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DA-NTA assures continuous support for the tobacco farmers

(Keynote Speech of DA Secretary Proceso J. Alcala delivered by Assistant Secretary for Administration Allan D. Umali, NTA 26th Anniversary Julay 24, 2013)

Congratulations to the National Tobacco Administration on the celebration of your 26th Anniversary. This is a testament to the agency's commitment to tobacco farmers. As we celebrate the NTA's accomplishments, let us also take this opportunity to rejuvenate our drive to help the industry to, not only survive, but also flourish.

Hindi po biro ang bilang ng mga taong kasali at umaasa sa tobacco industry. Sa ngayon umaabot sa 43,960 ang magsasaka ng tobacco, at mayroong higit kumulang 300,000 na kasali mula sa kanilang mga pamilya at tinatayang 1.56 milyon pang industry workers at dependents. Kaya, humigit kumulang na 1.93 milyong Pilipino ang umaasa dito (Source: NTA Website).

Ito ay sapat na dahilan para masabi natin na "relevant" ang industriya. Dagdag pa dito ang mahahalagang kontribusyon nito sa ekonomiya:

- halos PhP30-B ang nakukubra sa excise taxes kada taon, at

- humigit kumulang PhP40-B naman sa ibang fees at duties.

Ito siyempre ay nakakatulong sa pamahalaan na pondohan ang social services, kasama na ang para sa edukasyon, kalusugan at pati na sa infrastraktura.

Addressing sin tax

Ang malaking tanong po ay kung paano magpapatuloy ang industriya sa kabila ng pagpapatupad ng sin tax.

• Salungat sa layunin ng batas, hindi po nabawasan ang paninigarilyo. Sa halip, mas pinili ng mga smokers na lumipat sa mas murang brands.

• Kailangang siguraduhin na ang quality ng tobacco ay pasado sa hinihingi ng export market. Bukod sa makakakuha ng interes sa labas ng bansa, pwede ring madagdagan ang share nito sa paggawa ng local cigarettes.

Note that the local component constitutes only more than 20% of domestic manufacturing requirement. With quality enhancement, a big portion of imported tobacco for blending may be substituted with the local production from our farmers.

Continuing support

With the sin tax law in place, we assure our farmers of continuous support.

• The law provides for ample support for the farmers, through the beneficiary Local Government Units (LGUs) of Republic Act No. 7171 and 8240 (up to PhP15 billion, should income targets be reached as projected).

The guidelines for the distribution of the shares to the different beneficiary LGUs have not been out yet. Under the law, the DBM will formulate the guidelines in consultation with the Department of Agriculture.

We will still see if we can insert the provision in the guidelines that a portion of the share will be given directly to the farmers, in accordance with the spirit of the law.

If not, we will have to convince our friends from the beneficiary Local Government Units to persuade all LGUs to set aside a certain percentage of their share for assistance to farmers – for quality production and for alternative livelihood.

• In addition, the NTA provides production assistance to farmers on market-driven quality tobacco production and on the Integrated Farming and Other Income Generating Activities Project (IFOIGAP).

• Irrigation Support system – Kabilang na ang Small Diversion Dam at Small Water Impounding Projects. Ito ay para makapagtanim ng ibang crops maliban sa tobacco. Kabilang sa maaaring itanim na alternative crops ang bawang, mani at mungbean.

• Paglalagay ng karagdagang post-harvest facilities – Flue-curing Fluecuring barns sa 50 percent ng Virginia tobacco farmers na kinakailangan ang bagong barns alinsunod sa recommended structure at design.

• Pagpapalakas ng R&D – Ito ay para mapagbuti ang teknolohiya, farmers' training at quality assurance services.

Gusto nating bigyang-diin na handa ang pamahalaan na tulungan ang NTA at ang industriya – mula sa mga magsasaka hanggang sa traders. Pero maging consumers ay kasali, dahil gusto nating siguraduhin ang kalidad ng tobacco products. Kaya sa inyong ika-27 taon, inaasahan natin ang patuloy na paglago ng industriya at ang pagtupad ng NTA sa inyong mandate at pag-meet ng inyong mga targets. Maraming salamat!