19 - Manila Tobacco Buyers to Buy All Ilocos Tobacco

Source from:  bayanihan.org Wednesday, July 19 2006 @ 07:31 PM BST 07/20/2006

Tobacco farmers in the Ilocos region heaved a sigh of relief after cigarette manufacturers and tobacco importers said they will buy all locally produced tobacco. The promise was apparently aimed at resolving the prevailing issues related on tobacco importation as farmers are claiming that importation would affect the demand of their leaf product. Administrator Carlitos S. Encarnacion of the National Tobacco Administration (NTA) said on Wednesday that this is an indication of a brighter prospect for the country's tobacco industry in the next season. He said if this will be realized, it will fulfill Goals 1 and 2 of the 10-point agenda of President Gloria Macapagal Arroyo. The commitment of the cigarette manufactures and local tobacco importers came in the wake of a series of consultations that stemmed from the petition calling for quantitative restriction on the importation of tobacco. The petition was filed by the Philippine Association of Tobacco - Based Cooperatives (PATCO) headed by its president Carlos Cachola with the Department of Agriculture. Cachola maintained that the local tobacco leaf- producing sector would suffer most if tobacco importation will remain unchecked. "Time will come that the cigarette manufacturers and buyers will no longer buy our locally produced- tobacco or eventually, buy less local tobacco produced at prices dictated by them (the cigarette manufacturers and buyers)," Cachola said. But he was glad that cigarette manufacturers and buyers promised to buy all locally-produced tobacco leaf during their recent meeting as requested by Agriculture Secretary Domingo F. Panganiban and NTA Administrator Encarnacion. Among the tobacco industry stalwarts who signified their commitment to buy all local tobacco leaf produce next season were Chris Nelson, managing director of the Philip Morris Philippines Manufacturing Inc. (PMPMI); Harry Tan and Frank Tan of Fortune Tobacco Corporation; and Rodolfo Salanga, President of the Philippine Tobacco Institute (PTI). Encarnacion encouraged all tobacco farmers nationwide to plant and produce quality tobacco to meet the demands of the world market. "We aim for better quality and desired volume of production to satisfy local demand and to lessen tobacco importation by way of producing globally competitive tobacco," Administrator Encarnacion said "The NTA is now in the thick of preparations for the next cropping season of tobacco for calendar year 2006 -2007, as we aim to sustain our quality production strategy through Tobacco Contract Growing Scheme implemented in collaboration with the Quedan and Rural Credit Guarantee Corp. and participating tobacco buyers," Encarnacion added. Last tobacco season, about 48,407 tobacco farmers tilling an area of more or less 25,622 hectares nationwide were under the NTA's Tobacco Contract Growing System. "This coming season, we are helping all tobacco farmers even if they are not engaged in the tobacco contract growing system," he said. At present the floor prices of flue-cured Virginia tobacco are as follows: Grades AA- P51.00 per kilo; A - 49.50 per kilo; B- P47.50 per kilo; C - P45.50 per kilo; D - P40.50 per kilo; E - P38.50 per kilo; F1 - P35.50 per kilo; F2 - P32.50 per kilo and reject - P13.50 per kilo. For the Burley tobacco, the prices are: high grade - P41.00 per kilo; M1 - P33.00 per kilo; M2 - P27.00 per kilo; L1 - P21.00 per kilo; and L2 - P13.00 per kilo. Meanwhile, the floor prices for native tobacco are: high grade-P43; M-l-P34; M-2-P26.50; L-1-P20; and L-2-P11.50. According to Encarnacion, the buying prices of tobacco produced by the farmers were very much higher than the floor prices during the entire season. (PNA) -- This message has been scanned for viruses and dangerous content by Balita MailScanner, and is believed to be clean. Enditem