Tan makes rain in the summer
BY AMADO MACASAET
Last week, the temperature hit a high of 37
degrees Celsius. People in urban areas complain against the
heat. It makes them uncomfortable. Farmers have the same
discomfort but they worry more about the possibility of a poor
harvest if the dry spell gets too long. Without irrigation,
plants turn into crisp brown. No fruits.
More than 400 farmers scattered in some towns
of La Union, Ilocos Norte, Cagayan, and Ilocos Sur are
reasonably certain that a possible long dry season will not
affect their harvests of tobacco and palay. They welcome the
rain but can do just as well without it.
There is so far, about one million cubic
meters of rain water they can use for the two crops without
having to pay. It was the foundations of Lucio Tan which have
spent close to P12 million rehabilitating old dams that now hold
rain water to the brim.
A farmer from La Union told Malaya Business
Insight that two old dams in the town of Balaoan now hold 73,000
cubic meters of water which can irrigate about 30 hectares of
rice field for a second crop. The first crop is rain-dependent.
What the farmers in the area are beginning to
see is the certainty of having two rice crops a year, and keep
the tobacco harvest increasing or staying at the same volume.
Tan’s foundations are making all these
possible.
Tan’s Fortune Tobacco buys all the leaf in
the North. The other cigarette makers won’t touch them. But
providing irrigation is not intended to keep Tan’s hold on
tobacco production. The farmers can sell to anybody but it is
only Fortune that buys them in bulk.
A bosom buddy of Tan said that the taipan
believes that in time, but not in his lifetime, the tobacco
industry will die a slow death. Not just because the campaign
against cigarette smoking as hazardous to health is succeeding.
The other big factor is the rising cost of
production made even higher and unprofitable by increasing
excise and other taxes. At present about 60 percent of the price
of a pack of cigarettes represents taxes.
If the Department of Finance is allowed to
accept a proposal by a Swiss company for strip stamps on
cigarette packs, the cigarette makers will have to pay about P2
billion a year or P14 billion in seven years for the stamps.
Probably believing that the success of
Fortune is largely owed to the tobacco farmers in the Ilocos
region, Tan’s friend said the taipan is preparing the farmers
for other cash crops such as rice as a fall-back position.
Before the foundations of Tan rehabilitated
the dams and reservoirs, the farmers did not have irrigation.
They make one harvest of rice every year.
With impounded water, the farmers can have
two crops a year, the second completely dependent on water from
the dams and reservoirs.
There are no estimates on how much rice
production will increase as a result of dam-water irrigation.
What is certain is the farmers will continue to have tobacco as
a cash crop and two harvests of rice for home consumption and
sale.
Tan has long been told that a long dry spell
leaves tobacco a losing business. The agronomists have told the
farmers that while water is available from deep wells of 10-15
feet, what the pump spouts is salt water that makes the leaf
unfit for anything, least of all for cigarettes.
Tobacco is usually planted in December and
harvested by March. Rain water is not abundant during those
months.
Water from the repaired reservoirs and dams
saves the farmers from possible hunger. It also assures them of
adequate rice harvest since they get two harvests in a year. The
second crop is made possible by irrigation, courtesy of Tan’s
foundations.
The plan is to rehabilitate all the
reservoirs and dams in all tobacco and rice growing provinces of
the North. The technicians of the foundations, cooperating with
local governments, are looking at several other dams that can be
revived.