Farmers seek release of P300-M tobacco fund

NARVACAN, Ilocos Sur — Tobacco farmers appealed yesterday to President Arroyo to order the release of some P300 million in tobacco funds intended for the joint operation of a food processing plant that they said will help them ease their plight after continuous rains devastated tobacco farmlands recently.

The farmers’ appeal was aired by Carlos Cachola, president of the Philippine Association of Tobacco-Based Cooperatives (PATCO), who said rains destroyed crops that are soon to be harvested.

The National Tobacco Administration (NTA) said the damage amounted to almost P540 million representing 35 percent of tobacco plants mostly in the northern provinces.

Tobacco farms in Region 2 were the worst hit, with 95 percent of tobacco plants collapsing in Cagayan and 90 percent in Isabela.

In peso value, farmers in the second district of Ilocos Sur suffered most with P143,819,406 worth of tobacco plants destroyed. Cagayan farmers registered a loss of P134,487,000.

The P300-million fund represents the share of NTA from the tobacco excise tax collections of the government. The agency’s fund entitlement is reportedly mandated by RA 4155.

The NTA and PATCO have recently entered into a memorandum of agreement with Ilocos Sur Governor Luis "Chavit" Singson for the operation of the Multiline Food Processing Plant. The plant is owned by the provincial government.

Singson, Agriculture Secretary Domingo Panganiban,Encarnacion and Cachola signed the agreement.

Under the agreement, Singson turned over the management and operation of Multiline to NTA with PATCO farmers as the producer-suppliers of the raw materials that the plant needs.

Before the rains struck, the farmers had looked forward to a chance to increase their income with their maximized production of vegetables, bananas, mangoes, tomatoes as well as hogs and chicken that they will supply Multiline.

" I appeal to our beloved President Arroyo to release the P300-million now, especially at this critical time that we need help badly," Cachola told newsmen.

"We are in a state of despair considering that we raised our tobacco on borrowed capital," he asserted. "Our only chance to get up is through the Multiline project," he added.

The amount would largely be utilized for production assistance to the farmers and for the procurement by the NTA-operated Multiline of their production.

Encarnacion said it would be too late now if the farmers go back to their farms to replant tobacco. "It’s rainy season by June when their crop is ready for harvest, patay na naman ang tabako," he said, adding that it takes four months to raise the crop.

"The only chance for the farmers to recover from this disaster is for the immediate start of operations of Multiline," he asserted.

He joined the leaf farmers in their appeal for the release of NTA’s P300-million share by the Department of Budget and Management.

He said dislocated farmers will go into poultry and swine production as well as raise vegetables. "NTA will give priority attention and assistance to those whose tobacco farms were destroyed," he said.

The NTA chief said Multiline’s food production will help soften the negative effect of the 12-percent EVAT on food prices.

He said Multiline can supply 14 percent of Metro Manila’s vegetable requirements.

Panganiban had announced that the Agricultural Marketing and Assistance Service (AMAS), an agency of the DA, will take charge of the marketing of Multiline’s production of sausages, canned meat products, banana and mango chips, and tomato paste.

He showed excitement over the project saying that with Multiline products penetrating Metro Manila markets, the prices of competing products will be forced to go down in order to stay in the competition.

AMAS will also ship fresh vegetables to Metro Manila markets from the production of the Ilocos farmers.

Singson maintained that the stabilization of prices of food products was foremost in his mind when he built the food processing plant.

"That’s why I had resisted past offers of private food processors to lease Multiline because I know they will sell their products at high prices and the public will suffer," he said.

"Aside from that, they would buy the farmers’ produce which they will turn into processed food at low prices," he added.

In turning over Multiline to NTA, he said he trusted the capabilities and dedication of the Agriculture department and NTA.

Also hit by the disastrous rains was La Union where 36 percent of the crop valued at P94.3 million was destroyed. Others crop loss were Abra at P33.6 million, Ilocos Norte P26 million, Vigan area in Ilocos Sur P30.2 million, and Pangasinan P30.4 million.