• GILBERT P. BAYORAN
The opposition to proposed amendments to the Biofuels Law, which will allow the temporary suspension of the mandated biofuels blend of bioethanol and biodiesel in fuels if a certain price trigger point is reached, continues to snowball.
The National Federation of Sugarcane Planters (NFSP) joined the Confederation of Sugar Producers Associations (CONFED) in expressing strong opposition to amendments to the Biofuels Act of 2006, which would allow the importation of biofuel components such as bioethanol and biodiesel, regardless of the supply level of locally produced biofuel components.
Under Senate Bill No. 1635, the President may suspend the implementation of the mandatory biofuels blend for a period not more than one year, if the price of the blended fuel exceeds more than 5 percent the price of pure gasoline or pure diesel.
“While we understand the temporary price-based concern behind the proposal, we believe that the law’s objective on reducing dependence on imported fuels should bear more weight,” said NFSP president Enrique Rojas.
CONFED President Aurelio Gerardo Valderrama said the approval of the amendment shall cause additional damage to the sugar industry, which at present is suffering from the effects of low millgate prices.
Under the Biofuels Act, “all liquid fuels for motors and vehicles sold in the Philippines shall contain locally-sourced biofuels components” at an initial blend of 5 percent bioethanol for gasoline and 1 percent biodiesel for diesel, subject to increase in blend percentage upon recommendation from the National Biofuels Board.”
The mandated blends are presently 10 percent for bioethanol and 3 percent for biodiesel.
Senator Francis Escudero has also expressed concern on the possible amendments of the Biofuels Law, saying any policy shift should carefully consider its impact on rural livelihoods that rely on the domestic biofuel industry.
Stressing that the sale of molasses, which is a byproduct of sugar production, makes up a substantial part of a sugar farmer’s income, Rojas said the suspension on the use of domestically-produced ethanol derived from its primary feedstock, molasses, will deprive sugar farmers of that much-needed income, particularly at this time when millgate sugar prices have drastically declined compared to previous crop years.
“Moreover, the suspension of demand for and withdrawals of molasses and locally-produced ethanol will pose a disastrous logistical nightmare to sugar mills and ethanol distilleries, which rely on the regular transport and movement of their molasses and ethanol to keep their limited storage facilities from overflowing,” Rojas, in a statement, pointed out.
“At these difficult times, the NFSP believes that the sugar industry can contribute more significantly towards national self-sufficiency fuel and energy (thru biomass power generation), if government will continue the mandated biofuels blend and extend more active support to sugar farmers, sugar mills and ethanol distilleries,” he added.*
