The Department of Agriculture (DA) is pushing for a budget of more than ₱1 billion next year to strengthen the domestic oil palm industry in a bid boost farmer incomes and reduce reliance on palm oil imports.

Agriculture Secretary Francisco Tiu Laurel said the DA will advocate for a ₱1.2-billion allocation for its oil palm program in 2027 following this year’s meager ₱79-million budget, or nearly eight percent of its proposed ₱1-billion funding.

If approved, he said the increased funding will help scale up the industry through fertilizer assistance, area expansion, and other programs aimed at boosting productivity.

“Let’s invest where farmers earn,” Tiu Laurel said, noting that public spending should be aligned with makes farmers earn the most profit from.

Based on DA estimates, oil palm trees yield an average of 3.8 metric tons (MT) of palm oil per hectare, compared with less than one MT per hectare for coconut.

Oil palm farmers are estimated to earn nearly double the ₱90,000 that coconut farmers make annually.

At present, oil palm plantations cover roughly 100,000 hectares, with the bulk located in Mindanao. There are 11 palm oil mills and five refineries nationwide.

In a report last year, the United States Department of Agriculture (USDA) said the Philippines’ palm oil output is expected to decline in the current market year due to a drop in fresh fruit bunch (FFB) production, which is used to produce palm oil.

The USDA said this comes as consumption of the product is projected to grow by 5.6 percent amid increased household demand for a cheaper alternative to other vegetable oils.

For the year, imports are projected to rise to 1.1 million MT from the previous year’s one million MT.

To address the supply gap, Philippine Coconut Authority (PCA) Administrator Dexter Buted said the agency is laying the groundwork to boost production through the local cultivation of planting materials.

With the help of germinated seeds secured under government-to-government arrangements, Buted said the PCA will establish oil palm nurseries in selected areas, particularly in Mindanao.

He added that plans are also underway to transform the University of Southern Mindanao in North Cotabato into a new oil palm nursery.