Easing problems facing shrimp and fish export

Releasing the outstanding cash assistance would provide at least a temporary reprieve. While it may not reverse the long-term export slump, timely disbursement could restore liquidity and enable exporters to meet commitments

Bangladesh's once-thriving shrimp- and frozen fish-export sector is now gasping for survival. Already reeling from an unfavourable international market, the industry has been pushed deeper into crisis by the government's prolonged inaction. Exporters are caught in a severe liquidity trap, unable to sustain overseas trade because of the government's failure to release long-overdue cash incentives --- funds that serve as lifelines for an industry under stress.

According to a report carried in The Financial Express, which is based on the Bangladesh Frozen Foods Exporters Association's (BFFEA's) claim, arrears amounting to Tk 1.74 billion remain stuck with the authorities. This non-disbursement has crippled exporters' operational capacity, jeopardising their ability to honour export commitments and retain a foothold in key markets. In a recent letter to the government, the BFFEA lamented that the arrears have been pending with Bangladesh Bank since September 2025. The association made it clear that the export incentive is not a mere "bonus" but a policy tool essential for sustaining foreign exchange earnings and protecting livelihoods of coastal communities. The shrimp and fish export industry, a vital contributor to the economy for over five decades, directly and indirectly employs thousands -- many of them impoverished farmers from vulnerable coastal belts. Industry insiders say disbursement of incentives has remained suspended for nearly a year owing to unresolved audit objections. Although those objections were reportedly cleared by September 2024, no subsequent payments have been made. This bureaucratic inertia has left exporters in limbo, their working capital depleted and their confidence in policy support severely eroded. Many warn that further delay could inflict lasting damage to the sector, which is already struggling to stay afloat in a turbulent global market.

Shrimp exports have been on a steady decline for years, with slide steepening in recent times. Demand for Bangladesh's premium black tiger shrimp has fallen sharply in traditional markets such as the European Union and the United States, which together absorb around 80 per cent of the country's shipments. Persistent recessionary pressures in the West, coupled with aggressive pricing from lower-cost producers in Southeast Asia and Latin America, have eroded Bangladesh's competitiveness. Once the country's major foreign exchange earner after garments and jute, the shrimp sector is now a shadow of its former self. Despite its renowned quality and distinct flavour, Bangladeshi shrimp is losing ground amid global oversupply and buyers' price sensitivity. Export earnings from shrimp and frozen fish fell by 4.26 per cent in the last fiscal year --- a reflection of the mounting challenges and policy neglect confronting the industry.

At this critical juncture, releasing the outstanding cash assistance would provide at least a temporary reprieve. While it may not reverse the long-term export slump, timely disbursement could restore liquidity and enable exporters to meet commitments, and support investment in quality and compliance. The government must act with urgency and clarity. Failure to do so risks not just the collapse of a traditional export pillar but also the livelihoods of thousands who depend on it.