Speakers in a policy dialogue stressed the urgent need for a dedicated Tk 2,500 crore soft loan fund for the shrimp and frozen food sector to boost export.

They said to overcome stagnant production and falling global competitiveness, which has seen the industry drop from the second to the seventh largest export earner.

The demand was made during the policy dialogue titled ‘Transforming Policy Support for Reviving Bangladesh’s Shrimp Sector', held on Wednesday night.

Speaking as the Special Guest, Bangladesh Bank Governor Dr. Ahsan H. Mansur said that exporters from any sector, including frozen food, have the opportunity to take loans of up to Tk 5 crore from the Export Development Fund (EDF).

Such a provision that is already in place but often goes unutilized by shrimp exporters.

However, Dr. Mansur suggested that the main issue might not be financing for the processing industry.

"I believe financing is not the problem in the shrimp processing industry. Loan facilities can be increased at the farmer level. But their productivity must be prioritized first. Better technology and improved breeds are needed," he added.

The Governor emphasized that while the central bank is prepared to offer policy support, entrepreneurs must lead export expansion efforts with realistic planning.

He added that both the private sector and the government must actively identify scopes for expansion and potential export opportunities.

In a study paper presentation, Dr. Bazlul Haque Khondker, Research Director of the Policy Research Institute (PRI), strongly advocated for the creation of a dedicated Tk 2,500 crore shrimp aquaculture fund.

This fund is proposed to be extended to shrimp farmers and facilitators as a soft loan at a 4 percent interest rate.

The facility would be categorized to support the processors, small holding farmers, women entrepreneurs, Non-Resident Bangladeshi (NRB) investors.

The presentation highlighted the severe challenges facing the industry.

Despite having vast marine and freshwater resources, the frozen food sector, once a top export earner, is suffering from stagnant production, high costs, and low global competitiveness, the study finds.

The sector's export value dropped to US $334 million in 2024, down from $441.5 million in the last fiscal year.

Though the e industry provides livelihoods to over 17 million people, and potential opportunities to earn $5 billion, the shrimp export sector remains backwards.

Farida Akhter, Adviser to the Ministry of Fisheries and Livestock, was present as the Chief Guest at the dialogue.

Mohammad Shajahan Choudhury, President of the Bangladesh Frozen Food Exporters Association (BFFEA); Iqbal Ahmed Obe, Chairman and Managing Director, Seamark (BD) Ltd; and Md. Tariqul Islam Zaheer, Senior Vice-President of BFFEA, among others, spoke at the event.

The academicians, entrepreneurs and sector experts attended the event.