Many in the Philippine banana and pineapple industries may abandon trade with Iran as UN sanctions against the government begin to bite and revenues start to fall.
According to a report in The National, Pilipino Banana Growers and Exporters Association president Stephen Antig has said that with the value of the rial falling some Iranian companies have instead offered to pay banana and pineapple producers with oil.
"Some of the local banana producers are now rethinking if they should continue trades with Iran," he told Reuters. "The issue is where to get payments," he said. "As far as the Filipino banana exporters are concerned, they're a bit worried now about the implementation of the UN sanctions."
The report stated some large producers have seen revenues drop by as much as 70 per cent, while some smaller players were reporting falls of as much as 80 per cent.
In October 2010 the Philippines encountered problems gaining import permits to Iran for bananas after sanctions were placed on the country over its nuclear programme.