Hilsha export from Barisal dwindles

The export volume has dwindled to 2-3 tonnes daily now from 20-30 tonnes two years back, and may stop anytime, they told this correspondent yesterday.

The setback started in 2002 when the government enhanced the export subsidy on frozen food to 10 per cent of export value from five per cent earlier and attached a condition to avail the benefit.

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As per the condition, an exporter of frozen food has to be a member of the Bangladesh Frozen Foods Exporters Association (BFFEA) to get the 10 per cent subsidy.

Earlier, Hilsha exporters used to get five per cent export subsidy along with BFFEA members as there was no such condition.

But Hilsha exporters can not be BFFEA members as they do not have freezing plants, a mandatory provision for membership, made by the BFFEA, they said.

All the eight Hilsha exporters in Barisal applied for BFFEA membership but were denied as they do not have freezing plants, said Yusuf Ali Shikdar, president of Barisal District Fish Exporters and Importers Association.

He said the Bangladesh Bank in a circular enhanced the export subsidy to 10 per cent but attached a condition that "only members of the Bangladesh Frozen Foods Exporters Association (BFFEA) will get the benefit."

When asked why Barisal Hilsha exporters do not have freezing plants, he said they do not need this. "Export of Hilsha from Barisal to India by road takes 6 to 7 hours only. Packing the fish in wooden boxes with ice is enough for this short period.

"This is hygienic and approved by the Standardization Division of the Fishery Department.

"Besides importers in India prefer this preservation system. They do not want frozen Hilsha.

"So we do not need to have freezing factory".

But BFFEA denied us membership on this plea, he said.

Exporter Indrajit Kumar Das said Hilsha export now brings a very small profit as market prices in Barisal are higher. "At times we have to incur loss".

Many disappointed exporters have left the business and some others will follow if they do not get the export subsidy.

They said the Barisal fish exporters' association gave several letters to the finance ministry to change or withdraw this decision but to no effect.

Besides, BFFEA members get bank loan and other export facilities, which are denied to Hilsha exporters, they alleged.

Compulsory membership of a non-government organization to get government assistance is ridiculous, they said.