Hilsa in smuggling net: Plenty in supply, scarce on plates

Bangladesh's national fish, Hilsa, is now not just a food item; for the past few decades, it has also been identified as a political fish. Sometimes used to strengthen diplomatic relations with neighboring countries, and other times as a 'gift token' to win the favor of special heads of state, the Hilsa has been instrumentalized.

However, the reality of this fish is different. During the peak season, while this silvery fish is caught in fishermen's nets in the rivers, its price in the market is found to be sky-high. Supply has indeed increased, but the national fish has moved beyond the reach of the middle class. Furthermore, stakeholders believe that due to multi-faceted smuggling tactics and excessive costs in the supply chain, Hilsa has become a 'dream fish' for the common people.

Skyrocketing Prices in Market

A recent visit to various markets in the capital revealed that even during the peak Hilsa season,market prices are very high. The prices are so exorbitant that it is nearly impossible for the average consumer to afford them. In retail markets, Hilsa weighing one to one and a half kilograms is selling for Tk 2,400-2,500. A 500-700 gram Hilsa is available for Tk 1,500, while those just under a kilogram cost Tk 1,800 to Tk 2,000. Large Hilsa (2 to 2.5 kg) are being sold for Tk 3,000-3,500. This upward price trend is not only in the capital but has been observed in many markets across the country.

Vendors said that transportation costs, ice, commission for wholesalers (aratdars), and the margins of middlemen cause the price to almost double by the time it reaches Dhaka.

A vendor at Karwan Bazar told Views Bangladesh, "Fish are arriving in the season, but the prices are so high that many don't dare to buy."

On the other hand, a frustrated customer at New Market expressed, "If we can't even eat Hilsa during its season, who is actually benefiting?"

Multi-faceted Smuggling Tactics

There is immense domestic demand for Hilsa,and it is also highly sought after abroad. Investigations reveal that despite an export ban and strict government controls, a massive quantity of Hilsa is still being smuggled out of the country through various routes.

It is known that smugglers use ingenious methods to transport Hilsa abroad via land, water, and air routes. Hilsa is smuggled to India and Myanmar through land borders in Jashore, Satkhira, Meherpur, and Cox's Bazar-Teknaf. Meanwhile, fishing trawlers and cargo ships transfer Hilsa directly to foreign vessels from the deep sea. Often, shipments are declared as 'other fish' for export but contain Hilsa inside. Additionally, outbound passengers carry large quantities of Hilsa as 'gifts' or 'food' in their luggage or via courier services. Investigations show that for years, Hilsa stored under the guise of cold storage has been sent abroad mixed with consignments of other fish.

Reasons for Smuggling

The huge international demand for Hilsa and the opportunity to sell it at high prices are major temptations for smugglers.

Sources said for smuggling to India, the lure of high profits due to the exchange rate difference between the Taka and Rupee is a key factor. Furthermore, there is interest from businesses to meet the demand for Indian festivals and social needs. To repay local advances (dadon), wholesalers often resort to smuggling.

Consequently, this creates a supply crisis in the local market, drives up prices, and the government loses revenue.

It is known that during the era of General Ershad's Jatiya Party, Tipu-Shahjahan group controlled the Hilsa trade. Later, control shifted to associates of influential Awami League minister Shahjahan Khan. However, since August 5 of last year, this control has passed directly and indirectly to businessmen affiliated with the BNP.

Discussions over the past few days with top businessmen at Karwan Bazar, Jatrabari, and Tongi markets revealed that influential businessmen living in upscale areas of Dhaka control this market, yet they remain practically untouchable.

A key figure from the influential Khulna-based business concern Sundarban Group, speaking on condition of anonymity, told this reporter, "Every year, transactions worth several hundred thousand crores of Taka occur in this fish market, for which the government has no account."

Mahidul, a businessman from Dublar Char in Khulna, shared a different story.

He said, "The fish you see in the market today were actually sold a year ago. Everything, from price setting to sales, is controlled from the big hotels in Dhaka." He informed that they collect 100 to 120 tons of fish daily from an average of 12 trawlers.

On this issue, Rahim Sheikh of 'Ma Matshya Arat' in Karwan Bazar, while not commenting directly, hinted that the lion's share of the fish arriving at Karwan Bazar ultimately gets smuggled out of the country through various channels.

Export and the Government's Stance

The government has recently approved Hilsa exports to India,setting a specific quota and a minimum price (USD 12.5 per kg). However, the approved export quantity this year is half of last year's. Last year, permission was initially granted to export 3,000 tons of Hilsa for Durga Puja in India, which was later reduced to 2,420 tons. This year, the approved amount has been further reduced to 1,200 tons.

This export announcement has impacted the market—demand has increased, creating a supply crisis, and prices are rising. With a combination of illegal smuggling and legal exports, Hilsa has become a priceless commodity on the common person's plate. Fishermen aren't getting a fair price, consumers aren't getting the fish easily, and illegal profits are accumulating in the hands of smugglers.

The government has stated that exports beyond the approved quantity are prohibited. Permits cannot be transferred, and exports cannot be done through sub-contracts by unauthorized exporters. The government reserves the right to halt exports at any time if necessary.

Instability in Wholesale and Retail Markets In the wholesale market on Port Road in Barisal,the price of Meghna Hilsa is now Tk 1,900 per kg. In retail, it stands at Tk 2,200. The price of large Hilsa ranges from Tk 2,500 to Tk 2,800, while smaller Hilsa (three making one kg) are available for Tk 700. Although the price of sea-caught Hilsa is comparatively lower, by the time it reaches Dhaka, adding transportation, ice, spoilage, and wholesaler commission, the cost increases by Tk 350–550 per kg, reaching Tk 3,500.

Label Fraud and Fishermen's Gains and Losses

Wholesalers from Kolapara,Patharghata, and Taltoli said the main strategy for increasing prices lies in the size and labeling of the Hilsa. Supply of small Hilsa is higher, so prices are relatively lower. Demand for large Hilsa is always high, but due to low supply, prices are unstable. Additionally, cheap sea-caught Hilsa is being labeled as 'Padma Hilsa' and sold at double the price in retail.

S.M. Zakir Hossain of National Fish Workers' Rights Forum said, "At the start of the season, the memory of buying Hilsa for Tk 3,500 remains in customers' minds. Even when the price drops later, they feel it has fallen sufficiently. Sellers are capitalizing on this psychology." On the other hand, although plenty of Hilsa is caught in the Meghna and Padma rivers, fishermen are not getting a fair price. They allege that the wholesalers and middlemen are the real beneficiaries.

Regarding the price increase of sea-caught Hilsa, Golam Mostafa Chowdhury, a trawler owner from Barguna, said building a trawler costs Tk 60-70 lakh, with a lifespan of about 10 years. Each sea voyage costs Tk 6-7 lakh for fuel, ice, supplies, and repaying advances (dadon).

He added that a trawler can go to sea 4-5 times a year on average. There is always the risk of the trawler sinking due to storms and cyclones. Furthermore, they cannot get bank loans, and there is no insurance for nets or trawlers. Consequently, to cover these costs, the price of Hilsa is inflated when caught.

Research by 'Manusher Jonno Foundation' suggests that fish production has increased 4-5 times over the past few decades. However, the standard of living of fishermen has not improved. Instead, they are trapped in cycles of advances and high-interest loans.

Nazrul Majhi, a fisherman with 40 years of experience, said, "We are all zero partners. This year, I went out to sea three times, not once did I even cover my market costs. When we return to the dock without catching fish, we wonder what face we will show at home. The children expect their father has caught fish and will bring money. But we have to return empty-handed."

Experts said that to bring stability to the Hilsa market,transparency must first be introduced into the supply system. Fishermen must be ensured a fair price so they can sell their catch without the pressure of advances or middlemen. Additionally, smuggling and illegal exports must be strictly controlled.

They believe the government must monitor the market and formulate policies to prevent hoarding in cold storage and artificial price stabilization. Export policies need to be aligned with local market supply so the common people can enjoy Hilsa in season. Social safety nets and loan facilities for fishermen also need to be strengthened.