TOBACCO FARMERS said they will seek higher floor prices to support domestically-grown leaf, as well as more support from local governments, ahead of a tripartite conference scheduled for October.
“The current price is P75 but considering the increase in imports, increase of labor kaya sana kung pwede hihirit pa kami ng taas kahit P5 sana (we will seek an increase of P5),” Saturnino Distor, president of the Philippine Tobacco Growers Association (PTGA), told reporters on the sidelines of the International Tobacco Agricultural Summit.
“Not just that, we will also ask (local government units) to provide stronger support for farmers,” he said.
It was unclear what floor price Mr. Distor was referring to. According to the National Tobacco Administration (NTA), floor prices are set for various grades of the three varieties of tobacco grown in the Philippines — Virginia, burley and native leaf.
Mr. Distor also asked for subsidies on fertilizer and incentives for farm workers.
The NTA estimates that tobacco production was 39.46 million kilograms in 2022, down 14.74%.
“Tobacco production is mostly dependent on climatic/environmental and biological factors during the growth and development of the tobacco plant and the demand of global and local markets,” the NTA said.
Manufactured and unmanufactured tobacco imports in 2022 amounted to 129.04 million kilograms, down 1.54% from a year earlier.
Rohbert A. Ambros, manager of the NTA regulation department, said that most of the tobacco in the market consists of imports.
“Manufacturers tend to import because there are grades of tobacco that cannot be produced locally so they have blend that with local so the taste can compete with international products,” he said.
Exports of manufactured and unmanufactured tobacco rose 4.69% to 79.02 million kilograms.
Mr. Ambros said that the tripartite conference will be held in the first week of October, with participation from farmers, buyers, and the NTA to set floor prices.
According to Mr. Ambros, the factors being considered for an increase in floor prices include the cost of fertilizer, pesticide, and fuel.
Mr. Ambros said that the NTA is targeting an increase of 12% to 46 million kilograms of tobacco this year. — Sheldeen Joy Talavera