Creation of coconut oil mills in Eastern Samar sought

TACLOBAN, Philippines — Two measures seeking to establish two state-run coconut oil mills and refineries in Eastern Samar have been filed before the House of Representatives.

House Minority Leader Marcelino Libanan filed House Bills 10834 and 10849, seeking the establishment of coconut oil manufacturing companies in the towns of Sulat and Quinapondan, respectively.

Libanan’s proposals aim to boost the productivity and income of farmers in his province. He said the mills would process raw coconuts into refined oil and other high-value products for domestic and foreign markets.

“We are counting on the facilities to enhance the value-added processing of coconut products, create employment, stimulate the economies of Eastern Samar and nearby provinces, and help alleviate poverty,” Libanan said.

He said the mills would generate income for the government and boost export of refined coconut oil, which is one of the country’s top commodity exports.

Data from the Philippine Statistics Authority showed the country exported $1.12 billion worth of crude and refined coconut oil from January to July this year.

The amount showed a 58.5 percent increase, or $411 million, from the $704 million recorded in the same period last year.

Libanan’s proposals tasked the Department of Agriculture (DA), through the Philippine Coconut Authority (PCA), to oversee the establishment, operation and management of the oil mills and refineries.

Funding for the projects will be sourced from the current budgets of the DA and the PCA, he said.

Libanan proposes that the mills be exempted from taxes for five years as well as from customs and import duties for their equipment, raw materials and other operating inputs.

The establishments will be given priority access to credit facilities offered by government financial institutions, he said.

Libanan represents the 4Ps party-list in Congress. He represented the lone district of Eastern Samar from 1998 to 2007, after serving as vice governor from 1992 to 1995.