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THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
1 
1 1 1 ’  
I (  * * .  
First Regular Session 
1 
i )  I 
tI 
$ .,31 
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f 
OF THE PHILIPPINES 
Introduced by Senator Edgardo J. Angara 
EXPLANATORY NOTE 
Coconut products are still the number one agricultural export earner of our 
country. More than twenty million Filipinos in 65 provinces 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, our coconut farmers 
are in desperate straits. 
Copra is now selling between P2.50 to P3.00 per kg. 
While production cost is at P5.00 per kg. With breakeven at P6.04 per kg. 
farmgate price, 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 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: 
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 farmgate and millgate prices, 
worth P38.25 million a month; 
e 
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 the Philippine Coconut Authority; 
0 
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 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 J. ANGARA 


THIRTEENTH CONGRESS OF THE REPUBLIC 1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S. No. 
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 200 1. 
SEC. 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. 
SEC. 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. 


(7) 
Providing them the skills for ellicicrit Mal-kcting of thcir coconut 
products and by-products; 
(8) 
Helping them in the acquisition of fertilizers; 
Section 5 
ImpIementation 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 
maxiinuiii fund OF One Billion Pesos (P1,000,000,000.00) which shall bc inanaged by il 
Conimittee composed of a Chairman and four (4) rnenibers to be appoirited by the 
President whose terrii shall be co-terniinus with the Program. pIl~e 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 operating costs ofthe 
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 hcrcby directed to take all 
necessary steps to implement the purposes and objectives of this Act. 
Sec. 7. Audit of Fund and Submission of Report.- 
The 
Authority 
atid 
the 
Comtnission o f  Audit shall immediately conduct a thorough inventory of all asscts or 
funded by the coconut levy funds. And every quarter after the effectivity o f  this Act, thc 
Authority and the Commission on Audit shall make a public djsclosure of their findings. 
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Sec. 4 .Assistatice Provided to Coconut Farmers.- 
By virtue of this Act, cocouut 
farmers mid coconut processing sector shall be provided the following assistarm: 
(a) 
Income Supplement Projects, for coconut fanners to sell their copra and 
husked nuts at millgate price or better, a follo~ss: 
Transport allowance to coconut farmers where government 
shoulders the costs of transport of copra arid husked nuts froin 
farm to mill until prices go beyond the production cost of PG.04 
per kilogram of copra; 
Marketing assistance to coconut fanners, including transport 
equipment assistance to coconut fanner orgariizatioiis and 
accredited oil mills or desiccators; 
Direct buying of copra by the National Food Authority (NFA) at a 
base price detennhed by the Philippine Coconut Authority (PCA); 
Income support on regular sales of copra and Iwsked nuts directly 
benefiting coconut fanners tluough the issuance of incentive 
coupons the value of which, as dctennined by PCA, shall be based 
on the volume delivered; and 
(5) 
Livestock and seedling dispersal through the ITA and accredited 
fanner organizations. 
(6) 
Informing, teaching, assisting and training them through the 
Department of Science and Technology, to fully utilize the coconut 
atid its by-products; 


Sec. 8. Other Funds. - The President map, by appropriate issuances arid when thc 
situation $0 warrants, provide additional funds therefor. 
Sec. 9 Separability Clause. - If any provision of this Act shall be declared 
unconstitutional or invalid, the other provisioris riot othenvjse aITectod shall remain in full 
force and effect. : 
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Sec. 10. 
Effectivity Clause. - This Act shall take effect fifteen days after 
its publication in two (2) newspapers of general circulation. 
Approved.