PHILIPPINES
According to the National Tobacco Administration (NTA), major tobacco-buying firms have committed to buy all tobacco leaves of farmers in most regions to help them secure a stable income as the pandemic has affected trading and delivery of the commodity.
The traders are Universal Leaf Philippines Inc., Trans-Manila Inc., Continental Leaf Tobacco Philippines Inc., and Associated Anglo-American Tobacco Corp. The companies have agreed to purchase leaves in the Ilocos region, Cagayan Valley, and Abra.
Roberto Bonoan, NTA OIC administrator, said, “We implemented beginning this year a new floor price, higher than the price of all tobacco types for the last two cropping seasons, and based on feedback from the buying stations, trading operation is alive and well, despite the lockdown.”
NTA had previously approved this February higher minimum buying prices for tobacco for the next two years following an agreement reached between farmers and the private sector. Stakeholders recently approved a P2 increase in tobacco floor prices across all types and grades.
Setting the minimum floor price provides tobacco farmers a guaranteed minimum return on investment of at least 25% for expenses incurred in production.
The trading season of cured tobacco in the Ilocos Region officially started March 5 while trading in the Cagayan Valley region started at the end of April. Tobacco acceptances for all buying stations in the two regions reached 9.97 million kilograms valued at PHP744 million. About 67% of this is virginia tobacco at 6.65 million kg. This represents about 23% of this year’s production target of 43.65 million kg.