University of | The Impact of Bangladesh Fishing Industry on the Local Economy | Fishing in Bangladesh |

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3/4/2014
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Table of Contents 1. Introduction--------------------------------------------------------------------------------------------3 2. Bangladesh Economy and Fisheries Impact on their Economy-------------------------4 3.1. Current Situation of Bangladesh Economy----------------------------------------------4 3.2. Fisheries in Bangladesh----------------------------------------------------------------------4 3.3. Dried Fish in Bangladesh--------------------------------------------------------------------6 3.4. Frozen Fish Exports of Bangladesh-------------------------------------------------------7 3.5. Contribution of Shrimp Export Industry of Bangladesh-------------------------------8 3. Conclusion-------------------------------------------------------------------------------------------10 4. References------------------------------------------------------------------------------------------11

Bangladesh Fishing Industry and its Impact on Local Economy 1. Introduction
Fishing industry has made a great impact on Bangladesh in terms of their local economy as the results in various studies show excellent growth trends. Marine fisheries have made excellent contribution from 1970 to 1993 with an increasing trend of 28.2 percent. Marine fish production is expected from artisanal fishing areas including commercial and subsistence fishing. Most of the people living in coastal communities largely depend on fishing to meet their living needs. Fisheries are also offering Bangladeshi people enhanced contribution in terms of their living standards, generated employment and reasonable income sources along with foreign exchange. Artisanal Coastal Fisheries is also showing incredible growth patterns but they are also under some threats from environmental, overfishing and other issues. An artisanal fishery is done through 22,000 motorized boats as well as 29,000 non-motorized boats that are operating in the coastal waters. Fisheries also use various fishing gears in order to exploit multi-species marine resources in Bangladesh. The major fishing gears are operated in the offshore and coastal waters at the Bay of Bengal by using grill nets, trawl nets, set bag nets, push nets, traps and hook and line (Hossain, pp. 3-6, 2004).
Fishing has played a very crucial role in the development of Bangladesh economy that offers more than 60 percent of animal sources of food along with crucial micro-nutrient foods. Fish in Bangladesh including both shrimp and prawn has contributed greatly in generating employment in the country and become the most important agricultural crop. The culture of fishing in this country is also very promising to give security of nutritional food by overcoming poverty and growth in the country. Due to their highly diversified and extensive fisheries resources, Bangladesh has witnessed excellent growth. Total fish production in Bangladesh has been estimated to around 2.56 million tones and it has accounted for 39% of the overall economy of this country. The impact of fishing industry in the local economy is very important in this country and statistics have shown that they have enhanced numerous growths by increasing household income in their Household Income and Expenditure Survey in 2005. Estimates have further suggested that 399,000 ton of fisheries were produced in the country out of which 390,000 were derived from semi-intensive sources and 395,000 ton was taken from pellet fed intensive resources. So the contribution of fisheries in the Bangladesh economy has played a very important role in the growth of Bangladesh economy (Belton et al., pp. 1, 2011). 2. Bangladesh Economy and Fisheries Impact on their Economy 3.1. Current Situation of Bangladesh Economy
Bangladesh economy has witnessed small but very sustainable growth in their economy since 1971 after their independence. The economic growth in this country is based on the development of various economic indicators including human capital, poor infrastructure growth, and market failures in some specific sectors of the economy, corruption, low trade level, and some regulations at government level. Bangladesh economy has shown considerable growth since 1980s after making some economic adjustments. According to latest index, GDP per capita growth in Bangladesh was about 21,000 taka in 2009. But Bangladesh economy was strongly supported by their fisheries industry along with their agricultural, industrial and services sector (Rahman, pp. 1-4, 2010). 3.2. Fisheries in Bangladesh
Fisheries in Bangladesh have shown incredible contribution in their economic growth that was remained small and consistent over the period of time. In their coastline areas of 710 KM, they can derive just only 20 percent of their total fisheries production from huge network of perennial rivers flowing in the coastline areas of Bangladesh. A fishery is playing as a buffer despite poor performance of other sectors in the country including agriculture, and other sectors of the economy. Fisheries is also impacted due to lack of trained manpower facilities, lack of their concrete management policy, proper infrastructure and their monetary allocation in their scattered fishing centers. It has also served as the major source of their employment with an incredible growth of around 3.9 percent during the period of 1984 to 1999 (Pitcher J. Tony and Pramod G., pp. 1 & 2, 1999).
Chakraborty and Kar (2011) further elaborated the bio-economic assessment of Bangladesh shrimp fishery in knowing the relative economic efficiency of their fishing industry. In last few years, it is observed that scientists and researchers have studied greatly to manage their fishery resources with proper utilization of collected by making sure sustainable growth and economic efficiency of their fishery industry. Fundamental objectives of fisheries management is to make sure that their fishery resources should be properly channelized by giving sustainable flow of their benefits to their human society. Management procedures should be properly managed to make sure fisheries production should be properly attained without causing any overexploitation issues.
Bangladesh economy largely depends on their fisheries industry because it is largely based on river and sea based areas. The people of Bangladesh eat fish and seafood in their daily diets because they are directly associated with the fish related work. According to an index, 7.3 million people live in their coastal land areas and their large dependence is on their marine fishing. In the supply chain of dried fish, intermediary stakeholders are based in between consumers and fishermen. In the supply chain profitability they are playing their role more effectively. Profit maximization and profit distribution is higher in the supply chain management but it is lower to the real farmer. But along with all these week points, fisheries is playing very important role in their economic growth (Al Masud and Hossain, pp. 148, 2012).

3.3. Dried Fish in Bangladesh
Fish preservation is very important part in fishing industry in Bangladesh and it is contributing greatly in generating employment and increasing living standards of their rural and urban poor community. In drying fresh fish, muscle enzyme and microorganism is reduced to minimum level as suggested by international quality standards by the Bangladesh government. In the coastal areas of Bangladesh, dry fishing has become very famous and they are getting best revenues of their efforts and money invested in this business. Physical flow of fisheries in Bangladesh is largely dependent fishermen, processor, regional trader, wholesaler, and the final consumer. Dry fish is also exported to international markets and it is generating employment greatly in the country (Al Masud and Hossain, pp. 150, 2012).
Traditionally people of Bangladesh are highly interested in eating fresh fish and other seafood related industry. Chilled and dry fish has also become very famous in the country and marketed in large towns and cities in the country. Marketing distribution of fish in the country is around 70 percent of fresh fish and 25 percent of dried fish and it is contributing greatly in generating employment of their rural and urban population at the one hand and enhancing the overall economic growth of Bangladesh at the other hand. The nutritional quality of the dried fish also remains the same but they are recognized higher in quality standards as compared to fresh fish and it is highly selling and profitable business in Bangladesh as well as in international markets including EU, US and Gulf region. But fishery industry is playing a very important role in both the fresh and dried fish industry that is also exported to outside the country after meeting their local needs. Dried fish is easily transferrable, marketable, and can be exported with an expected quantity of around 622 metric ton during the fiscal year 2009-2010 with a market value of around 250 million taka (Faruque et al. pp. 215, 2012).
Dry fishery has become very common in the coastal areas of Bangladesh and they are largely demanded in both the domestic and international markets. People involved in production and marketing of fisheries specifically including dried fishery has also become very important and the value of money and profitability. The small scale production level is also presumed very poor in the product quality as well as lack of access in various institutional and non-institutional barriers such as based on higher transportation costs, price exploitive market players in between players and the consumers. Chittagong has become the largest market of Bangladesh where various types of dried fish processing are based such as areas of Bangladesh including Kotubdia, Sonadia, Kuakata, Banshkhali, Anowara, Noakhali, and Sathrira etc. Dried fish is also supplied to various other markets of the country including Dhaka, Sylhet, Mymensigh, Khulna, Bogora and all other parts of the country. Fish from Bangladesh is also supplied to international markets including Hong Kong, Singapore, United Kingdom, USA, United Arab Emirates and Malaysia that is contributing greatly in enhancing their foreign exchange reserves (Faruque et al. pp. 215, 2012). 3.4. Frozen Fish Exports of Bangladesh
Bangladesh is highly populated country by having a population of around 14.79 hundred million with an area of 147, 570 square kilometers. Due to frozen fish exports, people living of Bangladesh living in coastal areas, rural and urban areas are largely dependent on frozen fish in terms of employment generation and enhancement in their living standards. Fisheries is recognized as the most important sector for making sure their employment generation with around 63 percent of their total protein consumption that is highest export earning sector of this country. The significant growth in the fisheries production has also been achieved in the country due to the expansion of their closed water aquaculture due to the intervention of production technologies and adaptation of latest fishing management to conserve and sustain the exploration of their open water fisheries resources. In Bangladesh, more than 15 million people are associated with their fishing industry directly or indirectly basis and government has also given considerable development to it (Hossain and Ahmed, 2012).
In the period of 1980s, Bangladesh government after recognizing the important of their fisheries sector in exporting fish and fish related products to worldwide; they made some policy arrangements to enhance their fisheries growth. In order to make sure the quality and safety of seafood products, they developed FAO to maintain standards of fishery products with some regulations, and fish inspection schemes in the country of Bangladesh. In 1983, the Bangladesh government also produced fish precuts ordinance and two years later they further upgraded laboratory and personnel inspection ordinance. Frozen fisheries in Bangladesh have contributed greatly in generating employment and increasing living standards of their people living in various parts Bangladesh. Carp and catfish groups are the most common groups in the country and they have contributed a lion share in their fresh water fish production both in the aquaculture as well as in their open water capture fisheries (Hossain and Ahmed, 2012).
Due to excellent contribution of fisheries industry, Bangladesh economy is making considerable growth in the recent years and it is predicted that Bangladesh economy will grow consistently in the next few years. The remittances and exports will remain highly favorable in the future along with their enhanced fuel imports and investments in the infrastructure sector. Foreign reserves will be over 2.3 months of their import coverage at the end of this year. Bangladesh will find them in highly favorable condition as they have signed up three years agreement for the ECF for US $987 million. This agreement will be highly supportive to their macroeconomic stability by strengthening their economic position. Along with other sectors of economy, fresh and dry fish exports are amongst the other exported seafood items and agriculture and industrial products that are playing very important role in their economic growth. Contribution in dry fish industry has increased employment in Bangladesh and ensured safety and reliability of frozen fisheries exports to all over the world (Ahmed, pp. 9, 2012). 3.5. Contribution of Shrimp Export Industry of Bangladesh
Bangladesh government has made some incredible changes in their policy in the recent years to make sure their safety as well as the quality of their products, food and agriculture organization of the United Nations (FAO). Bangladesh has made considerable standards, rules and regulations and fish inspection schemes in the period of 1980s and it has contributed greatly in enhancing the growth of their fisheries industry. According to latest index, frozen fish and fresh fish were fourth at their leading exports including 7.3 percent of their total market share. Bangladesh has witnessed considerable growth of their fishery industry exports of around 34 to 50 percent in the European Union, 23 to 38 percent in the United States, and 15 to 26 percent in Japan. The average contribution of shrimp fish was lower in the region but the reputation of their seafood growth has made considerable growth in their quality standards and won the heart of their international market buyers (Subasinge and Cato, 2003).
Shrimp culture is continuously growing in the country of Bangladesh and it is playing very important role in making sure their seafood security by alleviating poverty especially in the rural areas. The urban population of Bangladesh is benefited due to enhanced fishery production and exports along with improvements in the processing, value addition and the marketing of their shrimp industry. Bangladesh has also got some favorable conditions in the world of their exports without suffering from any restrictions from EU on their shrimp fishing. The majority of workers in the processing section of shrimp fishing are women and due to value addition a larger portion of the population is getting huge benefits. Three to four million people are mostly benefited and according to latest figures, 2, 23, 095 metric ton of shrimp fishing is produced in Bangladesh and contributed greatest part with 19, 567.90 core taka in their gross national product. Bangladeshi shrimp fish are making huge significance in the international markets due to their environment friendly shrimp production. Bangladesh fishing industry has adopted latest technological improvements at various levels of value chain shrimp in the country. The shrimp farming areas is also coupled in the country with around 2, 17, 877 hectors including fresh water shrimp farming in the areas of Noakhali, Jessore, Khulna and Bagerhat (Nupur, pp. 3, 2010). 3. Conclusion
Bangladesh is largely dependent on their agricultural sector of the economy and since 1960s the country has witnessed small but consistent economic growth. Bangladesh is a country that is also based on large section of society dependant on their fisheries sector. In the early period, fisheries was only restricted to fresh water sea but with the passage of time, Bangladeshi government realized international market regulations and made considerable improvements in their fisheries industry. It was the period of 1980s when the government taken considerable steps in regulating their fisheries industry to make it environment friendly and sustainable according to international quality standards. It not only enhanced their the growth of their fishery industry and countries from European Union, United States, and Gulf region has preferred to buy their seafood, fish and dry fish at their markets.
The Bangladesh fishery industry has made huge contribution in enhancing their fishing exports along with their other regular exporting items. It has given great contribution to their economic growth and the impact of fisheries industry can never be ignored in the country. Fisheries industry has offered great employment opportunities to the Bangladeshi nationals due to fish processing and value additions. Women and rural poor sections of the country were also given employment opportunities to their larger section of the society. Along with fresh fishing, dry, frozen and shrimp fishing has given huge importance in the coastal areas of Bangladesh. Shrimp culture is growing in the country and along with their contribution to reduce poverty in the rural areas, it is playing very important role urban areas due to enhanced value addition and fish processing. Latest technological improvements has also played their role in considerably growing fishing industry with reduced level of poverty, employment generation and benefiting local economy as a whole.
References
1. Hossain, (2004). “Global Bycatch Assessment of Long-Lived Species in Bangladesh.” Country Profile of Bangladesh. 2. Belton et al., (2011). “Review of Aquaculture and Fish Consumption in Bangladesh.” The WorldFish Center, Nov. 2011. 3. Rahman, J. (2010). “Economic Growth in Bangladesh: Experience and Policy Priorities.” 4. Pitcher J. Tony and Pramod G., 1999. “An Estimation of Compliance of the Fisheries of Bangladesh with Article 7 (Fisheries Management) of the UN Code of Conduct for Responsible Fishing.” 5. Chakraborty K. and Kar T. K. (2011). “A bioeconomic Assessment of the Bangladesh Shrimp fishery.” World Journalism of Modeling and Simulation. 6. Faruque et al. pp. 215, 2012. “Status of an Ideal Dry Fish Market of Bangladesh: A Study on Asadganj Dry Fish Market, Chittagong.” International Journal of Life Sciences Biotechnology and Pharmaceutical Research, Vol. 1, No. 3. 7. Hossain and Ahmed. 2012. “Marketing Strategies for Frozen Fish Exporters in Bangladesh.” Journal of Arts and Science and Commerce. 8. Ahmed, I. 2012. “State of Bangladesh Economy: A Prognosis for the Future.” ISAS No. 165. 9. Subasinge and Cato. 2003. “Food Safety in Food Security and Food Trade: Case Study the Shrimp Export Industry in Bangladesh.” 2020 Vision for Food, Agriculture and the Environment. 10. Nupur, J. M. 2010. “Problems and Prospects of Shrimp Farming in Bangladesh.” Office of Research and Publication, American International University – Bangladesh.