RP turns to China market on reports of Iran sanctions

The government is looking at increasing banana exports to the lucrative Chinese market, in light of still unconfirmed reports of a ban in Iran. “Based on the trade map, our market in China is just 17 percent. We figured there’s still room for growth considering China’s huge market potential," said Agriculture Undersecretary Bernadette Romulo-Puyat this weekend. The country is currently looking for alternative markets for Philippine bananas, following unverified reports that the commodity item is among those banned. Unconfirmed reports likewise say the ban might be part of an economic sanction on Iran by the US and several European countries. “Even Asian banks are not lending to Iran. There is a demand for Philippines bananas but as it is, bananas are not in their prerogative. Consumers are willing to buy but they do not have the purchasing power," an industry source said. While the supposed ban on banana exports to Iran has yet to be confirmed according to the government, it has earlier been reported that Philippine cavendish exports to the Middle East country are among the slow-moving commodities in Iranian supermarkets. According to the Office of Middle East and African Affairs of the Department of Foreign Affairs (DFA), Iranian Ambassador to the Philippines Ali Moujitaba Rouzbani said the Iranian Embassy in Manila has yet to receive official notice from the Iranian government on the ban. Meanwhile, Foreign Affairs Assistant Secretary Virgilio A. Reyes Jr. said the Philippine Embassy in Iran has requested the Iranian Ministry of Agriculture for an appointment and a copy of the list containing the 48 products that are subject to the ban. The DFA added it will coordinate with the Department of Agriculture to formulate actions, if needed, to lessen the impact the ban might have on Filipino producers. Philippine banana growers said the unconfirmed ban is ill-timed, especially in light of the upcoming holiday season when demand for food products, such as fruits, surges. For its part, the Philippine Banana Growers Association of the Philippines said as much as $170 million will be lost if the existing slow market for bananas in Iran persists. Based on the trade map, the market share for Philippine bananas in Iran is about 82.4 percent, the highest among Middle East countries. Manila is also the top exporter of bananas to Brunei, China, Taiwan, Macao, Japan, Malaysia, Singapore, Hong Kong, and South Korea in Asia, as well as Iran, Kuwait, and United Arab Emirates. — With Jerrie Abella/VS, GMANews.TV