Increased coco content in diesel could impact food security

Aleader of the House of Representatives has expressed concern that the proposal to increase to five percent – from the current two percent – the coconut methyl ester (CME) blend of diesel fuel could impact the country’s food security.

Marinduque Rep. Lord Allan Velasco, chairman of the House Committee on Energy and co-chairman of the Joint Congressional Oversight Committee on Biofuels, warned that the increase in CME blend might affect the prices of other agricultural commodities if agricultural lands devoted to food crops are used for biofuels production.

“Food security remains our primary priority. By no means this proposal should compromise food supply. No Filipino should go hungry,” he said after the Department of Agriculture (DA) is planning to increase to five percent the CME blend.

He asked the DA to assess the real benefits of biofuels on farmers, and its plan to assist farmers develop alternative markets for the local copra industry, such as in health, cosmetics and animal feed markets.

Velasco also sought the implementation of the Social Amelioration and Welfare Program for Workers in the Biofuels Production (SAWP) by the the Department of Labor and Employment (DOLE).

“Under the law, SAWP should aid our copra farmers in exploring other livelihood opportunities,” he said.

The House leader rejected the DA’s proposal to increase to five percent the CME blend, branding it as “anticonsumer,” citing its adverse impact on pump prices.

“As it is, consumers are already faced with the burden of high fuel prices,” Velasco said.

“Raising the biofuels blend will only aggravate this, as the upward adjustment in the CME blend is projected to increase the pump prices in diesel by at least P2.25 per liter,” he said.

At the present 2 percent blend, the impact of CME on diesel is already at P1.50 per liter, he pointed out.

“We must keep in mind that a huge chunk of diesel consumers is from the public transport sector, and any increase in diesel prices will lead to higher transportation cost,” Velasco added.