With a combination of policy reforms, strict enforcement and financial support for fishermen, it is possible to stabilise hilsa prices, writes Khasru Mohammad Salahuddin
HILSA has for long been a cultural and culinary staple. Yet, despite a notable increase in production, its price remains beyond the reach of many consumers. A recent study led by professor Md Mostafa Shamsuzzaman and his research team in the Sylhet Agricultural University sheds light on the underlying factors behind this persistent price increase. Their findings expose a web of intermediaries, market syndicates and systemic inefficiencies that continue to drive up costs.
ONE of the study鈥檚 most alarming findings is the dominance of intermediaries at multiple stages of the hilsa supply chain. A survey of 317 stakeholders 鈥� including fishermen, traders, wholesalers, retailers and consumers 鈥� revealed that hilsa changes hands at least four to five times before reaching the consumer. At each transaction, intermediaries impose their own profit margins and it inflates the price. For instance, fishermen in Barishal sell 800鈥�900gm hilsa for Tk 800鈥�1000 a kilogram. Wholesalers then mark up the price to Tk 1,000鈥�1,200 a kilogram and finally, retailers charge consumers Tk 1,600鈥�1,700 a kilogram.
Powerful market syndicates also manipulate prices through coordinated efforts. When the price of hilsa increase in Dhaka鈥檚 markets, it simultaneously increases at the fish landing centres. This artificial shortage strategy ensures high prices year-round, even during peak fishing seasons.
Aside from market manipulation, the costs associated with hilsa fishing have surged. The expense of transporting a truckload of hilsa from Barishal to Dhaka has increased from Tk 18,000鈥�20,000 three years ago to more than Tk 25,000鈥�30,000 now. Ice preservation and packaging add an extra Tk 150鈥�200 a kilogram. Additionally, escalating fuel prices, labour wages and storage expenses have compounded the financial strain. Fishermen, already struggling with the burdensome advance loan system, locally known as 鈥榙adan鈥�, are forced to sell their catch at predetermined prices and limits their ability to negotiate fair rates.
Another major concern identified by the study is the illegal smuggling. Smugglers exploit sea routes, border areas and fraudulent export declarations to syphon off significant portions of the catch. It further tightens domestic supply. There are also allegations that Indian fishermen routinely fish illegally in Bangladeshi waters during the 65-day hilsa fishing ban from May 20 to July 23. India鈥檚 fishing ban runs from April 15 to June 14. Indian fishermen, therefore, continue to harvest the fish from Bangladeshi waters during the June鈥揓uly period when local fishermen are barred from doing so.
While market dynamics play a critical role, environmental factors also contribute to the problem. Irregular rainfall, low-pressure systems in the sea, tides, erosion, river pollution and siltation at river mouths have all negatively affected Hilsa breeding and productivity. Despite these challenges, its production has nearly doubled over the past decade, yet these gains are being eroded by mismanagement and exploitation at various stages of the supply chain.
Breaking the power of market syndicates is crucial and this requires strict regulatory oversight, including coordinated market monitoring by the district fisheries offices, the law enforcement agencies and consumer protection bodies. Without disrupting these networks of artificial price inflation, consumers will continue to bear the brunt of excessive costs.
Reducing the costs associated with fishing is another necessary intervention. The government should subsidise essential fishing materials such as diesel, nets and ropes. Additionally, shifting more Hilsa transportation to water routes could significantly lower distribution costs. To tackle the 鈥榙adan鈥� system, fishermen must be given access to fair credit. Government-backed loan schemes and non-govrenmental organisation partnerships can provide financial support at reasonable interest rates. It enables fishermen to operate independently of predatory middlemen. Cooperative societies among fishermen could also help them negotiate better prices and bypass exploitative traders. Stronger border surveillance is required to curb the smuggling of Hilsa and the illegal fishing by foreign vessels.
Additionally, the government must ensure a fair and sustainable marketing system. This includes controlling excessive hoarding by wholesalers, who stockpile large quantities of hilsa during peak season to create artificial shortages and later sell them at inflated prices. Strengthening consumer rights protections and implementing stricter penalties for price manipulation are also necessary to ensure fair pricing.
Another crucial step is improving storage and transportation infrastructure. Investing in modern cold storage facilities will help preserve fish quality and reduce wastage. Transitioning to alternative packaging materials that are cost-effective and environmentally sustainable will further ease price pressures.
Furthermore, to reduce costs and inefficiencies, the administration should conduct frequent market inspections from fish landing centres to retail markets. The Director of National Consumer Rights Protection and the Consumers Association of Bangladesh must play a more active role in market oversight to prevent unfair trade practices and ensure that prices remain within reasonable limits.
Finally, fishermen need greater security and support from the government. The financial burden of deep-sea fishing is immense, with trawlers spending Tk 3鈥�5 lakh on a single 8鈥�10-day trip for fuel, ice, food and other necessities. If they fail to catch at least 20 maunds (800 kilograms) of fish, they risk financial losses. Providing these fishermen with direct financial assistance, fairer credit options and better insurance schemes will help sustain the industry while preventing undue price hikes.
With a combination of policy reforms, strict enforcement and financial support for fishermen, it is possible to stabilise hilsa prices and ensure that this cherished national fish remains within reach for all Bangladeshis.
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Khasru Mohammad Salahuddin is director of public relation and publications of the Sylhet Agricultural University.
