Frozen food exporters suffer heavy losses

Exporters of frozen foods have incurred Tk 1.8 billion losses in the past three months (October-December) due to political instability. Their dreams are going to be snuffed out owing to the recurrent nationwide blockades and hartals. The blockade not only disrupted production but also broke the chain management of the frozen foods sector. The ongoing political turbulence has pushed our country towards  destruction. According to the Bangladesh Frozen Food Exporters and Association (BFFEA) sources, Bangladesh usually earns US$ 550 every year by exporting frozen foods to more than 50 countries including Germany, Canada, Belgium, Italy and Russia.
Usually, the country exports prawns at high prices during the Christmas. But exporters failed to export  prawns on time. Under these circumstances, exporters faced heavy losses and their dreams have been shattered owing to the political turmoil. According to the BFFEA, around Tk 17 billion was drawn as loans from commercial banks by exporters this year. The exporters will have to pay Tk 400 million interest despite the fact that they could make any shipment abroad due to political turmoil. This whopping amount of interest has added extra sufferings to the exporters.
Meanwhile, prices of shrimps have declined by US $1 per kg in the international market and prices also are likely to be reduced more in the coming weeks. Although this is the peak season for fish production, the supply of processed fish is being interrupted because of the turmoil.
 Now all the exporters have turned out to be 'fishes out of the water'. They are requesting the commercial banks for reducing interests. The exporters also have urged the commercial banks for allowing them to repay without interest on the existing term loans in instalments from January 2017 so that they could recover from their losses.
If the nationwide blockade goes on for a long time, the exporters will have to face unbearable losses. Neither the government nor the opposition party is thinking about the future of our exporters. Timely decisions by the authorities can salvage the sector. The exporters are still optimistic about further gains abroad.
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The writer is at the Department of Statistics, the Islamic University, Bangladesh. [email protected]