The National Tobacco Administration (NTA) has set a target of 45.6 million kilograms for the Philippines’ leaf tobacco production in 2025, as announced during the International Tobacco Agricultural Summit held in Quezon City. This goal marks an increase from the 42.2 million kilograms produced in 2023 and the 45.4 million kilograms in 2024. Nestor Casela, the NTA’s Deputy Administrator for Operations, emphasized the need to expand local tobacco farming by adding 4,000 hectares annually, which could support an additional 18,000 farmers each year. Casela highlighted the importance of providing comprehensive assistance to farmers, including technical, financial, and marketing support, to overcome the challenge of limited land availability.
The summit also shed light on the growing disparity between tobacco imports and exports. In 2024, the country exported 17.8 million kilograms of unmanufactured tobacco, a decline from previous years, while imports stood at 30.6 million kilograms. Projections for 2025 indicate a further increase in imports to 51.1 million kilograms, significantly outpacing the expected exports of 22.9 million kilograms. In contrast, cigarette exports are expected to surpass imports, with 4.2 million master cases projected for export compared to 730,930 master cases for import. Similarly, cigar and heated tobacco product exports are anticipated to exceed imports.
The tobacco industry faces numerous challenges, including rising costs of farm inputs, shifting market demands, labor shortages, climate change, anti-smoking campaigns, increasing illicit trade, and delays in excise tax releases. The NTA is committed to addressing these issues, particularly the illicit tobacco trade, which not only impacts the industry but also poses health risks to consumers. Efforts to combat illegal trade include enhanced information campaigns, webinars, international summits, and interagency collaborations. The NTA has identified over 30 smuggling routes, with illegal cigarettes primarily entering from Indonesia and Malaysia through various ports in the Philippines.