PHL banana exporters urge BSP to stabilize peso-$ exchange rate

A Mindanao-based group of banana exporters is urging the Bangko Sentral ng Pilipinas to help stabilize the peso-dollar exchange rate, which is directly affecting their export operations The Philippine Banana Growers and Exporters Association pointed out that in the past three years, the peso has gained 9 percent over the dollar after soaring from P46.20:$1 in 2009 to P42.19:$1 this year. "We are seeking help... to ease our difficulties so the banana industry can survive the difficult situation we are now in," said Stephen Antig, the association's executive director. The group said that the stronger peso has made it difficult to keep exporting bananas at competitive prices in the world market. Aside from the strong peso, the group said the rising cost of materials and inputs — on top of the impending increase in power costs — will likely have an additional negative impact on local banana industry. The banana growers likewise urged the Export Development Council, which is mandated to help banana exporters improve industry competence, to step in and help ease the burden of exporters. As these compounding factors progress, growers could lose their business and cost workers their jobs. Composed of about 33 banana-producing and exporting companies, the local banana industry directly employs some 240,000 workers and contributes as much as $720 million in export receipts to the economy. It accounts for up to 24 percent of the country's total agriculture exports, which amount to $3 billion a year. Philippines is the second top banana exporter in the world after Ecuador, and supplies as much as 95 percent of Japan's banana imports. —JMT, GMA News