A SURPLUS in flue-cured Virginia tobacco production in northern Luzon has necessitated efforts to stabilize the market, the National Tobacco Administration (NTA) said on Monday.
Flue-cured Virginia tobacco is a major, high-value industry in the Ilocos Norte and Ilocos Sur, La Union, and Abra, a primary livelihood for thousands of farmers since the 1950s.
Local government units (LGUs) had encouraged increased planting of the tobacco variety, which has resulted in oversupply due to a lack of guaranteed buyers, the NTA said.
Only about 10,000 of the 45,000 registered tobacco farmers nationwide are enrolled in the NTA‘s Tobacco Contract Growing System, which ensures a stable and reliable market for farmers.
Interventions are forthcoming, the NTA said, adding that it has engaged in consultations and secured a commitment from one manufacturer to increase local leaf purchases this year.
Meetings are scheduled in the coming weeks with other industry players including farmers and their leaders, trading center operators, and tobacco-producing LGUs to address the surplus issue, the NTA said.
An attached agency of the Department of Agriculture, the NTA was created in 1987 to regulate and promote the development of the tobacco industry, help improve the livelihood of tobacco farmers, enforce industry standards, and research production technologies.
Grading concerns
Meanwhile, reports of tobacco grading concerns in some parts of the Ilocos region are being addressed by NTA branch offices, the agency said.
Grading is the manual sorting of cured tobacco leaves into homogeneous lots based on quality characteristics like color, texture, position on the stalk, and damage. This process standardizes leaves for manufacturing (cigarettes, cigars) and optimizes value.
Dialogues have been facilitated between farmers and buyers to resolve pricing and grading issues, NTA Administrator Belinda Sanchez said.
One such discussion on tobacco grading in Balaoan, La Union, yielded a positive outcome, NTA branch manager Giovanni Palabay said, noting that the trading center has agreed to accept previously rejected Virginia tobacco leaves, provided that they are properly classified.
Trading centers operated by Universal Leaf Philippines, Inc., Trans Manila, Inc., and Continental Leaf are open to receive tobacco leaves across the Ilocos provinces, the NTA said, adding that accredited field canvassers are also available to assist tobacco farmers.
Farmers are asked to coordinate with NTA extension workers or report directly to their branch offices if they encounter issues during the trading season, Sanchez said.
Tobacco trading season runs from late March till June or August.