Philippines: Tobacco Growing to Bring More Income to Farmers

Source from:  Philippine Information Agency  11/29/2013

Tobacco farmers stand to earn more income this season due to increased buying prices for tobacco.

Edgardo Zaragoza, National Tobacco Administration (NTA) administrator, said the participants of the recently concluded tobacco tripartite approved the increase in tobacco prices of the following: P6 per kilo hike for flue-cured Virginia tobacco; up to P10 per kilo increase for Burley tobacco and all grades of the native–type tobacco.

"The increased buying prices of all grades of tobacco in the country will be implemented for 2014 to 215 tobacco season," he said.

Held every two years with the NTA as host, the tobacco tripartite conference gathers tobacco farmer leaders, traders and cigarette manufacturers to set the new buying floor prices of tobacco produced in the country.

Zaragoza disclosed that the newly-approved floor prices per kilo of flue-cured Virginia tobacco leaves are as follows: Grades AA–P78.00; A – P75.00; B–P73.00; C–P71.00; D–P66.00; E–P65.00; F1–P59.00; F2–P56.00; and R–P46.00.

For Burley type tobacco; its newly – approved floor prices per kilo were the following: Grades A – P61; B – P59; C – P53; D – P45; E – P44; F – P37; and R – 28 while its former floor prices were: Grades A – P51; B – P49; C – P47; D – P42; E – P41; F – P34; and R – 25.

The new floor prices of Native - type tobacco were the following: High Grade – P66; Medium 1 – P56; Medium 2 – 46; Low 1 – P38; and Low 2 – P26. The former floor prices of Native type tobacco were: High Grade - P56; Medium 1 – P46; Medium 2 – 39; Low 1 – P31; and Low 2 – P22.

Zaragoza advised farmers to sell their crops directly to the accredited tobacco companies to get the adjusted tobacco rates.

He also warned farmers against dealing with "cowboy" buyers to avoid being duped.

He said that the country's tobacco industry has fared better as more than 50 percent of the locally – produced tobacco has been exported.

"The demand for tobacco is increasing and we are aiming to produce  at least 80 million kilograms this season," he said.

Virginia tobacco, which is the main cash crop of famers in the Ilocos provinces, is the steady source of fund for Republic Act No. 7171, otherwise known as tobacco excise tax law. Enditem