BAGUIO CITY, Philippines – Tobacco demand in the Philippines is growing despite the worldwide campaign against it.
This has prompted National Tobacco Administration head Edgardo Zaragoza to declare that the tobacco industry is not a “sunset industry” even with the country’s commitment to the World Health Organization Framework Convention on Tobacco Control (WHO-FCTC) that provides for a gradual elimination of tobacco.
The NTA which celebrated its 24th anniversary last July 26 said despite regulations in the US and Europe, it appears that the demand for tobacco continues to grow.
Production has been growing at an average of 20 percent in value over the past eight years.
From an estimated 74 million kilos in the 2010 cropping season, production has increased to about 77 million kilosin 2011, and is expected to further increase to 80 million kilos in 2012, NTA figures show.
Zaragoza said that for 2010-2011 the country produced 43 million kilos of Virginia tobacco worth P3.096 billion; 20 million kilos of burley worth P1.36 billion; and 14 million kilos of native tobacco worth P588 million. This comes up to a total of 77 million kilos worth P5.044 billion.
According to Zaragoza, tobacco farmers have contributed over P34 billion in taxes to the government, with tobacco traders and cigarette manufacturers contributing about four percent to revenues being collected by the Bureau of Internal Revenue.
Zaragoza noted that there is a worldwide glut of tobacco and tobacco products, but the demand for Philippine tobacco continues to increase because of the high quality it offers.
At least 45 percent of the Philippine tobacco production is exported.
The world’s largest cigarette manufacturer, Phillip Morris, and the world’s largest tobacco dealer, Universal Leaf, believe the country’s tobacco market will continue to be viable in the next five years, Zaragoza said.