Wednesday, March 07, 2007
Who's afraid of banana?
My baby boy loves banana. I was told by his doctor that banana is good for babies. I so assume that many parents feed their babies with bananas, too. For them, and for the babies' sakes, less expensive banana is therefore a good thing.
Apparently, the government (and Indonesian Banana Association -- of course this is not their name, I made it up) disagree. So far, Indonesian banana market has been a good sale place for cavendish bananas from the Philippines. Last year, the price was good (as consumers, we don't care why it could be less expensive, we only care that it was relatively not expensive). As it turns out, and if the government accusation is correct, them Philippinos were doing a dumping strategy. That is, they were selling bananas at lower price to us than to their own folks.
And the government had to do something: cheap bananas are not good for the economy. So they came up with a decree imposing an anti dumping tariff on cavendish bananas from the Philippines (if you are curious, it is the Ministry of Finance's Decree No. 81/PMK.010/2006).