Mr Morales, Bolivia`s first indigenous president, has long supported the legalisation of coca leaf chewing globally, urging the UN to declare it legal.
The government hopes to boost the export of coca leaf products, according to the La Razon newspaper.
Mr Morales is himself a former coca farmer and dismissed warnings that the move would fuel the illegal drug trade.
A total of 22,000 hectares (55,000 acres) can be planted with coca nationwide, compared with 12,000 hectares under previous legislation.
Image copyright Reuters Image caption Mr Morales has long supported the global legalisation of coca leaf chewingBolivian President Evo Morales has signed into law a controversial bill that nearly doubles the area that can be legally planted with coca crops.
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