Shrimp industry seeks interest-free bank loans

Dhaka, Nov 25 (bdprem.com) — Representatives from the shrimp industry are set to ask the government for assistance in securing interest-free bank loans to recover from huge losses sustained after Cyclone Sidr decimated the sector. Your Ad Here "We have to revive the business, but we have a liquidity shortfall," Kazi Belayet Hossain, president of the Bangladesh Frozen Food Exporters Association (BFFEA) told bdnews24.com. "We'll seek interest-free bank loans via the government after assessing our financial losses," Hossain said. The government and businessmen have jointly started the process of assessing losses incurred by the recent cyclone in the fisheries sector, and the shrimp industry in particular, industry insiders said. Senior officials at the fisheries and livestock ministry have already gone to the worst affected areas in the south and south-western regions. They will hold discussions with industry stakeholders in the southern shrimp farming hub of the country to formulate coherent plans for the recovery of the vital sector. The chief adviser's office recently asked the ministry of fisheries and livestock for statistics on losses in the sector. BFFEA and the Bangladesh Shrimp Foundation (BSF) are assisting the government in making an accurate assessment. "We hope we will be able to place a report before the government by Thursday," said the BFFEA president. The frozen food industry, the country's second biggest cash cow after the readymade garments sector, earned $515 million from exports during the last fiscal year. Cyclone Sidr, one of worst storms to hit Bangladesh in a decade, slammed into the country's south-western coastal areas on Nov 15. The mega-cyclone left over three thousand people dead and many more affected, in addition to the huge financial losses. Shrimp farms in the three southern districts of Bagerhat, Satkhira and Khulna were hit the hardest. Maqsudur Rahman, vice-president of BFFEA, said almost all the shrimp enclosures, hatcheries and processing plants in those areas, which together account for 70 percent of the industry, had been damaged by the tidal surge that accompanied the storm. Initial losses have been estimated at Tk 400-500 crore, although losses could be much higher than the preliminary projection, Rahman told bdnews24.com. According to Hossain, there are around 50,000 ghers, or shrimp cultivation ponds, in the country.