Manila - A peace advocacy group on Thursday called for a ceasefire between the military and Muslim separatist rebels in the southern Philippines, where more than 500,000 people have been displaced by fighting since last month.

More than 200 people, including nearly 70 civilians, have also been killed in the hostilities that started in August when Moro Islamic Liberation Front (MILF) rebels launched a series of attacks in the southern region of Mindanao.

The Mindanao People's Caucus appealed to Arroyo to declare a ceasefire to allow the government to focus on the growing number of evacuees due to the conflict.

"We are begging that the fighting stops and that the two sides sit down to talk, if the primacy of the peace process is indeed still prevailing," said caucus chairman Octavio Dinampo. "We are facing a humanitarian crisis now."

"War does not bring anything good," he added. "Nobody wins, everybody loses. Violence only begets more violence."

The International Committee of the Red Cross (ICRC) said the fighting and the impact on residents in Mindanao were the worst in five years.

It asked donors for an additional 4.5 million Swiss francs (3.95 million US dollars) to cover its ongoing emergency operations in Mindanao, or a 60 per cent increase over its initial budget of 7.6 million Swiss francs.

Felipe Donoso, head of the ICRC delegation in the Philippines, said the humanitarian consequences of the fighting in Mindanao were "very serious."

"The scope of the displacement unleashed by the fighting - tens of thousands of civilians have had to flee their homes with nothing but the clothes they were wearing - and its duration make this situation exceptional," he said.

"The rainy season further aggravates the plight of the displaced, many of whom have to stay in makeshift shelters," he added.

President Gloria Macapagal Arroyo has ruled out any resumption of peace talks with the MILF amid the fighting.

"We will not negotiate with a gun pointed to our head," she said on Tuesday. "Innocent civilians should not be terrorized for crass political gain."

Arroyo dissolved the government team negotiating a peace deal with the MILF after the rebels launched the attacks on southern provinces.

The guerrillas attacks followed the Supreme Court's decision to stop the signing of a territorial agreement that would have expanded an existing Muslim autonomous region in Mindanao due to questions over its constitutionality.

The Philippine government eventually scrapped the controversial agreement on ancestral domain, which Christian politicians warned violated the constitution and could lead to the country's Balkanization. (dpa)