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The National Tobacco Administration (NTA), a line agency of the Department of Agriculture,
said the nationwide smoking ban which started last year would cause further reduction in the
consumption of cigarettes, thus impacting production of tobacco leaf.
“The strict anti-smoking campaign has a foreseen reduction of consumption. Last year, we
produced 48.22 million kilograms of tobacco and this year, we are expecting to reach just 40
million kg,” NTA Regulation Department manager Rohbert Ambros said in a recent briefing.
To cushion the effect, the NTA is now concentrating on the production of tobacco for export
and for substitution of the blending tobacco being imported for domestic manufacturing.
Last year, tobacco exports totalled to 58.61 million kg valued at $319 million and NTA is
looking at a five percent increase in both volume and value for this year.
Even with the projected decrease in consumption due to government regulations, NTA is
optimistic that local manufacturers will remain in operations in the country.
“We are preparing for the scenario that local manufacturers may close their shops here, but
that probability is still very remote,” Ambros said.
“Data from the Department of Health actually showed smokers in the late 20s to 30s are
decreasing, but the younger people are the ones increasing,” he added.
The NTA continues to implement the tobacco contract growing system where tobacco
buyers provide the inputs required for the production and guarantee to buy all the tobacco
contracted at the prevailing prices, but in no case shall be lower than the floor price per
kilogram per grade of tobacco.
Farmers under the contract growing system has been assured of ready access to new
technologies, extension, training and information, credit assistance and prompt payment of
their harvest, among others.
NTA is also focusing on production assistance and inputs, irrigation facilities and flue-curing
barns for Virginia variety and air-curing sheds for burley and native tobacco.
Last September, the NTA approved higher minimum buying prices for native, Virginia and
Burley tobacco for trading years 2018 to 2019.
For Virginia tobacco which makes up almost 60 percent of total local production, the floor
price per kilogram for the top grades increased to P82 for Grade AA, P81 for A, P80 for B,
P78 for C, P70 for D, and P69 for E.
For Burley, the per kilogram price for top-grade A rose by P2 bringing the price to P70 from
the current P68. The floor price for Grade B is now P67 and P58 for C or an increase of P2
for both