Farmers happy about increases in tobacco prices

Tobacco farmers have expressed contentment with the outcome of last week’s tripartite conference among stakeholders of the tobacco industry, which agreed to an increase of P3.50 and P3 in the floor prices of Virginia and burley tobacco, respectively.

The new price increases, which are to be applied across the board on the various grades of Virginia and burley leaves, will take effect in the next two years.

Nestor Rodriguez, who led the Virginia tobacco farmers in the tripartite talks, said what they achieved was no mean feat.

He described the P3.50 hike as unprecedented in the history of the biennial tripartite conference.

"Idi, nasayaaten no adda Pl wenno P1.50 a mainayon iti floor price kada kilo (Then, it’s good enough if the floor prices are increased to P1 or P1.50 a kilo)," he said.

The farmers acknowledged the efforts of the National Tobacco Administration (NTA) in having the tobacco-buying groups agree to the increases.

The leaf buyers, led by Winston Uy, Matthew Diong and Andy Filler, earlier offered minimal increases of P1 and P2.50 per kilo for Virginia and burley tobacco, respectively.

Uy is the president of the Philippine Aromatic Tobacco Dealers’ Association, while Diong represented Trans Manila, a Philip Morris leaf supplier. Filler is with Lancaster Philippines.

Carlos Cachola, president of the Philippine Association of Tobacco-Based Cooperatives (PATCO), lauded NTA administrator Carlitos Encarnacion for having steered the talks to a fruitful conclusion.

Encarnacion said the floor prices are meant to ensure that the tobacco farmers get a reasonable margin of profit for their produce.

He, however, said trading prices have been higher than floor prices, depending on the quality of the leaf production.

Tobacco farmers always look forward to the tripartite conference, held every two years, to express their concerns on the high cost of fertilizer, pesticides and other farm inputs.

Last Thursday’s conference, held at the NTA training center in Quezon City, was attended by farmers and executives of tobacco-buying firms and cigarette manufacturers.

NTA deputy administrators Nestor Casela and Benedicto Lumauig and the agency’s other officials and branch managers were on hand to give support to the farmers.