How diplomacy is driving up hilsa prices in the country

প্রকাশ: সেপ্টেম্বর ২২, ২০২৪

Staff Correspondent

Once a regular item on the plates of the middle class, hilsa (Ilish) has become increasingly inaccessible. It was not out of reach for the lower class either. Due to Bangladesh’s geographical location, the country is one of the world’s largest hilsa producers. Over the last decade, the production of this fish has nearly doubled. However, contrary to economic principles, the increase in production has not resulted in lower prices. Instead, hilsa prices have surged, and it has disappeared from the tables of the middle class, becoming a luxury only for the affluent.

 

Experts suggest that hilsa production growth has slowed in recent years. Moreover, the fish has become a diplomatic tool in relations with neighboring countries. Adding to this, the management of hilsa during its breeding season is not coordinated with the neighboring country either. As a result, the price of hilsa has skyrocketed in both countries, making it an increasingly rare treat for the middle and lower classes.

 

According to data from the Department of Agricultural Marketing (DAM) and the Trading Corporation of Bangladesh (TCB), in December 2022, the price of hilsa in local markets ranged from BDT 500 to BDT 1,200 per kilogram, depending on size. By September 21 of last year, it had risen to between BDT 600 and BDT 1,300. And in yesterday’s market (Saturday, September 21), the price ranged from BDT 800 to BDT 1,600 per kilogram, depending on size. Traders, however, report even higher prices in some areas of Dhaka.

 

After assuming office, the interim government had initially decided not to export hilsa to India. On August 11, just three days after taking office, Farida Akhter, Adviser to the Ministry of Fisheries and Livestock, told reporters at the Secretariat, “We won’t be sending any hilsa to India. It’s an expensive fish. We’ve seen that even our people can’t afford to eat hilsa because most of it is sent to India, and what’s left is sold at a high price.”

 

The government has since reversed that decision. Ahead of the upcoming Durga Puja, the government has approved the export of 3,000 tons of hilsa to India. An order was issued by the Ministry of Commerce yesterday (Saturday, September 21). The order, signed by Deputy Secretary Sultana Akhter, stated that in response to applications from various exporters for the upcoming Durga Puja, approval for the export of 3,000 tons of hilsa fish has been granted. It is subject to the fulfillment of stipulated conditions.”

 

The order also mentioned that applicants must submit their applications to the Ministry of Commerce by 12:00 pm on September 24. No applications will be accepted after that date. Applicants who have already applied do not need to reapply.

 

Adviser Farida Akhter spoke to Voice of America (VoA) on the matter yesterday (September 21). She said that the amount to be exported will depend on domestic supply. The supply of hilsa is low this year. She also mentioned that fishing has decreased, and much of what is being caught is being diverted through various channels. She said that the government will assess how this impacts the local market.

 

According to the Department of Fisheries, Bangladesh exported approximately 665 tons of hilsa to India in the fiscal year 2023-24. In the previous fiscal year (2022-23), the amount was 1,376 tons. In 2021-22, 1,211 tons were exported; in 2020-21, the amount was 1,880 tons.

 

Market observers say that the price of hilsa always rises in the domestic market before Durga Puja each year. At the same time, the discussion around exporting hilsa to India resurfaces. While hilsa is used as a diplomatic tool between the two countries, it rarely benefits the general population. Instead, as the discussion intensifies, hilsa prices rise in the market, and illegal fish smuggling increases. This year, reports have also emerged of several consignments being seized at the border.

 

When asked about this, a diplomat who requested anonymity said, “Hilsa holds appeal primarily for the Bengali population in India. Therefore, using hilsa as a bargaining tool in diplomatic negotiations between the two nations is not particularly significant. The adverse effects of such use impact the Bangladeshi population more than anyone else. Prices of the fish rises in the country’s market. This year is no exception.

 

According to the Kolkata Fish Importers Association (FIA), 99 percent of fish imported from Bangladesh enters India through the Petrapole border. Most of it is sold in Kolkata’s wholesale markets, particularly the Howrah market. Some suppliers then distribute the fish to Bengali-populated areas such as Hyderabad, Bengaluru, Delhi, and Mumbai.

 

FIA leaders said that almost 99 percent of the hilsa imported from Bangladesh is sold in Kolkata. They pointed out that hilsa is of little importance to the non-Bengali Indian population, as they do not share the same appreciation for the fish. In fact, the amount of hilsa exported from Bangladesh is usually less than the amount officially approved.

 

On September 9, the FIA sent a letter to Bangladesh’s Foreign Adviser Touhid Hossain, urging consideration for approving hilsa exports during Durga Puja. The letter included data on the quantity of hilsa approved and actually exported from 2019 to 2023. According to the letter, the last time the approved amount of hilsa was fully exported was in 2019 and 2020, with 500 tons and 1,850 tons respectively. In September 2021, Bangladesh approved 4,600 tons for export, but only 1,200 tons were sent. In the following year of 2022, 2,900 tons were approved, but only 1,300 tons were exported. In September 2023, the government approved 3,950 tons for export, but only 1,300 tons left the country.

 

Last night, Bonik Barta contacted FIA Secretary Syed Anwar Maqsood via WhatsApp regarding hilsa exports from Bangladesh. He said, “The hilsa season typically lasts three to four months. We have never been able to bring more than 5,000 tons of hilsa from Bangladesh in any season. My question is, how does Bangladesh’s market price increase when only 5,000 tons are exported from the millions of tons produced in the season? Hilsa should not be a diplomatic tool based on India’s demand, as it instead encourages the illicit trade of the fish.”

 

He added, “A significant factor is that Bangladeshi people can afford to buy products, including fish, at much higher prices than our side of the Bengali population. In India, Bengali people buy hilsa cut into pieces. In the retail markets here, a whole hilsa is never sold. Bangladeshis are ‘spending masters’. People in West Bengal are not spending masters.”

 

Hilsa production growth in Bangladesh has also slowed down. Experts attribute this to river encroachment, pollution, reduced river water flow, and unplanned infrastructure development. Hilsa typically migrates to river estuaries to lay eggs. However, recent encroachments, pollution, and the development of submerging areas and structures such as bridges and dams have disrupted its habitat. As a result, the fish’s breeding is increasingly under threat.

 

A study by the Bangladesh Fisheries Research Institute also highlights the decline in hilsa migration and the threats to its existence. The study particularly points to climate change, river infrastructure development, and the impact of pollution and encroachment. Global warming has raised temperatures. Sedimentation in rivers and reduced water transparency due to infrastructure development hinder hilsa migration from the sea to rivers. Rising water temperatures also threaten the fish’s breeding and feeding habits. Additionally, rising sea levels due to climate change has increased salinity, which is spreading into freshwater. Flooding in coastal areas and changes to breeding and nursery grounds are also contributing to the threats faced by hilsa.


সম্পাদক ও প্রকাশক: দেওয়ান হানিফ মাহমুদ

বিডিবিএল ভবন (লেভেল ১৭), ১২ কাজী নজরুল ইসলাম এভিনিউ, কারওয়ান বাজার, ঢাকা-১২১৫

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