The Department of Agriculture (DA) is seeking at least P300 million in 2027 to fund the expansion of  the country’s palm oil industry and reduce its heavy dependence on imports.

Agriculture Secretary Francisco P. Tiu Laurel Jr. told a House of Representatives budget hearing that the Philippines currently imports nearly 90 percent of its palm oil requirements, making increased domestic production an opportunity for import substitution.

“Definitely palm oil is an industry that needs to be supported by the national government as well as the LGUs that have palm oil industries or stakeholders in the area because our palm oil producers and farmers are earning, and the market is there,” Tiu Laurel said.

Proposed funding not  included on a large scale

The proposed funding was not included on a large scale in the department’s original National Expenditure Program, but the need for stronger support became clearer in recent months, he said.

Tiu Laurel said he had discussed the proposed allocation with Senator Francis Pangilinan and Rep. Mark Enverga. He also floated a longer-term funding program of up to P1 billion annually for five years if Congress passes legislation supporting the industry.

The DA has identified a roadmap to establish 300,000 hectares of palm oil plantations, although Tiu Laurel said reaching 100,000 hectares by 2028 would already be a significant milestone.

Beyond food and industrial applications, expanded palm production could eventually provide domestic feedstock for cleaner fuels.

The DA also wants to strengthen the Philippine Coconut Authority’s role in developing the sector.