MORE NEWS, ILOCOS SUR

Ilocos tobacco price hike pressed
BY FREDDIE G. LAZARO

VIGAN CITY — Tobacco farmers asked an increase of P20.50 to P22.50 in the floor prices of all grades of flue-cured Virginia tobacco leaves during the tobacco summit held last week at provincial capitol here.

The tobacco summit discussed possible solutions to problems affecting the Virginia tobacco industry, particularly on competitiveness and financial viability of the industry.

The participants in the summit were led by House Deputy Speaker Eric D. Singson, Ilocos Sur Gov. Deogracias Victor "DV" B. Savellano, Vice Gov. Jeremias Singson, mayors, leaders of tobacco farmers in the 32 towns and two cities in the province, other tobacco stakeholders, and the two branch managers of the National Tobacco Administration.

Pablo Tindoc, a leader of tobacco farmers in Burgos, Ilocos Sur, said the proposed increases in floor prices will be presented during the tripartite
conference which is expected to be held this month or early next month.

The tripartite conference, held every two years, is organized by the NTA and is attended by the tobacco buyers, cigarette manufacturers, tobacco farmers, and other tobacco stakeholders.

The proposed floor prices per kilo of Virginia tobacco as agreed by the farmers at the summit were as follows:

Grades AA – P73.50; A – P72; B – P70; C – P68; D – P63; E – P62; F1 – P56; F2 – P55; and R – P34.

During the last tripartite conference held on Aug. 25, 2005, the floor prices of Virginia tobacco are the following:

Grades AA – P51; A – P49.50; B – P47.50; C – P45.50; D – P40.50; E – P39.50; F1 – P35.50; F2 – P32.50; and R – P13.50.

With the proposed hikes in tobacco floor prices, tobacco with lower grades have higher increases.

Reject has an increase of 151.8 percent or P20.50.

The increases in the other grades are as follows: 69 percent or P22.50 increase for F2; 57.74 percent or P20.50 for F1; 56 percent or P22.50 for E; 55 percent or P22.50 for D; 49 percent or P22.50 for C; 47 percent or P22.50 increase for B; 45 percent or P22.50 for A; and 44 percent or P22.50 increase for AA.

The tobacco farmers who attended the summit were unanimously in saying that the proposed increases in floor prices would give them reasonable profit.

They said their expenses for production, noting this has reached P100,000 per hectare.