BD shrimp export to EU to face setback due to new testing rule
Thursday, 13 May 2010
Sonia H Moni
The European Union (EU) authority has introduced a provision on mandatory testing of at least 20 per cent of each container of Bangladesh's sweet-water prawn as per the recommendations of the FVO mission's findings.
Syed Mahmudul Huq, chairman of Bangladesh Shrimp and Fish Foundation, told FE, "The EU authority has issued a circular at the end of April to the EU members, as the FVO mission did not find adequate lab facilities in Bangladesh."
He said, "The EU authority is trying to create a legal framework in this regard, and the provision might be imposed from the next fiscal. Then, Bangladesh could be the last choice of the importers, as the proposed testing would be a time consuming process."
Maksudur Rahman, vice-president of Bangladesh Frozen Foods Exporters Association, said, "Normally the entire process of sweet-water prawn's shipment to cold storages takes one month. But after imposing the provision it will take 15 to 30 days more."
"Earlier prawn testing was not mandatory, and the EU authority tested the shipments on a random basis. If the provision is imposed, 20 per cent of each container from Bangladesh must be checked. For this reason, it can create some hazards, like - increasing bank interest and storage time, which would ultimately make the entire export process uncertain." One container contains 14 to 18 tonnes of sweet-water prawns that are sold at US$ 6.0 to 6.5 per pound. Bangladesh yearly exports a total of 45,000 tonnes of sweet-water prawns and black tigers worth Tk 35.00 billion, and at least 40 per cent of shrimp goes to the EU.
He said, "Our sweet-water prawns have a great demand in the EU countries because of their taste. We are hopeful that we won't loss our market. But if the EU countries impose this mandatory checking system, we might have to sell our products at cheaper rates."
The export of frozen food, mainly shrimp, slumped by more than 18 per cent than its target during the July-February period of 2009-10.
The second largest export earning sector will face difficulty to fetch the targeted US$468 million in the fiscal, and the negative growth might reach 20 to 25 per cent, he added.
The European Union (EU) authority has introduced a provision on mandatory testing of at least 20 per cent of each container of Bangladesh's sweet-water prawn as per the recommendations of the FVO mission's findings.
Syed Mahmudul Huq, chairman of Bangladesh Shrimp and Fish Foundation, told FE, "The EU authority has issued a circular at the end of April to the EU members, as the FVO mission did not find adequate lab facilities in Bangladesh."
He said, "The EU authority is trying to create a legal framework in this regard, and the provision might be imposed from the next fiscal. Then, Bangladesh could be the last choice of the importers, as the proposed testing would be a time consuming process."
Maksudur Rahman, vice-president of Bangladesh Frozen Foods Exporters Association, said, "Normally the entire process of sweet-water prawn's shipment to cold storages takes one month. But after imposing the provision it will take 15 to 30 days more."
"Earlier prawn testing was not mandatory, and the EU authority tested the shipments on a random basis. If the provision is imposed, 20 per cent of each container from Bangladesh must be checked. For this reason, it can create some hazards, like - increasing bank interest and storage time, which would ultimately make the entire export process uncertain." One container contains 14 to 18 tonnes of sweet-water prawns that are sold at US$ 6.0 to 6.5 per pound. Bangladesh yearly exports a total of 45,000 tonnes of sweet-water prawns and black tigers worth Tk 35.00 billion, and at least 40 per cent of shrimp goes to the EU.
He said, "Our sweet-water prawns have a great demand in the EU countries because of their taste. We are hopeful that we won't loss our market. But if the EU countries impose this mandatory checking system, we might have to sell our products at cheaper rates."
The export of frozen food, mainly shrimp, slumped by more than 18 per cent than its target during the July-February period of 2009-10.
The second largest export earning sector will face difficulty to fetch the targeted US$468 million in the fiscal, and the negative growth might reach 20 to 25 per cent, he added.