Palm oil biofuels pushed to cut rice production cost
09/08/2024 (Philstar) Manila, Philippines — Biofuel advocates are pushing for innovative solutions to lower the cost of rice production, as President Marcos reaffirmed his commitment to bring down the price of the country’s main staple, which currently ranges from P45 to P65 per kilo.
An alternative measure would be the use of biofuel, an economical and environment-friendly energy source for powering farm machinery and rice mills.
Currently, the government mandates a three percent coco methyl ester (CME) blend in all diesel fuel sold nationwide. The Department of Energy has noted a potential net savings of P4.17 per liter of diesel with a higher CME blend of five percent, corresponding to a 10 percent 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 P51 versus P81, respectively.
In Indonesia, the world’s largest producer of palm oil, the biodiesel blending mandate for palm methyl ester (PME) is set at 35 percent.
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.
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.