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The Department of Agriculture is seeking increased government funding to expand domestic palm oil production and reduce the country’s reliance on imports currently at nearly 90% of requirements
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The DA asking for at least P300 million for palm oil development in 2027
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Agriculture chief Francisco Tiu Laurel Jr. said funding could rise to P1 billion annually for five years if Congress passes legislation supporting the industry
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The government plans to develop 300,000 hectares of palm oil plantations, with 100,000 hectares by 2028 as a significant milestone
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The DA wants the Philippine Coconut Authority reorganized to include a deputy administrator and teams for palm oil and coconut development
The Department of Agriculture (DA) is seeking increased government funding to expand domestic palm oil production and reduce the country’s dependence on imports, which currently account for nearly 90% of requirements.
Agriculture secretary Francisco Tiu Laurel Jr. told a House of Representatives budget hearing that the government needs substantially more resources to develop the industry and capitalize on opportunities for import substitution.
“Definitely, palm oil is an industry that needs support from the national government as well as LGUs (local government units) with palm oil industries or stakeholders in the area because our palm oil producers, farmers, and the market are all benefiting,” Tiu Laurel said.
“We are importing almost 90% of our palm oil requirements,” he said, adding that higher domestic production would provide an opportunity to replace some imports.
The DA is seeking at least P300 million for palm oil development in 2027. Tiu Laurel said the funding was not included on a large scale in the department’s original National Expenditure Program because the need for greater support had only become apparent in recent months.
He said he had discussed the funding request with senator Francis Pangilinan and Quezon 1st District representative Mark Enverga – who both chair the respective agriculture and food committee of their legislative chamber.
Tiu Laurel proposed a larger, longer-term funding commitment if Congress passes legislation supporting the industry, with government funding possibly reaching P1 billion annually for five years.
He added that the DA supports certifying the proposed Palm Oil Bill as urgent and will make an official recommendation to President Ferdinand Marcos Jr.
300,000-ha plantation target
Tiu Laurel said the government has identified a roadmap to develop 300,000 hectares of palm oil plantations, although reaching 100,000 hectares by 2028 would already represent a “significant achievement.”
The expansion could increase domestic palm oil supply for food, industrial uses, and possibly provide local feedstock for cleaner fuels.
The DA is also seeking changes to how the industry is administered.
Tiu Laurel said the Philippine Coconut Authority (PCA) should have a dedicated deputy administrator and teams focused on palm oil and coconut development.
“What is important is that we can build an agency or organize the PCA not just as a coconut authority, but to have a deputy administrator specifically for palm oil and coconut so they have their own teams,” he said.
He said a clearer organizational structure could speed up industry development and give the sector more specific functions.
“For an industry that currently sources most of its supply from abroad, the push is aimed at turning palm oil from a major import requirement into a larger domestic agricultural industry,” the DA said.
READ: Coco industry groups, PCA unite to fight palm oil smuggling
