On 04 October 2004, then President Gloria Macapagal-Arroyo, signed and approved Executive Order No. 366, entitled “Directing a Strategic Review of the Operations and Organizations of the Executive Branch and Providing Options and Incentives for Government Employees Who May Be Affected by the Rationalization of the Functions and Agencies of the Executive Branch” to rationalize Philippine Bureaucracy.

The Department of Budget and Management (DBM) approved on 29 May 2013, the Rationalization Plan of the two (2) attached agencies of the Department of Agriculture (DA), the Fiber Industry Development Authority (FIDA) and the Cotton Development Administration (CODA). The FIDA that was created by EO 709 dated July 27, 1981 was mandated to promote the growth and development of the Philippine natural fiber, except cotton. On the other hand, the CODA that was created under RA 8486 signed on February 11, 1998 was mandated to undertake initiative that will spur the growth of the local cotton industry.

The Philippine Fiber Industry Development Authority (PhilFIDA) is the result of the consolidation of FIDA and CODA which is mandated to promote the growth and development of the natural fiber industry through research and development; production support; extension support, education and training services; fiber processing and utilization; and standards implementation and trade regulation.