Higher floor prices set for tobacco

THE National Tobacco Administration has approved new floor prices for tobacco to be implemented in the next two trading years.

For Virginia tobacco, the floor price per kilogram increased to P82 for Grade AA; P81 for A; P80 for B; P78 for C; P70 for D; P69 for E; P60 for F1; and P57 for F2.

The former prices were respectively P81, P79, P77, P75, P68, P67, P59, and P56.

Virginia accounts for nearly 60% of the total tobacco production area in the country.

For the burley variety, the grade A floor price rose to P70 from the current P68.

Floor prices for grades B,C, D, E, and F are now P67, P58, P47, P46, and P38, respectively, an increase of P2, except for Grade F which increased by P1, from the current prices per kilo.

The floor prices for the native variety were increased as follows: High-grade, to P71 from P70; Medium 1, to P60 from P58; and Medium 2, to P50 from P48.

There was no price increase for rejects which remain at P46 for Virginia; P28 for burley, and P40 (L-1) and P25 (L-2) for native type.

The new prices follow the Sept. 6 tripartite conference to set prices.

Farmers were batting for a price hike of as much as P16.77 per kilo across all grades, citing the increase in the cost of farm inputs for tobacco production.

Meanwhile, leaf buyers sought a freeze on prices on the back of reduced sales due to a rise in excise tax rates and the nationwide ban on smoking in all public places.

Mario C. Cabasal, president of the National Federation of Tobacco Farmers Associations and Cooperatives, expressed satisfaction with the new floor prices. —