Authorizing The Philippine Tobacco Board To Fix Floor Prices Of Philippine Grown Tobacco

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 627 December 28, 1974

AUTHORIZING THE PHILIPPINE TOBACCO BOARD TO FIX FLOOR PRICES OF PHILIPPINE GROWN TOBACCO

WHEREAS, tobacco is one of the country's principal agricultural products upon which a substantial number of the people depend on for their livelihood;

WHEREAS, there is an imperative need to protect the interest of tobacco farmers considering the rising cost of production and prices of prime commodities caused by unprecedented world-wide inflation;

WHEREAS, the Philippine Tobacco Board has been reorganized as the sole policy-making body of the Philippine Tobacco Industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree and order:

Section 1. The Philippine Tobacco Board, upon recommendation of the agencies concerned, shall fix a reasonable and flexible floor price at which tobacco traders may buy all types of tobacco, except flue-cured Virginia tobacco, from the farmers based on prevailing factors and conditions such as:

(a) prevailing world market situations;

...

Login to see full content

Summary of Presidential Decree No. 627

Authorizing the Philippine Tobacco Board to Fix Floor Prices of Philippine Grown Tobacco

- The Philippine Tobacco Board is authorized to fix reasonable and flexible floor prices for all types of Philippine-grown tobacco, except flue-cured Virginia tobacco, based on the following factors: (Section 1)
• Prevailing world market situations. (Section 1a)
• Production costs. (Section 1b)
• Reasonable margin of profit for farmers, dealers, manufacturers, and exporters. (Section 1c)
• Growing conditions affecting production quality, such as soil, weather, and pest infestations. (Section 1d)
• Other relevant factors and conditions. (Section 1e)

- The Philippine Tobacco Board can amend the floor prices as necessary for the tobacco industry's benefit. (Section 1)

- Only authorized persons by concerned government agencies can buy leaf tobacco directly from farmers. (Section 2)

- Concerned agencies will issue rules and regulations to implement and enforce the floor prices, subject to the Philippine Tobacco Board's approval. (Section 3)

- Violations of the floor price policy or implementing rules will result in: (Section 4)
• Cancellation or revocation of the trading permit.
• A fine of not more than P2,000 or imprisonment of not more than one year, or both, at the court's discretion.
• For corporations or associations, penalties will be imposed on responsible officials.
• Alien violators will be deported after serving their sentence.
• Government officials or employees aiding violations will be perpetually disqualified from holding public office, in addition to penalties as principals.

- The Decree takes effect immediately. (Section 5)