Pangilinan pushes measures to strengthen banana export industry

MANILA, Philippines –  Sen. Francis “Kiko” Pangilinan, chairman of the Senate committee on agriculture and food, said he will push for the immediate implementation of several measures to strengthen the Philippine export banana industry which is now encountering problems with Iran.

Pangilinan issued the statement after conducting a public hearing on the detrimental effects of the US sanctions on Iran to the Philippine banana export industry in response to Senate Resolution 263 filed by Sen. Teofisto Guingona III.

In a position paper presented by the Pilipino Banana Growers and Exporters Association Inc. (PBGEA), the group stated that “shipments of Philippine bananas to Iran was abruptly stopped the first week of October this year when Iranian authorities imposed a ban on 48 imported fruits. Philippine bananas, pineapples and papayas were not included in the ban but importation by Iran of said commodities was drastically slowed down by the non-issuance of import permits by Iranian authorities to their fruit importers”.

“As an immediate solution to the problem, the committee will recommend to the President the immediate appointments of an ambassador to Iran who will make effective representation of our interest in terms of trade. As of now, there is no ambassador to Iran and that hampers our representation,” Pangilinan said.

“We will also recommend the sending of a high-level delegation composed of the secretary or undersecretary of trade, foreign affairs and agriculture to clarify issues, and work to revive the trade and export of bananas to Iran,” he said.

“Likewise, there will be medium and long term solutions which we will recommend, one is to look for other alternative global markets considering the volatile situation in Iran,” the senator added.

“We will also study other suggestions that will provide support for small growers like easier access to loans. We will study how this can be done by utilizing the Agricultural Competitiveness Enhancement Fund (ACEF). We will also provide support to the industry by way of research,” Pangilinan said.

The PBGEA, in its position paper said that the Iranian problem re-riveted stakeholders’ attention to the vulnerability of the industry to socio-political and financial instabilities that can beset importing countries and risks of huge losses posed to Philippine exporters by the sudden deprivation of the pre-destined market for their shipments.

The group added that serious shortfalls in earnings adversely affect the farm workers and the small farmers, mostly agrarian reform beneficiaries. In the case of Iran’s slowdown in their importation of Philippine banana, roughly 36,000 farm workers in 9,000 hectares of banana farms were directly affected or an estimated 216,000 residents of Mindanao who are directly dependent on earnings from exports to Iran. –(The Philippine Star)