It’s sunrise once again for Ilocos’ golden leaf

Inquirer Money / Top Stories
It’s sunrise once again for Ilocos’ golden leaf
By Leoncio Balbin Jr.PDI Northern Luzon BureauPhilippine Daily Inquirer
Posted date: May 24, 2008

CANDON CITY, Philippines—Thanks to the increase in prices of dried tobacco early this year, the Ilocos tobacco industry has been revived and is well on its way to good health.
“The industry is facing its sunrise again,” Estrella de Peralta, acting manager of the National Tobacco Administration (NTA) here, says. The local NTA covers the second congressional district which produces about 55 percent of the province’s tobacco harvest and about 40 percent nationwide.
De Peralta said traders bought flue-cured tobacco at prices higher than the agreed floor prices.
The industry went down on its knees in the last five cropping seasons after farmers reported losses from poor buying prices, erratic weather conditions and increasing costs of farm inputs.
It saw rays of hope after local leaders, led by Deputy Speaker Eric Singson and Gov. Deogracias Victor Savellano, supported farmers in pushing an increase in the floor prices of tobacco during last year’s tripartite meeting between tobacco farmers, cigarette manufacturers and the NTA.
The participants agreed to increase the buying price of Class AA tobacco from P51 to P61 a kilogram and of other grades by P9.50 a kg. It was the biggest increase that encouraged tobacco growers to replant and raise production.
“Had there been no substantial increase in prices, we were firm on asking our farmers not to plant tobacco anymore,” Singson says. He adds growers were bent on shifting to other crops, such as corn and vegetables, to improve their income.
Efraim Dayap, NTA-Candon supervisor, says the delivery of flue-cured tobacco to trading centers in the province was delayed this year as farmers had to plant more beyond the usual cropping schedule.
Dayap says only a few deliveries were reported in local trading centers in mid-February, which he described as unusual since trading usually peaked then.
“We had to rush in planting additional tobacco because of the good prices,” says farmer Ceasario Gapatan.
It was only on mid-March that the bulk of tobacco was sold. As expected, the flue-cured tobacco was sold high. Prices were steady and some high-grade leaves were bought at rates above the set floor prices.
Class AA tobacco leaves, pegged at P61 a kg, were bought for as much as P71 a kg. Even the lower grades were bought at higher prices.
By the time Candon celebrated its Tobacco Festival in late March, the farmers were given assurance of a good tobacco season. “They were able to pay most of their debts and loans. At least [we have] something to celebrate about,” Dayap says.
Candon is called the “tobacco capital” of the country, being the biggest producer of Virginia tobacco.
During the festival, the city government paraded a 104.6-meter rolled tobacco, which weighed more than 300 kg. The centerpiece was rolled by 10 people who took two weeks to complete the task.
By the time the festival was over, growers had set their eyes on the next cropping season, hoping that the Ilocos’ prized golden leaf would bail them out of the economic crunch.