A Background Paper for Bangladesh

Fisheries Value Chain Study

Dr. Md. Ferdous Alam

Research Fellow

Institute of Agricultural and Food Policy Studies

Universiti Putra Malaysia

Putra Infoport

Jalan Kajang-Puchong

43400 UPM Serdang Selangor

Malaysia

March 2011

______ ___________________________________________________________

E-mail: Telephone: 603-8947 1095 (office). 6016-397 3871 (mobile)


Table of Contents

Table of Contents I

List of Tables II

List of Figures II

Acknowledgements III

1. Background 1

2. Introduction 1

3. Fisheries Sector in Bangladesh 2

3.1 National Fishery Policy 2

3.2 Fisheries Resources in Bangladesh 3

3.3 Fish Biodiversity in Bangladesh 3

3.4 Fish production and its growth 4

3.5 Intensity of Aquaculture Technology Practice 2

3.6 Fish Harvesting technologies 2

4. Fish and fisheries Product export 3

5. Fishing Grounds and Stock Assessment for Marine Fishing 4

5.1 Marine Fishing Ground 4

5.2 Marine Stock Assessment 6

6. Fishermen Cooperatives 6

7. Fish Markets and Marketing 7

7.1 Existence of Market Intermediaries 7

7.2 Fish Markets at Different Levels 7

7.3 Fish Market infrastructures 10

7.4 Transportation in Fish marketing 11

7.5 Marketing Margins and Farmer’s Share 11

8. Fisheries Regulations 13

8.1 Inland fisheries Management 13

8.2 Marine Fisheries Management 14

8.3 Fisheries Management in Sundarbans 15

8.4 Legislation for Aquaculture 16

9. Availability of Time Series Data 17

10. Need for Fisheries Value Chain Study in Bangladesh 18

11. Ongoing Fisheries Value Chain Studies 18

12. Species Selected for the Bangladesh Study 18

References 19

Appendices 23

List of Tables

Table 1. Exotic Fish Species Introduced into Bangladesh, 1952-98 4

Table 2. Annual production and productivity by sector of fisheries, 2008-2009 5

Table 3: Species/group-wise Production ( metric ton ) in Inland & Marine Fisheries, 2008-2009 2

Table 4: Exponential Growth Rates * of Fish Production of Different Fisheries 3

During 1983-84 to 2008-09 3

Table 5: Value of Fisheries Export and Its Share of Total Export Earning 3

Table 6: Quantity and Value of Shrimp and Fish Exported to Different Countries 3

Table 7. Fishing grounds of the Bangladesh marine fisheries 4

Table 8: Standing Stock of Demersal, Pelagic Fish and Shrimp of the Bay of Bengal (metric ton) 6

Table 9. Marketing Margin (in Taka) Per Quintal of Fish Handled by Intermediaries 11

Table 10 Marketing Profit of Frozen and Dryfish at Domestic and Export Markets 12

Table 11. Fishermen/farmers’ Share to Consumer prices 13

Table 12: Importance of Selected Species for the Value Chain Study 18

Table A1: Harvest of Ilish Over Time by Sources (tons) 23

Table A2: Year-wise production of shrimp and prawn (tons) 23

Table A3. Existing Aquaculture technology Practices 24

Table A4: Share of different items of fish and fisheries products in export, 2008-09 25

List of Figures

Figure 1. Map of Bangladesh (source: internet) 1

Figure 2. Fish production trend of Bangladesh 5

Figure 3. Fish production from different sources 5

Figure 4. Fish production from inland culture fishery 2

Figure 5. Prawn/shrimp production over time by sources 3

Figure 6 Hilsha harvest over time by sources 3

Figure 7: Pie-chart showing share of fisheries products exported during 2008-09 4

Figure 8: Trend of quantity and value of fisheries product exported 4

Figure 9. Distribution of Shrimps and Fish within 10-100 meter depth zone in the continental shelf of Bangladesh. (Source: Rahman et. al. 1995) 5

Figure 10: A generalized fish marketing channel of Bangladesh 8

Figure 11 : General marketing channels at Upazila level market for inland open water fish 9

Figure 12 : Public sector domestic marketing channel 10

Acknowledgements

The author wishes to thank the Food and Agriculture Organisation (FAO) of the United Nations and Norwegian Agency for International Development (NORAD) for respectively the technical implementation and funding of the project entitled “A Value-chain Analysis of International Fish Trade and Food Security with an Impact Assessment of the Small-scale Sector”. Dr. Audun Lem, Senior Fishery Industry Officer, Policy and Economics Division, Fisheries and Aquaculture Department of the FAO, Rome is highly acknowledged for providing overall administrative support to the author to carry out project activities. The author expresses sincere appreciation to Professor Dr. Trond Bjorndal, Director, CEMARE, the University of Portsmouth, UK for his keen interest in this background paper. His critical comments and professional suggestions had been highly helpful in organising the background paper. Professor Dr Madan Mohan Dey of the University of Arkansas at Pine Bluff, USA is highly acknowledged for his overall suggestion on the development of the background paper and time-to-time feedback for other associated studies of this project. Prof. Dr. Daniel V Gordon of the University of Calgary, Canada deserves appreciation for his suggestions and comments during the value chain study workshop held in Japan, which helped the author in many ways to organize the paper. Professor Dr Md. Idris Ali Mia, Head, Department of Agribusiness and Marketing, and Dean, Faculty of Agricultural Economics and Rural Sociology and Mr M. Salauddin Palash, Assistant Professor, Department of Agribusiness and Marketing of the Bangladesh Agricultural University, Mymensingh, Bangladesh (counterpart for cross section survey of the Bangladesh study of this project) deserve special appreciation for providing me with many information I needed during the process of preparing this background paper. Finally, the author expresses deep sense of gratitude to the authority of the Institute of Agricultural and Food Policy Studies and the Universiti Putra Malaysia for their kind approval to allow him to be involved with this FAO-NORAD project.

III


1. Background

This paper aims at exploring Bangladesh fisheries scenario as a background paper for the FAO project “A Value-chain Analysis of International Fish Trade and Food Security with an Impact Assessment of the Small-scale Sector” financed by the NORAD in which 10 developing and 2 developed countries including Bangladesh are participating. The aim of the project is to identify ways to improve food security for local populations through more informed policy decisions. The overall objective of the project is to achieve a better understanding of the dynamics of the relevant value-chains in international fish trade and arrive at policy recommendation. This background paper is the first outcome of the project as far as Bangladesh part is concerned and is expected to serve as explanatory notes for the remaining papers/studies to be coming out subsequently out of the above mentioned project.

2 . Introduction

Bangladesh is a developing country located in the north eastern part of South Asia between 2000 34'and 2600 38' North Latitude and between 880 01' and 920 41' East Latitude. It is bounded by India in the north and west; by the Bay of Bengal in the south, and finally by part of India and Myanmar in the eastern side (Figure 1). The total area of the country is 147,570 square kilometer (56,977 sq. miles). The limits of territorial waters of Bangladesh are12 nautical miles and the area of the high sea extending to 200 nautical miles measured from the base lines constitute the economic zone of the country. A wide portion of the land is covered by large rivers such as the Padma, the Jamuna, the Teesta, the Meghna, the Brahmaputra, and the Surma. There are also thousands of tributaries with a total length of about 24,140 km. Those rivers are connected to the Bay of Bengal. The total forest area is about 13.36% of the land area. Estimated population as per 2008-09 is 144.2 million with a population density of 977 per sq km (MoF, 2010). Per capita national income is US$690.Agriculture is the main occupation of the people employing 68.5% of the labour force. Cropping intensity is 175.97% and about half of the cultivated area is irrigated (MoA, 2011).

Figure 1. Map of Bangladesh (source: internet)

Fish and fisheries have been an integral part of the life of the people of Bangladesh from time immemorial, and play a major role in employment, nutrition, foreign exchange earnings and other aspects of the economy. Fish is a natural complement to rice in the national diet, giving rise to the adage Maache-Bhate Bangali (“a Bengali is made of fish and rice”). At present, fish alone supplies about 58% of animal protein. The present per capita annual fish consumption in Bangladesh stands at about 15.04 kg/year against a recommended minimum requirement of 18 kg/year (/2010/10/11/present-status-of-aquaculture-2/, accessed on 24 March 2011). About 13 million people of the country are directly or indirectly dependent on this sector for their livelihood. The Poverty Reduction Strategy paper (PRSP) and National Fisheries Strategy indicate that income generating opportunities for rural households are the most promising in the fisheries sector (MoP, 2005; DoF, 2006). It is estimated that 73% of rural households are involved in some form of freshwater aquaculture on floodplains throughout the country (Mazid, 1999). Aquaculture has the potential to provide new employment opportunities in the rural areas by increasing both self-employment and demand for hired labour (Karim et al. 2006). Fisheries sector currently contributes 4.64% to the gross domestic product (MoF, 2009), 23 % to the agricultural GDP and 5.10% to foreign exchange earnings through export (Sarder, 2007). Number of fish and prawn farmers are estimated at 0.308 and 0.115 million respectively. In contrast, number of fishermen is estimated at 0.128 million comprising 0.077 million of fishers operating in inland water bodies and 0.051 million operating on marine fisheries (DoF, 2010a). Fisheries Sector Review (2003) estimates that some 1.1 million people- landless, part time and full time fishers and landowners- are directly involved in capture fisheries. Around 650,000 (67%) are engaged in the inland fisheries and 444,000 (33%) in coastal and marine fisheries. Around 177,500 people are involved in fish and shrimp or prawn seed collection, husbandry and distribution.

This background paper is organised in 12 sections. Following brief project background in section 1 which sets the context of the present study, section 2 presents the general introduction of the country and glimpse of vital fisheries statistics along with their importance in nutrition, employment and GDP of Bangladesh. Section 3 highlights national fisheries policy, fisheries resources and fish biodiversity in Bangladesh, status of overall fish production, fish production growth, intensity of aquaculture technology uses and harvesting technologies. Section 4 portrays scenario related to export of fish and fisheries product over time. Status of fishing grounds and marine resource stock assessment has been presented in section 5. Issues related to fishers’ cooperatives and marketing aspects of fish are presented in sections 6 and 7 respectively. Section 8 is concerned with fisheries regulation while section 9 deals with status of time series data availability for fish prices. Need for fisheries value chain study in Bangladesh has been discussed in section 10. Some highlights of the ongoing fisheries value chain study of this project is presented in section 11. Finally, section 12 displays the five culture species chosen for the econometric modelling of price linkages across the different market levels.

3. Fisheries Sector in Bangladesh

3.1 National Fishery Policy

The Ministry of Fisheries and Livestock prepared the National Fishery Policy (NFP) in 1998 with the overall objective of developing the fisheries sector. The objectives of the NFP are: i) to enhance fisheries production, ii) to alleviate poverty through creating self-employment and improvement of socio- economic conditions of the fishers, iii) to fulfil the demand for animal protein, iv) to achieve economic growth through earning foreign currency by exporting fish and fisheries products, and v) to maintain ecological balance, conserve biodiversity, ensure public health and provide recreational facilities (MoFL, 1998).

This document addresses policy measures to be undertaken in four areas or dimensions and recommends policies for several supporting services. The four dimensions of NFP are: (a) policies for the preservation, management and exploitation of fisheries resources in inland open water; (b) policies for fish cultivation and management in inland closed water; (c) policies for prongs and fish cultivation in coastal areas; and (d) policies for preservation, management and exploitation of sea fishery resources (Mandal, 2006). The overall strategy of fisheries subsector development envisages intensification of aquaculture by species and ecosystems, addition of export-oriented species, ensuring biodiversity and preserving natural breeding grounds, product diversification, value addition, and development of appropriate market infrastructure (GPRB, 2009)

3.2 Fisheries R esources in Bangladesh

Fish production in Bangladesh takes place under three broad environments namely, i) inland capture fishery, ii) inland culture fishery and iii) marine fishery. The first one is an inland capture fishery while the second one is inland culture (aquaculture) fishery. Inland capture fishery comprises rivers and estuaries, Sundarban (water resources in the forest), Beel (deepest part of the floodplain, often with permanent area of water), Kaptai Lake (a man-made lake for generation of hydroelectricity) and floodplain. The corresponding water areas are: 853,863 ha for river and estuaries, 177,700 ha for Sundarban, 114,161 ha for beel, 68,800 ha for Kaptai lake, and 2,832,792 ha for floodplain totalling 4,047,316 ha for the total inland open water bodies (capture fisheries). The inland closed water bodies comprise 305,025 ha of ponds and ditches, 5,488 ha of baor (ox-bow lakes) and 217,877 ha of shrimp farms (both freshwater and saline waters) totalling 529,390 ha of total inland closed water bodies (culture fisheries). Thus, the total inland water areas (inland open water capture fishery and inland closed water culture fisheries together) stand at 4,575,706 ha.

In addition, the country has a coastal area of 2.30 million ha and a 710 km-long coast line along the Bay of Bengal, which supports a large artisanal and coastal fisheries. Further, the country has a 200-mile EEZ in the Bay of Bengal (Mazid, 2002). The Bay of Bengal is situated in the south of Bangladesh. There is a total of 166,000 sq km marine water area including EEZ. Fishing is confined only within 100-meter depth (DoF, 2003).

3.3 Fish Biodiversity in Bangladesh

The fisheries are multispecies in nature: there are 300 species of fish and 20 species of prawns in Bangladesh (Rahman, 1989). The most common species is ilish (Tenualosa ilisha) national fish, which accounts for nearly half of total marine catch. During early nineties ilish constituted about 20% of total fish production of the country. The inland freshwaters of Bangladesh are inhabited by 60 native and 13 exotic species of fish and 20 species of shrimp, of which the majority occur in impounded water bodies. The indigenous carp species of Bangladesh can be divided into two subgroups: major carps (katla, rohu, mrigel and kalbasu) and minor carps (bata, reba, nandina and gonia). Most of the freshwater river systems and floodplains are natural breeding grounds for carps. The major carp species occur in deep pools of the Padma-Brahmaputra river system (Padma, Jamuna, Arial Khah, Kumar and old Brahmaputra rivers) and the Halda River System in Chittagong. The minor carp species inhabit small rivers and the shallow waters of floodplains in the north east (Mymensingh, Netrokona and Mohonganj), southwest (Faridpur and Jessore) and northwest (greater Rajshahi area) (refer to map). Exotic species, comprising mostly Chinese carps, have been introduced since the 1950s (Table 1), but this introductions have not been well documented. Introduced species include silver carps, grass carp, bighead carp, black carp, common carp, silver carp, Tilapia and Mahseer.