Policy options to enhance the development of the smallholding banana industry

Industry development is largely determined by government policies. A review and analysis of policies affecting a particular industry should lead to the identification of needs and gaps such that necessary reforms and interventions beneficial for the different stakeholders can be as ascertained and established. Advocacy reforms and policy changes should open doors for the improvement of certain industry as well as other industries facing similar problems. The Socio-Economic Research Division (SERD) of PCARRD [Philippine Council for Agriculture, Forestry and Natural Resources Research and Development, Los Baños, Laguna, Philippines] made an analysis of macro, sectoral and specific policies affecting the development of smallholder banana industry. The ultimate aim was to recommend more conducive policy environment and advocate policy options necessary for the improvement of the industry. The project is part of the socio-economic components of the S and T [Science and Technology] Anchor Program (STAP) for Banana in the Philippines under DOST [Department of Science and Technology]-PCARRD funding support. Improved productivity of banana has been achieved through R and D [research and development] and developed technologies particularly the improvement of traditional banana cultivars, development of new varieties and introduction and mass propagation of tissue culture planting materials. Coupled with these developments were improved production and post harvest as well as processing technologies. Along with the technological improvement and farmers' access to banana planting materials, pests and diseases evolved and eventually spread in major banana growing areas particularly in Luzon [Philippines]. Attempts to rehabilitate infested areas took time. Aggravating the situation was the failure of government entities concerns to fully implement quarantine laws such as those stipulated in PD 1433 and AO No.4. Banana farmers were likewise confronted with issues on marketing system for banana, particularly in Luzon, is open to abuse by traders. Income foregone for the farmers as a result of the current practice of counting bananas by five (lima-lima system) and volume discounting (Melma system) was estimated at 25%. Policy prescriptions and advocacy for adoption and implementation to address these problems include: 1) awareness and strict implementation of quarantine laws, 2) metric system of buying and selling bananas and 3) the mainstreaming of policies into plans and programs of LGUs through the creation of legal instruments in the form of resolutions and ordinances. The advocacy's ultimate goal is to institutionalize quarantine laws at the local level and effect more efficient trading of bananas through the adoption of the metric system. Following the advocacy activities conducted by the project, the Sangguniang Panlalawigan of Quirino approved a resolution on local quarantine drafted during the policy fora conducted in June 2006. However, the preparation of implementation guidelines being drafted at the Office of the Provincial Agriculturist (OPA) was cut short with the demise of its provincial agriculture officer in Sept 2006. The officer-in-charge vowed to finish the implementing guidelines. In Mindoro, the governor had endorsed the passage of the resolution on local quarantine and the Sangguniang Bayan of Calapan conducted public hearings attended by concerned local officials. The project was able to influence local officials on the need to address pressing concerns related to control of banana pests and diseases by legislating and implementing local policies and diseases by legislating and implementing local policies. The advocacy activities provided the farmers and other stakeholders the venue to gain new knowledge to control banana pests and diseases as well as possible strategies for efficient marketing of banana. These activities need to be fully mainstreamed in the local governance to enhance the development of the smallholder banana industry in the study sites and in other areas with similar problems.