Processors

Recurring power cuts: Shrimp fish processors feel the pinch

Export-oriented fish processing factories in Khulna are currently facing significant challenges due to prolonged power cut, resulting in a reduction of their operational capacity by 50% to 60%, according to the Bangladesh Frozen Foods Exporters Association.

Reports indicate that in addition to the scheduled four to five hours of power cuts, most areas in Khulna are experiencing even longer duration of load shedding (power cut ). Factories supplied by the Palli Bidyut Samity (Rural power development board) are enduring up to 18 hours of power cuts per day, while those under the West Zone Power Distribution Company are facing 8 to 12 hours of outages daily.

S Humayun Kabir, vice-president of the Bangladesh Frozen Foods Exporters Association, stated that approximately 80% of the country’s shrimps are processed in the Khulna division. However, due to the excessive load shedding, factories have been compelled to reduce production by 50% to 60%.

He further emphasized that while the Prime Minister had mentioned a need to conserve 20% to 25% of electricity and scheduled load shedding of four to five hours per day was expected, the actual duration of power cuts in many areas of Khulna is much longer.

Uninterrupted electricity supply is crucial for the survival of factories in the global market, especially those involved in the fish processing industry, Kabir noted.

According to sources, in the fiscal year 2021, Bangladesh exported frozen fish worth $477.37 million, with frozen shrimps accounting for $328.84 million of the total export earnings.

The situation has worsened due to a severe shortage of ice. S Humayun Kabir explained that storing frozen fish has become nearly impossible during extended power outages as all the ice melts into water within a few hours without electricity. This has resulted in significant economic losses for farmers, suppliers, and factory owners. Moreover, the quality of exported products is being affected, tarnishing the country’s image.

Shrimp farmers in remote areas are particularly affected by the ice crisis. In some cases, due to the scarcity of ice, they are transporting shrimps to processing factories in a rotten state, unable to maintain proper storage conditions in the hot weather.

The price of ice has also skyrocketed, with some ice producers charging BDT 500 (Bangladeshi Taka) for what used to cost BDT 100, and in extreme cases, prices reaching up to BDT 1000.

Fakir Mohitul Islam Sumon, president of the Bagerhat Shrimp Farmers Association, expressed concern over the severe ice crisis caused by the load shedding. He highlighted that the inability to store fish properly has led to disruptions in frozen fish exports.

The Ministry of Power, Energy, and Mineral Resources of Bangladesh has stated that the electricity situation is expected to improve, but it may take a couple of months. Power plants that were previously idle due to technical issues and not connected to the national power grid will be operational and connected soon.

Via
The Business Standard
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