With the export oriented frozen shrimp sector on the decline, sector insiders urged the government to allow diversified shrimp culture in the country to survive and compete in the highly competitive global market.
There are 105 frozen food processing factories in Bangladesh with annual production capacity of 0.4 million tonnes whereas due to the scarcity of raw materials, the production capacity of our factories stands at 10-15 per cent, speakers said at an event in the city.
Shrimp was second among export items which have slipped down to seventh position in export chart. In fiscal year 13-14, a total of 47,635 tonnes frozen shrimp was exported worth $550 which had declined to 30,036 tonnes in FY20 worth $333, according to government data.
In this scenario, it is not conducive to the survival of the factories, they said.
Participants said these at a seminar titled "Increase Export through diversified Shrimp Culture" organised by the Bangladesh Frozen Foods Exporters Association (BFFEA) in collaboration with Fisheries Products Business Promotion Council (FPBPC) on Tuesday.
Shrimp has been cultivated in Bangladesh in a traditional way for the last five decades, so the production per hectare is only 300-400 kg, which is the lowest in the world, BFFEA President Amin Ullah said, urging for diversification of the shrimp culture.
“The Vannamei (Whiteleg shrimp) is disease tolerant and high yielding (production 10-15 tonnes per hectare), and low cost of production has already gained wide popularity in the global market,” he added.
However, the variety has not to get permission officially for production and export in Bangladesh while it is dominating 77 per cent of demand of the global market. And, 14 out of 15 shrimp producing countries in Asia have started Vannamei shrimp farming since 1988, speakers said.
As a result, Bangladeshi exporters are not able to meet this huge demand, the alleged.
Sector insiders urged the government for cash incentives, low interest rate loan, ease the export procedure, availability of raw materials and shrimp insurance similar to agricultural crops in order to help nourishing and survival of the shrimp sector.
Saifullah, Head of Business, ACI Agrolink Limited, suggested increasing RM supply to factory, high yielding variety “Vannamei” and proper input of seed, feed, pond management solution for the diversification of the sector and raise export capacity.
Besides, farm management, climate smart technology, access to finance, advanced payment mechanism, intensify semi-intensive cultivation area, entrepreneurship development training are need for the sector development, he added.
Md. Abdur Rahim Khan, Joint Secretary at Ministry of Commerce, addressed the event as the chief guest and emphasized on the maintenance of global standards for the industries and farming to catch the global market and compete.
Assuring that the government is positive to the Vannamei shrimp farming in the country, he suggested further discussion on it and forward a combined recommendation to this end for further course of action.
