On top of the assistance the Philippine government is supplying to small banana growers in the wake of Typhoon Bopha, the Land Bank of the Philippines (LBP) has announced it will extend P2.1bn (US$51m) of loans to large growers.
Growers will be able to start applying in about a fortnight for the loans, which Agriculture Secretary Proceso J Alcala said are one of the ways the government is trying to support the devastated Philippine banana industry.
“To help big banana growers rehabilitate farms, the government through LBP has decided to open a credit facility for them,” he said.
But the value of the loans fall well short of the P8bn needed to rebuild the industry, according to Stephen Antig of peak body the Pilipino Banana Growers and Exporters Association.
“Our small banana growers alone need P4.5bn to rehabilitate their farms,” Antig told Business World.
“We are literally crying out for the government’s help in this time. We are happy with what the government is doing but it should be a sustained effort.”
The banana industry is asking for the Philippine government to ensure the value of the peso does not continue to appreciate, which has been cutting into export profits, but central bank figures say such a move is essentially impossible, reported Business World.
The industry is also asking for a realty tax exemption for areas affected by Typhoon Bopha, known locally as Pablo, for up to 18 months.
