Cigarette firms allot P3 B in trading funds for next year

Over P3 billion in trading fund is expected to roll in the northern provinces located in Regions 1, 2, and CAR during the next buying season for tobacco.

Administrator Carlitos Encarnacion of the National Tobacco Administration (NTA) said tobacco companies will pump in the money beginning February next year when the leaf trading season begins.

The investment is expected to boost tobacco production by 20 to 25 percent compared to the output this year.

Encarnacion said wholesale tobacco dealers, leaf trading centers and cigarette manufacturers have expressed their commitment to expand their business and contribute to the economy in the North pursuant to the programs and thrusts of Agriculture Secretary Arthur Yap.

The NTA chief expressed high hopes that with the huge amount of trading money in circulation, the capital inflow will perk up the economy in the three regions at a time when the world economy is slowing down and many countries are facing the grim specter of a deep financial crisis.

Next year’s projected output of 56 million kilos will also spell an increase in the volume of cigarettes manufactured, which in turn would translate into higher revenues entering the national government’s coffer in terms of excise tax charges and other duties levied on cigarette manufacturers, Encarnacion said.

He said that proceeds from cigarette taxes could reach P30 billion next year.

“This is a big amount and will go a long way in funding the government’s various basic services in the form of infrastructure, health, education, social welfare, and other programs to benefit our 80-million plus population,” he said.

This developed as the various provincial branch offices of NTA submitted initial reports on additional farm areas that have been enlisted for tobacco-growing. A total of 6,239 hectares is targetted as expansion areas for the incoming crop season which would raise the production area to 31,264 ha., 6, 329 ha., up from last year’s 25,318 ha.  

Based on the initial reports on expansion areas, La Union has so far enlisted 208 ha., Isabela/Nueva Vizcaya 150 ha, Candon, Ilocos Sur 167 ha, Vigan Ilocos Sur 914 ha, Ilocos Norte 170 ha, Pangasinan 6,306 ha, Abra 227 ha, and Cagayan 81 ha.