Gov't to use coco levy funds to address 'cocolisap' threat

MANILA, Philippines -- The government plans to release P60 billion of the coconut levy funds before yearend to help try to save the industry, which is currently in peril due to pest infestation, Agriculture Secretary Emmanuel Piñol said.

 

"The president issued an instruction to me and to the Presidential Legislative Liaison Office to work out with Congress ways of a legislation to finally release to the farmers in whatever form will be agreed upon the P60 billion coconut levy fund, which is now in the National Treasury," Piñol told reporters.

 

The coco levy funds, amounting to over P70 billion, were taxes collected from coconut farmers under Presidential Decree 755 in 1975.

 

The taxes were supposed to be used for the construction of projects to benefit coconut farmers but the money was instead used to buy a large percentage of the bank now known as United Coconut Planters Bank.

 

Piñol is set to meet with Zamboanga City Rep. Celso Lobregat on how Congress can help have the money released. The Agriculture secretary will consult with stakeholders in the first week of October to discuss how to immediately assist the farmers and the industry.

 

"The moment we agree on how to do it, I will ask one of the congressmen [Lobregat] to file a bill and I will ask the president to certify it as urgent," he said.

 

The bulk of the fund will be used for the rehabilitation and expansion of the industry while the remainder will be allocated for scholarships of farmers’ children and other projects for the industry’s beneficiaries.

 

"We’re losing out and the moment we do not move fast to save the industry from cocolisap (coconut scale insect)  and the continuous cutting of old coconut trees, there will come a time that we will no longer be included among the top coconut producing countries," Piñol said.

 

While there has been previous opposition from the Senate regarding the release of the coco levy funds, Piñol maintained that he will abide by the orders of the president himself.

 

"It’s normal to have oppositions and we don’t expect everybody to agree. But, they are not the president. It’s not mine to question. I’m just a Cabinet secretary following the orders of the president and based on his orders, I have to come up with a method to implement that," he said.

 

While the Philippine Coconut Authority is not under the DA, Pinol emphasized that the department has to come in as PCA does not have enough funds to address the cocolisap problem.

 

"Even if coconut as a commodity is not under the DA right now, I am forced to do this because coconut farmers are still Filipino farmers. And right now, the industry is already in the disaster level and this is very dangerous if agencies will not help each other," he said.

 

As intervention, the department will implement trunk injection and root absorption to severely damaged trees while biological control will be implemented to areas that minimally affected.

 

"The mission is to stop the spread of cocolisap because it could setback our coconut industry by about five years. If fully devastated, we have to cut down the old trees and plant new ones that will take about five years and the moment we do that, a lot of farmers will be affected," Piñol said.

 

Coconut remains one of the top agricultural exports in the country, earning as much as $1 billion annually.

 

The Philippines is one of the top producers of high quality coconuts and is the second biggest exporter of coconut-based products globally.

 

Coconut production was down by seven percent in second quarter due to the dry spell and trees were still reeling from the effects of typhoons that resulted in decreases in the number of bearing trees.