President Marcos has directed the Department of Agriculture (DA) to probe the alleged illegal sale of imported palm olein, according to the Federation of Philippine Industries (FPI).
In a letter sent by the Presidential Management Staff to Agriculture Senior Undersecretary Domingo Panganiban, Mr. Marcos told the agency— which he concurrently heads—to evaluate and take appropriate actions on the issues raised by the FPI.
The FPI earlier disclosed to Mr. Marcos that the government was losing billions of pesos in revenues because "a big portion" of imported palm olein —a liquid form of palm oil used in cooking and baking—that was supposed to be used as an additive to produce animal feeds to be exempt from the value-added tax was being sold instead to the commercial market.
"The reality is that a big portion of the imported palm olein is being diverted for sale to either 1) producers of biodiesel as an additive to diesel fuel and 2) to the retail market (public markets, groceries, supermarkets and sari-sari stores) as cooking oil for eventual sale to the consuming public," said FPI chair Jesus Arranza, citing reports and documents obtained by the industry group.
Thus the FPI welcomed President's action as this was expected to boost the campaign against smuggling and other forms of illicit trade.
It will also help protect the country's vital coconut sector as palm olein is a direct competitor of coconut oil.
Arranza, who also chairs the Fight Illicit Trade advocacy group, claimed importers "are getting another windfall of cash from substituting coconut oil with palm olein" in producing biofuels as coconut oil is more expensive than palm olein, a vegetable oil derived from the palm tree fruits.
Under existing rules, only coconut oil can be blended with diesel to produce biodiesel.
The government has been working on increasing the coco methyl ester content of diesel from 2 percent (B2) to 5 percent (B5), as mandated by the Biofuels Act of 2006.
Another issue raised by Arranza was the lack of the list of feed producers (feed millers) to determine whether the imported palm olein was indeed being used in manufacturing feeds and the verification process on the volume of palm olein being used per kilo of feeds. INQ
The business headlines in under one minute
- Germany: 3 arrests in darknet 'Wall Street Market' probe
- Savage Mexican drug lord El Mencho's empire has set up cells in 35 US states and Puerto Rico where cartel members blend into small towns by hiding their wealth to fuel the opioid epidemic
- Trump Justice Department Slams Paul Manafort's Bid to Shut Down Russia Probe as 'Frivolous'
- Confidential White House probe unearths hundreds of emails between senior officials seeking an ‘after-the-fact justification' for Trump’s decision to block Ukraine military aid over concerns the 'hold was illegal'
- £10million bill for probe into Afghan troops: Taxpayers' money is spent investigating 650 allegations of war crimes on the battlefield a decade ago... but no British soldier has been charged with any offence
- Roxburgh Park house price record: suburb’s first $1 million sale
- High streets brace for Black Friday sales flop as 11m shoppers hunt bargains online with spending set to reach £2.5 BILLION, survey reveals
- Clinton Probe: 'I'd Say This is Going to be More a Tax Related Issue' - Scholar
- Lobbyist Talwar bribed public servants to help foreign airlines; over 50 firms under scanner: Probe report
- Senate to probe alleged diversion of $1.05bn by NNPC
- Teva, drugmakers in talks with U.S. to end generics probes
- No fresh probe into Maharashtra's Adarsh scam case: ED
- Minister orders probe in multi-crore land scam in Mandi Gobindgarh, Punjab
- Donald Trump Still Faces Dozens of Ongoing Investigations After Mueller Probe: 'He By No Means Is Safe'
- Bong Joon-Ho’s Palme d’Or Winner ‘Parasite’ Invades U.S. This Fall
- US judge delays sentencing of former Trump adviser Michael Flynn over Russia-probe report
- Group urges international court to probe Brazil’s president
- No fresh probe in Adarsh scam of Maharashtra: Enforcement Directorate
- Austria: 7 people probed over ‘Ibiza’ video scandal
- No Rule of Law for Illegals or POTUS
Probe of illegal sale of palm olein set have 671 words, post on business.inquirer.net at January 25, 2023. This is cached page on Business News. If you want remove this page, please contact us.