Ilocos Sur governor pushes annual tobacco summit

VIGAN CITY— Ilocos Sur Gov. Deogracias Victor “DV” Savellano has proposed the holding of the tripartite tobacco conference among tobacco traders and cigarette manufacturers, farmers, and the government on an annual basis instead of having it every two years as is the traditional practice.

In a letter to Administrator Carlitos Encarnacion of the National Tobacco Administration (NTA), Savellano cited the periodic increases in the prices of farm inputs especially fertilizer to justify his proposal.

The proposal was endorsed by the provincial board headed by Vice Gov. Jerry Singson through a Sangguniang Panlalawigan resolution in the proposal.

The tripartite conference, held at the NTA central office, has been an avenue for the attending parties to present their respective positions on the pricing of tobacco.  

At the end of the confab, the floor prices for the various types and grades of tobacco leaves are agreed upon and promulgated. Such floor prices govern trading for two seasons until the next conference is held to set new floor prices. 

In determining the minimum trading price levels, the costs of fertilizer, insecticide, fuel, labor and other items are considered.

But during actual trading, it has been observed that the buying prices of tobacco are higher than the designated floor prices especially when the leaves are of top quality.

In seeking a yearly pricing conference, Savellano reasoned out that fertilizer prices have been increasing every year saying that one time the price jumped to more than double its previous year’s price.

“The designated floor prices would no longer be relevant for the second season if this trend continues,” he said.   — Teddy Molina