Shrimp exports turn around

Shrimp exporters have made a turnaround from seven years of decline as shipments surged in the first nine months of the current fiscal year on the back of increased prices powered by higher demand, according to industry insiders.

Earnings from shrimp exports between July and March in the ongoing fiscal year stood at $332.72 million, up 37 per cent from $242.88 million during the same period in FY2020-21, according to data from the Export Promotion Bureau.

The total yearly value for shrimp exports has been lodged in a downward trend since FY2013-14, when it was $545 million.

Industry operators say that many processing companies resumed shrimp exports as they are getting higher prices in the international market after tackling the strong competition from producers in other countries.

"Even though total production has not increased by much, we are seeing around 30 per cent higher prices compared to last year as the demand, particularly for black tiger shrimp, has increased in places like the EU," said M Khalilullah, managing director of Satkhira Foods Ltd.

"Local producers are expecting to export more vannamei shrimps in the future to tackle global demand," added Khalilullah, also senior vice president of the Bangladesh Frozen Foods Exporters Association.

S Humayun Kabir, chairman and managing director of Amam Sea Food Industry Ltd, told The Daily Star that around 80 per cent of the global market is occupied by vannamei shrimps while the black tiger variety holds 11 per cent and giant river prawns 5.5 per cent.

The government is expected to allow 13 companies to begin processing vannamei shrimp for export under a trial basis to understand the industry's potential in this regard, he said.

Commercial production of vannamei shrimp, also known as whiteleg shrimp, has increased in world markets with countries like India, Vietnam and Thailand becoming suppliers.

"On the other hand, Bangladesh is yet to tap into the potential of this variety, preferring instead to stick to giant river prawns and the black tiger breed," Kabir added.

Policy indecision on allowing local growers to produce and export whiteleg shrimp has long been holding back Bangladesh's competitiveness in the global shrimp market, which registers a whopping $32 billion in yearly trade.

Of the roughly 105 shrimp processing companies in the country, just 30 to 35 of them export their products.

So, the government should take the initiative to facilitate shrimp exports by providing both policy and monetary support for industry operators, who have long been urging the authorities to give more focus to their issues.