Philippines Seeks P300M for Palm Oil Sector Development

MANILA, Philippines — The Department of Agriculture (DA) is requesting P300 million in budget support for 2027 to develop the Philippine palm oil sector and cut import reliance. Agriculture Secretary Francisco Tiu Laurel Jr. emphasized the need for funding to enhance local palm oil production for import substitution and cleaner fuel feedstock. The agri chief likewise noted that the country imports 90 percent of its palm oil requirements. “Definitely, palm oil is an industry that needs support from the national government and LGUs (local government units) that have palm oil industries or stakeholders in the area because our palm oil producers and farmers earn money and the market is already there,” Tiu Laurel said during a recent House of Representatives budget hearing. Likewise, the agri chief proposed a P1 billion annual funding commitment for five years if Congress supports the sector. Separately, the government plans to develop 300,000 hectares of palm oil plantations, aiming for 100,000 hectares by 2028 as a notable 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 said. Meanwhile, Tiu Laurel stated that the agency didn’t include the budget request in its National Expenditure Program due to a recent awareness of the increased need for support. In addition to funding support, Tiu Laurel is calling for a deputy administrator and teams at the PCA for 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 added. Additionally, Tiu Laurel said the DA will officially recommend to President Marcos that the proposed Palm Oil Bill be certified as urgent. House Bill No. 7462 or the Philippine Palm Oil Development Act, seeks to expand oil palm plantations and enhance productivity and quality. It aims to improve competitiveness, productivity, and efficiency in crude palm oil processing and promote government-private partnerships in the sector. /pai