Coconut industry urges gov’t to increase CNO component in biodiesel
The coconut industry said that one of the identified ways to boost local demand for coconut is to increase the coconut oil (CNO) component in locally produced biodiesel to 5 percent (B5) from the current 2 percent (B2).
For quite some time now, local industry stakeholders have been pushing for this move—which they claim will not only boost revenue of farmers but will also do well for the environment.
Based on the latest information released by the Philippine Statistics Authority (PSA), the country’s coconut product exports jumped to 43.6 percent in December 2018 compared to the figure in December 2018. However, gross export income dropped 9.9 percent in the same period to $139.9 million (P7.3 billion) from $155.21 million (P8.07 billion).
“The culprit to this decline that has been affecting the industry for some time—low coconut oil prices in the market. This price fluctuation is influenced by the supply and demand in the global market of other leading vegetable oils [particularly, soybean, palm, corn, and rapeseed],” United Coconut Associations of the Philippines (UCAP) said.
The Philippine Coconut Authority (PCA) is now asking the National Biofuels Board (NBB) to fully implement Republic Act 9367 or the Biofuels Act of 2006, which requires a 5-percent blend of coco methyl ester in local biodiesel.