By CESAR JOLITO
The Confederation of Sugar Producers Associations (Confed) has strongly opposed a proposed substitute Senate bill seeking to amend the Biofuels Act of 2006, warning it could further harm the country’s struggling sugar industry.
In a letter dated March 18, Confed President Aurelio Gerardo Valderrama urged Senate President Vicente Sotto III to reject provisions allowing the importation of biofuel components such as bioethanol and biodiesel regardless of the availability of locally produced supply.
The proposed amendment would permit imports if blended fuel prices exceed pure gasoline or diesel prices by at least five percent.
However, Confed argued that such a policy would undermine local producers, particularly sugarcane farmers already grappling with low millgate prices.
“No importation should be done for as long as there is local supply,” Valderrama stressed, warning that the measure would cause “additional damage” to the industry.
Under the current Biofuels Act, all liquid fuels sold in the Philippines must include locally sourced biofuel components.
The mandated blend has increased over time from an initial five percent bioethanol and one percent biodiesel to the current 10 percent and three percent, respectively, based on recommendations from the National Biofuels Board.
Confed also reiterated its opposition to earlier proposals under Senate Bills 1485 and 1965, which seek to grant the president authority to suspend mandatory biofuel blending for up to one year if blended fuel prices exceed pure fuel prices by more than five percent.
The group maintained that allowing unrestricted imports would reduce demand for molasses — the primary feedstock for locally produced bioethanol — resulting in significant income losses for sugarcane farmers.
Additionally, Confed raised concerns over a provision transferring the management of social amelioration funds from the Department of Labor and Employment (DOLE) to the Department of Social Welfare and Development.
The group argued that DOLE is better positioned to oversee programs directly benefiting workers in the biofuel sector.
Confed called on lawmakers to uphold protections for the domestic biofuels and sugar industries, emphasizing the need to prioritize local production amid ongoing economic challenges./CJ, WDJ