Tobacco Production Seen at 80M Kilos

Source from:  Business Mirror 07/28/2011

DESPITE the ongoing global campaign against smoking and the advocacy against tobacco products, the country's tobacco-leaf production is expected to produce as much as 80 million kilograms for crop year 2011-12. The National Tobacco Administration (NTA), an attached agency of the Department of Agriculture (DA), disclosed that raw tobacco-leaf output will reach 77 million kilos for crop year 2010-11 valued at P5 billion. This volume is 4.4 percent higher than the 73.75 million kilos produced in crop year 2009-10 valued at P4.84 billion. "We cannot deny that the Philippines is a signatory to the World Health Organization Framework Convention on Tobacco Control that provides for a gradual elimination of tobacco because of health concerns. It is ironic because despite regulations in the US and Europe, it appears that there is still growing demand for tobacco," NTA administrator Edgardo D. Zaragoza said during the 24th anniversary of the agency on Tuesday night. Zaragoza revealed that the value of tobacco production has continuously increased by an average of 20 percent in the past eight years. A table provided by the NTA's regulation department on the estimated tobacco production for crop year 2010-11 showed that the country has produced 43 million kilos of Virginia tobacco, worth P3.096 billion; 20 million kilos of burley worth P1.36 billion; and 14 million kilos of native tobacco worth P588 million. The volume of tobacco produced in crop year 2010 totaled 73.756 million kilograms, which showed a 126 percent increase compared with the 2009 volume of 58.571 million kilograms. In terms of value, this is equivalent to a 120 percent increase to P4.85 billion in 2010 from P4.02 billion in 2009. Of these figures, Zaragoza said tobacco farmers have contributed over P34 billion in taxes to the government, with tobacco traders and cigarette manufacturers contributing about 4 percent to revenues being collected by the Bureau of Internal Revenue. While there is a worldwide glut for tobacco and tobacco products, the NTA chief noted that the demand for Philippine tobacco continues to increase because of its high quality. He said over 50 percent of the country's tobacco production is exported directly, with most of the remainder still being exported by traders individually. The world's largest cigarette manufacturer, Philip Morris, and the world's largest tobacco dealer, Universal Leaf, believe the country's tobacco market will continue to be viable in the next five years, Zaragoza said. Meanwhile, lawyer Raul Academia of Philip Morris Philippines Inc. pointed out that one of the most pressing issues confronting the industry is the plan to increase excise taxes on cigarettes to P30 per pack from the current average of P5 to P6 per pack. He also questioned local government regulations designating open spaces as "no-smoking areas" saying it is against the law. He said the designation of absolutely smoke-free areas should also be coupled with the designation of smoking areas. Enditem