MANILA, Philippines — An industrial association from Zamboanga is supporting the use of coal for power generation in the country as it aids canning industries in preventing the price of sardines from “spiking out of proportion.”
The Industrial Group of Zamboanga said coal mitigates the impact of external factors in the increase in prices of various commodities and processed food amid looming spikes owing to the rise in costs of fuel and raw materials.
Roberto Valerio, executive director of the group, said major sardine canning factories, for instance, continue to rely on coal as an alternative to bunker fuel to keep prices of their products low.
Zamboanga City, known as the “Sardines Capital of the Philippines,” lists at least 13 canning plants.
Valerio said recent price hikes of canned sardines would be attributed to surging fuel prices that affects imports of materials and the cost of fishing.
“But we cannot increase canned prices just like that because there are regulations being strictly implemented like the suggested retail price imposed by the DTI (Department of Trade and Industry). So, we from the industry are absorbing it just to ensure the masa can still afford the sardines,” he said.
Valerio said major canning and oil milling industries, as well as coconut oil producers and carrageenan plants in the region have also been relying on coal to fire up its boilers.
While prices of coal have already increased with the addition of the excise tax, the commodity has remained cheaper than bunker fuel.