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A dialogue answers all issues about trading and other farmers’ concerns
NTA Administrator Edgardo D. Zaragoza had wanted a dialogue to address on the spot issues that have been besetting the agency since the start of the tobacco trading season, particulary on allegations of low prices of tobacco.
“A dialogue should involve all stakeholders and matters must be raised on the table and addressed accordingly,” he said.
On May 16, the Administrator hied off to Narvacan, Ilocos Sur to preside a dialogue facilitated by NTA Candon Branch Manager Estrella De Peralta. And he got what he wanted.
The venue, Sunrise Inland Resort in Barangay Margaay, was jampacked with 437 farmers coming from 25 towns of the first and second districts of the province. With them were their farmer leaders who are all members of the National Federation of Tobacco Farmers and Cooperatives Inc. (NAFTAC).
Representatives from the buyer firms, 12 in all, came to the venue ready to answer farmer queries. Local executives and their representatives were also in attendance. Vice Governor Deogracias “DV” Savellano, in behalf of Gov. Ryan Singson, faced the farmers and joined other local leaders in the open forum.
A week before the dialogue, the provincial government of Ilocos Sur headed by Singson met with some farmers in a dialogue in the provincial capitol. Unfortunately, the various sectors of the industry were not present to facilitate resolution of issues.
This prompted the Administrator to schedule a better venue to clarify issues and allegations of low prices in trading centers. “Here, matters regarding present tobacco trading operations must be discussed in the open and resolved accordingly,” he said.
Though trading issues have been well addressed in separate dialogues with farmers and local executives in Bangued, Abra and Candon City, continuing dialogue with the farmers, and by the intervention of NTA extension workers in different trading centers in Ilocos Sur, Zaragoza would always want to have another one if only to satisfy tobacco farmers, who have been uneasy about the low grades of their tobacco in trading centers.
In his welcome address, NTA Deputy Administrator Everin F. Molina cited the importance of this kind of dialogue to bring all tobacco stakeholders together and discuss issues and concerns affecting the industry. He asked the farmers, buyers, and local leader to set aside their differences, stop blaming one another for difficulties, all for the sake of the industry and the interest of the people involved, especially the tobacco growers.
During the dialogue, tobacco buyers were given the best opportunity to enlighten the farmers and the local executives on issues besetting the industry, particularly those concerning the prices of leaves.
Quality of tobacco leaves
Other than prices of tobacco, another major issue raised by the farmers was the quality of leaves, which according to Zaragoza, have greatly affected the grading of the leaves in trading centers.
He said that there are several factors for the lower quality, such as the hot climate, or the drought during the growing period, and delay in transplanting, which may be due to time and financial constraints of the tobacco growers.
During the open forum, Jorge Struecker, leaf buying manager of PMFTC, confirmed that the quality of tobacco leaves is lower than that of last year. “Our price is the same, however, the quality coming in this year is lower than last year’s,” he said.
He added that PMFTC, after chemical analysis of the leaves, found lower percentage of nicotine in this year’s production. “So this is the main reason why the average price has been affected, the composition is lower now or it’s more on lower quality in the lower grades,” he added.
Farmer Ponciano Bagbaguen of Lidlidda, Ilocos Sur had no problems about floor prices as they were clearly posted in the trading centers, but it was the way the graders rate the tobacco leaves that he and other farmers are complaining about. Another farmer, Freddie Dasalla of Narvacan, Ilocos Sur, claimed that the graders would intentionally look for low quality leaves and this would serve as basis for the grade of all tobacco leaves in a batch of bales.
Jaime Gudito, leaf manager of PMFTC, denied such claim. The primary consideration for price has always been the quality of leaves as traded by the farmers. “There had been no intention on their part to look for low quality leaves as basis of grading for all types per batch,” he said.
Zaragoza added that the agency, through its extension workers assigned for each trading post, arbitrates on leaf classifications and prices of tobacco. Farmers have nothing to worry about, he said, giving them the assurance that should disagreement arise during the grading, and upon request, he will personally look into the cause of the problem and find ways to resolve it.
Other farmers, like Elvano Ramirez of San Emilio, were concerned about their excess production (those who exceeded their quota), fearing that they would not be able to sell all their produce to the traders.
The buyer firms reminded the farmers the cause of over production, such as under-declaration of area. They have been discouraging the farmers of such practice. They, however, promised to discuss the farmers’concern with their managers for consideration.
Zaragoza said he got the commitment of the buyer firms to purchase all tobacco leaves produced by the farmers this year, as he assured the farmers that floor prices agreed upon will be strictly followed in trading centers, even after the trading season.
He also announced that the P2 incentive for each kilogram of high grade tobacco leaf, as promised by Universal Leaf Philippines Inc. (ULPI), will be given to their farmers. He added that there will be adjustments for lower grades in consideration of the generally low quality of production.
Farmers’ Welfare
Other matters discussed were the new rules and regulations in the release and utilization of fund, as provided by Republic Act (RA) No. 10351 or the new Sin Tax Law. The law provides that part of tax collections, as provided in RA 7171 and RA 8240, is allocated to mitigate any impact on tobacco farmers and workers who may be displaced due to expected reduction in demand for tobacco products affecting local production.
“The farmers and other industry stakeholders are now given the chance to provide inputs in the preparation of the master plan for the development of the tobacco industry,” Zaragoza said.
In response to a farmer’s request for direct allocation of funds from the excise taxes, the administrator said that with the new rules and the increased share of excise tax for the local government units, he expects the LGUs to implement projects that directly benefit the farmers.
“This may be in a form of subsidy, but that would depend on the local government units or the outcome of the implementing rules and regulations for RA 7171 (or RA 8240 for Burley producing areas),” he said. He added that the subsidy may be in in the form of inputs, like fertilizer, gasoline, or farm implements.
Savellano clarified that proposing projects that directly benefit the farmers should go into a process. He said that the farmers could go to a barangay assembly and discuss their projects with their community leaders and the barangay leaders would then go and file the proposed projects with the town or city council or the provincial board.
Savellano commended the NTA for conducting the dialogue. He cited the importance of involving all the stakeholders in the discussion of issues and other concerns, and their cooperation to resolve them. After the dialogue, the farmer leaders, headed by Mario Cabasal, signed a resolution expressing support of the leadership of Administrator Zaragoza. (Neyo E. Valdez)
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