NTA tackles tobacco pricing, grading disputes

The National Tobacco Administration (NTA) has moved to address pricing and grading concerns as the trading season for flue-cured Virginia tobacco begins in northern Luzon.

NTA Administrator Belinda S. Sanchez said the agency has ordered its regional offices to immediately step in when disputes arise between farmers and buyers, particularly on leaf classification and pricing. The directive comes as reports of grading issues surfaced in parts of the Ilocos Region.

Sanchez said these concerns were quickly resolved through on-site dialogue. In La Union, for instance, a dispute in Balaoan was settled after discussions between farmers and traders led to the acceptance of previously rejected tobacco leaves, provided they were properly classified.

Trading centers operated by major buyers, including Universal Leaf Philippines Inc., Trans Manila Inc., and Continental Leaf, remain open to receive produce from farmers across the Ilocos provinces.

The agency is also preparing a series of meetings with local government units, trading operators, and farmer groups to address broader concerns, including oversupply and weakening demand. These issues have been linked to increased production encouraged by some local governments, even among farmers without formal contracts.

Only about 10,000 of the country’s 45,000 registered tobacco farmers are currently covered by the Tobacco Contract Growing System, which guarantees a market for participants.

To stabilize the sector, the NTA has begun consultations with tobacco manufacturers and has secured a commitment from one company to boost local purchases, with talks ongoing with others.

Sanchez urged stronger coordination among stakeholders and called on manufacturers to increase procurement of local tobacco during the current trading season.