PCA Seeks Expanded Powers to Regulate Copra Prices and Protect Coconut Farmers

 

The Philippine Coconut Authority is pursuing broader regulatory authority as it seeks to strengthen safeguards for the country's coconut industry, particularly against the persistent volatility of copra prices driven by global market conditions.

A proposed amendment to the agency's charter would empower the PCA to intervene in copra pricing by establishing a minimum purchase price for farmers. The initiative is designed to cushion producers from sudden market downturns while taking into account the concerns of coconut processors and manufacturers.

PCA Head Executive Assistant Joseph Cezar Deligero explained that the agency currently lacks the legal mandate to directly influence copra prices, leaving local producers vulnerable to international price movements. Since roughly 80 percent of the Philippines' coconut production is exported, fluctuations in overseas demand and commodity prices quickly ripple through the domestic market.

Granting the PCA pricing authority could create a protective mechanism similar to a safety net. Rather than allowing farmers to absorb the full impact of global price declines, a regulated floor price would help preserve a minimum level of income during periods of market instability while maintaining dialogue with industry stakeholders.

To move the proposal forward, PCA officials have begun discussions with members of Congress and the Senate to secure legislative support for amending the agency's charter. The measure would require the passage of a new law before the PCA could formally exercise regulatory powers over copra pricing.

The agency is simultaneously conducting an extensive review of its existing mandate while consulting regional offices, coconut farmers, processors, and coconut oil manufacturers. These consultations aim to identify the factors influencing copra prices and develop a balanced framework that protects producers without disrupting the industry's competitiveness.

Beyond regulatory reforms, the PCA continues to assist coconut farmers through partnerships with financial institutions that facilitate access to loans. The agency considers financial support an important complement to pricing reforms, helping farmers sustain operations during periods of weak market performance.

Recent market conditions have highlighted the industry's vulnerability. Copra and coconut oil prices have softened due to weaker global demand, export disruptions, and increased production, all of which have placed downward pressure on farm incomes. The effects became more pronounced following the oil market crisis, which significantly reduced copra prices compared to previous levels.

According to the latest PCA data, the average local farmgate price of copra stands at P44.52 per kilogram, while the average millgate price is P52.54 per kilogram.