Speakers at a policy dialogue said Bangladesh's shrimp industry is at a critical crossroads and requires urgent, strategic policy reforms to reinstate its global competitiveness after years of decline.
The Policy Research Institute of Bangladesh (PRI), in collaboration with the Bangladesh Frozen Foods Exporters Association (BFFEA), organised the dialogue titled "Transforming Policy Support for Reviving Bangladesh's Shrimp Sector" at InterContinental Dhaka on Wednesday night.
Dr Bazlul Haque Khondker, research director at PRI, presented the keynote paper, noting that Bangladesh lags significantly behind regional competitors such as India, Vietnam and Indonesia in productivity, regulatory support, value addition and adoption of newer shrimp species, including Vannamei.
While neighbouring countries provide sector-specific incentives -- including low-interest financing, bonded warehouse facilities, insurance schemes and subsidies -- Bangladesh's policy support system remains limited. High import duties on broodstock, restricted financing and regulatory delays have constrained growth, he said.
To restore competitiveness, Dr Khondker proposed short-term measures such as extending Export Facilitation Pre-Finance Fund (EFPF) access to shrimp exporters, classifying shrimp under the agro-sector to allow loan rescheduling, removing the 25 per cent duty on Specific Pathogen Free (SPF) broodstock, improving raw material import systems and supporting excavation projects to modernise farming practices. He also recommended granting hatcheries a two-year transition to fully adopt SPF fry.
Longer-term strategies include the establishment of a Tk 25 billion (approximately £167 million) Shrimp Aquaculture Fund offering concessional financing, and a Tk 5 billion (approximately £33 million) Frozen Foods Exporters Facilitation Fund to aid export diversification and energy-efficient processing.
Further priorities include introducing National Skills Development Authority (NSDA)-backed technical training, setting up third-party quality laboratories, expanding aquaculture onto newly silted coastal land, and designating shrimp a priority crop in key districts. Achieving the target of USD 1.45 billion in exports by 2030 -- requiring annual growth above 22 per cent -- would be "highly ambitious", he cautioned.
Farida Akhter, Adviser to the Ministry of Fisheries and Livestock, who was present as the chief guest, called for eliminating policy discrimination between fisheries subsectors and announced a forthcoming 20 per cent electricity rebate for producers. She expressed optimism about the establishment of a dedicated Fisheries and Livestock Bank and warned against environmental degradation through mangrove clearance. Unregulated fishing, she noted, had caused marine stocks to decline by 78 per cent in the past seven years.
Bangladesh Bank Governor Dr Ahsan H Mansur, attending as the special guest, delivered a sharp critique of the sector's performance, arguing that the industry had suffered from years of stagnation and missed opportunities. Productivity gaps were stark: "If India produces seven tonnes per hectare and Bangladesh produces half a tonne, that reflects a fourteen-fold difference," he said.
He slammed leaseholders occupying large tracts of government-owned shrimp land but failing to invest, stating: "National assets are not family heirlooms. If investors are not utilising them productively, they must step aside."
Dr Mansur stressed that financing alone would not fix systemic weaknesses. While Bangladesh Bank has already extended generous loan restructuring facilities-requiring as little as one to two per cent down payment, with grace periods of up to two years and repayment terms extended to fifteen years-future financing must be conditional on productivity and performance, he said.
He also argued that further investment in processing capacity was unnecessary, as existing facilities remain underutilised. "The crisis is in production, not processing," he said, adding that disease control, varietal improvement and stronger regulation were essential for sustainable recovery.
The event also featured remarks from BFFEA President Mohammad Shahjahan Choudhury, Director General of the Department of Fisheries Dr Md Abdur Rouf, Bangladesh Marine Fisheries Association President Md Enam Chowdhury and industry leader Iqbal Ahmed OBE.
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