Philippines Risks Losing Rp 3.37 Trillion from Banana Exports Due to Iran War

MANILA, KOMPAS.com - Banana exporters in the Philippines risk losing nearly 200 million US dollars in revenue due to trade disruptions in the Middle East, as the war in the region intensifies.

This figure equates to approximately Rp 3.37 trillion, assuming an exchange rate of Rp 16,886 per US dollar.

The Gulf War has shaken the local banana industry, particularly the major exporting companies.

Specifically, Iran has been one of the most profitable non-Asian destinations for the Philippines’ flagship banana commodity.

The Philippines is now seeking a more diverse market base amid tight competition in the region.

Data from the Philippine Statistics Authority (PSA) shows that Iran is one of the fastest-growing banana markets for the Philippines.

Iran itself contributed six percent of total banana export earnings last year, reaching nearly 100 million US dollars.

Banana exports to Iran in 2025 surged by 81 percent to 97.52 million US dollars from 53.79 million US dollars recorded in 2024.

In terms of volume, banana exports to Iran last year reached 242,877.58 metric tons, or about 46.7 percent higher than the 165,448.52 metric tons recorded in 2024.

The Observatory of Economic Complexity (OEC) reported that in 2024, the Philippines was the second-largest banana supplier to Iran, after India.

India itself benefits from lower logistics costs due to geographical proximity.

OEC notes that the Philippines was the fastest-growing banana exporter to Iran between 2023 and 2024.