BACOLOD City — The National Federation of Sugarcane Planters (NFSP) has expressed strong opposition to proposed amendments to the Biofuels Act that would allow the temporary suspension of mandated biofuel blending.
In a statement, NFSP President Enrique D. Rojas said the group is concerned over provisions in Senate Bill No. 1635, which would authorize the President to suspend the required blending of bioethanol and biodiesel for up to one year if fuel prices exceed those of pure gasoline or diesel by more than five percent.
Rojas noted that while the proposal is driven by concerns over volatile global oil prices—particularly amid tensions in the Middle East—the long-term objectives of the Biofuels Act should take precedence.
“While we understand the temporary price-based concern behind the proposal, we believe that the law’s objective of reducing dependence on imported fuels should bear more weight,” Rojas said.
Rojas emphasized that molasses, a byproduct of sugar production and a key feedstock for bioethanol, represents a significant source of income for sugar farmers. Suspending the mandated blending, he said, would reduce demand for domestically produced ethanol and directly affect farmers’ earnings.
He added that this comes at a time when millgate sugar prices have already declined sharply compared to previous crop years.
Beyond income loss, Rojas warned of operational challenges across the industry.
“The suspension of demand for molasses and locally produced ethanol will pose a logistical nightmare for sugar mills and ethanol distilleries, which rely on the steady movement of these products to prevent storage overflow,” he said.
The NFSP is urging the government to maintain the mandated biofuel blend and instead provide stronger support to the sugar industry, including investments in biomass energy production to enhance national energy self-sufficiency.
Rojas conveyed the federation’s position in a letter sent to Senator Jinggoy Estrada following a request for comments from the senator’s office.
Separately, Senator Francis Escudero has raised concerns over the potential impact of the proposed amendments to Republic Act No. 9367, or the Biofuels Act of 2006, on coconut and sugar farmers.
Escudero cautioned that any policy shift—including proposals to allow limited biofuel importation—must carefully consider its effects on rural livelihoods dependent on the domestic biofuel industry.
The Department of Energy (DOE), during a recent Senate hearing, said it is studying a one-year allowance for biofuel imports to help mitigate rising oil prices.
However, Escudero urged the agency to reconsider the move.
“Instead of importation, we should explore measures that ease fuel costs without undermining domestic industries,” he said.
The Confederation of Sugar Producers Associations (CONFED) has also opposed the proposed amendments, warning that increased ethanol imports could weaken demand for molasses and further strain struggling sugarcane farmers.
Escudero acknowledged these concerns and highlighted alternative policy options, such as reducing import duties under the Customs Modernization and Tariff Act to provide immediate relief to consumers.
“There are ways to lower costs without putting farmers’ livelihoods at risk,” he said.
Energy officials estimate that allowing biofuel imports could reduce pump prices by as much as P1 to P2 per liter, though industry stakeholders argue the actual impact may be closer to P0.35 per liter.
Escudero warned that short-term price reductions should not come at the expense of long-term industry stability.
“Imports may shave a peso off pump prices today, but they could harm farmer livelihoods tomorrow,” he said.
The country’s biofuel sector remains a significant economic driver, generating an estimated P72 billion annually.
The coconut biodiesel industry alone contributed P46 billion last year, while ethanol production added P26 billion—supporting more than half a million farmers nationwide.
Regions such as Negros Occidental, considered the country’s sugar capital, play a central role in ethanol production, while coconut farming is widely distributed across Luzon, Visayas, and Mindanao.
Escudero stressed that protecting these industries must remain a priority.
“Our sugar farmers and coconut growers deserve to be protected in every policy decision. We must ease the burden on consumers while safeguarding the communities that sustain these industries,” he said./PN
