Photo courtesy of Leilanie Adriano/PNA
The National Tobacco Administration (NTA) has encouraged farmers to shift to contract growing arrangements to help secure buyers and stabilize tobacco marketing conditions.
NTA officials, led by Administrator Belinda Sanchez, met with local government officials, agricultural officers, and tobacco growers in Ilocos Norte on Friday to discuss support measures for the system.
The discussion focused on challenges in the flue-cured Virginia tobacco market during the current harvest season.
The agency reported an oversupply of about 9.6 million kilos of tobacco accumulated since 2022, alongside increased production in other countries that has added pressure to global supply.
Officials said the situation has affected trading, particularly for farmers without existing contracts, as some accredited buyers may no longer be able to accommodate all produce.
Sanchez said contract growing is being promoted to help secure a stable market and ensure compliance with quality standards required locally and internationally.
Under the system, tobacco companies commit to purchasing agreed volumes while also providing farmers with inputs, technical assistance, and financial support, with assistance from local government units.
The NTA also reiterated its reminder for farmers to transact only with licensed buyers as it continues coordination with traders and manufacturers to address concerns on grading and market access.