Tobacco Asia

56 tobaccoasia LEAF NEWS 烟叶新闻 JTI Eases Tobacco Oversupply Japan Tobacco International (JTI) Philippines has stepped in to purchase an additional 3.32 million kilograms of tobacco leaf from local growers, helping to reduce a projected oversup- ply in the country's tobacco sector. The National Tobacco Administration (NTA) estimates that the Philippines faces an excess of about 5 m.kg. of flue-cured Virginia tobacco during the 2026 trading season. The surplus represents roughly 27% of the 18.05 m.kg. that trading companies and cigarette manufacturers initially committed to buy. Industry officials attributed the increase in production to strong demand and favorable tobacco prices over the last two years. Local government units also encour- aged non-contracted farmers to expand tobacco cultivation, contributing to higher output. "We are glad that we were able to help local tobacco farmers this time," said Alan Jackson, JTI Philippines general manager. "It is the combined responsibility of all parties — the government, industry players, and tobacco farmers — to ensure a sustainable tobacco leaf-growing industry in the Philippines." NTA Administrator Belinda Sanchez welcomed the company's decision to purchase the additional tobacco. "We are grateful to JTI Philippines for being a respon- sible corporate citizen," Sanchez said. She added that NTA has already begun strengthening the tobacco contract growing system (TCGS) involving local governments, farmers, and the private-sector to prevent a recurrence of the oversupply situation and ensure the production of high-quality tobacco. Under the TCGS, tobacco companies agree to purchase crops from contracted farmers under predetermined terms. The system also provides growers with production inputs, technical support and financial assistance aimed at improving both yield and leaf quality. According to NTA data, approximately 10,000 of the Philippines' 45,000 registered tobacco farmers participate in the TCGS. Around 25,000 registered farmers currently hold contracts with private companies. Stalk Deadline Spurs Crackdown Zimbabwean tobacco growers who fail to remove crop residues after harvest could face fines, loss of market access and reduced support from contractors as authorities intensify enforcement of tobacco stalk destruction regulations. The Plant Quarantine Services Institute (PQSI) launched nationwide inspections following the expiration of the statutory May 15 deadline for uprooting and destroying tobacco stalks. The agency, which operates under Zimbabwe's Plant Pests and Diseases Act, is working alongside the Tobacco Industry and Marketing Board (TIMB) and Agricul- tural and Rural Development Advisory Services (ARDAS) to identify non-compliant growers. According to PQSI head Dr. Loiusa Makumbe, inspec- tors are conducting both random and targeted audits in major tobacco-growing regions, including Mazowe, Bindura, Chin- hoyi, Karoi, and Mutare. Authorities plan to focus on areas with a history of non-compliance. "The deliberate or negligent failure by some growers to remove these residues is a high-risk phytosanitary violation that cannot be tolerated," Makumbe said. "In terms of the Plant Pests and Diseases Act, inspectors are issuing immediate penalties." First-time offenders face fines of up to US$100 per hectare and/or imprisonment of up to one year. Repeat violations can result in fines of up to US$200 per hectare and/ or prison terms of up to two years. Authorities may also flag non-compliant growers in the national database, which could affect regulatory approvals, marketing privileges and contractor support during the 2026/27 season. Zimbabwe's tobacco regulations require growers to observe host-free periods designed to reduce pest and disease pressure. PQSI warned that standing stalks and regrowth can harbor viruses such as potato virus Y and tobacco bushy top virus, which aphids can spread over long distances. The agency also noted that simply cutting stalks above ground does not eliminate the threat because roots and stumps can continue to host pests and diseases. Since the opening of the tobacco marketing season in March, inspectors have conducted awareness campaigns at auction floors across the country to encourage compliance. Growers who experienced legitimate delays were required to apply for extension permits before the deadline. Some farmers blamed low tobacco prices for their inability to hire labor to destroy stalks on time. Zimbabwe Tobacco Growers Association president George Seremwe acknowledged growers' frustrations but urged them to comply with the regulations. "Let us destroy stalks and curb the spread of diseases," he said. KT&G Raises Tobacco Leaf Prices KT&G will increase the price it pays for domestically-grown tobacco leaf this year as part of a broader effort to support South Korean tobacco farmers facing rising production costs. "We plan to invest an additional KRW2.2 billion (US$1.6 million) compared to last year, taking into account the in- creased management burden on farmers due to rising fuel and labor costs," the company said. "By providing support that exceeds the rate of inflation, we aim to strengthen our coop- erative relationship with tobacco farmers." In a separate initiative, KT&G provided KRW400 million (US$290,000) in welfare assistance to domestic tobacco growers through the Tobacco Production Stabilization Foundation. The funds were delivered to the Central Federa- tion of Tobacco Production Cooperatives on May 19 and will help cover health screenings and educational scholarships for farmers' children. The company said approximately 750 people will benefit from the latest round of support. Since launching the program in 2013, KT&G has provided health and education assistance to tobacco-growing households affected by challenges such as an aging workforce and labor shortages. The cumulative number of beneficiaries has reached about 16,500. KT&G also highlighted its long-standing support for the domestic tobacco sector. Since 2002, the company has purchased the entire domestic tobacco leaf harvest each year, providing growers with a stable market for their crops. To assist farmers with seasonal financing needs, KT&G advances 30% of its planned tobacco purchases between April and May

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