A House Minority Leader in the Philippines has proposed a subsidy for coconut farmers as the government considers suspending mandatory biofuel blending, a move that could impact millions reliant on the coconut industry.
In the Philippines, a government subsidy aimed at supporting 3.5 million coconut farmers has been proposed in response to plans that may suspend the mandatory blending of biofuels with petroleum fuels. House Minority Leader Marcelino “Nonoy” Libanan introduced the proposal, highlighting that over 60% of coconut farmers and workers live below the poverty line, making them particularly vulnerable to fluctuations in copra prices.
Biofuel blending involves mixing biofuels such as coconut-based biodiesel with conventional fuels like diesel and gasoline. Suspending this policy could reduce demand for coconut biofuels, potentially lowering copra prices and deepening poverty among farming families.
Libanan emphasized the necessity for immediate and targeted financial assistance for coconut farmers and laborers to prevent them from bearing the economic burden of stabilizing fuel prices. According to Philippine Coconut Authority data, about 3.5 million registered coconut farmers work on 3.6 million hectares of plantations nationwide, and approximately 25 million Filipinos depend economically on the coconut industry either directly or indirectly.
The proposed subsidy would be administered through key government agencies including the Department of Social Welfare and Development, the Department of Labor and Employment, and the Department of Agriculture to ensure effective and timely distribution.
Last week, the House of Representatives approved House Bill 8469, allowing the temporary suspension of mandatory biofuel blending to alleviate increasing local oil prices. The bill would grant the President the authority to suspend the use of locally sourced biofuels for up to one year if prices of blended fuels exceed pure fossil fuels by at least five percent. However, the Senate has yet to pass its counterpart measure.
This development underscores the need for a balanced approach that simultaneously addresses economic relief in the energy sector while protecting the livelihoods of millions involved in the coconut farming industry.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/981179/subsidy-for-3-5m-coco-farmers-sought-amid-plans-to-suspend-biofuel-blending/story/
