By Adrian H. Halili, Reporter
COCONUT farmers say they are underrepresented on the body that determines the use of an industry trust fund sourced from assets acquired using the coconut levy.
“Farmers are nowhere on the Coconut Trust Fund Committee. So that has to be amended,” Charles R. Avila, executive director for the Confederation of Coconut Farmers’ Organizations of the Philippines, told BusinessWorld.
Republic Act No. 11521, or the Coconut Farmers and Industry Trust Fund Act, puts coconut levy assets into a trust fund that will finance the rehabilitation and modernization of the coconut industry.
The law tasks the Bureau of the Treasury with transferring P10 billion immediately to the trust fund, P10 billion in the second year; P15 billion in the third year; P15 billion in the fourth year; and P25 billion in the fifth year.
The use of the fund is guided by the Coconut Farmers and Industry Development Plan.
The coconut levy from the first Marcos Presidency was improperly used to acquire assets for private gain. The assets were seized and later transferred to the trust fund after lengthy legal proceedings.
Mr. Avila added that the government needs to amend the law.
“The law has infirmities. The coconut trust fund committee right now is consists of officials led by the Department of Finance (DoF),” he said.
The trust fund committee is headed by representatives from the DoF as well as the departments of Budget and Management and Justice.
He added that pending any changes to the law, the trust fund committee should have an advisory committee which includes the Department of Agriculture, the Philippine Coconut Authority, and coconut farmers.
On the other hand, Mr. Avila said that production continues to be hindered by the age of the Philippines’ coconut trees.
“We may be one of the top three producers in the world, we are supplying about 80% of global demand… but we may not be able to do that (further) if we do not plant more trees,” he added.
He said that the government should also involve coconut farmer organizations in the replanting effort.
President Ferdinand R. Marcos, Jr. ordered the PCA to draft a plan to rehabilitate the coconut industry, including the planting of 100 million coconut trees by 2028.
The rehabilitation plan aims to address the advanced age of the nut-bearing trees. The PCA is seeking to replant about 8.5 million trees this year.
