JTI buys additional 3.32M kg of local tobacco leaves
JTI Philippines is purchasing an additional 3.32 million kilograms of tobacco leaf from local farmers in a move to address oversupply in the industry.
JTI Philippines said the latest transaction forms part of its regularly programmed annual purchases and will help absorb excess supply in the market.
The volume represents more than two-thirds of the excess production.
However, the local tobacco firm did not disclose the volume of local tobacco it had previously bought.
“We are glad that we were able to help local tobacco farmers this time. It is the combined responsibility of all parties—the Government, industry players and tobacco farmers—to ensure a sustainable tobacco leaf growing industry in the Philippines,” JTI Philippines general manager Alan Jackson said.
“In this regard, we are heartened by the commitment of the NTA (National Tobacco Administration) to avoid another excess production in the future,” Jackson added.
Pledge
JTI Philippines announced its recent purchase following tobacco traders’ pledge to purchase all locally produced Virginia tobacco leaves this season at reasonable prices.
Last month, NTA Administrator Belinda Sanchez said trading companies and cigarette manufacturers agreed to buy all flue-cured Virginia tobacco leaves produced this season at prices aligned with the approved floor prices.
This was the outcome of their March meeting aimed at addressing concerns over a potential tobacco “stop-buying” crisis because of an oversupply of locally produced tobacco leaves.
The estimated supply glut of 5 million kg, according to the NTA, stemmed from the increasing number of noncontracted tobacco farmers cultivating traditional Virginia tobacco varieties.
Local government units’ strong support also contributed to the oversupply, as they encouraged farmers to expand their harvest areas due to robust market demand in the last two trading seasons.
2026 season
The projected volume is about 27-percent higher than the 18.05 million kg of Virginia tobacco leaves committed by trading companies and cigarette manufacturers for the 2026 trading season.
Sanchez reiterated the agency’s commitment to preventing similar situations in the coming years.
“We have already started strengthening the Tobacco Contract Growing System (TCGS) among local government units (LGUs), tobacco farmers, and the private sector to prevent a recurrence and ensure the production of high-quality tobacco,” Sanchez said.
The NTA chief also said this can be attained by shifting from traditional tobacco varieties to early planting of improved Virginia tobacco varieties.
