Philippines: Current Buying Prices of Flue-cured Virginia Tobacco Above Floor Prices

Source from:  Manila Bulletin  03/25/2014

Prices of all grades of flue-cured Virginia tobacco leaves per kilogram are above floor price levels in the current trading season in Ilocos region, according to the National Tobacco Administration.

The NTA reported that a total of  589,282.40 kilograms had been traded as of March 18 in 15 trading centers in four provinces in Region I upon its opening in February.

"We have expected better prices this year than they (the prices) were last year because of the increase in floor prices," according to NTA Administrator Edgardo Zaragoza.

Floor prices of Virginia tobacco this year increased by P6 per kilogram across all grades.

The rate of high-grade leaf (AA) is now P78.

The new buying prices for other grades follow: A, P75; B, P73; C, P71; D, P66; E, P65; F1, P59; F2, P56; R, P46.

However, tobacco traders are buying tobacco leaves above the approved floor prices.

Zaragoza dismissed reports on the low prices of tobacco as he claimed the tobacco buying prices are above the average floor price.

"The agency is providing arbitration on leaf classifications and prices of tobacco, whenever issues arise during the trading. Farmers have nothing to worry about," Zaragoza said.

According to Eleno Natura of Balaoan, La Union, farmers in one trading center in La Union had disagreement with buyer-firms as to classifications of leaves.

"Generally, however, the prices are good in most trading centers," he said.

"There are some complaints but these are usual ones like disagreements on classifications and prices," according to Mario Cabasal, head of the National Federation of Tobacco Farmers and Cooperatives.

He added, however, that the agency has addressed these concerns immediately during the trading.

Meanwhile, farmer Virgie Directo from Barangay Dayanki, Burgos, Ilocos Sur disclosed that buying price of her flue-cured full flavor Virginia tobacco has reached P94 per kilo last week.

NTA extension workers assigned for each trading post have reminded farmers of the trading conditions for floor prices, in accordance with memorandum of agreement between the agency, buyer firms and tobacco farmers before the start of tobacco season last year.

According to the agreement, tobacco leaves delivered to the trading centers must be free of non-tobacco related materials and delivery in straight-laid loose in open bale.

"The process of tobacco sale for Virginia will continue till June and the prices will be maintained," Zaragoza said.

Trading for Burley tobacco has also started in Ilocos. Enditem