PCA seeks regulatory powers for copra prices

MANILA, Philippines — The Philippine Coconut Authority (PCA) is seeking regulatory powers to influence the prices of copra and shield the country’s coconut farmers from declining copra prices.

PCA head executive assistant Joseph Cezar Deligero said the agency is proposing to amend its charter to include the ability to control copra prices.

“We do not have the authority to control the prices. But basically, 80 percent of our production is exported and we are highly affected by global markets. When there’s a price drop overseas, of course, we are affected,” he told reporters.

Deligero said that enabling the PCA to regulate copra prices would allow them to set floor prices for farmers, while balancing the recommendation of private manufacturers and processors.

He said PCA officials have already engaged lawmakers to push for amendments to the agency’s charter through new legislation.

“We would really be in need of some legislative help coming from Congress and the Senate to sponsor the bill in order for us to be able to amend our charter,” Deligero said.

He added the agency is still studying its charter, as well as meeting with stakeholders, processors and coconut oil manufacturers on the PCA’s proposal to influence copra prices.

“We are still studying certain factors that affect copra prices, but we are coordinating with our regional offices to assist the farmers also when it comes to copra pricing,” he said.

He added that the PCA’s partnership with financial institutions also supports coconut farmers through loan approvals.

Coconut oil and copra prices have experienced a decline in prices due to weaker demand, disruption in exports and an oversupply in production.

“When the oil crisis hit, it became a big problem, especially with copra prices and it really dropped as compared to before,” Deligero said.

The current local farmgate price for copra averaged at P44.52 per kilo, while millgate prices were recorded at P52.54 per kilo, according to PCA data.