Philippine tobacco production could rise to a three-year high of over 42 million kilograms this year due to higher demand and better prices, the National Tobacco Administration (NTA) said, reports Philstar.
NTA Administrator Belinda Sanchez said government measures combined with favourable climatic conditions and higher purchase prices would result in tobacco production surpassing last year’s output of 42 million kilograms.
The purchase price of prime class FCV tobacco has reached PHP 113/kg (USD 2), well above the minimum price of PHP 97/kg (USD 1.71), according to NTA. The price of prime class air-cured Burley and Native tobacco was as high as PHP 100 (USD 1.76) per kg, higher than their approved floor price of PHP 81 (USD 1.42) per kg, the NTA added. “The tobacco buying price increase reflects market demand and crop quality as well as the presence of good weather and the increase of floor prices,” Sanchez said during the Tobacco Festival 2024.
According to the NTA, trading in FCV tobacco began in February and is expected to continue until June. Trade in air-cured Burley and Native tobacco began end of March and will continue through July. According to the NTA, 2.2 million Filipinos depend on tobacco production, including at least 430,000 farmers and farm workers and their family members.