Gov’t urged: Reduce rice production costs through palm oil biofuels

A farmer group is urging President Ferdinand Marcos Jr. to reduce rice production cost as there is a need for government intervention to enable local farmers to produce rice competitively, especially against imported varieties that benefit from lower tariffs.

The group from Occidental Mindoro is support in reducing production costs, a challenge that biofuel, an economical and environmental alternative energy source could help address given the high cost of electricity and diesel fuel used in harvesting machinery and rice millers.

To recall, Marcos reaffirmed his commitment to making food affordable for every Filipino, particularly focusing on reducing the price of rice, which currently ranges from P45-P65 per kilogram in his third State of the Nation Address (SoNA).

To address this challenge, innovative solutions are being proposed to lower rice production costs, one of which is the use of biofuel in powering rice production processes.

Currently, the biofuels mandate in the local energy sector implements a 3 percent coco methyl ester (CME) blend in all diesel fuel sold nationwide.

The Department of Energy bared potential net savings of P4.17 per liter of diesel with a higher CME blend of 5 percent corresponding to a 10 percent increase in mileage for vehicles using biodiesel including farm vehicles.

These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at P51 as against P81, respectively.

In Indonesia, the world’s largest producer of palm oil, the biodiesel blending mandate for palm methyl ester (PME) set at 35 percent.

Palm oil, a versatile commodity, finds applications across various industries. It is a key ingredient in food products, personal care items, and numerous other by-products. Beyond these uses, palm oil's potential as a biofuel is particularly noteworthy.

For rice production, this means that biofuels can operate rice plantations, milling processes, and essential farm vehicles such as harvesters and tractors.