After one year of suspension, the government has decided to reintroduce cash incentives for white fish exporters in the current fiscal year to help facilitate exports, according to a finance ministry document.
But the exporters will get a five per cent cash incentive in the current fiscal, down from 10 per cent in the FY 2012-13.
The monitoring cell under Finance Division of Ministry of Finance has already sent a letter to the central bank to take necessary steps to offer the incentive.
The government's decision to resume cash support came following the request from frozen food exporters and recommendation of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Ministry of Commerce and Ministry of Fisheries and Livestock.
The incentive was discontinued for one fiscal year with a view to discouraging the export of frozen white fishes to different destinations across the world.
Bangladesh Frozen Food Exporters Association (BFFEA) vice president Ashraf Hussain Mashud said: "The export of frozen white fish has dropped around 50 per cent since November last year when the government withdrew the incentive on white fish export."
"We are hopeful that the decision of the government will help us increase the export volume of frozen white fish," he said.
BFFEA President Md Amin Ullah said "Around 12 per cent of total export earnings of frozen food export comes from white fishes."
Mr Amin said the government has banned the export of all white fishes including hilsha for three months since July 31, 2012 to keep prices of the protein-rich food at reasonable level in local markets during the month of Ramadan.
He said the export ban on white fishes was withdrawn except hilsha after three months. The ban on hilsha is still continuing. On the other hand, the government withdrew cash incentive on white fishes for the fiscal year 2013-14.
Bangladesh exported frozen foods worth $ 65.19 million in July of this fiscal year (FY 2014-15), compared with $ 60.83 million of the same period last fiscal, the Export Promotion Bureau (EPB) data showed.
The government has set a target of exporting $ 731.08 million worth of frozen foods this fiscal.
Bangladesh exports different kinds of white fishes locally known as Hilsha, Kachchi, Mola, Dhala, Pabda, Bhetki, Magur, Shingh, Tangra, Bashpata, Bain, Puti, Batashi and many others.
The shipment goes to Saudi Arabia, United Arab Emirates, Kuwait, Qatar, United States, United Kingdom, Italy, Korea, Canada, Australia and many other countries across the country where expatriate Bangladeshis are living.
