DA Seeks P300M Funding to Boost Palm Oil Industry

The Department of Agriculture (DA) is pushing to expand the country's palm oil industry to reduce heavy import dependence and provide a local feedstock for cleaner fuels.

Agriculture Secretary Francisco P. 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.

The DA is asking for budgetary support of at least P300 million for palm oil development in 2027, which Tiu Laurel 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 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 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 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.