La Nina to Reduce Tobacco Production This Year -- NTA

Source from:  Inter Aksyon 03/09/2012

The National Tobacco Administration (NTA) expects a decline in the production of tobacco for this year due to the effect of the La Nina phenomenon. NTA Administrator Edgardo Zaragoza said on Thursday tobacco production for the year may drop by three percent or an estimated 78 million metric tons (MT) as compared to the 80 million MT total produce in 2011. Zaragoza said the expected decline is due to the effect of the La Nina phenomenon that hit tobacco-producing provinces in Northern Luzon. Despite this, he said prices of tobacco will remain stable as its price in the world market remains high. Tobacco has always been of great importance to the economy of the Philippines. Even as health authorities are campaigning hard against smoking, the demand for tobacco has been on the rise. "We cannot deny that the Philippines is a signatory to the World Health Organization Framework Convention on Tobacco Control (WHO-FCTC) 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 there is still growing demand for tobacco," said Zaragoza. He said tobacco farmers have contributed more than P34 billion in taxes to the government, with traders and cigarette manufacturers contributing about four percent of revenues collected by the Bureau of Internal Revenue (BIR). Zaragoza attributed the growth to higher demand by buyers who prefer high quality Philippine tobacco, with more than half of the total volume being exported directly, with some of the remainder also being sold overseas. In 2011, the Philippines was able to export 36 million MT of tobacco, which was equivalent to 35 percent of its total production. Enditem