Consultation for the adjustment of tobacco floor prices officially started this week with the branch level consultative conference with tobacco farmer leaders from major tobacco-growing provinces.
The consultative meetings were held simultaneously at the NTA Branch Offices in Ilocos Norte, Vigan, and La Union on October 11, in Cagayan on October 13, simultaneously in Abra, Isabela, and Pangasinan on October 14, and in Candon on October 15.
After group consultation and deliberation, facilitated by NTA officials, representatives of tobacco farmers came out with a unified cost of production per tobacco type and sub-type, which will be a factor in the revision of the current tobacco floor prices.
The biennial tripartite conference, which will be held in the central office on November 10-11 serves as a venue for the review and adjustment of floor prices of tobacco types (Virginia, Burley and native) and sub-types (neutral/filler and topped). Selected farmer leaders will present the consolidated cost of production for each tobacco type and sub-type and negotiate the floor prices in a conference in November with cigarette manufacturers, tobacco dealers, and exporters.
The new adjustment of floor prices for this year’s tripartite conference will be implemented during the tobacco trading years 2022 and 2023.The current floor prices, approved in the last Tripartite Consultative Conference in 2019, for the highest grade of each tobacco type are P84 for Virginia, P72 for Burley, and P73 for Native type.
As mandated by Presidential Decree (PD) No. 627 s. 1974, PD No. 1481 s. 1974 (for Virginia), and PD No. 1143 s. 1977 as amended (for Burley), NTA is authorized to set/fix tobacco floor prices by adopting a tripartite consultative conference, through its Regulation Department as the lead department.
