THE Department of Agriculture (DA) is set to launch a five-year roadmap focusing on collaborating with local government units (LGUs) to expand tobacco production areas in the country.
In its bid to elevate the tobacco industry in the country, the DA's National Tobacco Administration (NTA) crafted the five-year Sustainable Tobacco Enhancement Program (STEP) with a focus on Mindanao.
Mindanao accounted for 7.5 million kilograms (kg) of tobacco produced in the country in 2023, which sold for an average price of P379 per kg, data from the NTA showed.
DA Undersecretary Deogracias Victor Savellano emphasized the potential of indigenous tobacco as an exportable product and its potential to boost the country's foreign exchange reserves.
Savellano added that the industry can also support local economies while sustaining the livelihoods of tobacco farmers.
The NTA said the tobacco industry has been supporting the livelihoods of at least 2.1 million Filipino workers and is one of the primary sources of government revenue, generating P160 billion through excise tax collections in 2022.
The DA Regional Field Office in Cagayan de Oro (DA-RFO 10) said that major stakeholders in the tobacco sector, including tobacco growers and provincial government leaders from Mindanao, convened on Thursday to discuss and coordinate efforts for the implementation of Mindanao's Tobacco Industry Development Plan.
"Under the STEP, NTA is set to rev up Mindanao's tobacco industry by closely working with LGUs to strengthen and expand the existing tobacco areas, aiming for sustainability of the industry," the DA-RFO 10 said.
Over the next five years, NTA targets to undertake initiatives like enhancing irrigation and water management, supplying agricultural equipment, offering support for value-added processing and marketing, and providing credit and financial aid as outlined in Mindanao's tobacco industry development strategy.
Tobacco-producing provinces in Mindanao include Misamis Oriental, Bukidnon, Zamboanga Sibugay, Maguindanao del Sur, North Cotabato and Agusan del Sur.
Savellano said that the meeting aimed to address key national strategies for boosting indigenous tobacco cultivation in the southern region of the country.
In 2022, approximately P74 billion from tobacco excise taxes was allocated for the government's universal health care initiative.
The NTA earlier said that it targets to increase local production of tobacco by up to 12 percent for the next few years.
The previous year's tobacco production was recorded at 43 million kg. According to the 2022-2023 data from the NTA, the country has 40,482 hectares of land dedicated to tobacco and 25,183 supervised tobacco farmers.
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