FOURTEENTH CONGRESS OF THE 
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First Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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SENATE 
S.B.NO. 869 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORYNOTE 
Coconut products are still the number one agricultural export earner of 
our country. More than twenty million Filipinos all over the country depend 
on the planting and harvesting of coconuts for their living. 
Due to the recent glut of palm oil in the world market and typhoons 
that hit the country last year, our coconut farmers are in desperate straits. In 
Southern Tagalog alone, copra sale went down from P22.40 per kg in 2004 to 
P18.28 per kg. in 2006. Government expects coconut production to stay flat 
this year at 2.4 million. Given the situation, farmers are no longer harvesting 
coconuts. More farmers cut trees and sell them as lumber, instead of 
harvesting the coconut. 
If this low copra selling price and production continues, the coconut 
industry will collapse. This calamity requires emergency action, in order to 
provide immediate and long-term relief to coconut farmers suffering from the 
effects of abnormally low prices of copra and other coconut products. 
The proposed emergency measure Program will involve the following 
projects: 
It 
Income Supplement Projects, for coconut farmers to sell their copra 
and whole nuts at millgate price or better, as follows: 
Transport allowance to coconut farmers, for government to shoulder 
the difference between farmgate and millgate prices, worth P38.25 
million a month; 
Marketing assistance to coconut farmers, including transport 
equipment assistance to coconut farmer organizations and accredited 
oil mills, worth P236.2 million; 
Direct buying of copra by National Food Authority at a threshold price 
determined by ths Philippine Coconut Authority; 
Income support on regular sales of copra and whole nuts, directly 
benefiting 1.6 million coconut farmers through the issuance of coupons. 
is only through a timely and critical intervention can we save the 
coconut industry - and the farmers who depend on this industry for their 
living - and help them overcome this debilitating crisis. 
For the above-mentioned reasons, approval of this bill is earnestly urged. 
EDGARDO u/4 
J. ANGA A 
Senator 


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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
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ai’ : 
S.B.NO. 869 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT ESTABLISHING AN EMERGENCY MEASURE TO 
ALLEVIATE THE PLIGHT OF COCONUT FARMERS ADVERSELY 
AFFECTED BY LOW PRICES OF COPRA AND OTHER COCONUT 
PRODUCTS, AND PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Title of the Act. - This Act shall be known as the 
Coconut Emergency Measures Act of 2007. 
SECTION 2. Purpose of the Act. - In order to immediately address 
the abnormal price situation in the coconut industry sector brought by the 
worldwide glut of fats and oils in the world market, there is a need to launch 
an income supplement program for small coconut farmers, tillers, workers 
and owner-cultivators who comprise the overwhelming majority of the people 
in the coconut industry that will provide them immediate relief from the 
adverse effects of extremely low prices of copra and husked nuts. 
SECTION 3. Definition of Terms. - As used in this Act, “coconut 
farmers” refers to small coconut farmers, tillers, workers and owner- 
cultivators who comprise the overwhelming majority of the people in the 
coconut industry. 
SECTION 4. Assistance Provided to Coconut Farmers.- By virtue 
of this Act, coconut farmers and coconut processing sector shall be provided 
the following assistance: 
(a) Income Supplement Projects, for coconut farmers to sell their copra 
and husked nuts at millgate price or better, as follows: 
(1) Transport allowance to coconut farmers where government 
shoulders the costs of transport of copra and husked nuts 
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from farm to mill until prices go beyond the production cost 
of P6.04 per kilogram of copra; 
(2) Marketing assistance to 
coconut 
fanners, including 
transport 
equipment 
assistance 
to 
coconut 
farmer 
organizations and accredited oil mills or desiccators; 
(3) Direct buying of copra by the National Food Authority 
(NFA) at a base price determined by the Philippine Coconut 
Authority (PCA); 
(4) Income support on regular sales of copra and husked nuts 
directly benefiting coconut fanners through the issuance of 
incentive coupons the value of which, as determined by PCA, 
shall be based on the volume delivered; and 
(5) Livestock and seedling dispersal through the PCA and 
accredited fanner organizations; 
(6) Informing, teaching, assisting and training them through 
the Department of Science and Technology, to fully utilize 
the coconut and its by-products; 
(7) Providing them the skills for efficient marketing of their 
coconut products and by-products; 
(8) Helping them in the acquisition of fertilizers. 
SECTION 5. Implementation of this Act. - The Philippine Coconut 
Authority shall issue such rules and regulations in order to implement this 
Act. 
SECTION 6. Funding. - Assets acquired through the coconut levy 
funds or by entities financed by the coconut levy funds identified by the 
President of the Republic of the Philippines for appropriate disposal or sale, 
shall be sold or disposed to generate a maximum fund of One Billion Pesos 
(Pl,OOO,OOO,OOO.OO) which shall be managed by a Committee composed of a 
Chairman and four (4) members to be appointed by the President whose term 
shall be co-terminus with the Program. The Committee is authorized to 
organize a Secretariat for the effective performance of its functions and 
responsibilities. 
The Committee may authorize the disbursement of an amount not to 
exceed two percent (2%) of the fund to defray personnel and maintenance and 
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operating costs of the Committee and its Secretariat, consultative meetings 
with coconut farmers and information dissemination of the Program. 
The Philippine Commission on Good Government, Office of the 
Solicitor General and other appropriate government instrumentality are 
hereby directed to take all necessary steps to implement the purposes and 
objectives of this Act. 
SECTION 7. Audit of Fund and Submission of Report.- The 
Authority and the Commission of Audit shall immediately conduct a 
thorough inventory of all assets funded by the coconut levy funds. Every 
quarter after the effectivity of this Act, the Authority and the Commission on 
Audit shall make a public disclosure of their fundings. 
SECTION 8. Other Funds. - The President map, by appropriate 
issuances and when the situation so warrants, provide additional funds 
therefor. 
SECTION 9 Separability Clause. - If any provision of this Act shall 
be declared unconstitutional or invalid, the other provisions not otherwise 
affected shall remain in full force and effect. 
SECTION 10. Effectivity Clause. - This Act shall take effect fifteen 
days after its publication in two (2) newspapers of general circulation. 
Approved, 
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