Philippines: New Floor Prices for Tobacco Set

Source from:  GMA News 09/06/2013

The National Tobacco Administration on Thursday approved new floor prices—the minimum price allowed by the government for the purchase of tobacco by buyers from farmers—for three tobacco variants for the trading years 2014 and 2015.

The prices were approved at the biennial Tobacco Tripartite Consultative Conference, in which floor prices are reviewed and justed for the period until the next conference two years later. The conference was attended by local government heads from the tobacco-producing regions, farmers' groups, and tobacco manufacturing companies.

For Virginia tobacco, floor prices rose by P6 per kilogram across all grades, bringing prices to P78 per kg for AA, P75 for A, P73 for B, P71 for C, P66 for D, P65 for E, P59 for F1, P56 for F2 and P46 for R.

The floor prices for Burley increased a range from P3 to P10: A, P61; B, P59; C, P53; D, P45; E, P44; F, P37; and R, P28.

The new minimum prices for Native tobacco rose between P4 to P10: P66 for HG, P56 for Medium 1, P46 for Medium 2, P38 for Low 1 and P26 for Low 2.

Tobacco is the only industrial crop in the Philippines with a floor price set by the government. It assures farmers of a guaranteed minimum return of 25 percent. Enditem