The National Tobacco Administration (NTA) has projected a modest 0.4 percent increase in the country’s leaf tobacco production for 2025, reaching 45.58 million kilograms, up from 45.4 million kg in 2024. This follows a significant 7.5 percent production rise from 2023, driven by improved weather conditions and farmers’ shift from corn to tobacco cultivation, as the latter benefits from stronger support and better machinery use.
However, despite the increase in production, the NTA anticipates a significant dip in buying prices, forecasting a 22.7 percent cut to P99.78 per kg in 2025, down from P129.04 per kg in 2024. This is attributed to a weaker demand forecast, with 2023’s demand and prices being higher than expected for 2024. According to NTA and tobacco industry leaders, reduced tobacco prices could impact farmers’ earnings, though the sector remains optimistic about long-term sustainability with improved farming practices and government backing.
