Japan Tobacco International (Philippines) Inc. (JTI) is looking to increase its tobacco purchases from local farmers to more than 4.6 million kilograms (kg) next year, according to the Department of Finance (DoF).
Citing a letter from JTI General Manager John Freda, the DoF said in a statement on Monday the company’s planned purchases would be 1 million kg higher than this year and would make up 25% of its overall tobacco leaf requirement for 2021.
It will also “explore the possibility of further increasing our local leaf tobacco purchases next year and in the coming years,” the company said separately.
Republic Act (RA) No. 10351, or the excise tax reform law on alcohol and tobacco, requires manufacturers or vendors selling tobacco products in the country to buy at least 15% of their needed tobacco leaf raw materials from local farmers.
JTI’s letter was in response to the request of Finance Secretary Carlos G. Dominguez III and Agriculture Secretary William D. Dar to boost its purchases of locally produced tobacco leaves to support the domestic market that has been affected by the coronavirus disease 2019 (COVID-19) pandemic.
“Your kind assistance will translate into realized income to farmers, which assures food on their table and revenues for local government units (LGUs),” the joint letter addressed to the company read.
According to the two officials, the strict lockdown imposed to slow down the spread of COVID-19 has affected the flow of agricultural goods especially tobacco, which is among the most adversely affected crops as it is a non-food item.
They also cited studies showing that only 30% of the total tobacco production in the country were coming from local farmers and the rest sourced overseas.
“The National Tobacco Administration initiated a series of meetings on the subject in anticipation of the next harvest and trading season which is expected to begin sometime in March 2021, with the goal of ensuring that all harvest next year will be procured,” Mr. Freda said in his letter.
He said JTI Philippines would continue to support the government and Filipino tobacco farmers. — Beatrice M. Laforga
