August 31, 2025 | 12:00am
MANILA, Philippines — The Division of Agriculture (DA) plans to construct extra rice mills nationwide, setting the next utilization goal at the same time as considerations persist that the trade may face overcapacity.
Agriculture Secretary Francisco Tiu Laurel Jr. introduced this coverage path because the DA expands large-scale rice processing programs via the Philippine Heart for Postharvest Improvement and Mechanization (PhilMech).
“Extra necessary than rated milling capability is capability utilization,” Tiu Laurel mentioned.“ To interrupt even, operators want a minimum of 63 % capability utilization. Go beneath that, and also you’re dropping cash.”
He mentioned the DA is focusing on a utilization charge of 80 to 85 %, noting that is the vary the place effectivity improves, prices go down, and all stakeholders – millers, farmers, and customers – profit.
As soon as rice mill utilization stabilizes inside this optimum vary, the DA mentioned PhilMech may redirect investments towards production-side gear reminiscent of tractors and seeders as an alternative of postharvest services like mills and dryers.
This shift, in keeping with the DA, will assist the Nationwide Meals Authority (NFA), whose milling and drying capability has been considerably diminished for the reason that Rice Tariffication Legislation (RTL) of 2019 scaled again its operational position.
Because the RTL’s implementation and the rollout of the Rice Competitiveness Enhancement Fund (RCEF), PhilMech has established 122 rice processing system models geared up with state-of-the-art multi-stage rice mills and recirculating dryers.
Of that quantity, it mentioned 116 have been accomplished below the Marcos administration.
For Part 1 of RCEF, the DA mentioned PhilMech is focusing on a complete of 151 RPS models, with the remaining 29 scheduled for completion earlier than year-end.
Additional, the DA mentioned 1,000 single-pass rice mills and village-type rice mills, in addition to greater than 500 standalone recirculating dryers have been distributed by PhilMech to small organizations to assist localized rice processing operations.
