The Department of Agriculture (DA) is pushing for a major expansion of the country’s palm oil industry to reduce heavy import dependence and eventually provide a local feedstock for cleaner fuels.
Agriculture Secretary Francisco Tiu Laurel Jr. told a House of Representatives budget hearing that the government needs to provide substantially more funding to develop palm oil production, citing the country’s reliance on imports for nearly 90 percent of its requirements.
“Definitely palm oil is an industry na kailangan suportahan ng national government as well as mga LGUs na may palm oil industries or stakeholders in the area dahil kumikita po ang palm oil producers natin and farmers and market is andyan,” Tiu Laurel said.
“We are importing almost 90 percent of our palm oil requirements.”
“We are importing almost 90 percent of our palm oil requirements,” the agriculture chief said, adding that increasing domestic production would provide an opportunity for import substitution.
The DA is asking for budgetary support of at least P300 million for palm oil development in 2027, which the agriculture head said was not included on a large scale in the department’s original National Expenditure Program because the need for greater support had become clearer only in recent months.
He said he had discussed the funding request with Senator Kiko Pangilinan and Representative Mark Enverga.
Tiu Laurel also proposed a much larger, longer-term funding commitment if Congress passes legislation supporting the industry, with as much as P1 billion a year for five years.
“The government has identified a roadmap to develop 300,000 hectares of palm oil plantations, although reaching 100,000 hectares by 2028 would already be a significant achievement.”
He 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 be a significant achievement.
The expansion could eventually help develop a domestic source of palm oil that could be used not only for food and industrial applications but also as potential feedstock for cleaner fuel.
The DA is also seeking changes in how the industry is administered. Tiu Laurel said the Philippine Coconut Authority (PCA) should have a dedicated deputy administrator and teams specifically 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.
Tiu Laurel said a more clearly defined structure could help the industry move faster and give it more specific functions.
He also said the DA supports the certification of the proposed Palm Oil Bill as urgent and would make an official recommendation to President Ferdinand R. Marcos Jr.
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.
