PCA seeks full control of coconut levy fund

MANILA, Philippines — The Philippine Coconut Authority (PCA) is proposing to fully implement the coco levy fund to fast-track priority projects in the coconut sector.

PCA administrator and CEO Dexter Buted said the agency is proposing to lead all projects related to coconut development and the removal of funding allocations to implementing agencies.

“It will now be based on the priority projects of the PCA,” he told reporters on the sidelines of an industry event.

Under the Coconut Farmers and Industry Trust Fund, 20 percent is earmarked for boosting production through hybrid farms, 10 percent for infrastructure projects and another 10 percent for coconut processing facilities.

Other allocations cover farm credit and insurance, research, education and mechanization, among others.

Buted said the PCA board would decide which projects to prioritize and how funds will be allocated.

Among the projects that the agency will prioritize is its massive replanting program, which seeks to replace older or aging trees to revive production.

The replanting program is part of the Marcos administration’s push to revive the coconut industry, one of the country’s biggest exports, by planting about 100 million new trees by 2028.

The PCA is targeting to plant 40 million more coconut trees this year, bringing the total to about 80 million by the end of 2026.

Buted noted that funding for the massive replanting program remains insufficient, with only about P1 billion allocated for next year.

He added that the replanting drive will help boost the Philippines’ coconut output, as the country has slipped to third place among the world’s top producers.

He said that India currently produces about 20 billion nuts per year, followed by Indonesia with 18 billion and the Philippines with about 14 billion.

“We need to amend the law so that we can secure the sustainability of the industry, because if you just rely on the national budget, nothing will happen,” Buted said.

The agency has compensated for its limited funding through participatory planting projects, coconut hybridization, partnerships with local governments and community-led programs.

The country produced 14.51 million metric tons of coconuts last year, a slight increase from the 14.5 MMT output in 2024, according to the Philippine Statistics Authority.