Tobacco growers in Ilocos Norte have started planting for the 2024-2025 cropping season with a production aid of PHP6,000 for each farmer.
Randy Abella, branch manager of the National Tobacco Administration (NTA) in Ilocos Norte, confirmed this Tuesday, saying a total of 2,778 farmers are expected to benefit from the production grant amounting to nearly PHP16.67 million.
“So far, we have distributed PHP3.4 million during the ceremonial distribution last week. Another schedule will be set [within this month] from the different tobacco-producing municipalities until we complete the distribution of the allotted budget for Ilocos Norte,” he said.
The initial funding was released in Batac City.
Every year, NTA distributes production assistance to tobacco growers under the Tobacco Contract Growing System project.
The production assistance, given in the form of cash and material inputs, is essential in producing the required volume and quality of tobacco needed by both local and foreign markets.
According to farmer-recipients Zarex Galang and George Rafael from Laoag City, the government subsidy has helped them reduce production cost and increased their income amid the soaring prices of agricultural inputs.
“The production aid is a big help for us to boost our productivity,” Galang said in an interview Tuesday.
Aside from the production aid from NTA, tobacco-growing cities and municipalities also distribute agricultural inputs such as water pumps with accessories, fertilizers, and insecticides to farmers to encourage them to plant more tobacco.
Through their share from tobacco excise tax collections, local government units (LGUs) here continue to provide farm subsidy and other interventions in recognition of the tobacco growers contribution to the national economy.
Under Republic Act Nos. 7171 (for Virginia) and 8240 (for Burley and Native), tobacco-growing provinces and municipalities collect their share from tobacco excise tax collections based on the volume of leaves produced by local growers.
The national government gets the biggest share from the excise tax collection to fund its universal health care program. (PNA)
