Manila: Sugar farmers in the Philippines have voiced concern over a proposal that would allow the temporary suspension of the rule requiring fuels to contain locally produced biofuels, saying the move could affect farmers’ income, according to a report by Inquirer.Net.
Renato Cabati, head of the Ethanol Producers Association of the Philippines (EPAP), raised the issue during a hearing of the Senate Committee on Energy chaired by Pia Cayetano. The discussion focused on proposed amendments to Republic Act No. 9367, which requires fuel sold in the country to include a portion of locally produced biofuel.
Under Senate Bill No. 1485, the president may suspend the requirement for up to one year if the price of blended gasoline or diesel becomes at least five percent higher than that of pure fuel. Such a move would require a recommendation from the Philippine National Biofuels Board and the Department of Energy.
Cabati said suspending the rule could reduce demand for molasses, a by-product of sugar used to produce ethanol. He said sales of molasses account for about 13 percent of farmers’ income and warned that a drop in demand could hurt livelihoods, especially as fertilizer prices have recently risen by about 29 percent.
He noted that the country has nearly 400,000 hectares of sugarcane farms cultivated by around 95,000 farmers. Cabati urged lawmakers to support local producers rather than rely more on fuel imports, adding that ethanol produced in the country is a renewable and locally sourced fuel.
Responding to the concerns, Energy Secretary Sharon Garin said the proposed suspension would only be temporary and could be used as a backup measure if fuel supply becomes tight, particularly if global tensions continue.
She said the government’s aim is to prevent further increases in fuel prices by ensuring adequate supply in the market.
Meanwhile, Sherwin Gatchalian pointed out that locally produced biofuels are still more expensive than imported ones. Data from the Department of Energy showed that the average price of domestic biofuels in February was about ₱75.93 per litre, compared with about ₱37.58 per litre for imported biofuels.
Cabati said higher production costs are linked to lower crop yields, land reforms under the agrarian reform programme, climate-related challenges and logistical difficulties across the country’s more than 7,000 islands. He added that with adequate government support and farm inputs, local producers could reduce costs and compete in the global market.
Cayetano said the Senate would look at possible measures, including subsidies, to support industries that might be affected if the proposed changes are implemented.
