Hilsa costs multiply 60% across five supply chain steps: BTTC

Bangladesh's beloved national fish hilsa is increasingly slipping beyond the reach of ordinary consumers, as prices climb at each stage of its inefficient supply chain before reaching the market.

Fishers now spend between Tk471 and Tk504 per kilogram to catch hilsa, depending on boat type, according to a new survey by the Bangladesh Trade and Tariff Commission (BTTC).

However, by the time the fish reaches consumers, prices have multiplied across five distribution stages, increasing roughly 60% at each stage. As a result, retail prices range from Tk700 to Tk3,000 per kg.

The BTTC study, conducted across major markets in Chandpur, Bhola, Barishal, Patuakhali, Chattogram, and Cox's Bazar, examined the full supply chain from capture to household.

According to the study, small boats incur a cost of Tk484 to catch per kg of hilsa, medium boats Tk504 per kg, and large trawlers Tk472 per kg.

Once caught, hilsa passes through multiple intermediaries: from fishers to wholesale agents, then to aratdars (warehouse owners), followed by wholesalers, and finally to retail outlets. At each stage, prices increase by 59-60%, a key factor driving retail costs beyond consumer reach.

Retail prices in Dhaka reflect these escalations. Hilsa weighing 250-300 grams sells for Tk600-650 per kg, 500-600 grams for Tk700-800, 700-800 grams for Tk1,200-1,400, 800 grams-1 kg for Tk1,600-1,800, 1-1.5 kg for Tk2,200-2,400, and 1.5 kg upwards for Tk3,000.

BTTC identified several causes behind these inflated prices. Middlemen who fund fishers, locally known as dadon traders, impose floor prices at river ghats, preventing auctioneers or wholesalers from bidding lower.

Other factors include supply-demand imbalance, artificial scarcity, syndication, storage hoarding, high fuel costs, and rising operational expenses such as wages, vessel maintenance, net repair, ice, and other materials.

Export policies are also impacting domestic supply. The government approved 1,200 tonnes of hilsa exports to India this year. By 25 September, 97.36 tonnes had been exported at Tk1,533.90 per kg. BTTC noted these exports yield profits for traders, further incentivising high local prices.

Recommendations

To stabilise prices, BTTC recommends reducing middlemen influence through fisher cooperatives and encouraging online sales platforms.

Establishing distribution centres in major cities, cold storage facilities in key hilsa-producing areas, and refrigerated transport are also advised to preserve quality.

Registration and licensing for aratdars and wholesalers could increase transparency and revenue. Encouraging bank loans for fishers and discouraging floor prices would help reduce market manipulation.

The commission also suggested government-set pricing according to hilsa size, ensuring fair returns for fishers while enabling consumers to access fish at realistic market rates.

BTTC Chairman Moinul Khan told reporters that setting retail prices would not harm fishers and could curb widespread market manipulation by middlemen.

National production data shows that 42% of the country's fish comes from open waters, with hilsa representing 12%. The highest hilsa availability is in Barishal and Chattogram divisions, while Bhola alone yields the most hilsa.

Of total hilsa, 60% is sourced from the sea, 25% from river mouths, and 15% directly from rivers.

According to the Department of Fisheries, 5.29 lakh tonnes of hilsa were harvested in 2023-24, down from 5.71 lakh tonnes in 2022-23.

Production has declined further in subsequent years, despite a government-enforced seasonal ban totaling 44 days to preserve stocks. Fishers receive special assistance during these periods.

Environmental pressures, including river pollution, have reduced the number of spawning female hilsa in rivers such as Padma, Meghna, Tetulia, and Kirtankhola, contributing to lower supply.

BTTC analysis shows that in July this year, river hilsa supply fell to two-thirds of levels seen in previous years, highlighting the urgent need for systemic reforms to protect both fish stocks and consumer access.