This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. VI, No. 13, May 7-13, 2006
Special Report
Tobacco Farmers Struggle Vs
Exploitation
Tobacco farmers are being subjected to various exploitative practices such as
downgrading of produce, riseko, contract growing, excessive charging, and
low prices. But they are not giving up. BY
ZOFIA LEAL In 2003, the tobacco
industry generated about P 25.65 billion ($496,996,706 at $1: P51.61) in taxes,
duties and other fees from tobacco leaf production and manufacture, and the sale
of cigar and cigarettes. It provided livelihood to more than 1.7 million
Filipinos. In the Ilocos region,
tobacco farming is one of the major sources of livelihood. However, tobacco
farmers started shifting to other cash crops such as corn or peanuts in 2003 due
to the difficulty in processing tobacco, the high cost of production, and the
low selling price. The cost of production per
one hectare of land which produces 1800 kilos of tobacco is estimated to be
P67,230.45 ($1,302) including production inputs, additional manpower, payment of
loans with usurious rates, and land rent. According to Zaldy Alfiler,
secretary-general of Solidarity of Peasants Against Exploitation or Stop-Ex,
tobacco farmers are struggling for a P85 ($1.65) per kilo selling price
regardless of classification. Alfiler said that even good quality tobacco is
being classified as low grade by trading centers to lower the price. He said
that at a selling price of P85 per kilo, the cost of production would be covered
and they would have income just enough to help improve their living conditions.
Stop-Ex arrived at a
selling price of P85 per kilo after considering the cost of living, number of
working days, production costs, and average volume produced. Below is the
computation:
P508 ($9.84)
cost of living per day = P 78.27 ($1.52)
A small amount is added as income. Tripartite conferences
Every year, the price of
tobacco is being deliberated by a national tripartite conference attended by
tobacco farmers’ organizations, traders, and representatives from the National
Tobacco Administration. Stop-Ex stopped attending the said conference in 1999
after its representatives were harassed during the deliberations. Alfiler said
that officials from the National Tobacco Administration pointed a gun at them
after they refused to agree on the price being proposed by government and
traders. Last year, Stop-Ex
distributed a position paper detailing their proposals to 21 trade centers.
They also used radio interviews to make their positions public. Contract growing Another issue that tobacco
farmers face is contract growing. In contract growing arrangements, traders are
able to use various means to cheat the farmers even if Stop-Ex scrutinizes the
Memorandum of Agreement very carefully. Traders cheat in the computation of
expenses. For example, if a farmer gets a sack of fertilizer, traders would
charge him/her for two sacks. Traders also charge high
interest rates for inputs they advance to farmers. They monopolize the supply of
seedlings. And they set as condition that farmers sell the produce exclusively
to them at prices they set unilaterally. Usually the price traders set is too
low. Republic Act 7171 Republic Act 7171
mandates that the four Virginia tobacco-producing provinces are allotted a 15
percent share of excise taxes on the manufacture of Virginia-type cigarettes.
Governor Chavit Singson authored the bill during his stint as congressman of
Ilocos Sur. The law was enacted in 1992 during the last days of the Aquino
administration. The funds from R.A. 7171
allotted to farmers are not given directly to them but to their LGUs. In the
Ilocos region, these funds are used to create waiting sheds, farm-to-market
roads, livelihood projects and multi-cabs for barangay (village) officials.
Tobacco farmers do not get a single centavo from the funds except when they take
out loans. But these loans, said the farmers, are given at high interest rates.
Stop-Ex is lobbying that
the funds be given directly to the farmers to help them raise capital for
production. In 2005, Representative Eric Singson gave four tractors and three
hand tractors to farmers from the 2nd district of Ilocos. The funds
for the tractors were sourced from the share of the province from excise tax
collections. This was made possible through a bilateral agreement entered into
by Singson and tobacco farmers, represented by Stop Ex. Stop-Ex said that this
was a result of their struggle to uplift the life of tobacco farmers. Riseko Traders automatically
deducts seven kilos from the weight of the tobacco sold by the farmers, five
kilos for the tulis (stalk) and two kilos for the sack. This
practice is called locally as riseko. Alfiler said, “Ang
riseko ay pagnanakaw sa mga magsasaka dahil ang kinakaltas na hindi binabayaran
ng mga trade centers ay kasama sa pinagkakagastusan at pinaghihirapan ng mga
manalon” (Riseko is a form of stealing from or cheating the farmers
because what traders automatically deduct are included in the farmer’s cost of
production and labor). The following table shows
the difference between the price of tobacco per 100 kilos with riseko and
without it. Province Price per kilo Price per 100 kilos
with riseko (minus 7 kilos) Price per 100 kilos
without riseko Price difference
(unpaid price of tobacco due to riseko) La Union P60- P65 P5580- P6045 P6000- P6500 P420- P455 Ilocos Sur P60- P67 P5580- P6231 P6000- P6700 P420- P469 Ilocos Norte P55- P60 P5115- P5580 P5500- P6000 P385- P420 Trading centers also force
the prices of tobacco down by “stop buying” or suddenly refusing to buy the
produce of farmers justifying it with the claim that demand is decreasing. The
farmers will then be forced to sell their tobacco at a minimal price fearing
that they will no longer be able to sell it. Stop-Ex is calling for a
stop to the exploitative practices of downgrading the classification of tobacco,
stop buying, and riseko. It is also fighting for a selling price of P85 per
kilo without classification. The Ilocos region is well
known for producing quality tobacco products. Nonetheless, the farmers are
being ignored and their plight continues to worsen. If the current situation
persists, there is a big possibility that tobacco farmers will be forced to
shift to other cash crops to sustain their livelihood. However, Stop-Ex still
believes in continuing their struggle for their rights.
Alfiler said, “Kahit hindi
matugunan kaagad ang tawag, hindi tayo aatras.
Huwag tayong mag-atubili sa ating panawagan.
Makakamit din natin ang ating hinahangad sa pamamagitan ng sama-samang pagkilos.
(Even though our call is not being
heeded right now, we will not back down. Let us not falter in our call. We will
achieve victory through our collective action.) Bulatlat © 2006 Bulatlat
■
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Bulatlat
x 145 working
days
P 73,660 ($1,427)
+ 67,230.45 ($1,302)
production cost
P140,890.45 ($2,729) / 1,800 average harvest