The National Federation of Sugarcane Planters is opposing the 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, NFSP president Enrique D. Rojas, president said Tuesday, March 24.
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 by more than 5 percent of the price of pure gasoline or pure diesel.
“The proposed amendment is anchored on the volatility of fuel prices amid the ongoing Middle East war, which shows no sign of de-escalation in the near future. 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,” Rojas said.
He explained that the sale of molasses, which is a byproduct of sugar production, makes up a substantial part of a sugar farmer’s income.
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, Rojas said.
“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 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.
Rojas communicated the NFSP’s stand in a letter sent to Sen. Jinggoy Estrada on Tuesday after his office sought the federation’s comments on the proposed amendments.*
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