Bioethanol production seen as solution for RP sugar surplus

Sugar-producing countries that have a surplus in sugar production this year are looking into biofuels to make use of the excess.

Sugar Regulatory Administrator Rafael Coscolluela said that the sugarcane industry in the Philippines is facing a big challenge over the next two years with rising costs of fuel and fertilizer and a surplus in the production of sugar.

"This will require belt-tightening measures on our part so that we can cushion the impact of such problems. One of our options to get rid of the surplus is to start producing bioethanol," said Coscolluela.

He stressed the need for sugar farmers to diversify to other crops to be used for feedstock and bioethanol.

There are about 20 ethanol investors that are waiting for guidelines to be released so that they can begin their projects in various provinces in the country.

"We are now fast-tracking the passing of the Joint Administrative Order to the National Biofuels Board, which contains the rules and guidelines of such projects," said Coscolluela.

Coscolluela said however that 2011 will be a different challenge since fuel and fertilizer prices are expected to rise.

"Our challenge now is to how to reduce our cost of production while yielding high-profits at the same time," said Coscolluela.

source:abs