DA Seeks P500 Million Special Provision for Palm Oil Industry

The Department of Agriculture (DA) is seeking a special budget provision of P500 million for the palm oil industry for 2027, citing the country's heavy reliance on imports. DA Secretary Francisco Tiu Laurel Jr. highlighted that the Philippines imports nearly 90% of its palm oil requirements. Laurel explained that the current National Expenditure Program does not substantially include funding for the palm oil sector, necessitating a special provision to address the actual needs identified in the last two months. He has been in discussions with Senator Kiko Pangilinan and Congressman Mark Enverga to secure additional funding. Looking ahead, the DA hopes that with the enactment of a law, P1 billion can be allocated annually for the palm oil industry for the next five years. Data from the DA indicates that oil palm has an average yield of 3.8 metric tons per hectare, significantly higher than coconut's less than one metric ton. Consequently, oil palm farmers earn more than twice as much as coconut farmers, who average around P90,000 annually. Currently, oil palm is planted across 100,000 hectares nationwide, with most cultivation concentrated in Mindanao. The DA is also considering the University of Southern Mindanao in Kabacan, North Cotabato, as a hub to revive and scale up a government-backed nursery. This nursery would provide high-quality, disease-free planting materials sourced from Malaysia. Secretary Laurel outlined a roadmap to plant 300,000 hectares of oil palm, considering 100,000 hectares by the end of 2028 as a significant achievement. As part of efforts to bolster the palm oil industry, the DA is contemplating reorganizing the Philippine Coconut Authority (PCA). The aim is to establish a dedicated team to manage the palm oil sector. Laurel proposed that the PCA could be restructured to include a deputy administrator specifically for palm oil and another for coconut, each with their own teams. A bill seeking to develop the Philippine palm oil sector has been filed by the TUCP Party-list, but it is still pending at the committee level. Secretary Laurel intends to ask President Ferdinand Marcos Jr. to certify the measure as urgent, stating he will make his official recommendation to the President the following day. Information Source: GMA News Philippines