Villar urges use of P100-B coco levy funds to help coco farmers

MANILA, Philippines - Senator Cynthia Villar has called for the use of some P100 billion in coco levy funds to help the country’s more than 3.5 million coconut farmers in improving their lives.

 Villar said that it is about time that the government implement the 2012 Supreme Court ruling declaring the 24-percent Coconut Industry Investment Fund-San Miguel Corp. shares as public funds and start using these for the development of the coconut industry and to assist the coconut farmers.

 In order to facilitate this, Villar has filed Senate Bill 2126, which seeks to establish a trust fund that will pay for the implementation of a Coconut Farmers and Industry Development Plan (CFIDP).

 Villar, the chairperson of the Senate Committee on Agriculture, explained that the trust fund would be perpetually maintained for the development of the coconut industry, which she said would ultimately benefit the coconut farmers and farm workers.

 It shall be used to fund the implementation of programs and projects identified in the CFIDP.

Under the bill, the CFIDP would be crafted for the purpose of developing and rehabilitating the coconut industry.

 Villar said this would include a national program for coconut productivity, replanting, rehabilitation, scientific and medical research, integrated downstream processing, and market promotion. 

It will also include local programs that directly benefit small coconut farmers and farm workers, such as medical and health and life insurance services, educational scholarships for deserving students coming from families of coconut farmers, or beneficiaries of the coconut levy funds.

 “With the integration of ASEAN economies next year, there is a need to modernize the coconut industry towards global competitiveness and at the same time protect small coconut farmers and farm workers from unfair competition. A fund should be present to make this possible,” Villar said.

 The coco levy funds are currently deposited with the United Coconut Planters Bank under the name of the CIIF pursuant to the provisions of Presidential Decree No. 1468, as amended or the Revised Coconut Industry Code.

This, together with any and all proceeds from the redemption or sale of the CIIF-SMC block shares and all dividends accruing or have accrued thereto would form part of the initial capital of the trust fund.

Villar noted that the trust fund would thereafter be augmented with all proceeds of privatization/disposition of the coconut levy assets remitted by the Privatization Management Office, including any and all forms of income, interests, earnings, yields, or any monetary benefit which accrues to the trust fund pursuant to the investments made.

The principal amount would be preserved and maintained at all times and for this purpose, will be invested in the Republic of the Philippines bonds.

Only the income earned would be used for the implementation of the plan.