By Michelle Ducut
A total of 2,778 tobacco farmers in Ilocos Norte have received production aid amounting to nearly PHP16.67 million from the National Tobacco Administration (NTA) to support their planting activities for the 2024-2025 cropping season. Each farmer received PHP6,000 in assistance aimed at reducing production costs and boosting income amidst rising agricultural expenses.
Randy Abella, NTA branch manager in Ilocos Norte, confirmed on Tuesday that PHP3.4 million of the total budget has already been distributed during a ceremonial event in Batac City last week. He added that further distributions will be scheduled this month across various tobacco-producing municipalities to ensure all beneficiaries receive their allocated aid.
The annual production assistance, provided under the Tobacco Contract Growing System project, includes both cash and material inputs. It is essential for achieving the required volume and quality of tobacco for local and international markets. According to farmer-recipients like Zarex Galang and George Rafael from Laoag City, the government subsidy has significantly reduced their production costs and allowed them to increase their income. Galang expressed gratitude, saying, “The production aid is a big help for us to boost our productivity.”
In addition to the NTA’s assistance, local government units (LGUs) in tobacco-growing municipalities provide further agricultural support, including water pumps, fertilizers, and insecticides, funded by their share of tobacco excise tax collections. These interventions aim to encourage farmers to increase tobacco production.
Under Republic Act Nos. 7171 and 8240, which allocate excise tax shares to Virginia, Burley, and Native tobacco-growing provinces, LGUs are empowered to provide farm subsidies and other forms of aid. The national government also uses a significant portion of the excise tax collections to fund the universal health care program, reflecting the vital role of tobacco growers in the national economy.