Due to the world economic recession, Shrimp farmers of Khulna region are suffering from the price fall. Compared to last year, the exporters are paying 40% less price for freshwater and black tiger shrimp. Which is the lowest price in the decade.
Shrimp farmers are harvesting at the end of their four months hard work and yields put smile on them in size and production. Unfortunately, the smile pales away once taken to the exporter for sale.
Shrimp once the 2nd foreign exchange earning industry is now about to go to the stage of poor industry. Due to the global economic recession, demand for shrimps in the international market has fallen drastically. Shrimp exporters have bound to stopped buying from farmers. And if any buys that too at about half of the regular market price.
According to the information of the department of fisheries, same time last year, the shrimp farmers of Khulna sold freshwater shrimp at the rate of Tk 1000 per kg (USD 10 according to the current conversion rate). Now it is selling for only 600 to 700 TK (USD 6 to 7). On the other hand, the cost of production has increased for the farmers due to many other reasons including the price of shrimp food, transportation, wages and allowances of workers.
Talking to the Shrimp farmers of Khulna region, Mr. Abdus Salam said he has not seen such a cheap market price in the last two decades. Elias Hossain said, if the current situation continues, we will have to stop the shrimp production business.
Exporters are saying, due to the lack of demand in international market; we are forced to buy shrimp at low prices. And in this case many are afraid of losing business capital. According to them, government initiatives are now most essential to sustain this industry.
Mr. M A Panna, Managing Director of Fahim Seafood Limited, said, “To save this industry, to save the farmers, the government has to step in.”
“Our embassies are required to talk with all the buyers there. A normal market environment can be brought back through this channel.”
Vice President, Bangladesh Frozen Food Exporters Association (BFFEA), Mr. SM Humayun Kabir
According to the responsible authority, the Department of Fisheries, various steps have been taken to overcome this situation. Including training farmers to produce more shrimp in a small area.
Mr. Tofaz Uddin Ahmed (Divisional Deputy Director, Department of Fisheries, Khulna) said, “Farmers will be given advanced training to change their farming practices. We are working with 300 to 7500 farmers.”
Domestic shrimp consumption is on the rise in Bangladesh. Across the nation, local restaurants can play a vital role to save farmers from their financial loss. It is high time to introduce and create consumers for value added ready to cook shrimp products. Along with traditional shrimp culinary, restaurants may serve popular foreign dishes. Food festivals or fairs may be organized based on shrimp and its different value added items.
These will create a strong value chain for local shrimp businesses and also new job opportunities. Trade associations, consumers awareness entities, entrepreneurs and most importantly related govt authority requires to work together to overcome this hurdle.
