WHEREAS, the production of local Virginia tobacco of the quality needed and in quantities marketable in both domestic and foreign markets should be continued and further encouraged so as to strengthen the economy of the nation;

WHEREAS, to better realize such objective, it is necessary that the economic well-being of the Virginia tobacco farmers shall be assured;

WHEREAS, it has been determined that the minimum prices of locally produced tobacco set forth under Presidential Decree No. 62 and Letter of Instructions No. 166 are, by present standards, inadequate taking into account the higher cost of production; and to protect the tobacco farmers, there is need to fix and/or revise the minimum prices at which Virginia tobacco leaf may be purchased from them;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order the following as part of the law of the land:

SECTION 1. Beginning with the tobacco trading year 1976, no person, corporation, partnership or association shall buy locally grown Virginia leaf tobacco at prices lower than the following:

GRADE A	=	P7.00 per kilogram
GRADE B	=	6.50 per kilogram
GRADE C	=	6.00 per kilogram
GRADE D	=	5.50 per kilogram
GRADE E	=	5.00 per kilogram

The description of each grade shall be determined by the Philippine Virginia Tobacco Administration.

SEC. 2. The Philippine Virginia Tobacco Administration may hereafter fix the minimum prices at which Virginia leaf tobacco may be purchased from tobacco farmers whenever the national interest so requires, taking into consideration cost of production, transportation, marketing and other relevant factors.

SEC. 3. The Philippine Virginia Tobacco Administration is hereby authorized to issue rules and regulations necessary to implement the provisions of this Decree.

SEC. 4. Any person who shall violate the provisions of this Decree and any rule or regulation that may be issued by the Philippine Virginia Tobacco Administration pursuant to the authority granted in the preceding section shall, upon conviction, be punished by a fine of not more than Twenty Thousand Pesos (P20,000.00) and/or by imprisonment of not more than five years: PROVIDED: That in the case of corporations, partnerships, associations or companies, the President, Manager or Administrator or the person who has charge of the administration of the business shall be criminally responsible for any violation of this Decree or of the rules and regulations that may be promulgated by the Philippine Virginia Tobacco Administration pursuant to the authority in the next preceding section. If the offender is an alien, he shall be deported immediately without further proceedings.

SEC. 5. Any provision of law or decree in conflict herewith is revoked or amended immediately.

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila, this 26th day of February in the year of Our Lord, nineteen hundred and seventy-six.