By Mary Therese D. Ancheta and Paulene J. Paglumotan
BATAC CITY, Ilocos Norte, Philippines (PIA) — The National Tobacco Administration (NTA) convened local government units (LGUs), tobacco traders, and farmer groups on April 24 to address key challenges affecting the tobacco industry, including declining farmgate prices, oversupply, and market uncertainty.
The consultative meeting convened stakeholders from LGUs, the private sector, and farmer organizations to assess current market conditions for Philippine tobacco and strengthen measures against smuggling, which continues affecting legal trade and pricing stability.
NTA Administrator and Chief Executive Officer Belinda Sanchez said the dialogue aimed to promote shared responsibility among stakeholders to stabilize the industry, particularly amid oversupply of flue-cured Virginia tobacco in the Ilocos Region and nearby provinces.
The NTA emphasized its goal of ensuring that farmers’ produce is fully purchased at fair and properly graded prices, in line with efforts to reduce post-harvest losses and improve market efficiency.
“This meeting allows us to address current industry concerns collectively. Our shared goal is to support tobacco farmers and ensure their produce is properly valued,” Sanchez said.
Engineer Randy Abella, NTA Ilocos Norte branch manager, underscored the importance of collaboration among stakeholders, noting strong participation as a sign of commitment to sustaining the local tobacco sector.
Local officials raised concerns over the sharp decline in tobacco prices.
Bacarra Mayor Nicomedes Dela Cruz Jr., president of the League of Municipalities of the Philippines–Ilocos Norte Chapter, reported that Class A tobacco prices dropped from over ₱100 per kilo last year to around ₱75 this season, significantly reducing farmer income.
He also cited rising production costs, climate-related risks, and delays in the release of excise tax as factors affecting the timely delivery of farm support programs.
Farmer representatives highlighted oversupply as a key issue, driven by increased planting both locally and overseas.
Nestor Padron, president of the National Federation of Tobacco Farmers Associations and Cooperatives, said uncontracted farmers face greater difficulty in selling their harvest due to the absence of guaranteed buyers.
Stakeholders also pointed to global oversupply, including increased production in major tobacco-producing countries, which has reduced demand for Philippine tobacco and pressured farmgate prices.
In response, the NTA proposed strengthening contract-growing arrangements and exploring crop diversification options to help stabilize supply and improve farmer income.
The meeting concluded with a commitment from stakeholders to expand participation in contract growing schemes, improve coordination among LGUs, NTA, and private firms, and strengthen market access and pricing mechanisms for farmers.
The NTA will continue similar consultations in other tobacco-producing areas to refine interventions for the 2025–2026 cropping season. (AMB/MTDA/PJP, PIA Ilocos Norte)
