NTA Sees 25 Percent Expansion in Tobacco Hectarage

Source from:  tobaccojournal.com 19 Oct 2008 10/24/2008

Cigarette manufacturers, wholesale tobacco dealers and leaf trading centres will expand their exposure by a fourth in terms of financing and farm area coverage. Amid the global financial turmoil, the tobacco industry is one of a few remaining bright spots in the country's economy. Industry stakeholders are so bullish about the prospects of tobacco that they are pouring more capital to finance a 25-per-cent expansion in tobacco hectarage. Administrator Carlitos Encarnacion of the National Tobacco Administration (NTA) said the expansion will greatly boost the income and purchasing power of the tobacco farmers mainly in Northern Luzon who depend on the tobacco industry for livelihood. The NTA chief is confident that with more farms engaged in tobacco growing backed up by the required production outlay made available by the private sector, the Northern Luzon farmers are bound to produce more and are therefore assured of larger income next season. For the 2008-2009 season, the total financial requirement for tobacco production will reach PHP 1.27 billion, Encarnacion said. The tobacco companies will provide the larger part of the needed production assistance with the balance to be shouldered by the government through the NTA and the farmers themselves. The amount will largely defray the costs of production inputs going to the farmers which are in the form of fertilizer, insecticides, seedlings and others. Farm coverage is expected to expand to 31,647 hectares from 25,318 ha last season. NTA records show that a total of PHP 40,000 per hectare is spent on inputs. At an average buying price of PHP 60 a kilo and with a production of 1,800 kilos, it is estimated that tobacco farmers will earn PHP 60,000 in net income per hectare per season. Encarnacion projected that total production will reach 56 million kilos worth an estimated PHP 3.42 billion. Two million Filipinos depend on the tobacco industry including those working in cigarette factories. Enditem