Ilocos farmers nix low tobacco prices ‘controlled by big traders’

By Mar T. Supnad and Freddie G. Lazaro

SANTIAGO, Ilocos Sur- Following complaints of low prices from Virginia tobacco farmers and of prices being controlled by big traders,  Gov. Ryan Singson said he would create programs to address  woes of farmers in this multi-billion industry.

This, even as prices of all grades of flue-cured Virginia tobacco leaves per kilogram are above floor price levels in the current trading season in Ilocos region, according to the National Tobacco Administration.

The NTA reported a total of  589,282.40 kilograms had been traded as of March 18 in 15 trading centers in four provinces in Region I upon its opening in February.

Singson’s action came in the wake of reports from the tobacco farmers themselves that the prices of their products for this season was actually below compared to the prices last year.

“I will set immediately a meeting with them (farmers) to determine how come that the prices of their tobacco products was lower this season than last year’s rate; and we will also try to know if the Trading centers are in cahoots with the National Tobacco Administration (NTA) to dictate a lower prices of tobacco products,”  Singson told this writer.

Several tobacco farmers here claimed that the prices of Class A A (Virginia tobacco leaves) has an average only of ranging from P68 to P72 per kilo, way below to the prices last year of P77 per kilo, contrary to what NTA officials were saying.

“Bimmaba pay ngarud ti presyo ti tabako ita kumpara idi napalabas nga tawen; isunga agpakpakaasi kami ken ni Gov. Ryan nga ikkanna koma ti attension toy nakalidliday nga kasasaad mi,” (Prices of tobacco today is lower compared to last year’s; So we are appealing to Gov. Ryan to give attention to our lamentable situation),” said the farmers.

The farmers urged NTA administrator Edgar Zaragoza to go down to the barangay to see for himself their deplorable plight and not resort to just issuing press releases about the high prices of tobacco leaves which, they said, was contrary to what is being happened.

Zaragoza said in earlier news reports prices of high grade Virginia leaf (Class AA) is now P78 up to P86 per kilo, a claim laughed off by the tobacco farmers themselves.

The farmers asked Zaragoza where or what is the name of the trading centers where they can sell their tobacco products of the high prices that he was claiming, so they said, they can repay their gargantuan debt brought about by planting tobacco.

Tobacco is a multi billion industry where the government can earn more than P30 billion a year in terms of taxes, among others.   

 Despite tens of billions of income, the government is neglecting the plight of the tobacco farmers, they said, raising suspicion that the prices of tobacco are being controlled by big traders. This, as Zaragoza said floor prices of Virginia tobacco this year increased by P6 per kilogram across all grades.

The rate of high-grade leaf (AA) is now P78, he said.

The new buying prices for other grades follow: A, P75; B, P73; C, P71; D, P66; E, P65; F1, P59; F2, P56; R, P46.

He said tobacco traders are buying tobacco leaves above the approved floor prices.

Zaragoza dismissed reports on the low prices of tobacco as he claimed the tobacco buying prices are above the average floor price.

“The agency is providing arbitration on leaf classifications and prices of tobacco, whenever issues arise during the trading. Farmers have nothing to worry about,” Zaragoza said.

According to Eleno Natura of Balaoan, La Union, farmers in one trading center in La Union had disagreement with buyer-firms as to classifications of leaves.

“Generally, however, the prices are good in most trading centers,” he said.

“There are some complaints but these are usual ones like disagreements on classifications and prices,” according to Mario Cabasal, head of the National Federation of Tobacco Farmers and Cooperatives.

He added, however, that the agency has addressed these concerns immediately during the trading.

Meanwhile, farmer Virgie Directo from Barangay Dayanki, Burgos, Ilocos Sur disclosed that buying price of her flue-cured full flavor Virginia tobacco has reached P94 per kilo last week.

NTA extension workers assigned for each trading post have reminded farmers of the trading conditions for floor prices, in accordance with memorandum of agreement between the agency, buyer firms and tobacco farmers before the start of tobacco season last year.

According to the agreement, tobacco leaves delivered to the trading centers must be free of non-tobacco related materials and delivery in straight-laid loose in open bale.

“The process of tobacco sale for Virginia will continue till June and the prices will be maintained,” Zaragoza said.

Trading for Burley tobacco has also started in Ilocos.