Tobacco export receipts shrank by 14.2% in 2024

The National Tobacco Administration reported that the country’s unmanufactured tobacco exports shrank by 14.2 percent in 2024 at 17.8 million kilograms from 20.75 MKg in 2023.

The value of tobacco shipped dropped by 6.47 percent to $94.59 million in 2024 from $101.13 million in the previous year.

NTA data also showed that Universal Leaf Philippines, Inc. (ULPI) as the top exporter of unmanufactured tobacco last year with a total volume of 14.14 million kg worth $111.97 million. JTI Asia Manufacturing Corp. trailed behind with 1.89 million kilograms at $3.12 million, followed by Continental Leaf Tobacco Philippines Inc. with an export volume of 747,210 kilograms (kg) worth $3.9 million, Trans Manila Inc. (TMI) with 636,120 kg worth $1.85 million, and PMFTC Inc. with 315,026 kg worth $795,761.

Meanwhile, NTA data showed imports of unmanufactured tobacco plunged by 39.89 percent to 30.59 million kilos in 2024 from 50.88 million kilos in the previous year.

The value of imports also plummeted by 49.51 percent to $115.87 million from $229.47 million recorded in 2023.

The agency said over half of the imported unmanufactured tobacco is used for local cigarette manufacturing, 39 percent is for export as cigarettes, and the remaining 4 percent is for export as processed leaf.

NTA Deputy Administrator for Operations Nestor Casela said tobacco production last year grew by 7.46 percent to 45.40 million kg from 42.25 million kg in 2023.

“Philippine tobacco became competitive in international markets,” Casela said at the sidelines of the International Tobacco Summit in Quezon City.

He said that this was spurred by China, the world’s leading tobacco producer, which reduced its production, which caused global supply to tighten.

In his presentation, Casela noted that international prices rose, which made the Philippines “very competitive in price and quality.”

“Due to the interplay of demand and supply, there was a great demand for tobacco last year [since] China reduced its production of tobacco, that’s why our Philippine tobacco became competitive and resulted in much higher prices.”

He said the average buying price of local leaf tobacco stood at P129 per kg in 2024.

Casela noted that the increase in output was also caused by local government units (LGUs) prompting farmers to plant more, given the incentive stipulated under the Republic Act (RA) 7171.

The local government units are so motivated in convincing their farmers to plant more because it means the bigger volume they produce, the higher their share under the law.

Under the law, 15 percent of the collection from excise taxes on locally manufactured Virginia type of cigarettes will be allocated to the beneficiary provinces pro rata according to the volume of production.