30/08/05 DAVAO CITY, (Asia Pulse) - Agriculture officials areintensifying the expansion of oil palm plantations in Mindanao in a bid tocomplement the increasing demand in the local market.

The Department of Agriculture (DA) said the demand for oil palm productsin domestic consumption alone is growing 2.18 per cent annually.At present, DA said, there is a shortfall of over 40,000 metric tons forthe product in the local market.

In a report, DA said there is a need to develop more oil palm plantationsnationwide to prevent a surge in the country's import of palm oil.

Accordingly, if no expansion moves will be made starting this year, thePhilippines' import is projected to increase by 124 per cent in the nextfive years from 98,000 metric tons last year to 220,000 metric tons in2010.

DA records said Mindanao covers more than 90 per cent (21,232 hectares) ofthe total oil palm production area of the country which is 25,226.95hectares.

With this, the government through the Land Bank of the Philippines, isoffering credit assistance of at least P60,000 (US$1,068) per hectare ofoil palm development to encourage more growers, particularly in thesouthern island.

Palm oil is widely used in chemical, pharmaceutical and cosmeticindustries as well as the manufacturing of food products like margarine,shortenings and confectionery.

(PNA)