Manila: The Philippine Coconut Authority has urged the government not to fully suspend the country’s biodiesel blending rule, warning that such a decision could negatively affect coconut farmers and disrupt the local industry, Daily Tribune reported.
The appeal comes at a time when global fuel prices are rising due to tensions in the Middle East. The authority said any policy change should be carefully planned, rather than implemented suddenly, to ensure both consumer needs and long-term industry stability are protected.
In its statement, the agency said it does not support a complete removal of the biodiesel requirement. It suggested continuing with the current 3% blend, or lowering it to 2% if necessary, depending on market conditions.
The authority warned that removing the rule could reduce demand for coconut oil in the domestic market. This may push excess supply into export markets where prices are lower, ultimately affecting the income farmers receive for their produce.
It also expressed concern that replacing coconut-based biodiesel with imported alternatives could put local production facilities, investments, and jobs at risk, while also raising environmental concerns.
The agency said the biodiesel programme remains important for maintaining demand for coconut oil and supporting the wider industry, even though the direct impact on farmer prices may be limited.
Officials added that they will continue discussions with industry stakeholders to ensure policies remain responsive to changing conditions while protecting farmers and sustaining the sector.
