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FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 2050 
Introduced by Senator EDGARDO J. ANGARA 
EXPLANATORY NOTE 
Coconut products are still the number one agricultural export earner on 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 typhoon that hit the 
country last year, our coconut farmers are in desperate straits. 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-
tenn 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: 
o Income Supplement Projects, for coconut farmers to sell their copra and whole 
nuts at millgate price or better, as follows: 
o Transport allowance to coconut farmers, for government to shoulder the 
difference between fanngate and millgate prices, worth P38.2S million a 
month; 
o Marketing assistance to coconut farmers, including transport equipment 
assistance to coconut farmer organizations and accredited oil mills, worth 
P236.2 million; 
o 
Direct buying of copra by National Food Authority at a threshold pnce 
determined by the Philippine Coconut Authority; 
o Income support on regular sales of copra and whole nuts, directly benefiting 1.6 
million coconut farmers through the issuance of coupons. 


It. is only through a timely and critical intervention can we save the coconut 
industry - and the fanners 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. 
W/~ 
EDGARDO J. ANGARA 
2 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 2050 
Introdnced 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 in the Senate and House of Representatives of the Philippines in the 
Congress assembled: 
I 
SECTION 1. Title of the Act. - This Act shall be known as the "Coconut 
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Emergency Measures Act of 201 O. " 
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SEC. 2. Purpose of the Act. - In order to immediately address the abnormal price 
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situation in the coconut industry sector brought by the worldwide glut of fats and oils in 
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the world market, there is a need to launch an income supplement program for small 
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coconut farmers, tillers, workers and owner-cultivators who comprise the overwhelming 
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majority of the people in the coconut industry that will provide them immediate relief from 
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the adverse effects of extremely low prices of copra and husked nuts. 
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J I 
SEC. 3. Definition of Terms. - As used in this Act, "coconut farmers" refers to 
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small coconut farmers, tillers, workers and owner cultivators who comprise the 
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overwhelming majority of the people in the coconut industry. 
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1 


1 
SEC. 4. Assistance Provided to Coconut Farmers.- By virtue of this Act, coconut 
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farmers and coconut processing sector shall be provided income supplement projects, for 
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coconut farmers to sell their copra and husked nuts at mill gate price or better, as follows: 
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(a) Transport allowance to coconut farmers where government shoulders the costs 
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of transport of copra and husked nuts from farm to mill until prices go beyond 
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the production cost of six pesos and four centavos (P6.04) per kilogram of 
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copra; 
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(b) Marketing assistance to coconut fanners, including transport equipment 
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assistance to coconut farmer organizations and accredited oil mills or 
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desiccators; 
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(c) Direct buying of copra by the National Food Authority (NF A) at a base price 
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determined by the Philippine Coconut Authority (PCA); 
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(d) Income support on regular sales of copra and husked nuts directly benefiting 
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coconut fanners through the issuance of incentive coupons the value of which, 
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as determined by PCA, shall be based on the volume delivered; and 
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( e) Livestock and seedling dispersal through the PCA and accredited fanner 
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. organizations; 
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(£) Informing, teaching, assisting and training them through the Department of 
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Science and Technology, to fully utilize the coconut and its by-products; 
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(g) Providing them the skills for efficient marketing of their coconut products and 
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by-products; 
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(h) Helping them in the acquisition of fertilizers. 
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24 
SEC. 5. Implementation of this Act. - The Philippine Coconut Authority shall 
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issue such rules and regulations in order to implement this Act. 
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2 


SEC. 6. Funding. - Assets acquired through the coconut levy funds or by entities 
2 
financed by the coconut levy funds identified by the President of the Republic of the 
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Philippines for appropriate disposal or sale, shall be sold or disposed to generate a 
4 
maximum fund of One Billion Pesos (PI,OOO,OOO,OOO.OO) which shall be managed by a 
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Committee composed of a Chairman and four (4) members to be appointed by the 
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President whose term shall be co-terminus with the Program. The Committee is authorized 
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to organize a Secretariat for the effective performance of its functions and responsibilities. 
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The Committee may authorize the disbursement of an amount not to exceed two 
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percent (2%) of the fund to defray personnel and maintenance and operating costs of the 
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Committee and its Secretariat, consultative meeting~ with coconut farmers and information 
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dissemination of the Program. 
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The Philippine Commission on Good Government, Office of the Solicitor General 
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and other appropriate government instrumentality are hereby directed to take all necessary 
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steps to implement the purposes and objectives of this Act. 
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SEC. 7. Audit of Fund and Submission of Report.- The Authority and the 
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Commission of Audit shall immediately conduct a thorough inventory of all assets funded 
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by the coconut levy funds. Every quarter after the effectivity of this Act, the Authority and 
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the Commission on Audit shall make a public disclosure of their fundings. 
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SEC. 8. Other Funds. - The President map, by appropriate issuances and when the 
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situation so warrants, provide additional funds therefor. 
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SEC. 9. Separability Clause. - If any provision of this Act shall be declared 
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unconstitutional or invalid, the other provisions not otherwise affected shall remain in full 
26 
force and effect. 
3 


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SEC. 10. Effectivity Clause. - This Act shall take effect fifteen days after its 
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publication in two (2) newspapers of general circulation. 
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Approved, 
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