tmt play Tobacco production surging amid good weather, higher prices
A farmer in Pangasinan hangs newly harvested tobacco leaves in a barn. —FILE PHOTO
MANILA, Philippines—The National Tobacco Administration (NTA) and industry stakeholders are optimistic about the increase in local tobacco production this year due to favorable weather conditions, competitive prices and some corn farmers’ shift to tobacco cultivation.
The NTA projected domestic output to reach 45.6 million kilograms in 2025 as opposed to the actual volume of 45.5 million kg recorded in 2024.
Article continues after this advertisementData from the NTA showed that local tobacco production has surged for three consecutive years from 2019 to 2021, followed by a decline for two straight years in 2022 and 2023.
FEATURED STORIES BUSINESS BOC intercepts undeclared foreign currency worth Php 24.20M BUSINESS BIZ BUZZ: Robina celebrates ‘twin’ BUSINESS Property, economy roundup: What’s driving the momentumTobacco production prospects are rosy this year, with Philippine Tobacco Growers (PTGA) president Saturnino Distor attributing it to improved weather conditions this year.
“Actually, it seems tobacco production is doing well given the current climate. Compared to last year, the overall weather conditions are good not only for planting tobacco but also palay (unhusked rice),” Distor said on the sidelines of the 2nd International Tobacco Summit in Quezon City.
Article continues after this advertisementNTA Deputy Administrator for Operations Nestor Casela said many tobacco growers were encouraged to plant more as the commodity “became competitive” in international markets, resulting in higher prices.
Article continues after this advertisementAccording to the NTA, the average buying price of locally produced tobacco increased between 2019 and 2023 before it declined to P129.04 per kg.
Article continues after this advertisementThis year, prices are seen to average P99.78 per kg due to the expected higher output, Casela told reporters.
Distor also said those planting corn moved to tobacco instead because of the continued threat of fall armyworm, a destructive pest that can cause massive damage to different crops including corn.
Article continues after this advertisement“Because in the past, you did not need to spray [insecticides]. But now, they need to spray regularly to prevent pests from damaging their crops,” he told reporters in Filipino.
As a result of this, Distor said farming areas for tobacco in San Fabrian have increased by 25 hectares, a trend that has been observed in other areas where the PTGA is present.
ng slotPer NTA data, the production area for native tobacco rose by 4.7 percent to 13,095 hectares in 2024 from 12,506 ha. In the case of Virginia tobacco, the area grew by 9.4 percent to 2,978 ha from 2,722 ha.
Casela said tobacco output is poised to rise as local government units are “so motivated to encourage their farmers to plant more.”
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Under Republic Act Nos. 7171 and 8240, LGUs receive shares from tobacco excise tax collections based on the volume of leaves produced by local farmers. The government secures a larger share from excise tax collection to finance the universal health care program.
The core Consumer Price Index (CPI) datatmt play, which excludes volatile fresh food prices, followed a reading of 2.7 percent in July and was in line with market expectations.
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