Senator Francis “Chiz” Escudero has expressed concern for the country’s coconut and sugar farmers as the government studies possible amendments to Republic Act 9367, or the Biofuels Act of 2006, including proposals to allow limited biofuel importation to address rising global oil prices.
In a statement, Escudero said any policy shift should carefully consider its impact on rural livelihoods that rely on the domestic biofuel industry. He noted that the Department of Energy (DOE), in a recent Senate hearing, said it was considering a one‑year allowance for biofuel imports to mitigate oil price surges.
The senator said such a move could significantly affect local producers and farmers, and urged the DOE to reassess the proposal. Instead of importation, he urged the department to explore measures that ease fuel costs without undermining domestic industries.
The Negros‑based Confederation of Sugar Producers Associations (CONFED) has likewise opposed amendments to RA 9367, warning that “uncontrolled importation of ethanol would result in loss of demand for molasses, the main feedstock for local bioethanol, and corresponding loss of substantial income for already beleaguered sugarcane farmers.”
Escudero said he recognizes CONFED’s concerns and stressed the importance of long‑term solutions to address the issue.
“Perhaps we can consider bringing down import duties. Under the Customs Modernization and Tariff Act (CMTA), the government may lower or suspend duties in the interest of general welfare, upon the recommendation of the Department of Economy, Planning and Development,” he said.
The veteran legislator added that lowering import duties offers immediate consumer relief while preserving the viability of the domestic biofuel sector. “May paraan na hindi kailangang isugal ang kabuhayan ng ating mga magsasaka.”
Energy officials estimate that importing biofuels could lower pump prices by ₱1–₱2 per liter, but industry players believe the actual reduction may be closer to ₱0.35. “Imports may shave a peso off the pump price today, but they will have adverse effects on farmer livelihoods tomorrow,” Escudero said.
Last year, the coco diesel industry generated ₱46 billion, while ethanol contributed ₱26 billion—together sustaining more than half a million coconut and sugar farmers nationwide. Negros Occidental, the country’s sugar capital, remains at the heart of ethanol production, and any temporary importation would directly hit its farmers and undermine decades of investment in the sector.
According to the Department of Science and Technology, the Davao Region is the country’s top coconut producer, contributing 14.4% of national output, followed by Cavite-Laguna-Batangas-Rizal-Quezon, the Zamboanga Peninsula, and Northern Mindanao. While Mindanao supplies roughly 61% of total coconut production, a weakened coco biodiesel industry would have nationwide repercussions, affecting millions of farmers across Luzon, Visayas, and Mindanao.
Escudero said protecting local industries and farmers must remain paramount, noting that the ₱72‑billion biofuel sector is a vital pillar of rural livelihoods and national development.
“Our sugar farmers and coconut growers across the country deserve to be protected in every policy decision. We all share the same goal of easing the burden on consumers while safeguarding the communities that keep these industries alive,” he concluded. #
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