Almost 17k farmers get P100M tobacco production grants

BAGUIO CITY (January 3, 2025)— Tobacco industry regulatory body— National Tobacco Administration (NTA) said it has handed out P100 million tobacco production grants to 16,666 qualified farmers for the cropping season 2024 – 2025.

NTA Administrator and Chief Executive Officer (CEO) Belinda S. Sanchez launching the tobacco production grant rollout in Mindanao with Deputy Administrator for Operations (DAOP) Nestor C. Casela and NTA – Ilocos Norte Manager Randy I. Abella Gitagum and Laguindingan, both in Misamis Oriental province in December said, 1,666 tobacco farmers were identified as recipients of the P6,000.00 grant from the provinces of Misamis Oriental, Agusan Del Sur, Zamboanga Sibugay, North Cotabato and Maguindano Del Sur, and Negros Oriental in Visayas. 

These provinces are notable producers of high-quality native-type tobacco in the southern part of the country.

The massive distribution of the cash grant to qualified tobacco farmers in all the NTA branch offices in the Luzon area followed after the Mindanao launch. In Abra– 992 tobacco farmers; Batac (Ilocos Norte)– 2,778; Cagayan– 700; Candon (Ilocos Sur)– 2,573; Isabela– 2,925; La Union– 1,667; Pangasinan – 1,765; and Vigan (Ilocos Sur)– 1,600.

Sanchez said recipients must be NTA-registered tobacco farmers personally tilling a tobacco farm for cropping years 2023–2024 and 2024–2025 with one hectare and below for the farmers under NTA's Tobacco Contract Growing System (TCGS) program or non-TCGS farmers growing tobacco in a .5 hectare and below land area.

“The cash subsidy will bring relief for our smallholder – tobacco farmers from the high prices of farm inputs,” tobacco farmer leader Sonny Salvan, president of the Federation of Gitagum Farmers Association in Misamis Oriental said. 

Salvan’s group comprises 11 barangay farmers association in Gitagum with 389 qualified grant recipients.

Gitagum town councilor Edwin Nestal said the cash grant was valuable to their tobacco farmers that would augment the assistance (they) received from their local government unit (LGU) through their tobacco excise tax share.

Laguindingan town Mayor Diosdado T. Obsioma thanked the national government, particularly the NTA, and cited tobacco farmers as “new heroes” in his town due to their contribution to increasing tobacco production, which led to the rise of their excise tax share. He said the increase in their share from the tobacco excise tax is instrumental in upgrading his town's income reclassification from 5th class to 2nd class.



Agriculture Undersecretary Deogracias Victor B. Savellano said the giving- out of production grant to the tobacco farmers was realized by the administration of President Ferdinand R. Marcos, Jr. through Agriculture Secretary Francisco P. Tiu Laurel, Jr. and to the NTA to enhance the production of quality tobacco as the industry remains one of the strongest pillars of the country’s economy contributing 1% of the Gross Domestic Product (GDP) and 6% of the overall annual tax revenue collection.

Under Republic Act Nos. 7171 (for Virginia) and 8240 (for Burley and Native), tobacco-producing - LGUs gather their share from tobacco excise tax collections based on the volume of leaves produced by the local tobacco farmers. The national government obtains the biggest share from the excise tax collection to fund its universal health care program.