Hilsa production goes up, so do prices

The price of hilsa fish has not decreased despite a significant increase in its production. Prices shoot up in local markets. 

The authorities are preparing to enforce a 22-day ban on hilsa netting from 13 October to protect the fish during its breeding season. Hence, fishermen and commercial vessels are now putting their utmost efforts to catch as much hilsa as possible. 

However, many have claimed that their catches are low this year. It is nothing new as the same claim was made in the previous years too. But the government data showed a steady rise in hilsa production in recent years. 

The trading corporation of Bangladesh (TCB) reports that hilsa prices have increased by 33 per cent in the past year alone. Currently, hilsa is being sold for Tk 800 to Tk 1,800 per kg in the Chattogram markets, compared to Tk 650 to Tk 1,300 just a year ago. Both fishermen and traders acknowledged that the price is significantly higher this time. 

According to market analysts, prices usually decline when supply increases. But the scenario is in stark contrast when it comes to hilsa. The supply of hilsa has almost doubled over the last 18 years, yet the price continues to rise.

Fishermen and traders argued that the official data does not reflect reality, as the actual amount of hilsa production is much lower than the reported figure. Besides, the seizing hilsa by the Border Guard Bangladesh (BGB) indicates an increase in smuggling of the fish. 

Against this backdrop, consumers wonder why prices remain high, despite the reported increase in production. The regulatory authorities now and then gear up market monitoring activities, but prices rarely decrease.

The upcoming ban, which starts on 13 October, aims to protect hilsa during the breeding season. All sorts of fishing in both the sea and rivers will remain suspended throughout the period. Once the ban is lifted, another eight-month restriction on catching jatka (young hilsa) will begin in November. 

According to the department of fisheries, hilsa production has increased over the past seven years, and in the last 18 years, the catch has more than doubled. Around 275,000 tons of hilsa were harvested in the 2004-05 fiscal year, and it grew to 571,000 tons in 2022-23. 

Figures for 2023-24 are not yet available, but it is widely believed that the catch has increased this year as well.

On the flip side, fishermen claim that hilsa catches have declined over the past five years, particularly for small boats and trawlers. Commercial vessels come up with similar statements. 

According to the marine fisheries department, the coastal districts of Chattogram division witness the maximum fish harvesting. However, commercial fishing vessels  are also estimated under the Chattogram division. 

Apart from them, a significant amount of hilsa is produced in Bhola, Khulna, Barishal, and Chandpur districts.  

Director of the department of marine fisheries, Abdus Satter, said climate change and an increase in jellyfish population affected hilsa and other fish stock. Still, hilsa catches remain good, though slightly lower than last year. 

He noted that rising costs for commercial fishing vessels may be contributing to higher prices.

Under the prevailing export policy, hilsa exports are strictly regulated and require government approval. Some speculate that exports drive up prices, but data shows that only 0.29 per cent of hilsa is exported, leaving 99.71 per cent of the catch for domestic consumption. Yet, prices remain high throughout the year, let alone the peak season. 

According to government agencies, hilsa prices have risen in phases since February this year. Traders attributed the high prices to a combination of low supply and high fishing costs. 

Fishermen often borrow money from local lenders at high interest rates, and have to pay commissions to them while selling the fish. Besides, the traders charge high prices after purchasing hilsa through auction, and it eventually inflates the retail prices. 

According to the department of agricultural marketing, the price of hilsa has risen by Tk 400 per kg between 2016 and 2023. The average price was Tk 705.50 per kg in 2018, and it increased to Tk 1,095.90 in 2023, a 55.34 per cent rise over seven years. In 2024, the price further increased to Tk 1,168.56 per kg.

 Mohammad Faiz Ullah, deputy director of Chattogram divisional office of the directorate of national consumer rights protection, said hilsa prices have been raised intentionally in some markets following news of hilsa exports. The directorate has conducted raids in various districts, including Dhaka, Chandpur, and Cox's Bazar. 

Similar action will be taken in Chattogram if complaints are lodged in this regard, he added.