The Philippine Coconut Authority (PCA) has opposed proposals to fully suspend the country’s biodiesel blending requirement, cautioning that such a move could harm coconut farmers and disrupt the domestic industry.

Amid rising global fuel prices driven by tensions in the Middle East, the agency called for a calibrated policy response instead of abrupt changes, stressing the need to balance consumer concerns with long-term sector stability.

‘Not amenable to full suspension of biodiesel mandate’

In a statement, the PCA said it is “not amenable to the full suspension of the biodiesel blend mandate,” and instead supports maintaining the current 3 percent blend or, if necessary, reverting to 2 percent under prevailing market conditions.

The agency warned that removing the mandate could weaken demand for coconut oil, potentially forcing local supply into lower-priced export markets and putting downward pressure on farmgate prices.

Threats to existing production facilities, investments

It also raised concerns that replacing coconut-based biodiesel with imported alternatives could threaten existing production facilities, investments, and jobs in the sector, while posing environmental trade-offs.

The PCA emphasized that the biodiesel program remains a key driver of domestic coconut oil demand, supporting the broader value chain despite limited direct pricing benefits for farmers.

The agency said it will continue coordinating with stakeholders to ensure that biofuel policies remain responsive to market conditions while protecting farmer welfare and sustaining industry capacity.