The National Tobacco Administration (NTA) has ordered its branch offices to quickly arrange talks between tobacco farmers and buyers whenever disputes arise, especially on grading and pricing.
This follows reports of grading issues involving flue-cured Virginia tobacco in parts of the Ilocos Region. In Balaoan, La Union, a complaint was settled after a dialogue led a trading center to accept previously rejected tobacco leaves, as long as they are properly classified.
The NTA said trading centers run by major companies and accredited buyers across Ilocos remain open to purchase farmers’ produce.
NTA administrator Belinda Sanchez said meetings will be held in the coming weeks with local officials, traders, and farmers due to concerns over oversupply and falling demand. She noted that some local governments had encouraged farmers to increase production without secured agreements with buyers.
Currently, only about 10,000 out of 45,000 registered tobacco farmers are part of the government’s contract growing program, which guarantees a market for their crops.
To help stabilize the industry, the NTA said one company has agreed to increase its tobacco purchases, with talks ongoing with others.
The agency also urged farmers to report problems to local NTA offices. It emphasized that stronger coordination among stakeholders is needed to sustain the industry.
Data from the Philippine Statistics Authority showed tobacco production reached 68,065 metric tons in 2025, up 23 percent from 2024.
