Banana exporters in the Philippines are requesting government support measures to manage rising costs and market disruptions affecting export operations.
The Pilipino Banana Growers and Exporters Association has appealed to President Marcos to provide "respite" from economic pressures linked to market disruptions and extreme weather. The group has proposed exemptions from recent minimum wage increases in Regions 10, 11, 12, 13, and BARMM, where export banana production is concentrated.
Minimum wage increases in these regions range from P20 to P50 (US$0.35 to US$0.88). According to PBGEA, this would add to production costs. "The orders did not consider the fact that banana workers are paid more than the minimum wage with more or less P1,000 average daily labor cost or 80 percent more than required by law," said PBGEA chairman Victor Mercado Jr.
The group also requested the suspension of export-related fees to reduce operating costs. These include penalties of P5,000 (US$88) per lodgment error, wharfage fees ranging from P7.695 to P239.53 (US$0.14 to US$4.21), a regulatory fee of P4 (US$0.07) per metric ton, and export license renewal fees of P5,000 (US$88).
PBGEA stated that these measures would support export competitiveness in foreign markets under current logistics and supply conditions.
The sector is also managing supply challenges linked to pests and diseases while export demand remains present in key markets. Exporters estimate potential revenue losses of around US$200 million due to trade disruptions. Some shipments to the Middle East have been suspended.
Iran accounted for 8 per cent of export receipts last year, totaling US$97.52 million. Combined exports to Gulf Cooperation Council countries and Iraq reached nearly US$95.5 million. The Middle East accounted for 12 per cent of total export value, with revenues increasing to US$193 million from US$120 million.
Freight costs have also increased. According to PBGEA data, shipping costs for a 40-foot container have risen to US$9,000 from US$3,000.
Exporters indicate that price adjustments in markets such as Japan and South Korea remain limited, as consumers are already facing higher food costs.
Source: Philstar Global
