacy of excellence under the proud banner of the Australia Alumni network,” she added.

Dr. Jaime Manalo IV was named Alumnus of the Year for his pioneering work in agricultural education. His “infomediary campaign” empowered over 4,000 young people in remote rice-farming communities across the Philippines to learn and teach modern rice cultivation practices, leading to increased yields and reduced pesticide use. Dr. Manalo developed the campaign during his Australia Awards Master’s scholarship at the University of Queensland, where he also earned his PhD.

Dr. Santiago Peña Jr. received the Excellence in Innovation award for establishing the Boar SemenLAB at Visayas State University, which advances agricultural biotechnology to improve hog productivity and conserve native swine genetics. Dr. Peña earned his Master’s in Tropical Veterinary Science and PhD from James Cook University under the Australia Awards program.

Mr. Ramon Carlo Pio Roda was recognized as a Young Achiever for designing the first financial technology (FinTech) course at the University of the Philippines Diliman’s School of Business. He developed the course during his Master of Commerce studies at the University of New South Wales as an Australia Awardee.

This year also marked the first presentation of the Ambassador’s Award for Maritime Excellence, honoring alumni for their work in civil maritime security and marine conservation. The recipients were:

• Professor Porfirio Aliño, University of the Philippines-Marine Science Institute (PhD, James Cook University)
• Attorney Fretti Ganchoon, Department of Justice (Law of the Sea Masterclasses, University of Wollongong)
• Admiral Ronnie Gil Gavan, Philippine Coast Guard Commandant (Master of Maritime Studies, University of Wollongong)

This year’s awards received 47 nominations from Filipino alumni nationwide. The Australia Alumni community continues to grow, with members serving as senior officials, entrepreneurs, academics, and industry leaders – collectively shaping a more innovative, resilient, and prosperous future for both nations.

The survey was conducted from January 17 to 20 and asked the opinion of 1,800 respondents nationwide. It has a ±2 margin of error.

Survey results show 59% of Filipinos said rice had the highest price increase among food items they bought from October to December 2024, while 29% identified meat such as chicken, pork, and beef.

Others cited vegetables (11%) and fish and seafood (4%) as food items that they felt got more expensive in the last three months.

Meanwhile, the same survey also shows that 58% of Filipinos believe that the solutions the Marcos Jr. administration provided to control inflation or the increase in prices of goods and services are insufficient.

Sixteen percent believe the inflation-control solutions of the government are sufficient, while 19% said they are neither sufficient nor insufficient.

Mindanaoans reported the highest dissatisfaction toward the government’s inflation-control solutions with 65% saying they are insufficient, followed by NCR with 60%.

On Wednesday, the Philippine Statistics Authority (PSA) announced that inflation was at 2.9% in January, the same level it was in December last year.

The National Economic and Development Authority said the steady inflation rate is a good indicator of the government’s commitment to ensure stable prices within the targets of the government.

However, for Stratbase Institute President Prof. Dindo Manhit, the survey results paint a different picture of what the Filipino people are truly experiencing.

“As of December 2024, nearly 26% of Filipino families have experienced involuntary hunger—going without food at least once in the past three months. Coupled with food prices continuing to rise, it’s no surprise that many Filipinos still feel trapped by the burden of inflation,” Manhit said.

“Having majority of the Filipino people say this month that the government’s inflation control solutions are insufficient should be a wake-up call to our leaders. These numbers are the reason why the public’s trust toward the government is continuously declining,” he explained.

Manhit also noted that inflation is a multi-faceted issue that entails several socio-economic concerns.

“Inflation is not a one-dimensional issue focused solely on lowering the cost of basic goods. Addressing inflation requires boosting job opportunities, developing agriculture, ensuring food security, strengthening healthcare, and advocating for equal access to education, workers’ rights, and OFW welfare—issues that 90% of Filipinos would consider when voting for a candidate in line with the upcoming midterm elections,” he said.

“There’s no room for complacency with the current inflation rate. It is crucial for the Marcos administration to work harder to ensure that the Filipino people truly feel the positive impact of their anti-inflation measures,” he added.

He also suggested involving the Department of Trade and Industry to assist in monitoring rice prices in markets and groceries, as the government intensifies its efforts to curb price manipulation.

Tiu Laurel’s proposals were made despite President Ferdinand Marcos Jr.’s reduction of the rice tariff to 15 percent from 35 percent in July and the prices of some rice brands have remained stubbornly high, frustrating both the government and consumers.

To address this, Secretary Tiu Laurel announced plans to remove brand labels from imported rice, citing concerns that some industry players are manipulating the system to inflate prices and exploit Filipino consumers. “

After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice,” he said.

Apart from removing brand names, the DA chief ordered the elimination of labels like “premium” and “special” on imported rice, which he believes are being used to justify inflated prices.

Locally-produced rice, however, will be exempted from this rule to protect Filipino farmers and traders. “Importing rice is not a right but a privilege,” Secretary Tiu Laurel said.

“If traders are unwilling to follow our regulations, we will withhold permits for rice importation,” he warned.

Data from retailers, traders, and importers indicate that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to profitably sustain the operations of all parties involved in the supply chain.

For instance, if rice is purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo.

To stabilize rice prices further, Secretary Tiu Laurel is considering invoking a food security emergency under the amended Rice Tariffication Law, allowing the release of buffer stocks from the National Food Authority (NFA).

He is also exploring the possibility of enabling government corporations like Food Terminal Inc. to import significant quantities of rice to compete directly with private importers.

Additionally, the DA legal division has been directed to examine whether provisions of the Consumer Price Act can be activated to address potential profiteering.