Growers fear tobacco glut after strong prices last year

Philippine Tobacco Growers’ Association President Saturnino Distor expressed concern over a possible tobacco glut, noting that non-government organizations and local officials have encouraged farmers to plant more following last year's attractive prices, as reported by BusinessWorld.

Distor doubts that such high prices will be replicated this year due to the international supply situation, citing that producers like Malawi have reported output of hundreds of millions of kilograms, which could depress global prices.

The oversupply risk underscores the vulnerability of local tobacco growers to global market fluctuations, raising concerns that a glut could significantly cut into their income after a brief period of profitability.