NTA raises floor prices of tobacco

VIGAN CITY – The National Tobacco Administration (NTA) has announced increases in the floor prices of various types of tobacco for the 2001-2002 trading season, up by as much as P2 a kilo from last year’s floor prices.

The new rates were forged in the recently concluded tripartite conference among traders, tobacco farmers, and NTA representatives led by Administrator Carlitos Encarnacion who attributed the increases to the pro-farmer advocacy of President Arroyo and Agriculture Secretary Montemayor.

For Virginia tobacco, the new floor prices are: Grade AA-P46; Grade A-P45; B-P43; C-P41; D-P36.50; E-P35.50; F1-P31.50; F2-P28.50; R (reject)-P16.50. Except for the lower grades, the new prices reflect an increase of P1.50.

For burley tobacco which are mostly grown in Pangasinan and Mindoro: Grade A-P33.50; B-P31.50, C-P29.50; D-P26.50, E-P25.50; F-P18.50; R-P11.50. The new rates except for rejects are up by P2.

For native/dark filler tobacco chiefly grown in Cagayan, Isabela, Visayas and Mindanao; High grade (Batek/Morado)-P36. M-1 (Liso high)-P28.50; M-2 (Liso medium)-P24; L-1 (Liso short sapod)- P18; L-2 or reject.P10. The average increase is P2.

Encarnacion said the floor price mechanism was adopted to insure that farmers are guaranteed of a fair income even as he said that market forces and the quality of their leaf produce have traditionally pushed the prices way up beyond and the declared floor prices. – Teddy Molina