Albay Representative Proposes Bill for Coconut Levy Fund Allocation

In a significant legislative move aimed at enhancing the efficiency of fund distribution for the coconut industry, Albay Representative Adrian Salceda has filed House Bill 2336, which seeks to allocate portions of the coconut levy trust fund to various government agencies. This proposal aims to streamline the disbursement process to beneficiaries, addressing long-standing concerns regarding delays in accessing the funds.

The coconut levy fund, a financial reservoir sourced from taxes levied on coconut farmers, planters, and millers during the regime of former President Ferdinand Marcos Sr., has been a focal point in discussions surrounding the revitalization of the coconut industry in the Philippines. According to Salceda, the current allocation process has hindered timely access to these critical resources. "The disbursement is taking too long because the allocation is parsed all over agencies. Not all agencies are submitting proposals, since this task is not their core function," he stated.

Salceda's bill amends Section 9 of the Coconut Farmers and Industry Trust Fund Act, delineating specific percentages of the fund's allocation for various purposes. These include 15% for the planting and replanting of hybrid coconut seedlings through the Philippine Coconut Authority (PCA), 5% allocated for training programs for coconut farmers and their families via the Technical Education and Skills Development Authority (TESDA) and Agricultural Training Institute (ATI), and additional allocations for research and development, crop insurance, infrastructure, education, health programs, credit services, and shared facilities.

The House Bill also introduces provisions for reallocating unutilized funds to other programs and projects, contingent upon the approval of the Trust Fund Management Committee in consultation with the PCA. This flexibility aims to ensure that the funds are utilized effectively, addressing the needs of the coconut farmers more directly.

The proposal emerges in the wake of President Ferdinand "Bongbong" Marcos Jr.'s fourth State of the Nation Address (SONA), during which he emphasized the necessity for legislative amendments to improve the coconut industry's responsiveness to the farmers' needs. Salceda remarked, "We’re simply trying to respond by making sure the fund moves toward the farmers faster and more directly. The farmers fought for this for so long. The direction is clear. The executive is ready. The farmers are waiting. Let’s do our part."

Historically, the coconut levy fund has been a contentious issue, with various stakeholders advocating for its proper utilization to benefit the farming community. The existing law stipulates an initial allocation of PHP 5 billion to designated implementing agencies, yet it lacks specific guidance on disbursement proportions.

Expert commentary on the matter highlights the potential economic and social implications of Salceda's proposal. Dr. Maria Elena Cruz, an agricultural economist at the University of the Philippines Los Baños, noted, "Effective fund allocation is crucial for the sustainability of the coconut industry, which supports millions of farmers and their families. Timely access to these resources can significantly improve agricultural productivity and livelihoods."

Conversely, industry leaders have expressed concerns regarding the bureaucratic hurdles that may still impede the effective implementation of the proposed amendments. Mr. Robert C. Villanueva, President of the Philippine Coconut Producers Federation, stated, "While the bill aims to expedite fund distribution, it is essential that the implementing agencies are equipped with the necessary resources and training to manage these funds efficiently."

As the House of Representatives considers Salceda's bill, the coconut industry's stakeholders remain hopeful that the proposed changes will facilitate a more direct and beneficial impact on the lives of coconut farmers across the nation, thus revitalizing an industry that has been a cornerstone of the Philippine economy for decades.