An oversupply of tobacco in Northern Luzon has prompted JTI Philippines to purchase an additional 3.32 million kilograms of green-weight tobacco leaf to help stabilize the market.
The additional purchase comes after the National Tobacco Administration (NTA) reported an excess of 5 million kilograms of flue-cured Virginia tobacco in Ilocos Sur, Ilocos Norte, Abra, and La Union.
JTI Philippines said Monday it would absorb more than two-thirds of the excess production through the additional purchase.
“We are glad that we were able to help local tobacco farmers this time. It is the combined responsibility of all parties – the Government, industry players, and tobacco farmers – to ensure a sustainable tobacco leaf-growing industry in the Philippines. In this regard, we are heartened by the commitment of the NTA to avoid another excess production in the future,” Alan Jackson, General Manager of JTI Philippines, said.
According to the NTA, the oversupply was driven by farmers planting traditional tobacco varieties without marketing tie-ups with trading companies, anticipating demand levels similar to those experienced in 2025.
However, global tobacco production increased in 2026, resulting in weaker demand for Philippine tobacco leaf.
Notably, the surplus raised concerns about potential financial losses among tobacco farmers in Regions 1 and 2 who faced difficulties finding buyers for their crops.
To better align production with market requirements, the NTA said it is strengthening the Tobacco Contract Growing System to improve coordination among local governments, farmers, and tobacco companies.
