Subsidy for 3.5M coco farmers sought amid plans to suspend biofuel blending

A government subsidy for 3.5 million coconut farmers has been proposed in the House of Representatives amid a looming biofuel blending suspension.

House Minority Leader Marcelino “Nonoy” Libanan made the proposal on Tuesday, noting that more than 60% of coconut farmers and workers live below the poverty line, making them especially vulnerable to any downturn in copra prices.

Biofuel blending refers to the practice of mixing a certain percentage of biofuels—such as coconut-based biodiesel—with conventional petroleum fuels like diesel or gasoline.

“Any move to suspend the mandatory biofuel blending policy must be accompanied by immediate and targeted financial assistance for our coconut farmers and workers,” Libanan said in a statement.

“They should not be made to bear the burden of stabilizing fuel prices,” Libanan added.

Citing Philippine Coconut Authority (PCA) figures, Libanan said some 3.5 million registered coconut farmers nationwide work across 3.6 million hectares of plantations.

Further, Libanan said that around 25 million Filipinos derive income or economic support from the coconut industry, whether as farmers, laborers, or participants in related value chains based on PCA estimates.

“These numbers underscore the urgency of protecting our coconut farmers. A sudden drop in demand for coconut-based biofuels could trigger a decline in copra prices, pushing already struggling families deeper into poverty,” Libanan said.

“We cannot pursue economic relief in one sector at the expense of another. A balanced approach is needed—one that stabilizes fuel prices while preserving the livelihoods of millions of Filipinos,” Libanan added.

Libanan said the subsidy should be coursed through key government agencies, including the Department of Social Welfare and Development (DSWD), the Department of Labor and Employment (DOLE), and the Department of Agriculture (DA), to ensure efficient and timely distribution.

Just last week, the House of Representatives approved House Bill 8469 on third and final reading. This measure allows the temporary suspension of mandatory biofuel blending to reduce upward pressure on oil prices.

Likewise, House Bill 8469 seeks to amend the Biofuels Law of 2006 and grants the President the authority to suspend the required use of locally sourced biofuels for up to one year if blended fuel prices exceed pure diesel or gasoline prices by at least five percent.

The Senate, however, adjourned for the Lenten break without passing its counterpart measure, despite the bill having been certified as urgent by President Ferdinand “Bongbong” Marcos, Jr. —VAL, GMA Integrated News