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NTA Mediates in Trading Disputes; Pushes Higher Local Procurement

Ilocos region: The National Tobacco Administration (NTA) has mobilized its regional offices to mediate between farmers and buyers following reports of grading and pricing disputes as the flue-cured Virginia tobacco trading season officially opens in the Ilocos Region and Abra.

According to Philippines News Agency, NTA Administrator and Chief Executive Officer Belinda Sanchez directed branch offices to facilitate immediate dialogues to resolve localized issues, particularly those involving the classification and potential rejection of tobacco leaves. Grading concerns in parts of the Ilocos Region were promptly addressed by the concerned NTA branch offices, she said.

NTA La Union branch manager Dr. Giovanni Palabay reported that a grading issue raised in the town of Balaoan was resolved through dialogue on Tuesday. Palabay said the trading center agreed to accept the previously rejected Virginia tobacco leaves, provided they are properly classified.

Trading centers operated by Universal Leaf Philippines Inc., Trans Manila Inc., Continental Leaf, and accredited field canvassers across the Ilocos provinces remain open to accommodate farmers' produce. Beyond grading, the NTA is bracing for challenges related to oversupply and declining demand.

Several local government units (LGUs) encouraged farmers to increase production even without formal marketing agreements with traders. Data from the NTA shows a significant gap in market security. Of the 45,000 registered tobacco farmers nationwide, only 10,000 are currently enrolled in the Tobacco Contract Growing System. It is designed to ensure a stable and reliable market for contracted yields.

To address the surplus, Sanchez has scheduled a series of meetings with LGUs, trading center operators, and farmer leaders in the coming weeks. The NTA is also lobbying tobacco manufacturers to prioritize locally grown leaves over imports to increase its local procurement for the 2026 trading season.

Stronger collaboration among stakeholders will be essential to address current challenges and ensure a sustainable future for the country's tobacco industry, she said. Tobacco farmers encountering issues during the trading season are advised to coordinate with their respective extension workers or report directly to NTA branch offices for assistance.