The National Tobacco Administration (NTA) confirmed it has secured commitments from traders and manufacturers to buy all flue-cured Virginia (FCV) tobacco produced this season in the Ilocos Region and Abra, even though supply is well above demand.
Oversupply stands at roughly 5 million kg — 27 percent more than the 18.05 kg buyers originally agreed to take. This came after many non-contracted farmers expanded planting, encouraged by local governments, following two years of shortages and high prices. As a result, top prices fell from P130/kg in 2025 to P105/kg this year, though current rates are still above the official floor prices of P62–P98/kg. Quality also suffered due to extreme heat and limited water.
To prevent future problems, NTA is pushing local officials to promote the tobacco contract growing system (TCGS). Under the program, farmers have guaranteed buyers, fixed terms, and support for inputs and farming methods — ensuring steady income and better quality. Only a fraction of the country’s 45,000 registered tobacco farmers are currently in formal contracts.
The assurance protects thousands of farmers from losing income due to oversupply and lower prices. It also highlights a shift toward more structured farming agreements to balance production, stabilize earnings, and improve crop quality long-term.
