President Rodrigo Duterte has signed an executive order authorizing the coconut industry’s growth plan, paving the way to release a P75-billion Coco Levy Trust fund for coconut farmers from government-held coco tax assets.
The Coconut Farmers and Industry Development Plan (CFIDP) is “hereby approved,” according to Duterte’s EO 172, which was signed on June 2.
The Philippine Coconut Authority (PCA) will implement the CFIDP following Republic Act No. 11524, also known as the Coconut Farmers and Industry Trust Fund Act, signed into law in February 2021.
The RA 11525 establishes a trust fund to be “capitalized, administered, invested, utilized, and accounted for” under the CFIDP’s aims and programs.
In releasing EO 172, Duterte stated that the CFIDP must be approved “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.”
Agriculture Secretary William Dar, in a separate statement, praised the issue of 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 approval of the CFIDP, according to the Agriculture Secretary, will facilitate the disbursement of the P75-billion coco levy trust fund established by Republic Act 11524.
After 40 years: P75-B coco levy trust fund for coconut farmers to be released
The trust ensures that the CFIDP will be funded for the next five years.
P10 billion will be disbursed to the Coco Levy Trust Fund immediately upon the law’s enactment, and the following schedule will be followed in subsequent years:
- P10 billion, second year
- P15 billion, third year
- P15 billion, fourth year
- P25 billion, fifth year, and any amount accruing, including interest
PCA administrator Benjamin Madrigal Jr. stated that the agency had undergone substantial organizational adjustments to be more effective, responsive, and proactive in serving 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.
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