DESPITE the campaign against smoking, tobacco farmers are expected to earn as much as P5.05 billion for the projected 77 million kilograms of leaves they will produce this year.
Edgardo D. Zaragoza, administrator of the National Tobacco Administration (NTA), said the projected production for 2011 is the most “conservative” estimate of the agency attached under the Department of Agriculture (DA).
The projected tobacco production for 2011 is 4.3 percent higher than the 73.77 million kilograms valued at P4.85 billion produced by farmers in 2010.
“We continue to see a favorable growth of the industry despite the antitobacco campaign right now. In terms of production, we feel that [the industry] will continue to grow in view of the strong demand [for tobacco],” Zaragoza told reporters in a briefing in Quezon City on Tuesday.
For this year, tobacco produced will be harvested from 37,000 hectares of farmlands mostly in Northern Luzon. Last year the hectarage planted to tobacco reached 33,000 hectares.
“Dumami ang mga farmers na gustong magtanim dahil maganda pa rin ang income. Wala namang magandang alternatives for farmers. Also several local government units are very keen and interested to take part in production,” said Zaragoza.
The NTA noted that laws such as Republic Acts (RA) 7171 and 8240 mandate the provision of support for the tobacco industry. RA 8240, for one, authorized the setting aside of 15 percent of the excise tax on tobacco products to be allocated and divided among provinces producing burley and native tobacco. Also, 15 percent of excise taxes imposed on Virginia-type cigarettes will also be allocated to provinces producing the tobacco grade.
When asked about the proposed amendment to the existing excise-tax collection scheme, Zaragoza said he is more partial to the retention of the four-tiered scheme. Implementing a two-tiered or one-tiered scheme, he said, will make low-class cigarettes more expensive and beyond the reach of poor consumers.
The Philippines exports tobacco leaves to the United States, Belgium, South Africa, Korea and Malaysia, and manufactured cigarettes to Thailand, Korea, Singapore, Malaysia and Vietnam.
The country also imports high-grade tobacco from Turkey, China, Pakistan, India and the United States and manufactured cigarettes from France, Singapore, Hong Kong, Vietnam and China.
From January to April this year, the Philippines imported 19.85 million kilos, valued at $54.24 million. Cigarette imports reached more than 600,000 kilos, valued at $4.86 million.
