MORE NEWS, ILOCOS SUR

Ilocos Sur farmers set to produce more tobacco with P10 price hike
BY FREDDIE G. LAZARO

VIGAN CITY — Ilocos Sur Gov. Deogracias Victor "DV" B. Savellano said here the increase in the floor prices of all grades of the flue-cured Virginia tobacco would encourage more farmers to produce the crop.

The increase, ranging from P9.50 to P10 per kilo, was agreed during the recent tripartite conference held last Dec. 10 in the central office of the National Tobacco Administration in Quezon City. Savellano, House Deputy Speaker for Northern Luzon Eric D. Singson, (2nd district, Ilocos Sur), tobacco farmer leaders, traders, cigarette manufacturers, and tobacco stakeholders attended the conference.

NTA Administrator Carlitos S. Encarnacion organized and hosted the conference. "The result of the latest tripartite conference was part of a commitment of the provincial government of Ilocos Sur, Congressman Singson, the traders, cigarette manufacturers, tobacco stakeholders and the NTA to further strengthen our tobacco industry in the Ilocos," Savellano said.

With the increase, the new floor prices per kilo of flue-cured Virginia tobacco are the following: Grades AA – P61.00; A – P59.00 ; B – P57.00; C – P55.00; D – P50.00; E – P49.00; F1 – P45.00; F2 – P42.00; and R – P23.00. It was the first time in the history of the tobacco tripartite conference that an increase of P10 per kilo was approved. The usual increase in the tobacco floor prices since the 2001 tripartite conference ranged from P10 to P3.50.

The floor prices of all grades of flucured tobacco approved during the tripartite conference on Aug. 25, 2005 were as follows: Grades AA – P51.00; 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. "This is a great development in our effort to strengthen our tobacco industry, and the tobacco farmers are now encouraged to produce more tobacco," Savellano said.

"The increase in the floor prices of Virginia tobacco will prompt the farmers to earn more despite the continuous increase in the cost of farm inputs," he said. Savellano noted that the Virginia tobacco is the main cash crop in Ilocos Sur. Virginia tobacco is also a steady source of funds that are distributed to the tobacco-producing provinces under Republic Act No. 7171, otherwise known as tobacco excise tax law, authored by former Rep. Luis "Chavit" Singson.

RA 7171 mandates the allocation of millions of pesos from the tobacco excise tax as shares of the tobacco-producing provinces, which include Ilocos Norte, Ilocos Sur, Abra and La Union. The shares of the provinces are being used for infrastructure and livelihood projects benefiting tobacco farmers In a bid to increase the demand, House Deputy Speaker Singson filed House Bill No. 2474 requiring tobacco manufacturers to use a minimum of 75 percent of locally produced tobacco in the manufacture of cigarettes in the country.