At Asadganj’s century-old dry fish market, bidding goes ear-to-ear
Chattogram’s century-old Asadganj dry fish market now runs on a unique whisper bidding system to keep bids private and competition fair. However, the trade is slowly losing its charm as trust in credit relationships erodes and younger generations show less interest in the business
As soon as it passes 8 in the morning, Asadganj's dry fish market in the port city of Chattogram bustles with activity. Rows of dry fish shops line both sides of the lanes. Workers rush around carrying large sacks of dry fish in their hands, on their heads or on vans. Some of the shops are arats (wholesale markets), while the rest display various types of dry fish for retail buyers.
The shops on both sides of the lanes offer a wide variety of dry fish products. Shrimp, churi, hilsa, chapa, loittya, shark, faissya, mola and many more are arranged in sacks and earthen pots.
In this dry fish market, which has grown over more than a century, a grand business takes place twice a week — on Saturdays and Tuesdays — at each arat. The most interesting part is that the auction of each dry fish product takes place through an ear-to-ear process. On market days, wholesalers present the dry fish they have collected to traders in lots, which are then auctioned in this unusual manner.
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It was past 9:30am at Asadganj's dry fish market. An auction had just begun at Messrs Baghdad Traders General Merchant and Agent Commission for a 70kg lot of shrimp. Six people had joined the bidding. Wholesaler Ali Akbar, along with experienced staff from other retail shops, took part. This time, they were the buyers, while Manu Mia of Baghdad Traders was the experienced auctioneer.
First, one person leaned towards Manu Mia's ear and whispered something. Nothing could be heard or understood. Then, one by one, the other five also brought their mouths close to Manu Mia's ear amid the crowd and stated their prices. After placing their bids, some of them picked up the reddish, plump shrimp again and examined them closely.
Meanwhile, a gathering of at least five to seven more people had formed nearby. The auction had now become lively.
After several rounds of silent bargaining, Ali Akbar secured the lot of shrimp. The final price of the popular dried shrimp, which had come from Khulna, was then disclosed. He had secured it at Tk1,740 per kilogram.
Asked how he won the competition, he said, "It is somewhat a matter of luck. You also have to understand what the price of the product might be. We have gained experience through buying again and again."
Chattogram's Asadganj is known as the country's largest dry fish wholesale market. Various types of dry fish come to this market from different coastal areas, including Cox's Bazar, Maheshkhali, Kutubdia, Satkhira, Khulna, Barguna and Patuakhali. At the same time, wholesale and retail traders come here from different districts across the country.
Why such a bidding method?
When Ibrahim Saudagar, owner of Baghdad Traders, entered the dry fish business in Asadganj, biddings were not conducted the way they are today. Bargaining used to take place openly, just as it does in an ordinary market. Buyers would loudly state the price they were willing to pay, while sellers would announce the price at which they were willing to sell the product.
The bidding method has changed over time.
"Previously, bidding used to take place openly. That means the price would be flashed. Whoever got it, got it; whoever did not, did not," says Ibrahim.
The method introduced over the past eight to 10 years is aimed at maintaining the quality and values of the business.
"This method was introduced for those who have retail shops. Those who buy wholesale from us requested at one point that we should not flash the price," says Ibrahim, president of the Asadganj Dry Fish Traders' Association.
The reason is that since salesmen from the shops participate in the bidding, they cannot buy the dry fish once the price becomes known during the process.
"The reason is that they have less idea [about the market]. When a new person comes without an idea, naturally they cannot buy dry fish. In response to such requests, we introduced this method roughly eight to 10 years ago," says Ibrahim.
He further says, "Some people have been coming here and doing business for 40 to 50 years. Again, you see someone who has only started coming here in the last one or two years. Naturally, those who have been here earlier understand the market a little better."
"If the bidding were conducted openly for everyone as before, it would create problems for the newcomers. That is why the system of making bids ear to ear was introduced around 10 years ago. Now everyone can state a price according to themselves, and if the price matches, they can also buy the product."
The whisper-bidding method was introduced for business purposes. Wholesalers wanted to keep the prices they offered private. If the price were revealed, someone else could sometimes offer a higher price and take the product away.
And many believe that several people could form a syndicate and try to control prices. The method was introduced to prevent such practices.
Abu Naser, president of the Chattogram Dry Fish Traders' Association, says the main purpose of this method is to keep competition fair.
"Suppose one person says Tk250. If another person standing nearby hears it, then he will say Tk252. Then another person will say Tk253. If the price continues to rise openly like this, there is no real competition. That is why we state the bids ear to ear."
According to Abu Naser, who has been involved in the dry fish business since 1989, after hearing the bids, the seller sells the product to whoever offers the highest price. However, after the transaction is finalised, the price is announced in front of everyone. There is no opportunity to increase the bid again. As a result, there are no disagreements among the buyers either.
Trust in credit relationships erodes
The biddings in Asadganj are mainly conducted by aratdars (commission agents). Some of these aratdars simultaneously work as 'general merchants and commission agents'.
Aratdars are those who bring dry fish from various suppliers or exporters to the arat and then sell them through biddings. After the sale, they receive a fixed commission from the transaction. As 'general merchants', they also directly buy and sell dry fish themselves.
However, selling a product at the auction does not mean that the aratdar immediately receives the money owed to them.
A large part of the dry fish business in Asadganj is conducted on credit. Traders buy dry fish at the auction and take it away. They then gradually sell it in retail or wholesale markets and pay the aratdar's dues from the proceeds.
Sometimes, it takes more than a year to fully repay the money. These long-term credit relationships survive mainly on mutual trust. But in recent years, that trust has developed some cracks.
Some people have closed their businesses and left without paying their dues. "There have even been cases where traders sold the products, left their dues unpaid and never returned. As a result, in this long-standing credit-based business, we can no longer trust people as easily as before," says Ibrahim Saudagar.
In transactions that once relied on familiarity and a person's word, calculations of outstanding dues and risks have now become equally important.
The dry fish economy
The auctions are mainly at their busiest during the dry fish season. According to traders, the rush begins in the Bengali months of Ashwin-Kartik and continues until the end of Chaitra. Most of the year's buying and selling takes place during these six months.
During this period, auctions are held twice a week, on Saturdays and Tuesdays. At other times of the year, they are more limited, with buying and selling usually taking place only on Saturdays.
The products now put up for bidding are mainly those bought by traders during the season and stored in warehouses.
During the season, some arats sell 5,000kg of dry fish, some 10,000kg, while others sell as much as 20,000kg. For many, their income and earnings for the entire year depend on the business generated during these six months.
According to Abu Naser, this is a major market for both foreign and domestic dry fish. The dry fish market has 40-50 wholesale shops, 10-15 arats and more than 300 traders.
He says around 25% to 30% of the total supply of dry fish comes from the coastal areas of the country. The rest comes from Pakistan, India and Myanmar, as well as various countries in the Middle East. Within the country, Cox's Bazar, Teknaf, Kutubdia and Maheshkhali are now the largest sources.
Around 20 to 25 types of dry fish are available in this market. During the season, the number rises to as many as 50. Almost all types of fish found in the sea are sold here as dry fish.
Dry fish is not cheap either. It costs around Tk2,000 to buy one kilogram of good-quality chhuri shutki. Retail sellers generally buy the product from the arat at a slightly lower price.
During the off-season, the market remains somewhat slow. Although buying and selling decline, the price of dry fish remains comparatively higher at that time.
When the season begins, however, the picture changes completely. As the supply of fish increases, the price falls somewhat. But buying and selling doubles.
During the season, transactions worth several lakhs of taka take place every month. Some buyers purchase dry fish worth Tk5-10 lakhs in a single day.
At one time, Chattogram was the country's largest centre of dry fish trade. Business was conducted on a much larger scale, and there were also more fish. Dry fish used to come to Chattogram by boat from Khulna and Rangabali. But that picture has changed over time. Due to various risks on river routes, particularly increased pirate activity, most dry fish now come by road.
The business has also spread to different parts of the country.
As a result, the decline in buying and selling is evident in Ibrahim's regret. According to him, when the number of educated people was lower, many people used to enter this profession. With the spread of education, the younger generation's interest in the profession has also declined. So, although the market has survived, the business is no longer as vibrant as it once was.
