Marcos urged to cut rice production costs through palm oil biofuels

In his third State of the Nation Address, President Ferdinand Marcos Jr. reaffirmed his commitment to making food affordable for every Filipino, particularly focusing on reducing the price of rice, which currently ranges from PhP45 to P65 per kilogram.

To address this challenge, innovative solutions are being proposed to lower rice production costs, one of which is the use of biofuel in powering rice production processes.

On the morning of the SONA, Jose Vidal, a farmer group leader from Occidental Mindoro, made a critical plea to President Marcos, emphasizing the need for government intervention to enable local farmers to produce rice competitively, especially against imported varieties that benefit from lower tariffs.

Vidal specifically requested support in reducing production costs — a challenge that biofuel, an economical and environmental alternative energy source could help address given the high cost of electricity and diesel fuel used in harvesting machinery and rice millers.

Currently, the biofuels mandate in the local energy sector implements a 3% coco methyl ester (CME) blend in all diesel fuel sold nationwide.

The Department of Energy has noted potential net savings of PhP4.17 per liter of diesel with a higher CME blend of 5%, corresponding to a 10% increase in mileage for vehicles using biodiesel including farm vehicles.

These savings could be even greater with the use of crude palm oil, which costs lower than crude coconut oil, at PhP51 versus PhP81, respectively.

In Indonesia, the world’s largest producer of palm oil, the biodiesel blending mandate for palm methyl ester (PME) set at 35%.

Palm oil, a versatile commodity, finds applications across various industries. It is a key ingredient in food products, personal care items, and numerous other by-products.

Beyond these uses, palm oil’s potential as a biofuel is particularly noteworthy. The advantages of using palm oil biofuels in rice production are multifaceted.

Firstly, biofuels are renewable and have an abundant global supply, reducing dependency on fossil fuels and stabilizing energy costs.

Secondly, the use of biofuels can lower greenhouse gas emissions, contributing to more sustainable agricultural practices.

By strategically leveraging palm oil-integrated biofuels, the agricultural sector gains an economical alternative to fossil fuel diesel. The process of converting palm oil into biofuel involves refining the crude oil into biodiesel, which can then be used to power various types of machinery.

For rice production, this means that biofuels can operate rice plantations, milling processes, and essential farm vehicles such as harvesters and tractors. By replacing expensive fossil fuels with more affordable biofuels, farmers can significantly reduce their operational costs.

The promise of palm oil biofuels in reducing rice production costs is clear. With government support and innovative approaches, the Philippines can create a more sustainable agricultural sector, and pave the way for a more affordable and competitive rice market, benefiting the economy, farmers and consumers alike.