In the Philippines, the government wants to boost local tobacco production

In the Philippines, the government is calling on tobacco companies to drastically increase their purchases of local tobacco, in a bid to boost the industry and strengthen local producers amid the pandemic[1].

A declining global market

The National Tobacco Administration (NTA) has held a consultation meeting with tobacco manufacturers, leaf buyers and retailers to support the growth of the local tobacco industry. Local manufacturers currently purchase 25% of local production, with the rest earmarked for export. The NTA now wants to increase this rate to 45%. The government’s exhortation comes in the wake of the decline in global demand following the pandemic period. The devaluation of tobacco prices, which is weakening producers, is pushing the government to turn to the domestic market.

Modernizing the tobacco market in the Philippines

Representatives of the Philippines' major tobacco companies (Japan Tobacco International, Philip Morris Fortune Tobacco Corp. and La Suerte Cigar and Cigarette Factory) have pledged to increase their purchases of local tobacco. Leaf buyers, for their part, have said they will continue to increase the productivity of contract growers. New technologies, industrialization of production and financial support are aimed at making Philippine tobacco competitive in the global market.

A breach of regulations

This government initiative goes against the country's obligations as a signatory to the WHO Framework Convention on Tobacco Control (FCTC). According to the Treaty, tobacco cultivation should not be encouraged under any circumstances. On the contrary, the FCTC provides for the establishment of economically viable substitute crops.

A particularly heavy human and economic cost

While the Philippines has been a global model in combating the influence of the tobacco industry, this government decision shows the inconsistency of public policies on this issue. The government's approach to tobacco comes at the expense of health considerations, while 117,000 people die each year from smoking in the Philippines[2]. The stimulation of the national tobacco industry appears anachronistic, when 41.9% of men over 15, and 22.2% of 13-15 year olds are smokers. Beyond being an economist, this vision of tobacco is also short-term, when we know that the economic cost of tobacco represents a net cost of nearly 5 billion euros per year in the country.

Keywords: Philippines, Tobacco Culture

©Generation Without Tobacco

[1] Government wants manufacturers to increase tobacco purchases, PhilStar Global, September 22, 2020, (accessed the same day)

[2] Tobacco Atlas, Philippines, consulted on 09/22/2020

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