Bangladesh, a leading player in global hilsa fish production, is facing a pricing dichotomy in the international market. While the country commands prices ranging from Tk 900 to Tk 2,000 per kg, in Singapore, hilsa fish is priced between $7.5 and $10 (equivalent to Tk 600 to Tk 800 per kg).
Singapore, a significant importer of fish, meat, eggs, and vegetables from countries including Myanmar, Bangladesh, Pakistan, India, and Malaysia, sources a considerable portion of its fish imports, including hilsa, from Myanmar. Expatriates from Bangladesh, India, and Myanmar are the primary consumers of these fishes in Singapore.
Notably, in Singapore’s markets, a three-piece hilsa packet is being sold for $10, and after calculations, this translates to Tk 630 per kg for Bangladeshi or Indian expatriates. A larger-sized three-piece hilsa packet (500-700 grams) is priced at $14 or Tk 1131, placing the cost of 1 kg of hilsa fish between Tk 475-540.
While commodity prices in Singapore seem to reflect the dynamics of supply and demand, challenges arise from the fact that hilsa export from Bangladesh to Singapore is not approved. As a result, businesses like E-Hong Mini Mart are compelled to source hilsa from Myanmar. The managing director of E-Hong highlighted the need for pricing strategies that ensure profitability and break-even.
Despite being the top global hilsa producer, Bangladesh faces hurdles in exporting directly to Singapore due to the high cost and complications in the certification process. Importers cite the competitive pricing of fish in Myanmar and the lengthy certification timeline in Bangladesh as significant factors influencing their sourcing decisions.
The Export Promotion Bureau (EPB) data indicates a 21% decline in export earnings of frozen and fresh fish, including shrimp, amounting to $42.2 million in the last fiscal year. This underscores the need for strategic measures to address challenges in the international fish market and capitalize on Bangladesh’s position as a major hilsa producer.
Source: Business Post
