- The Philippines DA is seeking PHP300m (US$4.8m) for palm oil development in 2027.
- Country imports nearly 90% of its palm oil needs and aims to boost local production.
- Ag minister is pushing for up to PHP1bn (US$15.94m) in annual funding over five years.
During a budget hearing, Agriculture Secretary Francisco P. Tiu Laurel Jr. underscored the urgent need for more funding for the palm oil sector, as the country imports nearly 90% of its palm oil requirements.
“Definitely palm oil is an industry that needs support from both the national government and local government units (LGUs) where palm oil industries and stakeholders are located, because our palm oil producers and farmers are profitable and there is already a market for their products.”
Palm oil is widely used in food manufacturing, consumer goods and industrial applications, making it a major import requirement for the Philippines.
The comments reflect the DA’s aim to transform palm oil from a largely import-dependent commodity into a more significant domestic industry.
This would reduce the country’s exposure to international supply fluctuations while creating new opportunities for farmers and investors.
To support that ambition, the DA is seeking at least PHP300m (US$4.8m) for palm oil development in 2027.
Tiu Laurel clarified that the request was not initially included at scale in the department’s National Expenditure Program because “the need for greater support had become clearer only in recent months”.
A longer commitment
In addition, Tiu Laurel is proposing a long-term funding commitment from the government of as much as PHP1bn (US$15.94m) a year for five years to accelerate industry development.
According to Tiu Laurel, the DA has developed a roadmap covering up to 300,000 hectares of palm oil plantations nationwide.
He acknowledged that reaching 100,000 hectares by 2028 would represent a significant milestone.
The expansion drive comes as policymakers look for ways to improve the country’s agricultural self-sufficiency and lessen dependence on imported commodities.
For industry advocates, local production offers the potential to replace a portion of those imports while generating additional economic activity in rural areas.
Tiu Laurel argued that stronger government support is justified because market demand already exists and local growers have demonstrated the crop’s profitability.
The department is also seeking institutional changes to accelerate development.
Tiu Laurel proposed giving the Philippine Coconut Authority (PCA) a dedicated deputy administrator and separate teams focused on palm oil and coconut development, saying a more specialised structure could help streamline industry growth.
“What is important is that we can build an agency or organise 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.”
In parallel, the DA plans to recommend that President Ferdinand R. Marcos Jr. certify the proposed Palm Oil Bill as an urgent move that could help establish a stronger legal and policy framework for sector expansion.
While the industry’s immediate focus is import substitution, Tiu Laurel said increased domestic production could eventually support a wider range of uses, including food, industrial applications and potentially cleaner fuels.
