March 23, 2010

Bangladeshi group seeks financial support to boost shrimp exports

The Bangladesh Frozen Foods Exporters Association (BFFEA) is seeking BDT425 crore (US$61.4 million) initial financial support to help shrimp farmers cope with the rise of raw materials' price in the international market.

BFFEA president Musa Meah said shrimp production has been reduced due to price rise of raw materials in the international market, which led to lower shrimp production. In addition, a number of farmers of late lost their confidence on shrimp production, as they can not afford raw materials of shrimp production at higher price.

Musa said 20-25 shrimp processing factories were forced to stop their production as a result of international price escalation and they will have to be motivated to encourage in shrimp production once again.

He termed the recent visit by EU's Food and Veterinary Mission as a successful one and said the mission as well as the government had reached to a consensus to boost the shrimp industry in the country.

Echoing the potential of the sector, the BFFEA chief said Bangladesh has exported freshwater shrimps (galda, also known as green tiger prawn) worth BDT600 crore (US$86.8 million) to destinations mostly EU since January 10 after withdrawal of the 'self-imposed ban' on export of such items to the European countries.

The BFFEA is also set to earn BDT4,500 crore (US$651.2 million) by exporting freshwater shrimp if any problem does not arise, he said.

Bangladesh exported freshwater shrimp (galda) worth BDT114 crore (US$16.4 million) to different destinations excepting the EU during June-November last year while it was BDT246 crore (US$35.6 million) during corresponding period in 2008.

Meanwhile, the country exported around 50,368 tonnes of shrimp (all categories) and earned BDT2,774 crore (US$401.4 million) last year while this year the ministry is expected to export 55,000 tonnes of shrimp.