Banana exporters hurt by strong exchange rate

Banana exporters in Mindanao are worried over the rising value of the peso against the US dollar, saying it is making them less competitive in the world market.

“We are seeking government help, particularly from the Bangko Sentral ng Pilipinas, to ease our difficulties so the banana industry can survive the difficult situation we are in now,” said Stephen Antig, executive director of the Philippine Banana Growers and Exporters Association.

The banana growers asked the Bangko Sentral to keep a stable peso-dollar exchange rate to help exporters become more competitive.

The group said Tuesday that the peso had strengthened 9 percent against the dollar from about P46.20 in 2009 to P42.19 this year.

It said the stronger peso had made it difficult to keep banana exports at competitive prices.

The banana growers in Mindanao also sought the help of the Export Development Council, a joint government and private sector partnership, to help ease their burden.

The group invoked the mandate of the Export Development Council to assist banana exporters and come up with measures to improve industry competence.

Banana exporters are also faced with the problem of increasing cost of materials and inputs. Antig said the group was worried about the plan to raise power rates.

“If that happens, we will have the most expensive electricity cost in Asia,” Antig said.

Exporters said they could lose their business if they were unable to cope with the strong peso and the rising costs of materials and inputs.

Composed of some 33 banana-producing and exporting companies, the group directly employs some 240,000 workers and earns $720 million in export receipts for the country.

It is the fifth-largest export industry in the Philippines today and the second biggest in Mindanao. –Othel V. Campos, Manila Standard Today