In a significant boost to the local tobacco industry, 2,778 farmers in Ilocos Norte have been granted production assistance totaling nearly PHP16.67 million for the 2024-2025 cropping season. Each farmer received PHP6,000 to aid their planting efforts, as confirmed by Randy Abella, the branch manager of the National Tobacco Administration (NTA) in Ilocos Norte. The distribution of funds began with an initial PHP3.4 million handed out during a ceremonial event in Batac City last week, with further distributions planned throughout the month across various tobacco-producing municipalities in the region.
The annual support from NTA, part of the Tobacco Contract Growing System project, is crucial for maintaining the quality and volume of tobacco required by both domestic and international markets. This assistance, provided in cash and material inputs, plays a vital role in helping farmers manage production costs and enhance their income, especially in the face of rising agricultural input prices.
Farmers like Zarex Galang and George Rafael from Laoag City have expressed that the government’s subsidy significantly aids in boosting their productivity. In addition to the NTA’s support, local government units (LGUs) in tobacco-growing areas also contribute by providing essential agricultural inputs such as water pumps, fertilizers, and insecticides, encouraging farmers to increase their tobacco cultivation.
These efforts are supported by the tobacco excise tax collections, which are shared among tobacco-growing provinces and municipalities under Republic Act Nos. 7171 and 8240. While the national government receives the largest portion of these taxes to fund programs like universal health care, the local share helps sustain and develop the tobacco industry, recognizing its importance to the national economy.