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The Philippines is moving to expand domestic palm oil production in a bid to reduce import dependence and supply feedstock for clean energy projects, the Department of Agriculture (DA) announced.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. told a House of Representatives budget hearing this week that the government needs to fund an increase in palm oil output, noting that imports currently account for nearly 90% of national palm oil demand.
'We are importing almost 90% of our palm oil requirements,' he said in a DA statement, citing the opportunities for import substitution if domestic production is expanded. He added that demand is evident and that domestic palm oil producers are profitable.
The DA is seeking funding of at least P300 million for palm oil development in 2027 as a starting amount, with a possible total of P1 billion over five years.
The initial plan envisages the eventual development of 300,000 hectares of palm oil plantations, with a shorter-term goal of approximately 100,000 hectares to be reached by 2028.
The Department is also pursuing structural changes in how the industry is administered, citing the need for a dedicated deputy administrator to be embedded within the Philippine Coconut Authority, before transitioning to a successor agency specialized in palm oil.
Secretary Tiu Laurel expressed support for the certification of the proposed Palm Oil Bill as urgent.
Source: BusinessWorld Online