Traders exporting Hilsa to India at a loss of Tk750 per kg

Schoolteacher Rubi Akhter purchased a 1 kg Hilsa for Tk1,900 at the Barishal Port Road fish market on October 12. Meanwhile, Pobitra Halder, a resident of Raghunathpur, Purulia, Medinipur, West Bengal, India, reported buying a similar-sized Hilsa for Tk2,200. In contrast, wholesalers at the Barishal fish landing centre stated they had exported Hilsa at Tk1,150 per kg.

Bellal Hossain, another customer, questioned the disparity, "Is it necessary to buy 1 kg Hilsa in Barishal at Tk1,900 and export it to India at Tk1,150, incurring a loss of Tk750 per kg?"

The Business Standard sought to understand the reasons behind this pricing anomaly.

On the occasion of Durga Puja, the Bangladesh government initially permitted the export of 3,000 metric tonnes of Hilsa to India upon request. It was later reduced to 2,420 metric tonnes. Of the total 49 wholesalers involved in this export, Fultola Khulna Folk Fashion was allocated 20 metric tonnes, while the remaining 48 wholesalers received 50 metric tonnes for export. These included 15 wholesalers from Dhaka, 12 from Jashore, 7 from Pabna, 4 from Barishal, 4 from Khulna, 2 from Chattogram, and one each from Satkhira, Brahmanbaria, Cox's Bazar, Moulvibazar, and Narail.

According to the Fisheries Inspection and Quality Control Centre at Benapole Land Port, around 550 metric tonnes of Hilsa have been exported to India so far.

Rubi Akhter, a teacher, said that, due to an impending blockade, she went to the market out of concern and was shocked by the high prices. "I bought two fish for Tk1,900 per kg, but I heard it's being exported for 10 dollars. If that's true, it implies lower domestic availability. It feels like a case of buying high and selling low."

Fullora Sarkar, a resident of Jhalda city in West Bengal, expressed her concerns, "The price of Hilsa shouldn't be this high in either Bengal. Our Hilsa market in West Bengal is controlled by Bangladeshi traders. Hilsa is available year-round, not just during Durga Puja. Authorities seem to lack proper oversight of the Hilsa market in both countries, which is why prices have skyrocketed."

Pabna's Seven Star Fish Processing Company Limited, an exporter, sources its Hilsa from Barishal Port Road. Abdul Latif, the manager, noted that Hilsa catches have been scarce. "We were permitted to export 50 metric tonnes, but the daily supply has fallen short of that."

Abdul Latif confirmed that they buy Hilsa from local markets at Tk1,850-1,900 per kg and export it at 10 dollars per kg. He added that their West Bengal representatives reported buyer concerns over price instability. "Even in West Bengal, Hilsa is being sold at high prices," he said.

Two other exporters from Barishal, on condition of anonymity, said they continued exporting despite incurring some losses, as they needed to maintain their export licecses. However, a Jashore-based wholesaler, also on condition of anonymity, claimed the notion of buying high and exporting low was misleading. He explained that the price above the government-set export rate was being funnelled back to Bangladesh through informal channels like "Hundi".

He elaborated, "No company, including mine, would export at a loss. The Hilsa bought for Tk1,800 in Bangladesh sees an additional Tk100 cost due to processing. It's sold in the Indian market for Tk2,100-2,200. While the government-set export price is 10 dollars, the remaining amount is brought back by traders through alternative methods or via representatives in West Bengal."

Apurba Adhikari, deputy director of the Barishal Divisional Office of the Directorate of National Consumer Rights Protection, acknowledged the difficulty in controlling the Hilsa market. "Hilsa is a high-value, exportable commodity with several intermediaries. We're trying to ensure transparency by requiring auctioneers to issue invoices and display price lists. Price hikes can be curbed when proper documentation is followed," he said.