Factories have been locked up.
Dhaka: The situation in Bangladesh is deteriorating after Sheikh Hasina’s escape. The garment industry is already under tension due to Donald Trump’s announcement, and now a new crisis has emerged. The shrimp business here is on the verge of shutting down.
Factories have been locked up. Due to a decline in exports and several challenges, the shrimp processing industry is on the brink of complete collapse. This is an opportunity for India, as it can establish a foothold in markets that were once dominated by Bangladesh.
According to a report by the Bangladeshi newspaper The Daily Star, the shrimp processing industry, which once generated millions of dollars, is now facing a severe recession. Most shrimp factories have shut down due to exports being halved. Bangladesh’s shrimp industry used to provide jobs to thousands of people. It was also the backbone of the country’s rural economy. However, it has sunk due to a shortage of raw materials, a decline in exports, environmental changes, and the rise and fall of governments.
According to the Bangladesh Frozen Foods Exporters Association (BFFEA), there were 109 shrimp processing factories, but only 30 in Khulna and 18 in Chittagong are currently running. The rest have been shut down. These factories have an annual production capacity of about 400,000 tons, but they are receiving only 7 percent of the required shrimp production. Due to this shortfall, many factories have already been forced to close. Companies are only able to obtain 25-30 percent of the shrimp they need, which has led to several factories having to shut down in between.
India is a major exporter of shrimp. Shrimp is exported from India to the markets of the United States, Japan, and the European Union. In 2023-24, India exported 1,781,602 metric tons of shrimp, with a total value of 60,523.89 crores. The United States imported 297,571 metric tons of frozen shrimp from India. Bangladeshi shrimp is the most preferred. Bangladesh exports this shrimp to most European countries. More than 90% of Bangladesh’s shrimp exports go to EU countries. Now India can export to these countries. This will increase job opportunities in India.
