The Bangladesh Trade and Tariff Commission (BTTC) has recommended fixing the maximum retail price of hilsa fish according to its size.
The government body made this recommendation after observing an abnormal rise of the fish in local market prices.
The Tariff Commission published its report on hilsa pricing today, Sunday.
The survey was conducted in response to the unusual surge in hilsa prices that has recently unsettled the market. According to the commission, the price of hilsa rose to as high as Tk 2,200 per kg this September.
Speaking to Prothom Alo, Tariff Commission chairman Moinul Khan said, “Right now, one kg of hilsa costs the same as three kg of beef. Once upon a time, three kg of hilsa could be bought for the price of one kilogram of beef. The price of hilsa has risen abnormally. This is why the retail price needs to be fixed, so that marginal fishermen do not suffer losses.”
Moinul Khan further noted that although hilsa is almost entirely a domestic product, its market price reflects artificial manipulation.
According to him, since international trade or dollar fluctuations do not have much impact on its catch, the main issue, as identified in the survey, lies with multiple layers of intermediaries and their excessive profits.
He pointed out that the manipulations of advance-money lenders (dadan traders) play the most significant role in driving up prices.
Hilsa exported cheaper than local price
The Tariff Commission also said that hilsa is exported at a lower price than it is sold locally.
In September, the local market price ranged between Tk 900 and Tk 2,200 per kg, while the average export price of hilsa shipped to India during the same month stood at Tk 1,534 per kg. So far, more than 97 tonnes of hilsa have been exported to India.
The report stated that if traders can make profits at existing export rates, then at local market rates they are earning disproportionately high profits compared with the production (catching) cost.
11easons behind abnormal price surge
The Tariff Commission identified 11 causes behind the price surge of hilsa. These are: imbalance of supply and demand, hoarding and syndicates, rising fuel and transport costs, higher fishing costs, navigability crises and environmental issues, use of illegal nets, advance-money lending (dadan), lack of alternative employment, fishing during the ban period, dominance of middlemen, and export pressure.
Local market price trend
The Tariff Commission highlighted trends in local market prices of hilsa, noting that the upward movement in the past four months has been significant.
In June, hilsa prices ranged between Tk 600 and Tk 2,200 per kg. By July, the price had increased to Tk 900–2,000. In August, with increased supply, the price fell slightly to Tk 800–2,000. In September, it rose again to Tk 900–2,200.
Over the past five years, hilsa prices in the local market have risen by 57 per cent, according to the commission.
Meanwhile, export prices have also increased in the past four years. During the 2022–23 fiscal year, the average export price per kg of hilsa was Tk 947, which rose to Tk 1,534 this year.
On average, about 550,000 tonnes of hilsa are harvested annually. In the 2023–24 fiscal year, 529,000 tonnes of hilsa were caught.