PCA wants to increase of coconut content in biofuels to boost prices

THE Philippine Coconut Authority (PCA) has requested the National Biofuel Board (NBB) to increase the proportion of Coco Methyl Ester (CME) in biodiesel to 5% from the current 2% to support the price of coconut oil (CNO).

PCA Administrator Romulo J. de la Rosa said that increasing the content of CME in biodiesel in a staggered basis can “effectively support” coconut farmers currently threatened by the declining world market price for CNO.

“The first increase can be from 2% to 3% starting August this year. This means that the biodiesel blend to be sold on the domestic market should have 3% CME and 97% regular diesel starting Aug. 1,” he added.

According to PCA, the price for CNO dropped by 40% to $1,100, a 16-month low for the commodity, due to a surplus of other vegetable oils in the world market.

The move to increase CME content in biodiesel can put the Philippines on the same level as Malaysia and Thailand, which have at least 7% CME in their biodiesel mix.

The PCA proposal also aligns with the Philippine Energy Plan 2012-2030 which calls for CME content of biodiesel to rise to at least 5%.

The August timeline gives the oil industry ample time to adjust to the new formula. The PCA hopes the NBB will decide by December on the increase to 5%.

“The higher CME content in our biodiesel could significantly increase demand for copra and CNO, making their prices more buoyant,” Mr. De la Rosa said.

Citing data from the National Anti- Poverty Commission (NAPC), the PCA said that there are around 3.5 million coconut farmers and farmworkers, who are among the country’s poorest.

The NAPC also estimates that 25 million Filipinos depend on the coconut industry. —