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BusinessWorld Economy

PCA seeking changes to coconut levy law

THE Philippine Coconut Authority (PCA) said it wants to overhaul how coconut levy-funded programs are implemented to minimize delays and overlapping responsibilities. At a hearing of the House of Representatives Committee on Agriculture and Food, PCA Administrator Dexter R. Buted said proposed amendments to Republic Act 11524 were arrived at after five years of implementing […]

Context & Analysis

The coconut sector remains one of the Philippines’ most structurally important but persistently underperforming agricultural industries. Republic Act 11524 was passed to untangle decades of levy fund controversies and redirect resources toward farmer livelihood, plantation rehabilitation, and downstream processing. Five years into implementation, the Philippine Coconut Authority’s push for legislative tweaks signals that good intent alone has not resolved operational friction. When fund disbursement cycles stall or agency mandates blur, the ripple effects reach far beyond individual farmers.

For agri-processors, food manufacturers, and renewable energy developers, predictable rural infrastructure and reliable raw material supply chains are prerequisites for scaling. Delays in levy-funded projects mean slower road improvements in coconut-growing provinces, postponed training for value-adding cooperatives, and weakened confidence among investors evaluating coconut oil, desiccated coconut, or biofuel ventures. The sector’s competitiveness hinges not just on global commodity prices, but on how efficiently domestic capital moves from policy to plantation to factory gate.

This proposed amendment also sits within a wider pattern of regulatory recalibration across Philippine agriculture. Congress and implementing agencies are increasingly focused on closing the gap between legislative design and ground-level execution. The challenge here is typical of multi-stakeholder development programs: aligning technical oversight with local government unit procurement timelines, clarifying reporting requirements, and preventing duplication with other agricultural agencies. Streamlining these processes could reduce compliance costs for private partners and accelerate project rollout.

Investors and business operators should monitor whether the revised framework introduces clearer disbursement milestones, stronger accountability mechanisms, or simplified coordination protocols. The Senate’s review of the House committee’s recommendations will be the next procedural checkpoint. If the amendments successfully remove bureaucratic bottlenecks, the coconut value chain could see faster infrastructure deployment and more reliable supplier networks. If they merely reshuffle existing procedures without addressing root causes, the sector may remain locked in the same implementation lag that has characterized agricultural development for years.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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