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Business

Tobacco harvest recovers to over 45 million kilos in 2024

Jasper Emmanuel Arcalas - The Philippine Star
Tobacco harvest recovers to over 45 million kilos in 2024
Tobacco farmers gather their harvest.
STAR / File

MANILA, Philippines — The country’s tobacco output recovered to over 45 million kilos last year as farmers were encouraged to produce more due to favorable buying prices driven by growing demand for the commodity abroad.

The National Tobacco Administration (NTA) said tobacco harvest last year reached 45.04 million kilos, about 7.5 percent higher than 42.29 million kilos recorded output in 2023.

NTA data showed that both the number of tobacco farmers and the total area planted with the crop last year increased on an annual basis. Tobacco hectarage last year reached 25,656 hectares, 3.4 percent higher than the 24,809 hectares recorded in 2023.

Meanwhile, the number of tobacco farmers last year rose by almost six percent to 43,098 from 40,786 in 2022, according to the NTA.

The NTA attributed the increase in production to favorable climactic conditions and favorable buying prices that incentivized existing farmers to expand planted area while encouraging new farmers to venture in the industry.

“Prices last year (for Virginia tobacco) went as high as P126 per kilo because of higher demand,” NTA deputy administrator Nestor Casela said during the 2nd International Tobacco Summit yesterday.

Some corn growers nationwide shifted to tobacco farming last year due to the presence of fall army worm, thus contributing to expanded tobacco planted area and production, Philippine Tobacco Growers Association president Saturnino Distor said.

He added that tobacco-producing local government units also encouraged their planters to produce more tobacco to have a bigger share in the tobacco excise taxes.

Casela said the NTA is projecting that tobacco output this year would hit a three-year high of 45.58 million MT as farmers would continue to expand production because of the foreseen higher global demand for the commodity.

He said there are projections that China, the world’s largest tobacco producer, would post lower production this year, resulting in a shortfall in global supply.

“Global prices have gone up making the Philippines very competitive in price and quality,” he said while noting that the country’s tobacco leaves are one of the cheapest in the world.

The NTA official added that farmers remain enthusiastic in planting more tobacco as the crop yields a net income of P120,000 per hectare, which is bigger than what farmers tilling other crops earn.

The NTA plans to further expand tobacco areas nationwide by 4,000 hectares a year that would require supporting 18,000 farmers annually through various farm inputs, irrigation and post-harvest facilities.

TOBACCO

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