Requiem for tobacco industry?

AGAINST the image of a President who has refused to be photographed smoking (and has reportedly kicked the habit), House Bill 9895 which seeks the eventual abolition of the tobacco industry, and the strength of 114 countries that have adopted tobacco control measures, can the Ilocos provinces continue to be the country's tobacco region?

After centuries of producing this cash crop, Ilocanos are not likely to take the issue of phasing out the tobacco industry sitting down when the Regional Development Council deliberates on the matter in Laoag City this week.

Based on the initial report of a technical working group composed of various government agencies, a phaseout looms as a long, difficult and uncertain process for some 1.2 million affected Ilocanos, compared to the many, mostly economic, benefits seemingly being derived under the status quo.

With all the economic, social, political, scientific and moral facets of the tobacco issue, the decisive question seems to be: How many and how far are Ilocos' leaders willing to see?

Global concern

Last year, 114 countries representing 93 percent of the world's population met in Geneva to begin the preparatory work on the Framework Convention on Tobacco Control, a legally binding global pact initiated by the World Health Organization for the first time in its 50 years of existence.

Apparently, the WHO has decided to put its foot down and face the bare fact that tobacco kills. It estimates that about four million people die of tobacco-related diseases each year, or 1 person every 10 seconds. Yet there are about 1.1 billion smokers worldwide, 200 million of whom are women, and their numbers continue to grow.

In spite of global support for tobacco control, cigarette consumption is projected to increase by 2 to 3.5 percent yearly, mostly because of the aggressive promotion being done by transnational tobacco companies among women and young people in developing countries.

The number of women smokers is expected to triple in the next generation, raising concerns about the health of their children, born and unborn.

National picture

The Philippines produces an average of 71,117 metric tons of tobacco annually and is considered a major exporter of Virginia and Burley tobacco to European and Asian markets.

In 1998, the country's total tobacco production was valued at P2.4 billion. The annual average Philippine tobacco export is $25.6 million, according to a government report.

An estimated 1.93 million Filipinos depend on the tobacco industry for their livelihood, including more than 62,400 farmers.

Like in Brazil, India and most of Africa, local producers mostly use fuel wood in curing the tobacco leaves, causing deforestation in most tobacco-producing areas.

According to on-line publication Lancet, a government study with 9,000 people as respondents shows that as many as 73 percent of adults and 56 percent of children (7 to 17 years old) in the Philippines smoke regularly.

Lung cancer has become a leading cause of death, taking some 20,000 lives each year.

The Philippines is also an easy target for the marketing and promotional activities of giant cigarette companies because it has no effective legislation on tobacco control whether in the form of prohibiting smoking in public areas, preventing children from buying cigarettes, increasing ad valorem taxes on tobacco products, banning cigarette advertisements, or requiring the disclosure of the ingredients of each cigarette brand, according to Lancet.

Regional situation

Of the country's average annual production of tobacco, 44,430 MT valued at P2.01 billion comes from Ilocos. Further, the region's contribution to the national export of tobacco has steadily increased from $4.63 million in 1996 to $21.72 million in 1999, representing around 60 percent of the country's tobacco export that year.

Some 1.2 million Ilocanos depend on the tobacco industry, including over 40,000 farmers. The region's tobacco industry also contributes an estimated P13.36 billion in tax revenues to government coffers, accounting for 62 percent of revenues from tobacco nationwide.

The Ilocos region produces 95.61 percent of the country's Virginia tobacco, 66.92 percent of the Burley tobacco and only 24 percent of the native tobacco.

Tobacco remains one of the most profitable among the crops found suitable to the region. Based on 1997 data from the National Tobacco Administration, a farmer can earn P36,561 per hectare planted to Virginia tobacco. This is 3.6 times the return per hectare of yellow corn, and more than twice those of palay, mongo, peanuts or even sweet potatoes.

Continuing research by the NTA has also found many other

beneficial uses of tobacco.

Tobacco can be a source of ethanol alcohol, cardiac drug Q9,

Vitamins K and E (with anti-hemorrhagic and anti-sterility

properties), insecticides and nicotinic acid, which can be used

as a food supplement and for anti-pellagra drugs.

The commercial and technical viability of these commodities,

however, has yet to be established.

Unique industry

Perhaps one of the things that has made the region's tobacco

industry unique is that the local governments derive huge

benefits from Republic Act 7171, which promotes the

development of farmers in provinces producing Virginia

tobacco.

Among the provisions of this law is the inclusion in the Internal

Revenue Allotment of the beneficiary provinces an amount

equivalent to 15 percent of the excise taxes on locally

manufactured Virginia-type cigarettes.

It also assists local governments in improving the lives of

Virginia tobacco farmers through the implementation of

infrastructure, agri-industrial, cooperative and livelihood

development projects.

In La Union alone, which is only second to Ilocos Sur in Virginia

tobacco production, the yearly allocation generated through RA

7171 from 1994 to 1998 averaged P113.23 million.

According to the provincial budget office, the released

provincial share has been used mostly for reforestation,

purchase of heavy equipment, irrigation, construction of

post-harvest facilities, and construction and maintenance of

provincial roads and bridges.

Thus far, these have been the only benefits found by a

government technical working group to justify the continued

production, export and subsidy of tobacco in the Ilocos region.

According to the Non-Smokers Movement of Australia,

however, few countries have really improved their economies as

a result of tobacco exportation.

In 1984, out of 65 developing countries exporting tobacco, only

16 got over 1 percent of their total export earnings from it.

Ninety-two developing countries earned a total of $1.9 billion

from tobacco and bought $1.2 billion worth, for a net income of

$700 million.

But four-fifths of this gain benefited only eight countries while

58 countries spent more than they gained, the organization

claimed.

It added that tobacco taxes to governments were merely

''transfer payments within the economy and do not make

countries richer.''