Tobacco Losses Seen to Reach P1B Mark

Source from:  news.inq7.net May 07, 2006  05/08/2006

TObacco farmers here harvested 20 million kilograms during the February to March harvest season but the production was below the usual 50 million kg of Virginia tobacco that they harvest in a year. Citing latest National Tobacco Administration figures, Ilocos Sur Rep. Eric Singson said this production loss could reach P1 billion. A kilogram of semi-processed Virginia tobacco sells for P40. "The extent of the loss could even affect the [peso-dollar] exchange rate. The cigarette manufacturing companies would be importing a lot," Singson said. Cigarette manufacturers like Fortune Tobacco and Philip Morris Philippines International would have to import from China, the United States and South Africa as a result of the drop in local production of Virginia tobacco, he said. The US Department of Agriculture reported that Filipinos smoke about 75 billion cigarette sticks a year, which is 3 percent of the total cigarette consumption in East Asia and Pacific. said the usual cost of imported tobacco is about $5 (P257.3) to $6 (P308.76) a kg. Strong rains in late January when tobacco plants were already maturing caused the plants to wilt. Initial reports from the NTA in February set the loss at P500 million. The Ilocos region accounts for 80 percent of the total Virginia tobacco production in the country, the NTA said. Singson is asking the government to help the affected tobacco farmers in the Ilocos and Cagayan Valley. He said about 500,000 farmers are involved in tobacco production. Tobacco is planted once a year and the usual harvest starts in February. During the Tobacco Festival here last month, Singson facilitated a P50-million loan agreement with the Land Bank of the Philippines for tobacco farmers in the second district of Ilocos Sur. He said the money would be used to buy seeds for the next planting season. Singson said the loan could be used also for dependents of tobacco-producing families who wanted to go abroad to seek employment. Frank Cimatu, PDI Northern Luzon Bureau. Enditem