DHAKA: Continued lower global demand has been forcing the local frozen fish exporters to sell their products at reduced rates with the country deprived of a significant amount of foreign currencies, said sector insiders.
Exporters said the cost of Bangladeshi frozen fish declined by nearly 40 per cent in the world market recently which has left a big impact on the sector. Some factors including large supply of low-priced vannamei and fall of Euro and Ruble against Dollar are behind the situation.
Buyers from key destinations like European countries and Russia mostly prefer to choose low-priced ‘vannamei’ shrimps as their currencies have fallen against dollar. The United States also imports the same variety of shrimp following its low cost.
Exporters, therefore, are forced to sell their products at a low cost. They are not even getting buyers at concessional prices.
The average cost of frozen shrimp to the EU countries declined from US$ 12.88 to US$ 8.96 per kg in the fiscal years 2013-14 and 2014-15, according to the Bangladesh Frozen Food Exporters Association (BFFEA).
Besides, the export volume also decreased significantly during the last one year in the EU, the US and Russian markets.
Export earnings from frozen shrimp declined by around 41 per cent in the July-August period in the fiscal year 2015-16 compared to that of corresponding period of FY 2014-15, the Export Promotion Bureau (EPB) data revealed.
The sector earned US$ 68.69 million during two months of this FY which is lower than US$115.73 million earned during the same period of last FY, it also showed.
“We are now making push sales to foreign buyers as there is no sufficient demand of our products in the market,” said ARK Sea Foods Ltd managing director Amin Ullah.
Following available supply of vannamei shrimp, the demand for Bangladeshi black tiger decreased notably in the world market, he said.
So they are selling shrimps at lower prices as they want to sell the stock before expiration date. “And we are running business in this way in the last several months”.
Exporters are not getting customers even by offering lower prices, Mr Amin Ullah, also the BFFEA former president pointed out.
He feared if this dull situation continues, the sector will face a setback.
According to the BFFEA, the exporters already lost their working capital of Tk 4.63 billion in the last one year.
Khan Habibur Rahman, deputy managing director of Lockpur Group of Industries Ltd, a leading frozen fish exporter, said the world frozen shrimp market is now buyer’s dominating ones for Bangladesh. So they cannot bargain with the customers for better prices.
With production of low-priced vannamei, India,Thailand and Vietnam are now leading the world shrimp market.
Exporters urged the government to provide some facilities including block account, raising of the ceiling of subsidy and also taking steps to increase the back tiger production.
India, Thailand, Vietnam, Indonesia and Ecuador are leading the EU market through export of vannamei shrimps.
