NTA says tobacco crop needs relief from drought
Volume VI, No. 2
March - April 2015
NTA Administrator Edgardo D. Zaragoza meets with farmers, local executives in Ilocos Sur, and representatives of buyer firms to address issues on trading, particularly those concerning pricing and grading of tobacco leaves in Candon City.
(Left) Pete Gamos of PMFTC shows sample of high-grade leaves. (Right) Mayor Ferdinand A. Banua of San Emilio, Ilocos Sur poses a question to the buyer firms during the open forum.
NTA asks buyer firms to give tobacco farmers the best price
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HE National Tobacco Administration (NTA) urged tobacco traders to be less strict in grading tobacco leaves in favor of farmers whose quality of leaves have suffered due to the drought. NTA Administrator Edgardo D. Zaragoza, during a dialogue with tobacco farmers and local executives in Candon City last April 11, said the quality of leaves being traded has low quality garnering low grades and consequently low prices of leaves in trading centers. The NTA convened the dialogue with the tobacco farmers and local executives of Ilocos Sur 2nd District, and buying firms Universal Leaf Philippines Inc. (ULPI), PMFTC Inc., and Trans-Manila Inc., to address issues particularly on allegations of low prices of tobacco in trading centers. Zaragoza belied reports that floor prices of tobacco
were not followed in the trading centers. In his answer to a local executive alleging the disregard of floor prices, Zaragoza challenged the local executive to give the names of traders who violated the rules on floor prices. “We will immediately close that trading center, if any,” he said. Tobacco is the only industrial crop in the Philippines with a floor price set by the government. Zaragoza said that floor prices are created to protect the farmers, assuring farmers of a guaranteed minimum re-
turn of 25 percent. “What the farmers are complaining now is the grade given to their tobacco leaves, but the grade however must be based on the quality of leaves, it is not the floor price,” he said. During the open forum, tobacco buyers were given the opportunity to enlighten the farmers and the local executives on grading and pricing at the trading center. Pete Gamos of PMFTC showed the farmers samples of leaves with their grades to clarify on distinction of grades. Joel Binuag, area manager of
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HE National Tobacco Administration (NTA) has urged tobacco producing provinces to use part of the tobacco excise tax funds to purchase irrigation facilities for the tobacco crop during the dry period. NTA Administrator Edgardo D. Zaragoza said the quality of Virginia tobacco crops harvested suffered due to the drought. The NTA official said local governments should prioritize the provision of shallow tube wells, open wells, small water impounding, small diversion dams and wind mill pipes as safety measures against the dry weather that has devastated Ilocos farmlands. “Include cooperative projects that will enhance better quality of products, increase productivity and guarantee the market to increase farmer’s inPls turn to page 12
ULPI, showed a sample data of tobacco deliveries from San Emilio, Ilocos Sur. He said that farmers of San Emilio, as in other towns in the district, have low price averages “because they have not sold their best tobacco yet.” The buyer firms confirmed that the quality of leaves being traded has low quality which affected the grading and pricing of leaves. The farmers and local leaders agreed with the agency and buyer firms with the initial findings that low quality of leaves is the effect of lack of irrigation water due to hot climate or long drought due to El Nino. Zaragoza added that the agency, through its extension workers assigned for each Pls turn to page 2
NTA assigns Tobacco Production and Regulation Officers (TPROs), who are experts in leaf grading, to each trading center to supervise the day-to-day operations of the trading. A PMFTC trading center in Sta. Cruz, Ilocos Sur has made the procedure clear to the farmers by putting markers in the weighing and grading area, giving them assurance that an NTA TPRO is around to assist them in the weighing, grading, and getting the best price for their tobacco leaves. (Photo: NTA Candon)
March - April 2015
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