Tobacco growers optimistic as trade begins

CANDON CITY, Ilocos Sur — The Virginia tobacco trading season has officially begun, with buying stations in Region 1 and Abra now open to receive deliveries from farmers.

With prices starting significantly higher than last year’s floor rates, the National Tobacco Administration (NTA) is optimistic about another "golden season" for the industry.

NTA Administrator and CEO Belinda S. Sanchez said the positive outlook is supported by strong initial buying prices for flue-cured Virginia tobacco.

“At the start of the 2025 trading operations, trading centers purchased a kilo of prime-class flue-cured tobacco at P107, while some field canvassers in Ilocos Sur offered as high as P125 per kilo,” Sanchez said.

The rates exceed the floor prices set in the October 2023 tripartite conference, where Class AA Virginia tobacco was pegged at P97 per kilo.

While Burley and native tobacco varieties also have designated floor prices, actual trading rates often surpass these minimums.

To ensure fair transactions, NTA extension workers have calibrated and sealed weighing scales at major trading warehouses, including Universal Leaf Philippines, Inc. facilities in La Union, Ilocos Sur, Ilocos Norte, and Abra, as well as Trans Manila Inc. in San Juan, Ilocos Sur.

Farmers began bringing in their produce after harvesting started in February, about 60 days after transplanting.

Sanchez emphasized the importance of the 4Ps in tobacco trading—proper weighing, proper grading, proper documentation, and prompt payment—to protect growers and ensure fair compensation.

Even as the tobacco trade sees strong demand, the NTA is also pushing for stronger action against the illicit tobacco trade, which threatens 2.2 million livelihoods, including over 430,000 farmers and workers.

Sanchez warned that illegal trade is reducing demand for locally produced tobacco and cutting government revenue.

Despite adult smoking increasing from 19 percent in 2021 to 24.4 percent in 2023, tobacco excise tax collections fell from P176 billion in 2021 to P134 billion in 2024.

To address this, the NTA supports stricter law enforcement, a unified vapor tax, tighter online regulations, and the implementation of the Anti-Agricultural Economic Sabotage Law to protect farmers and local production.