JTI Philippines has committed to purchase an additional 3.32 million kilograms of local green weight tobacco leaf to absorb excess supply caused by overproduction in major growing areas. The move supports farmers amid weaker global demand that drove down prices from last year’s highs.
General manager Alan Jackson noted the industry, government, and farmers share responsibility for a sustainable sector, and thanked the National Tobacco Administration (NTA) for efforts to avoid future surpluses. The company said the extra volume is separate from its regular procurement program, recalling a similar 1 million kg additional purchase in 2021 to aid farmers during the pandemic.
NTA reported a 5 million kg surplus of flue-cured Virginia tobacco in Ilocos Sur, Ilocos Norte, Abra, and La Union, after farmers planted traditional varieties without fixed marketing agreements, expecting continued strong demand. Total excess is about 27 percent above the 18.05 million kg committed volume for 2026. Prices have softened—top grade now hits P105 per kg versus P130 last year—but remain above approved floor prices ranging from P62 to P98 per kg depending on quality.
NTA administrator Belinda Sanchez said the agency is strengthening the contract growing system to shift farmers toward improved varieties and formal agreements, aiming to prevent repeats. Currently, only about 10,000 of 45,000 registered farmers are in the program, while 25,000 have private contracts. NTA confirmed all 2026 crop will be bought at set floor prices after talks with traders and manufacturers started as early as March. Production in 2025 rose 23 percent year-on-year to 68,065 metric tons, nearly half being Virginia type.
The intervention helps stabilize farmer incomes amid a sudden market shift, while policy reforms target better supply-demand balance and quality, critical to protecting livelihoods in one of the country’s key agricultural sectors.
