A glut in the country’s coconut supply could be reduced with the increase of the coco methyl ester content in biodiesel fuel.
Lawmakers are seeking a compromise with the Department of Energy (DoE) on the planned increase of coco methyl ester (CME) content in biodiesel on staggered basis.
Majority Floor Leader Sen. Juan Miguel Zubiri said he is proposing to increase the current 2 percent biodiesel component blended in locally available diesel as mandated by the Biofuels Act of 2006.
“If (the DoE) doesn’t want to increase the CME blend by five percent, let’s try three or four percent. That’s only about a 25 centavo increase in diesel,” Zubiri told the Daily Tribune.
“I am asking Secretary Cusi to help us with the coconut industry. Whatever is in his mind as a citizen of the republic that can help the coconut industry will be welcome,” Zubiri said
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The senator added the increase would also help ease the coconut supply glut in the market at present.
It will help uplift the lives of some two million coconut farmers.
According to the Philippine Coconut Authority (PCA), the five percent CME blend would translate to about 350,000 metric tons of coconut oil.
Senate Chair on Agriculture and Food Committee Senator Cynthia Villar backed the Zubiri proposal, saying it’s about time the government “immediately” acts to arrest the declining prices of copra.
“Unfortunately, copra prices are dictated by the world market. It’s part of the law of supply and demand. But If (additional CME blend) would help the local coconut farmers, then I would still push for that,” Villar told the Daily Tribune.
In an earlier interview, DoE Adviser Rafael Diaz said it would be difficult to convince government officials to increase the CME blend as it triggers an increase in oil pump prices by P2 per liter.
But Diaz said there were inaccuracies in government’s computation.
For instance, the government based their computation on the prices of copra three years ago.
Based on their analysis, Diaz said a 5 percent CME blend would only translate to a 20 centavo per liter hike at present market conditions.
