Proposal to expedite use of coco levy put forward
A House leader urged the national government to designate a project preparation and proposal to access the P75 billion Coconut Industry Development Trust Fund or the Coco Levy.
House Committee on Ways and Means chair Albay Representative Joey Salceda is proposing that the Philippine Coconut Authority and the Department of Agriculture designate a project preparation office to help implement national government agencies, local governments, and other proponents formulate viable project proposals.
“The way the fund is structured is that the Department of Budget and Management only releases funds to implementing agencies when there are already workable proposals for their use. So, it’s heavily dependent on the quality of proposals. It’s like a grant in that sense,” he said.
According to Salceda in order to expedite the use of Coco Levy Trust Fund, the President who is the temporary Secretary of the Department of Agriculture(DA) and the Philippine Coconut Authority should designate some office that would serve as the project development unit to help agencies and farmers propose projects for funding.
The office would also help ensure that the proposals are viable, sustainable, and effective in their objectives of truly uplifting the lives of coconut farmers.
As of July, the DBM has released only P755 million of the P75 billion fund, P5 billion of which is mandated to be spent annually.
“We have a very low utilization rate for the Coco Levy Trust Funds because good proposals simply do not exist. Certainly, there is a gap in the capacities of implementing agencies. That gap is obviously in project development. So, why don’t we help agencies, LGUs, and farmers create proposals that can be funded? That way, we expedite the release of funds, and frontload benefits to coconut farmers. They’ve waited for this for decades,” the solon lamented.
Salceda also proposed a centralized portal containing all requirements, standards, and useful information on accessing the Trust Fund.
Salceda stressed that “there is momentum in the coconut sector, with our coconut product exports reaching almost USD 2 billion in 2021.”
“We produce the most coconuts per land area among all the world’s major producers. This is one of our comparative advantages in agriculture. We need to get this sector right – and if we do, the rewards for our farmers and our economy as a whole are significant,” he added.
