The following are the minimum floor prices of each type of tobacco for trading year 2022
To date, tobacco is grown in 23 provinces, covering approximately 30,352 hectares. The industry covers four (4) types of locally-grown tobacco, namely: virginia, burley, and turkish tobacco, refered to as aromatic, and native tobacco.
Different tobacco types are grown in the different tobacco producing province. Virginia tobacco is grwn in Region I, particularly, Ilocos Norte, Ilocos Sur, Abra and La Union. Burley tobacco is also grown in Region I in Pangasinan, La Union, Abra; Isabela and Cagayan in Region II; Tarlac in Region III; and Occ. Mindoro in Region IV. Native/Dark tobacco is grown in Pangasinan and La Union in Region I; Cagayan, Isabela, Nueva Vizcaya and Quirinio in Region II; the Visayan provinces of Capiz, Iloilo, Cebu, Negros Oriental and Leyte; and in the Mindanao provinces of Zamboanga del Sur, Bukidnon, Misamis Oriental, North Cotabato and Maguindanao.
Virginia tobacco is the most dominant tobacco type and consitutes 58% of the tobacco area, equivalent to 23.347 hectares, 52% of the total tobacco farmers or 32,352, and is commercially grown in the four Ilocos provinces of Abra, Ilocos Norte, Ilocos Sur (60%) and La Union (17%).
Burley tobacco constitutes 18% of the total tobacco area equivalent to 7,198 hectares, and 18% of the total tobacco farmers or 11,336. It is commercially grown in the provinces of Pangasinan (51%), Tarlac (16%), Nueva Ecija and Occidental Mindoro.
Native tobacco constitutes 24% of the total tobacco area equivalent to 9,752 hectares and 30% of the total tobacco farmers or 18,729. It is commercially grown in the provinces of Cagayan, Isabela, Nueva Vizcaya, Quirino, Ifugao, Mountain Province, Iloilo, Leyte, Negros Oriental, Capiz, Cebu, Misamis Oriental, Zamboanga del Sur, North Cotabato, South Cotabato, Maguindanao, Sarangani, Bukidnon and Davao del Sur.
The average volume of production fo the yaer 2009 for Virginia is 34-M kilograms or 59% ot the total volume, Burley is 14-M kilograms or 24% of the total, and Native is 10-M kilograms or 17%, for a total of 58-M kilograms.
The average yield of cured tobacco per hectare, applying the prescribed technology, is as follows:
- Virginia – 2,000 kilograms
- Burley – 2,200 kilograms
- Native – 1,653 kilograms
The overall market for aromatic leaf tobacco, Virginia and burley, is 75% for domestic and 22% for foreign. The overall market for native tobacco is 30% for domestic and 70% for foreign.
The domestic market for aromatic leaf tobacco is dominated by Fortune Tobacco Corporation and La Suerte Cigar and Cigarette Factory.
The domestic market for native tobacco includes the manufacturers of cigar and native/dark cigarettes.
The foreign market of aromatic leaf tobacco includes Germany, Hongkong, Singapore, USA, Russia, Japan and others.
The foreign market for native tobacco includes Japan, Spain, France, Tunisia, Dominican Republic, Belgium and others.
Tobacco is the only cash crop, which contributes an enormous sum in the family income of the farmers particularly those in North. As one of the high value crops, the tobacco industry has been generating an annual average revenue of PhP31.8-billion for the government during the past three (3) years, that is, the 2006 to 2008 seasons. A sizable fraction of this is given back to the farmers in accordance with RA 7171. The sources and amount of revenues are as follows:
- Excise taxes from cigarettes/cigars (75%) – PhP 25.5-B
- Corporate Taxes (20%) – PhP 4.1-B
- Duties – (5%) – PhP 2.1-B
The tobacco industry provides direct and primary source of livelihood to 43,960 farmers and about 300,00 other members of their families and about 1.56-M other industry workers and dependents, summing up to an estimated 1.93-M Filipinos.