Tobacco farmers in the northern part of Luzon, the Philippines, are being encouraged to improve the quality of their produce to ensure they earn higher incomes, according to a Philippine News Agency story of September 6.
This is even though the president of the National Association of Tobacco Farmers, Associations and Co-operatives Mario Cabasal was quoted on the same day in the Business Mirror as saying that graders tended to downgrade the quality of the tobacco to buy it at a lower price (see story Leaf production down).
Growers, cigarette manufacturers, and tobacco dealers and exporters have been meeting to negotiate the floor prices for growers’ tobacco.
The floor price is said to be the minimum price allowed by the government. It is said to be based on the prevailing market conditions, such as production costs, a ‘reasonable’ margin of profit for stakeholders, and growing conditions.
The news agency story said the National Tobacco Administration (NTA) was pushing for a contract growing scheme to ensure a fair tobacco market.
And it said Cabasal hoped to arrive at a fair market price.