• GILBERT P. BAYORAN
The opposition to the proposed amendments in the Biofuels Law continues to snowball.
The National Federation of Sugarcane Planters (NFSP) has joined the Confederation of Sugar Producers Associations (CONFED) in expressing strong opposition to the Biofuels Act of 2006 amendments, 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 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 by more than five 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,” NFSP president Enrique Rojas said in a statement.
CONFED president Aurelio Gerardo Valderrama said the approval of the said 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 five percent bioethanol for gasoline and one percent biodiesel for diesel, subject to increase in blend percentage upon recommendation from the National Biofuels Board.”
Presently, the mandated blends are 10 percent for bioethanol and three percent for biodiesel.
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 added. | GB
