MANILA – The Department of Agriculture (DA) has reiterated its earlier recommendation for a “temporary ban” on palm oil imports, as Filipino coconut and oil palm farmers complain of extremely low prices due to the dumping of the commodity by two major palm oil-producing countries in Southeast Asia.
In his Facebook page, DA secretary Emmanuel “Manny” Piñol said the proposed ban is just temporary and effective only for a specified period.
He said volume of palm oil imported from Indonesia and Malaysia have increased by 900 percent over the last three years.
Piñol said he also asked the Department of Energy (DOE) and the National Bio-Fuels Board (NBB) to increase the coconut oil component of bio-diesel from B2 to B5, or from 2 percent to 5 percent.
The two recommendations, which were made as early as last year, were resubmitted by the DA to the Economic Cluster, the DOE and NBB, following reports that the European Union (EU) has started the ban on palm oil imports from Malaysia and Indonesia over environmental issues, he said.
This development is expected to result in the dumping of palm oil in countries like the Philippines.
Under the rules of the World Trade Organization (WTO), member-countries could initiate measures to safeguard its farmers affected by the dumping of excess commodities from other countries.
Latest data showed that mill gate prices of copra fell between P12 to P17 per kilo, which is much lower than last year’s P26 to P30 a kilo.
Around four million farmers rely heavily on the sale of copra.
The agriculture chief said the increase in the coconut oil composition of bio-diesel to 5 percent is projected to consume about 200,000 metric tons (MT) of copra.
Coconut oil in bio-diesel also reduces air pollution and increases mileage by at least 3 kilometers per liter.
This recommendation, however, is being opposed by major fuel companies, saying that it would increase diesel fuel cost by P0.35 per liter.
“What has not been emphasized is the fact that by using more coconut oil in biodiesel, the mileage of vehicles increases by about three kilometers per liter and improves the air pollution index,” he noted.
Pending action on these recommendations, the DA, through the Agricultural Credit Policy Council (ACPC), has offered loans for livelihood projects for coconut farmers.
The DA has also offered loans for the acquisition of hauling trucks and working capital for farmer groups so they could buy the products of their members and deliver these directly to the coconut oil mills.
On Tuesday, the government-owned CIIF-Oil Management Group has agreed to set its mill gate buying price at P20 per kilo.
There are 3.6 million hectares of land planted with about 338.7 million fruit-bearing coconut trees all over the country. This accounts for 26 percent of the country’s total agricultural land.
In terms of yield, the Philippines produces 4,000 nuts per hectare annually, significantly much lower compared with other coconut-producing countries that produce about 10,000 nuts per hectare per year. (PNA)
