Tripartite body approves P10/kilo hike in virginia tobacco prices

A tripartite conference attended by top tobacco buyers, farmers, and government officials resulted in an unprecedented increase of P10 a kilo in the floor prices of virginia tobacco in its various grades.

The conference, which is convened every two years, was held at the National Tobacco Administration (NTA) main office in Quezon City last Monday. Earlier, two other similar confabs involving burley and native tobacco leaves were conducted.

The new floor prices which cover the various grades of the virginia leaf produce will govern trading of virginia tobacco in the next two years. The new prices reached as high as P61 for the topmost grade AA, from P51 in the last two seasons.

Also increased were the prices of grade A at P59, grade B P57, grade C P55, grade D P50, grade E P49, grade F1 P45, grade F2 P42 and grade R or “reject” P23.

Grades A to R received an increase of P9.50 each from their previous floor price rates.

Deputy House Speaker Eric Singson, Ilocos Sur Gov. Deogracias Victor Savellano and NTA Admnistrator Carlitos Encarnacion led government officials in negotiating with executives of tobacco-buyer firms for the new set of prices.

Singson and Savellano had earlier proposed a floor price of P70 a kilo for virginia leaf’s highest grade which was endorsed by Encarnacion to the buyers.

Singson whose constituents in Ilocos Sur’s second district are the biggest producers of virginia tobacco justified their proposal but the traders led by Philippine Tobacco Institute president Rodolfo Salanga were at first reluctant.

As the lawmaker haggled with them, the buyers yielded and settled for a P10-increase for grade AA and P9.50 each for the other grades.

Singson warned the buyers that farmers will quit raising tobacco and turn to other crops if they are not given a fair increase. “I’m glad we got a good margin from the P20-raise we had proposed,” he told newsmen after the conference.

“We are indeed very happy over the turnout. It certainly motivates us to grow more tobacco and aim for a high quality yield,” Philippine Association of Tobacco Based Cooperatives (PATCO) president Carlos Cachola who led the farmers told newsmen.

Nestor Rodriguez who headed a farmers’ group from La Union predicted that with the “encouraging” set of floor prices, a big number of farmers including those who did not plant tobacco last year will raise the crop  next season.

It was learned that the prescribed prices would guarantee a good margin of profit for farmers although the tendency has been that their leaf produce are bought at prices higher than the floor prices especially when they are of good quality.