NTA recalibrates marketing plan to boost tobacco exports

MANILA, Philippines — The National Tobacco Administration (NTA) said it would strengthen its marketing drive to hike the export of the country’s tobacco and take advantage of the growing demand of the commodity in the global market.

Agriculture Undersecretary Deogracias Victor Savellano has instructed the NTA to ramp up its marketing efforts to increase the demand for locally produced tobacco both in the local and international markets.

Savellano, who serves as the DA’s oversight official of the NTA, gave the marching orders during the agency’s governing board meeting wherein the status of agency’s marketing programs were tackled.

“The initiative is in line with the agenda of DA Secretary Francisco Tiu Laurel Jr. on expanding market access of crops supporting the economic agenda of President Marcos protecting the purchasing power of every Filipino family to ensure food security,” the NTA said yesterday.

The NTA said the country exported 20.748 million kilos of unmanufactured tobacco products last year. Unmanufactured tobacco products refer to the processed tobacco leaves for use in the manufacturing of cigarettes and other tobacco products, according to the NTA.

The top export destinations of unmanufactured Philippine tobacco were the Dominican Republic, Belgium, Indonesia and the US, the NTA added.

The agency said native tobacco accounted for the most of the exported volume at 9.218 kilos followed by Virginia tobacco at 4.66 million kilos and Burley tobacco at 2.028 million kilos. The country also exported some 4.84 million kilos of other tobacco products such as scrap, stems, expanded sample, cast leaf, cut rag, seeds and dust, the NTA added.

“Considering the great potential of the locally produced tobacco in the world market, I’m urging the NTA marketing research unit to explore more tobacco export outlets and for possible increase in the contract volume of tobacco exports maximizing the existing Department of Agriculture’s international relations,” Savellano said.

“The hike on the volume of tobacco exports will increase the demand for Philippine tobacco bringing more revenues to the government’s coffer and more income to the tobacco farmers,” Savellano added.

The country’s tobacco industry is one of the huge contributors to the country’s economy with tobacco excise tax revenues comprising one percent of gross domestic product and six percent of the state’s overall annual tax revenue collections.

Last year, the Bureau of Internal Revenue collected P132 billion of excise tax on locally manufactured Virginia–type cigarettes. – Artemio Dumlao