The
Philippine Banana Growers and Exporters Association (PBGEA) is seeking the
support of the government in the wake of the possible closure of the Iran
market due to the stoppage of operation of shipping companies bound for Iran
effective this month.
“This
could translate to losses of more or less P4 billion for our banana exporters
who have not yet even recovered from the devastation caused by typhoon Pablo,”
PBGEA executive director Stephen Antig said.
Antig
said they have received an advisory from Mercury Steamship Agencies, Inc., an
agent of the Pacific International Lines which ships bananas to Iran, about the
suspension of its operations.
“We
regret to inform you that Mercury Steamship Agencies, Davao will suspend the
acceptance of cargoes into Iran effective June 16, 2013,” the Agency wrote in a
letter sent to its valued clients. The letter further said that the last
acceptance of cargoes bound for Iran was last June 15, 2013 on board Tilly
Russ.
The
shipping companies are suspending their operations to Iran, Antig said, as part
of its commitment to comply with foreign trade regulations. It can be recalled
that the United States has imposed economic and other sanctions against Iran as
a result of the latter’s nuclear program. The sanctions are aimed to cut off
Iran’s access to critical sources of revenue and to make its money useless
outside the country.
Antig
said the Iran market is one of the biggest banana markets in the Middle East,
accounting for 50 percent of the Middle East market. If the shipping companies
will no longer bring our bananas to Iran then what are we going to do with our
products, he said.
“This
is a potential man-made typhoon that will add to the burden of the Philippine
banana industry,” Antig said. PBGEA, he said, has already informed the
Department of Agriculture, Department of Trade and Industry and Department of
Foreign Affairs about the problem and is waiting for their response.
With
the suspension of operation of shipping companies bound for Iran, only APL or
the American Presidential Line will be shipping good to Iran. However, APL will
only load bananas bound for Iran if the exporter has a license from the US
Treasury.
“This
is very difficult to get and majority of our exporters here do not have this
license,” he said. So now that our banana growers have rehabilitated their
banana plantations after Pablo, where are they going to sell their bananas with
this development?
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