Avelino Dacanay, chairman of the Solidarity of Peasants Against Exploitation, an affiliate of Kilusang Magbubukid ng Pilipinas, said they are asking for higher tobacco prices because almost half of their produce were destroyed by rains and prices of basic commodities continue to rise.
"Prices of various commodities continue rising but tobacco prices remain very low. Because of the situation, we are fighting for the right prices for our product and consideration for the delay in the payment of our loans," Dacanay said.
He said most farmers incurred losses of up to P67,240 per hectare this year. Thus, they are seeking to raise tobaco prices to P85 per kilo for both Class AA and low-grade tobacco from P53 per kilo for Class AA and P13.50 per kilo for the low-grade variety.
The STAR learned that the farmers’ request could hardly be granted because prevailing tobacco prices were set during the tripartite conference last year. The conference that tackles tobacco prices and is attended by farmer groups and tobacco investors is held only every two years.
However, the farmers’ request for a delay in loan payments will be granted, according to Hermogenes Galvez, chief agriculturist of the National Tobacco Administration in La Union.
"It’s a standard operating procedure for traders not to force farmers to pay off their loans because they are aware of their losses," Galvez told The STAR in a telephone interview.
Galvez said local government units in the Ilocos Region has provided corn seeds to the affected tobacco farmers so they may replace their damaged tobacco plants. He said municipal and provincial governments of the affected areas are using funds from Republic Act 7171 to assist them financially.
He added that about 10 to 15 percent of the more than P325 million worth of affected tobacco plants have been recovered. He assured that there buying and selling tobacco products will not be stopped even as most of the products left in the market are low grade.