BOI OKs incentives to essential oils exporter

MANILA, Philippines — An export producer of pure essential oils has secured approval for incentives from the Board of Incentives (BOI) for its P109.5-million project in Zambales.

In a statement yesterday, the BOI said it approved the application for registration of Iba Botanicals Inc.’s project under the Corporate Recovery and Tax Incentives for Enterprises Act, as export activities are part of the 2020 Investment Priorities Plan, which serves as the transitional Strategic Investment Priority Plan.

Expected to begin commercial operations this month, the project involves the production of essential oils from ylang-ylang, vetiver and elemi species, for export to the US, Europe, and Asia.

Essential oils are extracted from plants, flowers, trees, fruits, bark, grasses, and seeds, and serve as inputs in the production of perfume, personal and healthcare products, pharmaceuticals, cosmetics, household care, as well as food and beverage industries, among others.

Iba Botanicals’ project will have an annual capacity of 35.6 metric tons or 35,688 kilograms.

As the firm will make use of organic farming techniques for its operations, it is securing a third-party international organic certification.

Projected to generate P245.28 million in economic output, the project is seen to help reduce poverty incidence in Region 3 or Central Luzon.

By the fifth year of its operations, the project is expected to generate a total of 430 jobs.

Iba Botanicals will also engage up to 200 workers directly from a community in the vetiver plantations in San Juan, Zambales.

In addition, the firm is working with the local Aeta communities for the plantation of species and is hiring up to 80 workers from the community.

ABS-CBN Eco Village in Barangay Palanginan, which serves as the primary production site, has been contracted to the company, formerly named Elysian Essential Oils Philippines Inc., pursuant to a 25-year usufruct agreement that will last until 2043.

From an estimated value of $10.3 billion last year, the global essential oils market is expected to reach $16 billion by 2026.