PCA Administrator Danilo Coronacion said he is optimistic funds for the program will be forthcoming as he anticipates a favorable ruling from the Sandiganbayan on the coconut levy cases.
"The program was designed to make use of the coco levy funds in view of the expectation that the coco levy case would be resolved by the end of the year," Coronacion said.
The government is working to have the coco levy funds channeled to PCA’s " Strategic Plan for Coconut Industry Development" to be undertaken from 2004-2010.
The program calls for the doubling of the annual coconut production from the current level of 2.2 million metric tons (MMT) and the purchase of coconut oil mills and other processing facilities.
The government is also seeking to pour money into research and development, farm development program and an expanded insurance and microfinance program for coconut farmers.
"These investments are in keeping with the true purpose of the coco levy funds," Coronacion said.
The government had released some P700-million coco levy funds to finance a livelihood and microfinance program for coconut farmers.
The Coconut Farmers‚ Safety Net Program was supposed to have been in full swing in the first quarter this year but its implementation was delayed because of legal entanglements.
The Philipine Coconut Federation (Cocofed) challenged the legality of the government’s release of the P700 million from the coco levy, saying the funds could not be touched until the Sandiganbayan has ruled on its ownership.
Coronacion said however, that with the Sandiganbayan’s recent ruling on the ownership of shares in the United Coconut Planters Bank (UCPB), there is no reason to prevent government from tapping the P700-million fund.
The PCA is pushing for the implementation of the rehabilitation and modernization program of the ailing coconut sector which in recent years has been experiencing declining productivity.