The National Tobacco Administration (NTA) has set a goal to produce 45.6 million kilograms of leaf tobacco in the Philippines for 2025, an increase from the 42.2 million kilograms in 2023 and 45.4 million kilograms in 2024. This announcement was made by NTA Deputy Administrator for Operations Nestor Casela during the International Tobacco Agricultural Summit held in Quezon City.
Casela emphasized the NTA’s strategy to expand tobacco cultivation by adding 4,000 hectares annually, which would support an additional 18,000 farmers each year. He highlighted the challenges of limited land availability and stressed the importance of providing farmers with technical, financial, and marketing support to enhance production.
The Philippines currently has 22,707 native, 14,390 Virginia, and 6,001 burley tobacco farmers. The NTA plans to assist these farmers with farm inputs, irrigation, and post-harvest facilities to boost overall production.
Despite the production goals, Casela noted a growing disparity between tobacco imports and exports. In 2024, exports of unmanufactured tobacco dropped to 17.8 million kilograms from 20.7 million kilograms in 2023, while imports remained higher at 30.6 million kilograms. Projections for 2025 show a further increase in imports to 51.1 million kilograms, compared to expected exports of 22.9 million kilograms.
In the cigarette sector, the Philippines anticipates exporting 4.2 million master cases in 2025, significantly more than the projected imports of 730,930 master cases. Similarly, cigar exports are expected to reach 3.6 million sticks, far exceeding the 63,023 sticks projected for imports. For heated tobacco products, exports are forecasted at 59 million sticks, compared to 12,080 sticks for imports.
Casela also addressed the challenges facing the tobacco industry, including rising costs of farm inputs, shifting market demands, labor shortages, climate change, anti-smoking campaigns, increasing illicit trade, and delays in excise tax and fund releases.
To combat the issue of illicit tobacco trade, the NTA is intensifying its efforts. Rohbert Ambros, head of the NTA Regulation Department, stated during the summit that these efforts are crucial for improving the country’s image in the global market. The NTA’s initiatives include enhanced information campaigns, webinars, international summits, multisectoral meetings, and interagency dialogues across the country. Ambros noted that most illegal cigarettes enter the Philippines from Indonesia and Malaysia via sea, with key entry points in Zamboanga, General Santos, Davao, and Palawan. Over 30 smuggling routes have been identified, with distribution occurring by land and sales through agents at wholesale and retail levels.