DA seeks P300 million to boost palm oil output in 2027
Manila Standard (10/09/2026) - The Department of Agriculture (DA) is seeking at least P300 million in 2027 to expand the country’s palm oil industry and reduce its heavy dependence on imports, Department of Agriculture Secretary Francisco Tiu Laurel Jr. said.
Tiu Laurel told a House of Representatives budget hearing that the Philippines imports nearly 90 percent of its palm oil requirements, underscoring the need for stronger government support to build domestic production.
“Definitely, palm oil is an industry that needs to be supported by the national government, as well as local government units (LGUs) where there are palm oil industries or stakeholders in the area, because our palm oil producers and farmers are earning, and there is a market for the product,” he said.
Tiu Laurel said the department did not initially allocate substantial funding to the palm oil development program under its proposed National Expenditure Program because the need for greater support became apparent only in recent months.
He said he discussed the proposed funding with Sen. Francis Pangilinan and Rep. Mark Enverga.
Tiu Laurel also floated a longer-term funding commitment of as much as P1 billion annually for five years if Congress passes legislation providing stronger support for the industry.
The DA has identified a roadmap to develop up to 300,000 hectares of palm oil plantations, although Tiu Laurel said reaching 100,000 hectares by 2028 would already mark a significant milestone.
The expansion is expected to strengthen domestic supply for food and industrial uses while creating a potential local feedstock for cleaner fuels.
Tiu Laurel also called for changes in the administration of the industry, proposing that the Philippine Coconut Authority (PCA) create a dedicated deputy administrator and teams 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 said.
He said a more specialized structure would allow the government to give palm oil clearer functions and accelerate industry development.
Tiu Laurel also said the DA supports certifying the proposed Palm Oil Bill as urgent and will formally recommend the measure to President Ferdinand Marcos Jr.