By Manny Piñol
The Department of Agriculture has renewed 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.
Palm Oil imports from Indonesia and Malaysia have increased by 900% over the last three years.
The DA also asked the Department of Energy and the National Bio-Fuels Board to increase the coconut oil component of the bio-diesel from B2 to B5, or from 2% to 5%.
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 has started the ban on palm oil imports from Malaysia and Indonesia over environmental issues.
This development is expected to result in the dumping of palm oil into countries like the Philippines.
Under the rules of the World Trade Organization, member countries could initiate measures to safeguard its farmers affected by the dumping of excess commodities from other countries.
The ban is temporary and is effective only for a specified period.
The increase in the coconut oil composition of the bio-diesel to 5% is projected to consume about 200,000-metric tons 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 opposed by major fuel companies saying that it would increase diesel fuel cost by P0. 35 per liter.
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 farmers groups so they could buy the product 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.
(Photos of coconut farmers were downloaded from public websites.)+
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