JTI Eyes Procuring More Local Tobacco Leaf Next Year
Photo Credit: Japan Tobacco International Official Website
The local unit of Japan Tobacco International is considering the possibility of a further increase in its procurement of locally-produced tobacco in 2021 from the currently-projected 4.6 million kilograms to support local growers badly affected by the COVID-19 pandemic.
In a letter addressed jointly to Finance Secretary Carlos Dominguez III and Agriculture Secretary William Dar, Japan Tobacco International (Philippines) Inc. general manager John Freda expressed the company's commitment to support the government and tobacco farmers.
The planned purchase of 4.6 million kg in 2021 represents an increase of 1 million kg from what the company brought from farmers this year.
Its 2021 programmed purchases of local tobacco leaf make up about a quarter (25 percent) of its estimated total leaf requirement for next year, Freda said.
This volume is also well beyond the requirement prescribed under Republic Act (RA) No. 10351, which requires manufacturers or sellers of tobacco products to procure at least 15% of their tobacco leaf raw material from locally grown sources.
JTI’s plan was in response to the joint request of Dominguez and Dar for the cigarette manufacturer to help support local growers and raise revenues for tobacco-producing provinces affected by the pandemic-induced economic shock by hiking its purchases of locally produced tobacco leaf.
Dominguez and Dar pointed out that strict quarantines imposed to curb the spread of COVID-19 constrained the marketing flow of food and other agricultural goods including tobacco, which is among the most affected crops as it is a non-food commodity.
According to Dominguez and Dar, a study showed that only 30% of the total local tobacco production is bought from farmers while the rest are imported by cigarette companies.
“Your kind assistance will translate into realized income to farmers, which assures food on their table and revenues for local government units (LGUs),” they relayed to JTI.
In response, JTI said its local team is coordinating with the company’s global leaf supply chain to explore the possibility of further increasing their local leaf tobacco purchases next year and in the coming years.
Moreover, Freda said, even before their receipt of the letter from the two Cabinet secretaries, JTI had been coordinating with the National Tobacco Administration on the same concern.
“The NTA 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,” Freda said in his letter to the two Cabinet officials.
In a letter addressed jointly to Finance Secretary Carlos Dominguez III and Agriculture Secretary William Dar, Japan Tobacco International (Philippines) Inc. general manager John Freda expressed the company's commitment to support the government and tobacco farmers.
The planned purchase of 4.6 million kg in 2021 represents an increase of 1 million kg from what the company brought from farmers this year.
Its 2021 programmed purchases of local tobacco leaf make up about a quarter (25 percent) of its estimated total leaf requirement for next year, Freda said.
This volume is also well beyond the requirement prescribed under Republic Act (RA) No. 10351, which requires manufacturers or sellers of tobacco products to procure at least 15% of their tobacco leaf raw material from locally grown sources.
JTI’s plan was in response to the joint request of Dominguez and Dar for the cigarette manufacturer to help support local growers and raise revenues for tobacco-producing provinces affected by the pandemic-induced economic shock by hiking its purchases of locally produced tobacco leaf.
Dominguez and Dar pointed out that strict quarantines imposed to curb the spread of COVID-19 constrained the marketing flow of food and other agricultural goods including tobacco, which is among the most affected crops as it is a non-food commodity.
According to Dominguez and Dar, a study showed that only 30% of the total local tobacco production is bought from farmers while the rest are imported by cigarette companies.
“Your kind assistance will translate into realized income to farmers, which assures food on their table and revenues for local government units (LGUs),” they relayed to JTI.
In response, JTI said its local team is coordinating with the company’s global leaf supply chain to explore the possibility of further increasing their local leaf tobacco purchases next year and in the coming years.
Moreover, Freda said, even before their receipt of the letter from the two Cabinet secretaries, JTI had been coordinating with the National Tobacco Administration on the same concern.
“The NTA 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,” Freda said in his letter to the two Cabinet officials.
