The shrimp industry in Chittagong, Bangladesh, once thrived with bustling trade and a dominant presence in the international market. However, recent years have seen a gradual decline in business activities, leading to closures and dwindling export figures. This downturn can be attributed to various factors, including a mismatch between demand and supply, as well as challenges in meeting international standards.

Decreasing Demand for Domestic Shrimp Abroad

One of the primary reasons behind the decline is the decrease in demand for domestic shrimp varieties abroad. While the demand for Vannamei shrimp, particularly in Europe and America, has been on the rise, Bangladesh has struggled to meet this demand due to limited production of Vannamei shrimp domestically. Consequently, traders in Chittagong have lost their foothold in the international market, leading to closures and a significant reduction in export activities.

The repercussions of this decline have been severe for business establishments in Chittagong. Over the past two decades, more than half of the companies engaged in fish exports have shut down their operations. Out of the 54 establishments in the region, only 24 remain operational, with some teetering on the brink of closure. High operational costs, coupled with a lack of foreign orders, have exacerbated the situation, forcing many companies to cease their activities.

Challenges Faced by the Industry

Stakeholders in the shrimp industry highlight several challenges that have contributed to the decline. While 90 percent of shrimp demand is from abroad, Bangladesh’s inability to produce sufficient quantities of Vannamei shrimp has resulted in a reliance on other varieties for export. However, the lack of foreign demand for these alternatives has led to a downward spiral, with many domestic companies struggling to stay afloat.

Recent statistics paint a grim picture of the shrimp export sector in Bangladesh. The number of establishments involved in fish exports has dwindled from 54 in 2006 to just 24 in 2023. Similarly, the export of frozen shrimp has witnessed a significant decline, with exports decreasing by more than 22,000 tons over the last decade. Despite having a processing capacity of 450,000 tons, only a fraction of this capacity is being utilized.