Duterte issues EO on coconut industry dev’t, allowing release of P75-B coco levy trust fund

President Rodrigo Duterte has signed an executive order approving the development plan for the coconut industry, which would pave the way for the release of a P75-billion trust fund for coconut farmers from coco levy assets sequestered by the government.

President Rodrigo Duterte issues Executive Order No. 172, allowing the release of P75-billion coco levy trust fund created under the Coconut Farmers abs Industry Trust Fund Act. pic.twitter.com/7ISk2b5zUt

— Ted Cordero (@Ted_Cordero) June 8, 2022

In his EO 172 signed on June 2, Duterte said the Coconut Farmers and Industry Development Plan (CFIDP) is “hereby approved.”

The CFIDP shall be implemented by the Philippine Coconut Authority (PCA) pursuant to the Republic Act No. 11524  or Coconut Farmers and Industry Trust Fund Act which was signed into law in February 2021.

The RA 11525 creates a trust fund which will be "capitalized, managed, invested, utilized, and accounted for” according to the plans and programs of the CFIDP.

In issuing EO 172, Duterte said there is a need to approve the CFIDP “to increase overall productivity and income of coconut farmers, alleviate poverty, and achieve the twin objectives of rehabilitating and modernizing the coconut industry to attain social equity.”

In a separate statement, Agriculture Secretary William Dar welcomed the issuance of the EO 172.

“The issuance of EO 172, which approves the CFIDP, is yet another manifestation of the Duterte Administration’s commitment to uplift our farmers and foster a competitive Philippine agriculture,” Dar said.

The Agriculture chief said the approval of the CFIDP will allow the release of the P75-billion trust fund created through RA 11524.

The trust ensures funding for the CFIDP over the next five years.

Immediately upon the enactment of the law, P10 billion shall be disbursed to the trust fund, and for the succeeding years will trail the following schedule:

•     P10 billion, second year
•     P15 billion, third year
•     P15 billion, fourth year
•     P25 billion, fifth year, and any amount accruing, including interest

The CFIDP will be reviewed annually to adjust to emerging trends and needs of the coconut sector.

The CFIDP will implement national programs for social protection of coconut farmers, farm workers, and their families; farmers’ organization and development; innovative research projects and their practical application; community-based enterprises; and integrated processing of coconut and downstream products.

For his part, PCA administrator Benjamin Madrigal Jr. said the agency has undertaken significant organizational reforms to be efficient, more responsive, and proactive in service to the country’s coconut industry.

“After more than four decades of waiting, the law for the management and utilization of the coco levy fund that was enacted last year will now be finally implemented in fulfillment of President Duterte’s campaign promise to our coconut farmers. As the Duterte administration comes to a close, this shall be the lasting legacy of the President in improving the lives and the livelihood of our dear coconut farmers,” Madrigal said.

Dar noted that aside from improving productivity and coconut farmers’ incomes, the CFIDP will also hike the contribution of the coconut subsector to total agricultural gross value added (GVA) and sustain the country’s status as the world’s number one exporter of coconut products.

According to PCA, coconut products raked in an average export revenue of P91.4 billion from 2014 to 2018.

In 2019, the DA said the coconut sector contributed more than $1 billion in export revenues.

Coconut, particularly coconut oil, is one of the top agricultural export commodities in 2019 placing the Philippines as the number one exporter of coconut oil in the world.—AOL, GMA News