Tobacco farmers set for bigger payday as prices soar, NTA says
(Manila Bulletin file photo)
The National Tobacco Administration (NTA) stated that tobacco trading remains in full operation in the country, despite the onset of the rainy season, with farmers expected to earn more due to the high prices of the commodity.
In a statement on Saturday, June 14, the NTA said trading centers for flue-cured Virginia tobacco in the Ilocos region are open until June 30.
The establishments that are open in the region are under Universal Leaf Philippines Inc. (ULPI), Trans Manila Inc. (TMI), and Continental Leaf Tobacco Philippines Inc. (Conleaf).
NTA-La Union Department Manager Giovanni Palabay said Virginia tobacco produced by farmers beyond the stated deadline will still be accepted once requested for accommodation by the agency.
Palabay said the highest buying price offered by the trading centers to the farmers could reach up to ₱130 per kilo, depending on the quality of the flue-cured Virginia tobacco leaves.
Meanwhile, trading operations for burley and native tobacco in the Ilocos Region, Cagayan Valley, Central Luzon, and Cordillera Administrative Region (CAR) will end on Aug. 31.
NTA said the highest buying price for burley tobacco per kilo is ₱118, while the native Batek tobacco is ₱175 per kilo.
Aside from ULPI, companies that are buying burley and native tobacco include Pentaleaf in Cagayan Valley, as well as Antonio and Josefina Trading Center (A&J TC) and John Medriano Trading Center (JMTC) in La Union.
The tobacco agency said farmers in Mindanao sell their native Batek tobacco at the “Tabo Market.”
Based on the latest NTA data, there are a total of 59,242 registered tobacco farmers in the country, covering 32,503 hectares of tobacco.
It is estimated that about 2.2 million Filipinos are financially dependent on the crop.
NTA Administrator Belinda Sanchez said tobacco farmers would earn more this cropping season due to high buying prices.
The reported buying prices of tobacco at the trading centers are higher than the tobacco floor prices, she said.
According to the NTA, the following are the latest approved tobacco floor prices of classes of all tobacco types this season:
Flue-cured Virginia tobacco: Class AA – ₱97; A – ₱96; B – ₱95; C – ₱93; D – ₱85; E – ₱84; F1 – ₱75; F2 – ₱72; and R – ₱61.
Burley tobacco: Class A – ₱81; B – ₱78; C – ₱69; D – ₱58; E – ₱57; F – ₱49; and R – ₱39.
Native tobacco: High Grade – ₱81; Medium 1 – ₱70; Medium2 – ₱60; Low 1 –₱50; and Low 2 – ₱38.
Tobacco is the only cash crop in the country that has approved floor prices, which are adjusted every two years through a tripartite forum among farmers, traders, and tobacco manufacturers.
The NTA is mandated by law to authorize the setting of tobacco floor prices by adopting the said forum.