Shrimp sector struggles to keep pace with regional peers despite potential

Bangladesh's shrimp industry is struggling to compete with regional peers despite its strong potential and deep socio-economic importance, largely due to gaps in policy support, according to paper presented at a seminar today.

For decades, shrimp has been vital to rural livelihoods, nutrition, and export earnings, supporting millions across coastal districts through extensive networks of farmers, hatcheries, processors, and exporters.

"Once a major foreign exchange earner, shrimp helped shape Bangladesh's reputation in the global seafood market. But in recent years, the momentum has stalled," said Bazlul Haque Khondker, research director of the Policy Research Institute (PRI) of Bangladesh.

Export earnings have dropped sharply, even as global demand remains robust, he added.

Khondker made the remarks at a policy dialogue on "Transforming Policy Support for Reviving Bangladesh's Shrimp Sector" held in Dhaka, jointly organised by PRI and the Bangladesh Frozen Foods Exporters Association (BFFEA).

He noted that while competitors like India, Vietnam, and Indonesia have rapidly expanded Vannamei shrimp farming, a higher yielding variety than black tiger shrimp, Bangladesh remains largely absent in Vannamei cultivation except for some pilot projects.

"This has created a key competitive gap among regional peers."

India, in particular, transformed its shrimp industry within a decade through aggressive adoption of Vannamei, backed by scientific farming methods and strong regulatory support. Vietnam and Indonesia have followed similar models, scaling up production and improving competitiveness.

Khondker identified three major bottlenecks across the value chain—farm, hatchery, and exporter levels.

The sector requires urgent policy support, starting with reforms to the Export Financing for Processors and Farmers (EFPF) so that BFFEA members can access up to Tk 50 crore to source raw materials both locally and internationally.

He also suggested classifying the shrimp industry as an agro sector.

At the event, Fisheries and Livestock Adviser Farida Akhter and Bangladesh Bank Governor Ahsan H Mansur, also present as chief and special guest, respectively.