Dingras Municipality Shifts Focus to Tobacco Industry to Boost Local Economy

Strategic Insights -

The municipality of Dingras in Ilocos Norte, a region traditionally known for its rice production, is now turning its attention to expanding its tobacco industry to generate additional revenue for local farmers. As part of this new initiative, Mayor Joemelle Saguid Go-Sy has been holding meetings with farmers' groups to encourage more farmers to plant tobacco and achieve the municipality's goal of expanding tobacco plantations to 200 hectares from the current 123 hectares. In recognition of farmers' efforts, the local government has pledged to reward those who contribute to the municipality's tobacco harvest with livestock and other essential items to improve their livelihood.

Key Takeaways:

  • The municipality of Dingras is shifting its focus to expand its tobacco industry, aiming to reach 200 hectares of tobacco plantation from the current 123 hectares.
  • Mayor Joemelle Saguid Go-Sy has been meeting with farmers' groups to encourage more farmers to plant tobacco and help achieve the expansion target.
  • Local farmers can earn an average of PHP50,000 to PHP70,000 per hectare from growing tobacco, with a guaranteed market through established buyers like Universal Leaf Philippines Inc.
  • Farmers who contribute to the municipality's tobacco harvest will receive livestock and other essential items as rewards, such as a cow, goat, or egg-laying chicken.
  • The tobacco excise tax under Republic Act 7171 grants benefits to farmers in towns and provinces producing Virginia tobacco, with local governments entitled to a 15-percent share of national tax collections.
  • The Universal Leaf Philippines Inc. is the biggest tobacco growing and processing company in the country, providing a sure market for tobacco farmers.
  • The local government's goal is to generate more revenue for farmers and improve their livelihood through the expansion of the tobacco industry.

Statistics:

  • The current size of tobacco plantation in Dingras municipality is 123 hectares. (Source: Mayor Joemelle Saguid Go-Sy)
  • The municipality aims to expand tobacco plantations to 200 hectares. (Source: Mayor Joemelle Saguid Go-Sy)
  • Average earnings of local farmers from growing tobacco: PHP50,000 to PHP70,000 per hectare. (Source: Mayor Joemelle Saguid Go-Sy)
  • Tobacco excise tax benefit for local governments: 15% share of national tax collections. (Source: Republic Act 7171)

Sources:

  • Mayor Joemelle Saguid Go-Sy (philippine news agency interview)
  • Republic Act 7171 (tobacco excise tax law)