SEVENTEENTH CONGRESS 
)
REPUBLIC OF THE PHILIPPINES 
) 
FIRST REGULAR SESSION 
)
■tiliSr (fiffut of
JCT 17 °6:40
RKCi'JV i .i> BY:
SENATE
S.B. NO. 
1206
Introduced by SENATOR CYNTHIA VILLAR
“AN ACT CREATING THE BANANA INDUSTRY DEVELOPMENT COUNCIL 
AND PROVIDING FUNDS THEREOF AND FOR OTHER PURPOSES”
E xplanatory Note
The Philippines is said to be one of the largest producers of bananas throughout 
the world. India has the first rank in the list, delivering around 29.8 million tons. 
The other top producers are - China (11.6 MT), Uganda, (11.2 MT) and 
Philippines (9.2MT). (i)
Philippines bananas exports by country plummeted in value to US$439.9 million 
for 2015, down drastically by -61.3% from $1.1 billion in 2014. As a world-class 
banana supplier, the Philippines dropped from third place in 2014 to sixth place 
behind Ecuador, Belgium, Costa Rica, Guatem ala and the United States.
Among continents, Asian countries bought 98% of overall exported Filipino 
bananas paying $432.2 billion for their import purchases. Far behind in second 
place of banana exporters were New Zealand and Australia which, together, 
consumed 1.5% worth of Filipino bananas shipm ents. Ju st 0.3% of Filipino 
bananas were exported to Europe while 0.2% arrived in North America.
The fastest-growing consum ers of Philippine bananas exports since 2011 were: 
Bahrain (up 822.2% in value), Saudi Arabia (up 638.1%), Malaysia (up 312.3%) 
and Kuwait (up 195.4%). (2)
Over a five-year time, span, the value of Filipino exported bananas declined - 
6.6% from $471.2 million in 2011.


Based on the Departm ent of Agriculture annual report in 2014, banana is the 
second largest agricultural .export item. Our quality produce comes with a low 
production cost, thereby making the country one of the largest exporters in Asia. 
The Bureau of Agricultural Studies said that in 2011, the Philippines has an 
existing production area of 450,125 hectares that has produced a volume of 
9,165,046 MT. The top five producers of banana include the regions of Southern 
Mindanao, followed by Cagayan Valley, Central Mindanao, and the ARMM. In 
term s of yield per hectare, the Mindanao region recorded the highest yield. 
Southern Mindanao recorded an average 5deld of 34.3 t/ ha; Central Mindanao 
had 33.94 t/ ha; whereas Northern Mindanao and the ARMM had more than 10 
t/h a . The national average yield was 11 t/h a .
The top producers in Southern Mindanao include Davao del Norte, Davao del 
Sur, and Davao City. Compostela Valley has ventured into large-scale 
commercial production. Central Mindanao, Lanao del Norte contributed around 
78% of the total production in the region. The rest came from North Cotabato 
and Sultan Kuradat. More than 70% of the total produce of ARMM came from 
Maguindanao.
It is safe to say that we produce one of the best bananas in the world—but this 
doesn’t spare u s from threats affecting the industry. Issues surrounding the 
banana plantation production have been constantly m ounting since time 
immemorial- this includes labor disputes, environmental hazards, food safety, 
and sustainable development among others.
H ealth and Ecological Im pact of B anana P lantations
Mendis and Van Bers (2001) noted several health effects brought about by 
chemical use in banana plantations. Health problems associated with exposure 
to toxic chemicals among farm workers. About 55% of total production cost of 
banana was spent on fertilizer and chemicals. The use of fertilizer led to depletion 
of the soil. Soil analysts reported that intensive land cultivation and overuse of 
chemicals gravely damaged the land of banana growers in Davao, Philippines. 
Most banana companies are now on the lookout for more land because the 
existing plantations have become less productive through the years, a 
consequence of intensive use of fertilizer and chemicals (JCDB, 1979 as cited in 
Tabien,2000).
The effects of chemicals, particularly pesticides used in banana plantation, on 
the environment and public health have been studied throughout the world, 
specifically in areas where banana plantations have existed for a long period of 
time. Some of these showed adverse effects of banana plantations.


A study by Foro Em aus (1998) showed the effect of chemicals primarily 
pesticides, used in banana plantations. Consumer demand for perfect bananas 
in 
industrialized 
countries 
led 
to 
transnational 
companies 
producing 
unblem ished bananas of uniform size and color. To be able to produce these 
perfect bananas, plantations depend on high levels of agrochemical use.
One of the m ost serious pesticide problems in banana plantations is brought 
about by the practice of aerial fumigation with products such as benomyl (brand 
name, Benlate), propiconazole (Tilt 250 EC), chlorothalonil (Bravo 500), and 
tridemorph (Calixin). In addition to contaminating nearby homes and water, 
aerial fumigation poisons plantation workers when spraying occurs while they 
are working.
The banana is an ecologically demanding species that requires abundant 
humidity, high tem peratures, and soil with diverse nutrients. If bananas are 
cultivated without rotation - on the same land - over a given period, it is common 
to find all-too-noticeable mineral deficiencies in the soil, especially of calcium, 
iron, magnesium, nitrogen, phosphorus, potassium , and zinc (Astorga, 1996). 
The agroecological consequences of intensive monoculture, the total alteration 
of the biological properties of the soil, and the effects of pesticides on the natural 
enemies of the pests carry a high price both in term s of regeneration of the soil 
and appearance of secondary pests.
O ther problem s of th e B anana Industry
The world is now facing a global banana crisis. This disease is called the “Panam a 
Disease” or “Fusarium  Wilt”—one which causes wilting and m ass plant die-offs, 
making it the deadliest banana disease in the world. It has already spread from 
Asia, to parts of Australia, Africa and the Middle East. Last 2014, about 3,000 
hectares of banana plantation was abandoned in Mindanao alone. Another 
challenge faced by this industry is the alleged production of sub-standard crop 
contam inated with a high residue of pesticide, which threatens our role in the 
world trade.
In 2009 it was reported that in Quirino, only 7,000 hectares are left; out of the 
12,000 hectares planted to the crop in the early 1990s. This is due to bunchy 
top disease. (4) (Banana Farming: A lucrative, yet d5dng industry, PhilStar, 2009).
The high potential of our banana industry alongside the pressing issues make it 
necessary for the Government to focus on how to improve our banana produce 
and to eliminate these posed threats to make our position in the trade both 
effective and efficient for the economy and our banana farmers o).


Why is banana a high value crop
Saba banana is a triploid hybrid (ABB) banana cultivar originating from the 
Philippines. It is primarily a cooking banana though it can also be eaten raw. It 
is one of the most important banana varieties in Philippine cuisine. It is also 
sometimes known as the cardaba banana, though the latter name may be more 
correctly applied to a very similar cultivar also classified within the saba 
subgroup. Other commonly grown bananas in the Philippines aside from 
Caveldish banana are Lakatan bananas, also called Bungulan, Latundan and 
Senorita bananas.
In Luzon under ideal conditions, lakatan is highly profitable compared to rice, 
according to research made by the Isabela State University-Santiago campus.
At the high end, a one hectare irrigated farm with 2,000 banana plants produces 
about 20 kilos per banana plant per harvest. When sold at P30 per kilo (the 
current average price), this means P600 per bunch. With an average of two to 
three harvests a year, this translates to PI.2 million per hectare per year.
In comparison, a hectare of irrigated rice produces P40,000 per harvest. At twice 
a year, this amounts to only P80,000.
The high-yield, high-profit figures come from bananas planted in irrigated farms 
with high inputs of fertilizer, pest control and deleafing to control pests and 
diseases.
In non-irrigated areas, a hectare with 2,000 banana plants yields about 15 kilos 
per bunch. When sold at ju st P I5 per kilo, for instance, it still amounts to 
P450,000 per hectare per year; still considerably higher than what a farmer can 
expect to earn from rice farming.
Banana is a major crop in the Cagayan Valley, third after corn and rice.
rniA A. VILLAR
Senator


(1) (http:/ /www.worldstopexports.com/bananas-exports-countrv/
(2) (http://www.philippinesaroundtheworld.eom/philippines-bananas-exports-bv-countrv/l
(3) (http://www.mindanews.com/top-stories/2016/10/da-to-set-up-pl00-m-one-stop-shop- 
lab-in-bago-oshiro /)
(4) (http: / / www.philstar.com / agriculture / 356115 /banana-farming-lucrative-vet-dving- 
industrvl
Astorga, Y. 1996. The environmental impact of the banana industry: a case study of Costa Rica. 
January 2003.
Calderon and A.C. Rola, Assessing benefits and costs of commercial banana production in the Philippines, UP Los 
Banos, Laguna.
Foro Emails. 1998. The price of bananas: the banana industry in Costa Rica. Global Pestic. 
Campaigner. 8 (1).
References:
SANREM-CRSP/SEA (Sustainable Agriculture and Natural Resource Management-Collaborative Research 
Support Program/South East Asia). 2002. Institute of Strategic Planning and Policy Studies, College of 
Public Affairs, University of the Philippines Los Banos, College, Laguna.
Tabien, C. 2000. Local government response to the potential environmental impacts of 
commercial farms on the water resources of Lantapan, Bukidnon. Master of Management 
(Development Management) field study report. University of the Philippines Los Banos, College, 
Laguna


•i-m
tnaiv
' l , i r  (J i'fu t o{ the<> ''i f i-i.-'' sj
SEVENTEENTH CONGRESS 
)
REPUBLIC OF THE PHILIPPINES 
)
FIRST REGULAR SESSION 
)
S.B. NO.
SENATE
1206
“I r:
J:J 17 
? 6 :4 0
RK.C’Lrv \A i> IW: ^
Introduced by SENATOR CYNTHIA VILLAR
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“ AN ACT CREATING THE BANANA INDUSTRY DEVELOPMENT COUNCIL AND 
PROVIDING FUNDS THEREOF AND FOR OTHER PURPOSES”
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled;
Section 1. 
Title. - This Act shall be known as the “Banana Industry Development Act 
of 2016”
Section 2. 
Declaration of Poiicy. -The State recognizes the importance of agriculture 
in making available food and other products necessary to sustain and enhance human 
life, and in providing livelihood to a major portion of the population.
It distinguishes the importance of food security for every Filipino family and recognizes 
our farmers as one of its most important partners in reaching its goals.
It also recognizes the rights of the farmer workers to be entitled to such benefits provided 
under the Labor Code. As provided in Art. II, Sec. 18 of the Constitution, “The State affirms 
labor as a primary economic social force. It shall protect the rights of the workers and 
promote their welfare”.
Section 3. 
Definition of Terms. -  As used in this Act, the following words and phrases
shall mean as follows:
A. Cooperatives- refer to groups of individuals (either growers or workers or both) 
that engage in legitimate business within the banana industry.
B. Consumers- they are the end user/buyer of bananas in the banana-importing or 
producing countries/farms.
C. Secretariat Services- the officials or office entrusted with administrative duties, 
maintaining records, and overseeing or performing secretarial duties
D. Workers- All workers that are engaged in activities in banana plantations.
Section 4. Objectives. - This Act seeks to attain the following objectives:
A. To give the people involved in banana farming a fair share of the country’s 
wealth through empowered government assistance, training, and support;


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B. To mandate the owners of banana plantations to comply with laws, conform to 
environmental standards and use a reasonable or limited amount of pesticides 
and chemical fertilizers;
C. To assist these farmers/farm owners to obtain the highest yield of return 
possible; and
D. To promote the import and export of bananas.
Section 5. Creation of the Banana Industry Development Council (BIDC). -  To carry 
out the policy and program provided in this Act, a Banana Industry Council (BIDC) shall 
be formed to organize, plan, and implement necessary guidelines and regulations to 
achieve these objectives.
The BIDC shall ensure the full participation of the Local Government Units involved, 
cooperatives, NGOs and the private sectors to attain its objectives.
Section 6. Composition of the BIDC -  The BIDC shall be composed of the following:
A. The Secretary of Agriculture or his designated undersecretary as chairperson;
B. The Secretary of the DENR or his duly authorized representative possessing 
similar skills and qualifications;
C. Fifteen 
(15) 
representatives 
from 
legitimate 
banana 
plantation/farmers’ 
cooperative who shall own or till not more than five (5) hectares of banana 
plantation. Each island group must be at least be represented by three. They shall 
be nominated by the farmers group in their respective island group and who shall 
be chosen by the chairperson from the list of five (5) nominees.
D. Three (3) representatives from the business/industry sector chosen by their peers.
Section 7. Powers and Functions of the BiDC. -  The BIDC shall have the following 
powers, functions, and obligations:
A. Formulate policies, plans, programs and projects to better assist, train and support 
the Banana Industry for its competitiveness and sustainability and the 
establishment of an efficient and integrated supply chain;
B. Call upon private sectors, cooperatives, academe to provide information and 
guidance pertaining to the banana industry farming;
C. Adequate supply and widespread use of tissue cultured planting materials to 
minimize risks and stronger resistance to disease and pests’ infestation;
D. Submit annual and other periodic report to be submitted to the Department of 
Agriculture of the accomplishment of the Industry;
E. Identify areas for expansion to meet foreign and local demands;
F. Address issues pertaining to new diseases, tariffs, climate change challenges, 
regulations, among others.
G. Provide development framework and implementation mechanisms for the optimum 
development of the banana industry in the Philippines.
H. Protect and preserve the native Philippine banana varieties.


J.
K.
Enhanced flow and quality of extension services for banana farming to facilitate 
adoption of Good Agriculture Practices for improved productivity and product 
quality;
Improved access to, availability, use, and utilization of organic fertilizer and other 
inputs: while reducing environmental costs and production losses;
Perform such other functions as may be necessary for the continued 
enhancement, growth and development of banana plantation and trade 
businesses in the country and for export.
Section 8. Secretariat of the BIDC. -  The BIDC Secretariat shall be constituted and be 
under the direct supervision of the Department of Agriculture under the High Value Crops 
Development Program (HVCDP) (RA 7900) which helps promote the production, 
processing, marketing and distribution of high value crops. A position of an Executive 
Director shall be created to supervise the day-to-day operations of the Banana Industry 
Development Council.
Section 9. Implementing Rules and Regulations. -  The BIDC shall be constituted 
within ninety (90) days from the approval of this Act.
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Section 10. Repealing Clause. -  All laws. Presidential Decrees, Executive Orders and
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Memoranda contrary or inconsistent to this Act are hereby repealed, amended or modified
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accordingly.
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Section 11. Separability Clause. - If any part or provision of this Act is held to be
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unconstitutional or void, the remaining parts not declared as such shall be considered as
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valid and shall remain in full force and effect.
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Section 12. Effectivlty. - This Act shall become effective fifteen (15) days after its full 
publication in the official Gazette or newspaper of general circulation.