Shrimp export declines drastically

Shrinking export market and growing sale of low-priced vannamei shrimp in India, Vietnam and Thailand are main reasons for decline

Export of shrimp and shrimp products from Bangladesh has declined drastically in the last two fiscal years. According to the Export Promotion Bureau (EPB), total volume of shrimp export stood at US$ 550.16 million in 2013-14 FY, whereas it came down to $ 509.72 million in 2014-15 FY.
Experts claim that the reasons behind this decline include: shrinking shrimp export to the European Union and Russian countries owing to dispute over standard of Bangladeshi shrimp; sanctions on Russia; growing sale of low-priced vannamei shrimp in India, Vietnam and Thailand; shortage of new markets; and price devaluation of Euro, US Dollar and Russian Ruble.
A combination of these factors has led to shrimp growers and exporters in Bangladesh facing huge losses over the past two years. Going forward, international prices of shrimp and shrimp export are expected to fall even further if the government does not take immediate steps.
Experts have suggested to both government and the private sector to explore new shrimp export markets, increase production of quality shrimp, grow shrimp that can be easily sold to consumers, and use modern technologies for growing and packaging shrimps.
EPB Director Abdul Moyeen told The Independent that government should now try to explore new export markets as shrimp can be sold easily to foreign consumers to increase shrimp export in future.
Bangladesh Shrimp and Fish Foundation (BSFF) Chairman, Syed Mahmudul Huq, cited the same reasons for decreasing export and told this newspaper that due to huge reduction in price, most producers and exporters are stocking their shrimp. “But, there is no immediate chance of increasing shrimp export as recession in EU countries is yet to be eliminated. As a result, most EU consumers are buying low-quality and low-pricedbenami shrimp. If this continues, shrimp exporters may face huge losses in future,” he said. Syed too suggested that the government find new markets and ensure supply of liquidity for producers and exporters so they can survive.
According to EPB data, Bangladesh exported shrimp and shrimp products worth Tk. 3,948.34 crore (US$ 50.972 crore) in 2014-15 FY whereas the year before that, i.e. 2013-14 FY, the country exported shrimp and shrimp products worth Tk. 4261.6 crore (US$ 55.016 crore). Currently, the exchange rate in Bangladesh is Tk. 77.461 per US dollar, Tk. 84.9726 per Euro, and Tk. 1.12 per Russian Ruble. Going by these rates, shrimp export has declined by Tk. 313.25 (US$ 4.044 crore) in the last fiscal 2014-15. In the last five months from July to November 2015, Bangladesh exported shrimp worth Tk. 1,598.4 crore (US$ 20.635 crore), which is Tk. 539.52 crore (US$ 6.97 crore) less than the corresponding period of the
previous year.

Shrimp export declines drastically

Shrinking export market and growing sale of low-priced vannamei shrimp in India, Vietnam and Thailand are main reasons for decline

Export of shrimp and shrimp products from Bangladesh has declined drastically in the last two fiscal years. According to the Export Promotion Bureau (EPB), total volume of shrimp export stood at US$ 550.16 million in 2013-14 FY, whereas it came down to $ 509.72 million in 2014-15 FY. Experts claim that the reasons behind this decline include: shrinking shrimp export to the European Union and Russian countries owing to dispute over standard of Bangladeshi shrimp; sanctions on Russia; growing sale of low-priced vannamei shrimp in India, Vietnam and Thailand; shortage of new markets; and price devaluation of Euro, US Dollar and Russian Ruble. A combination of these factors has led to shrimp growers and exporters in Bangladesh facing huge losses over the past two years. Going forward, international prices of shrimp and shrimp export are expected to fall even further if the government does not take immediate steps. Experts have suggested to both government and the private sector to explore new shrimp export markets, increase production of quality shrimp, grow shrimp that can be easily sold to consumers, and use modern technologies for growing and packaging shrimps. EPB Director Abdul Moyeen told The Independent that government should now try to explore new export markets as shrimp can be sold easily to foreign consumers to increase shrimp export in future. Bangladesh Shrimp and Fish Foundation (BSFF) Chairman, Syed Mahmudul Huq, cited the same reasons for decreasing export and told this newspaper that due to huge reduction in price, most producers and exporters are stocking their shrimp. But, there is no immediate chance of increasing shrimp export as recession in EU countries is yet to be eliminated. As a result, most EU consumers are buying low-quality and low-pricedbenami shrimp. If this continues, shrimp exporters may face huge losses in future, he said. Syed too suggested that the government find new markets and ensure supply of liquidity for producers and exporters so they can survive. According to EPB data, Bangladesh exported shrimp and shrimp products worth Tk. 3,948.34 crore (US$ 50.972 crore) in 2014-15 FY whereas the year before that, i.e. 2013-14 FY, the country exported shrimp and shrimp products worth Tk. 4261.6 crore (US$ 55.016 crore). Currently, the exchange rate in Bangladesh is Tk. 77.461 per US dollar, Tk. 84.9726 per Euro, and Tk. 1.12 per Russian Ruble. Going by these rates, shrimp export has declined by Tk. 313.25 (US$ 4.044 crore) in the last fiscal 2014-15. In the last five months from July to November 2015, Bangladesh exported shrimp worth Tk. 1,598.4 crore (US$ 20.635 crore), which is Tk. 539.52 crore (US$ 6.97 crore) less than the corresponding period of the previous year.