What's Happening?
The shrimp industry, once a significant export earner, is on the verge of collapse due to a combination of disease, poor quality fry, illegal imports, and climate extremes. Farmers like Jagadish Roy, who has farmed black tiger shrimp for over 20 years,
report that fry purchased from local hatcheries are cheap but of poor quality, surviving only about 60 days when 100 days are needed for full growth. This leads to significant losses, especially when virus attacks wipe out entire ponds. The deep-sea fishing ban further exacerbates the problem by halting the collection of mother shrimp, leading to fry shortages. Many farmers are resorting to illegally imported shrimp from India, which often die prematurely, leaving them in substantial debt. The number of operational hatcheries in Cox's Bazar has dwindled from around 60 to 25-30, with many owners facing bankruptcy. Zakir Ullah, managing director of a Cox's Bazar hatchery, stated that production costs exceed selling prices, forcing them to continue operations merely to avoid immediate bankruptcy. The industry's struggles are widespread across the southwest coast, impacting millions of livelihoods directly and indirectly.
Why It's Important?
The potential collapse of the shrimp industry has severe economic and social implications for the coastal regions. Historically, the industry was a cornerstone of the coastal economy, sustaining millions of livelihoods. The current crisis threatens to displace a large workforce, as approximately 3 million people are directly involved in shrimp farming, hatcheries, and processing, with another 2 million indirectly dependent on the sector. The decline in shrimp production, which fell from 120,000-133,000 tonnes between 2010-2014 to 42,000 tonnes by 2020, signifies a substantial loss of export revenue. While there was a modest recovery in exports in FY2024-25, this was attributed to stronger prices and a higher U.S. dollar rather than increased output. The structural issues, including repeated policy mistakes and delays in policy approval for vannamei shrimp, have caused the industry to lose global market share. The inability of farmers to switch to other forms of agriculture due to unsuitable land conditions means that bankruptcy in the shrimp sector leaves them with few alternatives, perpetuating a cycle of debt and economic hardship.
What's Next?
Industry insiders are calling for government intervention to address the structural issues plaguing the shrimp sector. There is a recognized need for the government to ensure the availability of quality fry, medicine, and feed to boost production and export earnings. With European buyers showing renewed interest in bagda shrimp, timely policy support could help the industry regain its footing in the global market. Fisheries officials are currently monitoring hatcheries in Cox's Bazar and Satkhira to prevent the illegal nursing of post-larvae, destroying any illegally sourced fry found. However, complaints persist about secret nursing activities, indicating that enforcement efforts need to be strengthened. The ongoing deep-sea fishing ban during June and July will continue to pose challenges for fry collection, necessitating alternative solutions or support for hatcheries during this period. Without significant policy changes and support, the industry faces continued decline, further impacting the livelihoods of millions and the regional economy.
Beyond the Headlines
The crisis in the shrimp industry highlights broader issues of environmental sustainability, regulatory effectiveness, and economic resilience in coastal communities. The reliance on poor-quality and illegally imported fry points to systemic failures in supply chain management and regulatory oversight, which not only harm the industry but also pose risks to the ecosystem through the introduction of diseases. The impact of climate extremes, such as rising pond water temperatures, underscores the vulnerability of aquaculture to environmental changes and the urgent need for climate-resilient farming practices. The cycle of debt among farmers, who are unable to transition to other livelihoods due to land unsuitability, reveals a deeper socio-economic challenge that requires comprehensive development strategies beyond just agricultural support. The loss of global market share due to policy delays also reflects a broader issue of national competitiveness and the agility of government responses to evolving international trade dynamics. Addressing these underlying issues is crucial for the long-term viability of the shrimp industry and the well-being of the communities dependent on it.
