Landbank finances top-of-line rice mill

MANILA, Philippines — State-run Land Bank of the Philippines is financing the first ‘top-of-the-line’ rice mill in Iloilo province which will benefit over 10,000 farmers in Panay Island.

In a statement yesterday, Landbank said it was tapped by Restia Rice Milling Corp. to bankroll the construction of its top-of-the-line rice mill plant, as well as the acquisition of various chattels.

The company also availed of a short-term loan line to finance its working capital requirements for palay trading, relending to farmers, and rice milling.

Located in Barangay Calaboa in the municipality of Leganes, the 2,472-square-meter rice mill plant will address the lack of modern production and post-production milling facilities in Iloilo—one of the top rice-producing provinces in the country.

“Landbank remains committed to supporting the whole agriculture value chain to boost the country’s agricultural output. Our comprehensive and holistic approach to lending ensures that all agri players have access to affordable and responsive financing,” Landbank president and CEO Cecilia Borromeo said.

Restia’s new rice mill plant will boast of modern equipment that can produce high-quality long grain rice and capable of processing even wet palay stocks during the rainy season.

The plant will be able to process up to 2,900 bags of palay per day, with an estimated production output of 2,400 bags.

Over 10,000 rice farmers from Panay Island are expected to benefit from the facility starting June, while also helping to improve rice production and provide post-harvest facilities in the province of Iloilo.

Through the rice mill, farmers from Iloilo and neighboring provinces can market their produce of well-milled and high-grade rice grains at a higher price.

They can also sell their harvest directly to Restia to cut logistics expenses and avoid transacting with middlemen, thereby resulting to improved income.

Restia Rice Milling Corp. is the new flagship business of the Restia Group of Companies which was established to support local farmers and improve the quality of local milled rice. The start-up company is also collaborating with the Department of Agriculture (DA) to establish an efficient logistics system on Panay Island for the benefit of local rice farmers.

Landbank said it has been extending accessible and affordable financing to all players in the agriculture value chain, in line with its broader thrust of serving the nation.

As of end-2022, its agriculture loan portfolio has expanded to P261.7 billion, of which P166.8 billion supported small, medium, and large agribusiness.