PCA looks into limiting coconut oil exports amid rise in cooking oil prices

The Philippine Coconut Authority (PCA) is studying the possibility of limiting exports of coconut oil to ease the impact among consumers of the rise in prices of cooking oil both in the domestic and global markets.

Interviewed on Dobol B TV, PCA Trade and Market Development head Rose Villaruel said the prices of cooking oil, particularly refined coconut oil and palm oil, have already increased.

Villaruel said to date the price of refined coconut oil increased to P132 per liter from P107 per liter as of January, while the price of palm oil went up to P117 per liter from P88 per liter in the first month of 2022.

The PCA official said the increase in cooking oil price was due to several factors such as reduction in the global supply of palm oil, particularly after Indonesia announced it would restrict exports of palm oil to secure local supply.

“Nag-reduce ang supply ng palm oil kaya tumaas ang presyo ng cooking oil... Tumaas din ang presyo ng inputs gaya ng packaging materials, activated carbon na ginagamit para ma-refine ang crude coconut oil,” Villaruel said.

(There is a reduction in the supply of palm oil which caused the increase in cooking oil prices… The price of inputs such as packaging materials, activated carbons which are used to refine crude coconut oil also went up.)

Asked if the PCA is studying imposing a similar protectionist policy as Indonesia, Villaruel said, “Isa ‘yan sa tinitignan ngayon as a matter of policy.”

(That is among [options] what we are looking into as a matter of policy.)

However, she said it is not easy to implement it since a lot of existing policies have to be checked and reviewed to come up with the most appropriate solution.

She said the country’s annual production of coconuts are around 14 billion pieces, of which 63% are produced as coconut oil.

Villaruel added that around 80% of the country’s coconut production goes to exportation.

The PCA official said it is high time for the Philippines to invest in the processing of high value coconut products so that the majority of the country’s production of crude coconut oil will not go to other countries.

“Mas maganda sana kung ang processing ng high value products ay gagawin na dito sa Pilipinas para hindi na tayo maging dependent sa exportation ng crude coconut oil kung saan ibang bansa ang nagproseso nito further into value added products,” she said.

(It would be better if the processing of high value products takes place in the Philippines so the industry will not be dependent on the exportation of crude coconut oil where it is being processed in other countries into value added products.)

“Ang ating coconut oil industry ay talagang kulang sa investment sa value added products especially sa mga investment na may participation ng coconut farmers,” Villaruel added.

(Our coconut oil industry lacks investments in value added products especially in investments where there is participation of coconut farmers.) —KG, GMA News