27/05/2026
READ: Traders commit to buy all Virginia to***co this season
The National To***co Administration (NTA) has assured to***co farmers in the Ilocos Region, including Abra, that all flue-cured Virginia (FCV) to***co leaves produced this season will be purchased by traders following successful negotiations initiated by the agency last week.
NTA Administrator and CEO Belinda S. Sanchez said on Monday that to***co traders have committed to buy all locally produced to***co at reasonable prices based on the approved floor prices.
Sanchez, together with Deputy Administrator for Operations Nestor C. Casela, Deputy Administrator for Support Services Benedicto M. Savellano, and Regulation Department Manager Atty. Rohbert A. Ambros, began meeting with to***co traders and cigarette manufacturers as early as March this year to address concerns over a possible to***co “stop-buying” situation due to oversupply of locally produced to***co leaves.
The projected five-million-kilogram overproduction was attributed to the increasing number of non-contracted to***co farmers cultivating traditional Virginia to***co varieties with strong support from the local government units (LGUs) that encouraged them to expand their area due to strong market demand in the past two trading seasons.
The estimated overproduction represents about 27 percent more than the 18.05-million-kilogram purchase commitment of Virginia to***co leaves by the trading companies and cigarette manufacturers for 2026 trading season.
“The to***co supply was short in the last two years, resulting in strong demand and unexpectedly high prices. However, this trading season, prices declined due to overproduction, consistent with the law of supply and demand,” Casela explained.
During the 2025 trading season, the highest buying price for prime-class FCV to***co leaves reached as much as ₱130 per kilogram. This year, however, the highest buying price for prime-class FCV to***co has so far reached only ₱105 per kilogram. Despite the decline, current buying prices remain higher than the approved floor prices.
For the 2026 trading season, the approved floor prices for FCV to***co range from ₱98 per kilogram for Class AA leaves to ₱62 per kilogram for reject-quality leaves.
Aside from overproduction, Casela noted that poor-quality to***co leaves were also observed this season due to limited irrigation water supply and unfavorable agro-climatic conditions brought about by extreme heat.
To address concerns over oversupply and declining to***co leaves quality, Administrator Sanchez and Deputy Administrator Casela recently met with mayors and municipal agriculturists from Virginia to***co-producing LGUs and urged them to encourage farmers to participate in the To***co Contract Growing System (TCGS).
Under the TCGS, authorized to***co companies commit to purchase the produce of contracted farmers under agreed terms and conditions, providing farmers with assured markets and more stable income. Contract growers are also given access to production inputs, technical assistance, and financial support from to***co companies to help improve both the quality and volume of their harvests.
Currently, only around 10,000 of the country’s 45,000 registered to***co farmers are enrolled in the NTA’s TCGS program. Of the total number of registered to***co farmers, about 25,000 are contracted by private sector companies. (Freddie Lazaro, DA -NTA)
Photo courtesy of NTA - La Union