November 20, 2006

Fate of Bangladeshi shrimp shipments hang in the balance as ban drags on

Millions of dollars worth of shrimp are accumulating in Bangladesh's warehouses of the port in Monglo, Khulna, and are facing the prospect of spoilage as the government's halt on shipments enters its fourth day and is likely to extend into the rest of the week.

The shrimps, from some 30 exporting organizations have been there since Nov 12 and port sources said it would take at least one week for the exports to be cleared. Exporters fear the shrimps would have become rotten by then, causing millions in losses to the businessmen.

In fact, buyers are turned off by the political instability in the country and have refused to extend credit unless the situation improves, Former vice president of Bangladesh Frozen Foods Export Limited Ferdous Alam Khan.

Organizations affected include Rupali Sea Food, Frozen Foods Limited, New Foods Limited, Modern Sea Food and National Sea Food.

Bangladesh's shrimp industry have been tumultuous lately as the EU has threatened to ban shipments due to poor hygiene standards and the discovery of banned chemicals. Meanwhile the government has suspended the export licenses of four exporters and imposed a ban on exports until further notice.