The Philippines’ National Tobacco Administration raised concerns over a potential oversupply of flue-cured Virginia tobacco as the trading season opens in the Ilocos Region and Abra, after several local government units reportedly encouraged farmers to expand production without formal marketing agreements. Of the country’s 45,000 registered tobacco growers, only 10,000 are covered under the Tobacco Contract Growing System, leaving thousands exposed to uncertain market access and pricing pressure.
To manage the surplus risk, NTA Administrator Belinda Sanchez is convening meetings with local governments, traders, and farmer leaders, while lobbying manufacturers to prioritize locally grown leaf over imports during the 2026 trading season. The agency says stronger coordination is needed to prevent market gluts that could hurt farmer incomes.
At the same time, NTA branch offices have been tasked with mediating grading and pricing disputes at trading centers, after reports that some tobacco leaves were being misclassified or rejected. Buying stations run by Universal Leaf Philippines Inc., Trans Manila Inc., and Continental Leaf remain open to receive farmers’ crops across the Ilocos provinces.
