Report No. 8830-BD

BangladeshFisheries Sector Review

March 20, 1991

Agriculture Operations DivisionAsia Country Department I

FOR OFFICIAL USE ONLY

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Document of the World Bank

This document has a restricted distrilition and may be used by Tecipients

be disclosed without World Bank authorization.

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CURRENCY AND EQUIVALENT UNITS

Bangladesh Taka (Tk)

Exchange Rate in April 1990:Tk 1.00 = US$ 0.0287US$1.00 = Tk 34.90

CONVERSIONS

metric ton (mt) = 26.8 maunds- maund - 37.3 kilograms1 kilogram (kg) = 2.204 pounds1 seer 0.933 kilograms1 bigha - 0.331 acre1 acre = 0.405 hectares1 hectare (ha) = 2.47 acres = 10,000 m21 kilometer (km) = 0.62 miles1 square kilometer = 0.38 square mile1 lakh = 0.1 million1 crore = 10 million

FISCAL YEAR

July 1 - June 30

FOR OMCLu1 USE ONLY

ACRONYMS AND ABBREVIATIONS

ADAB - Association of Development Agencies in BangladeshADB - Asian Development BankADP - Annual Development PlanASEAN - Association of South East Asian NationsBADC - Bangladesh Agricultural Development CorporationBAFRU - Bangladesh Aquaculture and Fisheries Resource UnitBARC - Bangladesh Agricultural Research CouncilBBS - Bangladesh Bureau of StatisticsBCAS - Bangladesh Centre for Advanced StudiesBFDC - Bangladesh Fisheries Development CorporationBFFEA - Bangladesh Frozen Food Exporters AssociationBIDS - Bangladesh Institute for Development StudiesBJMSS - Bangladesh Jatiya Matshyajibi Somabaya SamityBKB - Bangladesh Krishi BankBRAC - Bangladesh Rural Advancement CommitteeBRDB - Bangladesh Rural Development BoardBSBL - Bangladesh Samabaya Bank Ltd.BWDB - Bangladesh Water Development BoardCODEC - Community Development CentreDANIDA - Danish International Development AgencyDDT - Dichloro Diphenyl Trichloro EthaneDOF - Department of Fishe:iesECNEC - Executive Committee of National Economic Council, GOBEEZ - Exclusive Economic ZoneEPB - Export Promotion BureauIRS - Economic Research Service, USDAESCAP - Economic and Social Commission for Asia and the Pacific (UN)FCD - Flood Control and DrainageFCDI - Flood Control, Drainage, and Irrigationf.o.b. - Free on boardFYP - Five-Year PlanFRI - Fisheries Research InstituteFRSS - Fisheries Resource Survey SystemFAO - Food and Agricultural Organization of the United NationsGDP - Gross domestic productGOB - Government of BangladeshHL - headless (shrimp)HO - head-on (shrimp)HYV - High Yielding VarietyICLARM - International Center for Living Aquatic Resources ManagementIDA - International Development AssociationIDRC - International Development Research Center (Canada)IFAD - International Fund for Agriculture DevelopmentIFDC - International Fertilizer Development CenterIPM - Integrated Pest Management0OI - Ministry of Irrigation, Flood Control, and Water Development

This document has a restricted distribution and may be used by recipients only in the performanceof their offlcial duties. Its contents may not otherwise be disc' -d without World Bank authorization.

MOP - Ministry of FinanceMPO - Master Plan OrganizationNFL - Ministry of Fisheries and LivestockNACA - Network of Aquaculture Centers in AsiaNFMP - New Fisheries Management PolicyNCO - nongovernmental organizationODA - Overseas Development Administration of the United KingdomO&M - Operations and MaintenancePC - Planning CommissionPCB - Pollution Control BoardPEC - Project Evaluation Committee, GOBppt - parts per thousandRAXUB - Rajshahi Krishi Unnyan BankR&D - research and developmentUFO - Upazila Fisheries OfficerUN - United NationsUNDP - United Nations Development ProgrammeUSAID - United States Agency for International DevelopmentUSDA - United States Department of AgricultureVFC - World Fisheries CongressWFP - World Food ProgrammeXPB - export performance benefit

GLOSSARY

Aquaculture - Artificial and commercial cultivation of aquatic products(for example, growing shrimp in shrimp ponds).

Aratdar - Commission agent.

Artisanal - Small-scale (for example. artisanal marine fishery).

Baor - Oxbow lake; a closed body of water, isolated from the riverby a change in its course.

Beel - Small lake, low-lying depression, a permanent body of waterin a floodplain or a body of water created by rains orfloods that may or may not dry up in the dry season.

Brood Stock - Mature fish used for breeding.

Cess - British dialect for tax assessment.

Demersal - Fish living close to or on the seabed.

iserelict pouds - Ponds not suitable for culturing fish without improvements.

Fingerlings - Juvenile fish larger than fry (>2.5 cm).

Floodplain - Annually flooded, low-lying area associated with rivers.

Fry - Juvenile fish larger than hatchlings but smaller thanfingerlings (1.5 - 2.5 cm).

Genuinefishermen - Fishermen who earn most of their living fishing in open

waters.

"aor - Shallow lake or a large low-lying depression in a flood-plain that may be reduced during the dry season to a seriesof beels.

Hatchery - Fish seed farm for spawning and hatching.

Hatchlings - Larval fish up to about 4-5 days old.

Jal Mahal - Body of water.

Mahajan - Financier or moneylender.

Nursery - Pond(s) where hatchlings are grown to fingerlings.

Oxbow lake - See Baor.

Pelagic - Fish living close to the surface or at intermediate depthsabove the seabed.

Polder - Area of low-lying land reclaimed from the sea byconstruction of a perimeter dike.

Polyculture - Cultivation of two or more species of fish in a pond tooptimize productivity.

Post larvae - Young shrimp stage used for stocking ponds.

Thana - Smallest administrative unit; also called a police station.

Trash fish - Fish caught by shrimp trawlers and thrown back into theocean.

Trawler - Fishing vessel that drags a cone-shaped net above the sea-bed at predetermined depths.

Upazila - Subdistrict, an administrative unit between Zila and Thana.

Water - Water with a salinity level of 0 ppt is fresh water; of0-30 ppt is brackish water; and greater than 30 ppt ismarine water.

Zila - District, main subregional administrative unit.

BANGLADESH

FISHERIES SECTOR REVIEW

Table of Contents

Page

EXECUTIVE SUMMARY ... ..................... i-vii

CHAPTER I. INTRODUCTION ............ ......... ***.*- ....... 1

A. Scope ..................... 1B. Sectoral Contribution .............. 1C. Recent Developments ............. . 3D. National Goals ....................... 4

CHAPTER II. SECTORAL PERFORMANCE AND ITS DETERMINANTS .... 5

A. Fisheries Resources . ..... . ... . ... 5B. Fish Production . .... 8C. Seafood Exports ................. * ............. 14D. Fish Consumption Patterns ......... ........... 17E. Fish Marketing .... .... . ..... .... .. .............. . 20F. Fish Price Trends . *......................... 22G. Fisheries Credit ...................... .... . . 24H. Environmental Impact .......................... 27

CHAPTER III. INSTITUTIONS AND FINANCIAL PERFORMANCE ............ 29

A. Fisheries Institutions ........................ 29B. Fisheries Laws and Regulations ................ 31C. Fisheries Planning and Performance ............ 32D. Financial Performance of DOF .................. 32E. Financial Performance of BFDC ................. 36F. Budget Allocation and Expenditure ............. 37G. Cost Recovery on Fishery Projects ............. 38H. Fisheries Management Policy ................... 40

CHAPTER IV. SECTORAL PROSPECTS AND COMPARATIVE ADVANTAGE ...... 43

A. Projected Fish Supplies ...................... 43B. Projected Fish Exports ....................... 43C. Projected Fish Demand and Requirements ........ 44D. Per Capita Availability of Fish ............... 46E. Potential Gaps in Supply and Demand ........... 46F. Fish Meal Production .......................... 48G. Comparative Production Advantage .............. 49

This report has been prepared by Mohinder S. Mudahar, Task Manager(ASTAG). Valuable comments were provided by C. Helman and W. Roider(ASlAG), E. Chobanian (ASTAG), E. Loayza (AGRPS) and Y. Tang (C).Silvia Van Bevers provided secretarial support.

Page

CHAPTER V. SECTORAL POTENTIAL, CONSTRAINTS, AND PROGRAMS ...... 53

A. Floodplains Fishery ............ .............. .. 53B. Pond Aquaculture .... ............................ 56C. Coastal Aquaculture ............ .................... . 58D. Marine Fisbery ................................. 62E. Fisheries Production Potential ................. 63F. New Fisheries Technologies ..................... 63G. Investment ' eds ................................ 67

CHAPTER VI. SECTOR STRATEG'., ISSUES, AND OPPORTUNITIES ......... 71

A. Fisheries Development Strategy ................. 71B. Sectoral Issues and Opportunities .............. 73C. Role of the World Bank ....................... 77

REFERENCES

LIST OF TABLESTABLES

LIST OF FIGURESFIGURES

ANNEX I - PRODUCTION POTENTIAL OF FLOODPLAINS FISHERIESANNEX IT - WATER POLLUTANTS AND THEIR IMPACT ON FISHANNEX III - INVOLVEMENT OF DONORS IN THE FISHERIES SECTOR

LIST OF ANNEX TABLESANNEX TABLES

-AP IBRD 22551: BANGLADESH - FISHERIES SECTOR REVIEWMAP IBRD 22552: BANGLADESH - FISHERIES SECTOR REVIEW

EXECUTIVE SUHMARY

1. Bangladesh is ideally suited for fish production, as 34Z of itsarea is flooded with nutrient-rich water for almost six months a year. Thefloodplains are rich in natural fish food and do not require supplementaryfeeding to achieve high fish yields. In the next two decades, fishproduction could grow 4.52 a year, mostly through Improved management ofculture-based fisheries in the floodplains and improved aquacultusretechnology in ponds and coastal areas. The main source of growth will beincreases in yield, but expanding the area under aquaculture can also beimportant. Key conditions required for this growth in the fisheries sectorares

(1) The role of the public sector should be restricted to activitiesthat cannot be handled or are not being undertaken by the privatesector.

(2) More resources should be dedicated to R&D to rehabilitatefisheries resources and to accelerate the use of new fisheriestechnologies.

(3) Increased investment is required in fisheries infrastructure andthe stocking of public bodies of water.

(4) Policy reforms are required in the areas of credit, costrecovery, divestment of comercial operations by the publicsector, management of public bodies of water, and rehabilitationof fisheries resources.

2. Fish production has been growing' slowly: only 2.4Z a year. Thefisheries sector accounts for 3X of GDP, 8? of the gross value added ofagriculture product, 71X of animal protein intake, and more than 112 ofexport earnings. Annual fish production is about 840,000 mt. The primarysources of growth in fish production have been increases in fish yield frominland culture fisheries and increases in fish catch from artisanal marinefishery. On the other hand, area, yield, and production from inlandcapture fisheries (which accounts for more than 50? of fish production)declined over time. Fish production from inland capture fisheries declinedfor several reasons, iscluding flood control works, inefficient managementof public bodies of water, and the red;c.ion of fish stocks.

3. More than 95? of fish marketing is in the hands of the privatesector. About 10-12X of the fish caught is ultimately consideredunsuitable for human consumption because of inadequate taansport, storage,and handling facilities. Marketing margins are relatively high, rangingfrom 30? to 60? of retail prices. The marketing infrastructure --including cold storage, ice, insulated transport facilities, landingcenters, and wholesale markets -- is inadequate, unhygienic, and in

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disrepair. In the last 12 years, fish prices have increased faster (at15.62 a year) than rice prices (10.32 a year), largel' because fish demandhas increased faster than fish supply. Large seasonal and spatialvariations in wholesale fish prices reflect inadequate fish storage andtransport facilities. Clearly, the marketing infrastructure needs to befully developed to reduce waste, lower marketing costs, stabilize prices,and improve marketing efficiency.

4. Inadequate credit appears to be an important problem for everyoneinvolved in the fisheries sector, including fish farmers and fishermen.Fisheries' relative share in agricultural credit disbursements is small(about 1.5Z). Institutional sources of credit are reluctant to lend to thefisheries sector because of high risks, low recovery rates, and lack ofcollateral. A lack of knowledge about tisheries and complicated creditdisbursement rules also contribute to low credit disbursement. Fishermenand fish farmers are forced to borrow from money lenders at high interestrates -- an estimated 1OZ to 12Z a month. The Grameen Bank, however, haspioneered an approach of supervised credit to the landless that has a 992recovery rate. Only about 2.52 of its disbursements are for fisheries butthere is considerable potential for e.,-nsion. It is essential to increasethe availability of credit through sevf -al alternative sources, includingexisting institutional sources, private baaks, the Grameen Bank,nongovernmental organizations (NGOs), and input suppliers. In addition,there is a need to provide fisheries training to bankers and improvecoordination between bankers and fisheries extension agencies.

5. Available evidence indicates that serious environmental problemshinder fisheries development in Bangladesh. These include: (1) floodcontrol and drainage (FCD) projects that reduce fish habitat and thepotential for floodplains fish production, (2) the use of pesticides thatcan kill fish and fries, and (3) industrial pollution of inland and marinewaters, which harms fish habitats. These )roblems must be addressedthrough strict enforcement of pollution regulations, increased publicawareness, reasures to mitigate the adverse impacts of FCDIFCDI works, andthe adoption of integrated pest management; in agriculture. All newd .elopment projects must be required to assess their environmental impacton fisheries and to Implement measures for mitigating this environmentaldamage.

6. The key fisheries institutions in Bangladesh are the Ministry ofFisheries and Livestock (MPL), the Department of Fisheries (DOF), theBangladesh Fisheries Development Corporation (BFDC), and the FisheriesResearch Institute (PRI). The performance of the fisheries institutionshas been poor, with serious problems of coordination and overlappingresponsibilities, protracted implementation of development projects, and aninappropriate skill mix on the fisheries staff. Furthermore, the publicagencies have been undertaking functions that should be left to the privatesector. There is a need to strengthen these institutions, improvetechnical expertise (including expertise in economics and the socialsciences) and management skills, and to focus their activities in areasthat cannot be handled or are not being undertaken by the private sector.Bangladesh has a comprehensive set of laws and regulations for protecting

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and facilitating development of the fisheries sector but they are noteffectively enforced. Institutional and enforcement issues must beaccorded high priority at the national level.

7. Producing enough high-quality fish seed is a key issue. The 78fish seed multiplication farms and 4 hatcheries that are cont-olled andmanaged by DOF suffer consistent heavy losses. Private hatcheries, on _heother hand, have made substantial profits. At present, more than 200private hatcheries produce, on average, about 3 times more spawn and 6 to12 times more fingerlings than the public sector units and at lowerproduction costs. Those units that are strategically located todemonstrate and promote aquaculture technology should remain with DOF; andthe remaining units should be divested and transferred to the privatesector or to NGOs. The fish seed farms that are not technically sound orare too costly to rehabilitate should not be used for demonstration andpromotion of aquaculture technology.

8. BFDC is an autonomous organization that was established primarilyto develop marine fisheries. The BFDC has made important contributions inthe past, but in the last few years it *has suffered significant financiallosses. A small fraction of fish (about 2Z) is marketed by BFDC, but theshare is too small to provide the stability to the fish market claimed byBFDC. BFDC wants to further expand wholesale and retail fish marketing.However, this report maintains that fish marketing should be left to theprivate se.tor and BFDC involvement should be limited to the development ofmarketing infrastructure. This report also recommends redefining the BFDCmandate, discontinuing activities that can be undertaken by the privatesector, and restructuring the remaining activities in a way that willcontribute to development of the fisheries sector and hold BFDC managementaccountable for its financial performance.

9. The public sector owns and manages more than 13,000 bodies ofwater in Bargladesh. It is essential that MFL be given control of thelarge bodies of water gradually so they may be developed for fishproduction. Experience from the IDA-financed Oxbow Lakes Project indicatesthat once bodies of water are fully developed and stocked, they should betransferred to genuste fishermen, NGOs, or the private sector formanagement. At present, there are two mechanisms for managing publicbodies of water: the auction system and the licensing system. Thelicensing system was initiated in 1987 as part of the New FisheriesManagement Policy (NPMP). The main purpose of the NFMP is to providegenuine fishermen with direct access to water (as opposed to indirectaccess through the so-called waterlords) so they are not exploited bytraders. So far there is no conclusive evidence that the benefits expectedfrom the NFMP have been realized, although the notion of limiting licensingto genuine fishermen appears sound and should be pursued. In the meantime,NGOs should be encouraged to organize fishermen so that they canparticipate in the auction system as a group. The auction system also mustbe modified so auctions are more accessible to the fishermen and leasesmust be given for longer periods of time. However, the transfer of largebodies of water to MFL must be gradual and consistent with theimplementation of NFNP. The key criteria for such a transfer should beimprovements in equity, fish production, and cost recovery.

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10. Projections for fish supply, exports, domestic demand, per c;pitaavailability, and potential gaps between demand and supply under differentscenarios indicate a widening gap between demand and supply by the year2010. As a result, fish prices will probably continue to increase fasterthan rice prices. This will provide needed incentives for farmers tod.lversify out of rice production and into fish culture, especially on landssuitable for both rice production and aquaculture. The results alsoindicate that aquaculture (both fresh and brackishwater) is more pxofitablethan rice production and that the relative profitability of aquaculturewill increase even more. Bangladesh is on the verge of attaining self-sufficiency in rice, so there is awareness of the need to diversify thecropping pattern beyond rice cultivation. But there is less awareness ofthe considerable potential for diversifying into fisheries, which ishighlighted in this report.

11. Fish production could double in the next 20 years. Cultur -basedfloodplain6 fishery and aquaculture in ponds and coastal areas provide higheconomic rates of return and ideal opportunities for rapid growth in fishproduction. Floodplains fishery accounts for over half of total fishproduction, but both area and yields have been declining. There is muchpotential, however, for increasing fish yields on floodplains throughproper managemant of fisheries resources, continuous stocking, adoption ofculture-based fisheries, and rehabilitating fish habitats. Floodplainsfishery has the highest growth potential. Its annual production canincrease from 425,000 mt in 1987i8$ to between 1.1 and 1.4 million mt inthe year 2010, achieving 4.42 to 5.62 annual growth.

12. Pond fishery accounts for about 182 of fish production, from 1.3million ponds covering 147,000 ha. Fish yields are low but -- with theintroduction of aquaculture technology and the rehabilitation of ponds --can increase considerably. The fish production potential is expected toIncrease from 150,000 mt in 1987/88 to between 296,000 and 335,000 mt inthe year 2010, for annual growth of 3.22 to 3.7Z. There is alsosubstantial scope for integrated fish farming in rice fields and even forconverting low-lying rice areas into fish ponds.

13. Bangladesh is endowed with extremely favorable conditions forshrimp culture; its low production costs make it competitive with otherAsian producers. Bangladesh accounts for only about 2.5Z of world shrimpexports, but has considerable potential to increase exports. Presettshrimp yields are low, but can be improved substantially with propermanagement practices and at little additional cost. With the adoption ofwell-managed and improved extensive shrimp culture technology, theproduction from shrimp farms is expected to increase from 25,000 mt in1987/88 to between 80,000 and 105,000 mt by 2010, for an annual growth rateof 5.3Z to 6.72.

14. There is substantial scope for expanding inland fish production,but marine fishery has reached maximum sustainable levels and thus offerslimited scope for expansion. Local production levels are the maindeterminants of availability and consumption levels. Average annualavailability of fish is about 7.5 kg/capita. But per capita fishconsumption ranges from 4.4 kg for the lowest income group to 22.1 kg for

the highest income group. It also varies between rural and urbanpopulations. Average per capita consumption is higher in the urban sectorand the gap between rural and urban sectors has been widening over time.More than 95Z of fish production is consumed domestically; the balance(primarily shrimp) is exported. During 1989/90, Bangladesh exported23,300 mt of seafood valued at Tk 4.8 billion. There are more than 93seafood processing plants but only about 15-20Z of installed capacity hasbeen used. Liberal government incentives for establishing new processingplants must be reduced and more closely tied to performance measures.

15. The projected fish production potential will not be realizedwithout improved inputs, technology, investments, and (especially) credit.Several new fisheries technologies have been identified and tested inBangladesh and are now ready for wider adoption by farmers. Thesetechnologies include the monoculture or polyculture of exotic carps,tilapia, nilotica, and sharputi fish species. In addition, several othertechnologies are known to be potentially suitable but require goodmanagement and quality control. These include catfish farms, frog culture,eel culture, integrated fish farming, and pen and cage culture. Toaccelerate the introduction of new technologies, and to ensure the highquality required by export markets, the Governmevt should seek foreignassistance and encourage joint ventures of local and specialized foreigncompanies. The development of aquaculture will also require extensiveadaptive research, promotion at the village level, and such essentialInputs and services as supplementary feed, fries, and adequate veterinaryservices.

16. Substantial investments will be required from both the public andprivate sictors for fish production, harvesting, processing, marketing,research, extension, and training. It is important, however, that thepublic sector restrict its investments to those that cannot be undertakenby the private sector, such as access roads, polders, internal canals,landing sites, wholesale fish markets, auction halls, and the stocking ofpublic bodies of water.

17. The fisheries sector Las been consistently underfunded but theresources allocated to it have never been fully used. The Third Five-YearPlan spending on fisheries is expected to be about 402 of the planallocation, and in 1988/89 only 552 of the development budget was used.Spending has been limited by the low absorptive capacity of fisheriesagencies and by serious buitaucratic and procedural problems in theapproval and disbursement of funds. Ways must be found to improve the flowof funds. Spending must be increased on public sector projects needed tofacilitate private sector investment and to realize fisheries growthpotential.

18. At present, cost recovery in relation to public expenditures islow. The GOB has been investing heavily and is expected to substantiallyincrease annual expenditures on coastal aquaculture and the stocking ofpublic bodies of water. Cost recovery agreements related to the IDA-financed Shrimp Culture Project -- including a betterment levy and exportcess -- should be implemented immediately. But to formulate a viable costrecovery policy for the floodplains -- alternatives include auctioning

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fishing rights, charging fees for fishing licenses, and imposing specifictaxes at the Upazila level -- requires determining the magnitude ofbenefits and the number and location of beneficiaries. This assessment isexpected to be accomplished during implementatior ̂f the planned IDA-financed Third Fisheries Project. The fact that anmercial fishermen areamong the poorest in Bangladesh should be taken into account in designingan appropriate cost recovery policy for the floodplains.

19. A conc r-.ed -.nd systematic national effort is required tomodernize the i **r . sector, improve its performance, and realize itssubstantial gru=.J *-tential. The key elements of the proposed nationalfisheries development strategy are as follows:

(1) Inland fisheries, including floodplains and pond fishery andcoastal aquaculture, should be given the highest priority inplanning, policy formulation, and implementation of investmentand incentive programs.

(2) Despite continuous development efforts, the public sectorfisheries institutions are still weak. There is a need toincrease the accountability and responsibility of fisheriesinstitutions, improve management skills and skill-mixthrough fisheries education and training, and expand theadministrative and financial powers of fisheries staff. Thefisheries administration must become a trusted partner of theprivate sector, concentrate on few activities and do themwell, and encourage competition. The public sector capabilityto support fisheries development should be strengthened in itsactivities to develop fisheries infrastructure; to generate,transfer, and promote improved fisheries technology; toidentify, prevent and control fishery diseases; to stockpublic bodies of water; and to enforce fisheries laws andregulations.

(3) The private sector has proven its ability to successfullyhandle such fisheries activities as fish production,processing, harvesting, marketing, trade, and management, andthe supply of inputs and services. Where necessary, thepublic sector should provide facilities to stimulate privatesector participation and investments. But expenditures onpublic sector projects must be recovered and the use ofgovernment subsidies must be minimized.

(4) Special assistance must be directed to fishermen -- who areamong the poorest of the poor, have limited &ccess toinstitutional credit, and often do not benefit from existinggovernment programs. NGOs should be encouraged to organizesmall fishermen and provide them with access to fisheriesresources, credit, marketing, and other essential inputs andservices. However, NGOs lack resources and training and theseconstraints must be removed to enable NGOs to expand theiractivities in the fisheries sector. Credit is a particularconstraint on commercial fishermen, who have no collateral andno access to institutional credit. Special credit programs

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should be set up through NGOs and the Grameen Bank to cater tothe credit needs of these fishermen. Furthermore, creditshould come from multiple sources, including banks, NGOs, andinput suppliers. There is also a need to train bankersdealing with fisheries and improve the coordination betweenbankers and fisheries extension agencies.

(5) Acuaculture technology for pond fishery and shrimp farms iswell established. Its transfer to villages near bodies ofwater should be accelerated. The private sector should beable to provide the necessary inputs and services, includingfries, feed, and disease control services. The fishery-related R&D activities of the public sector must be expanded.

(6) The public sector should organize or undertake massive andsustainable stocking operations of public open water bodies.The private sector should be encouraged to supply fries andfingerlings for public stocking.

(7) A major share of fisheries is owned and managed by the publicsector. The private sector has no incentive to make long-terminvestments to improve productivity because it may not be ableto capture all the returns on these investments or becausethey may not be profitable. The public sector should financesocially profitable parts of the infrastructure needed todevelop the fisheries sector. Lack of roads, bridges, andsecurity are major impediments to aquaculture that should begradually removed.

(8) The stocks of inland fisheries have been adversely affected byoverfishing; flood control, drainage, and irrigation projects;and other environmental problems. There is a need toimplement conservation measures, including proper managementof fisheries resources, protection and rehabilitation ofexisting natural stocks, the reduction of water pollution, thedevelopment of fish sanctuaries, and strict enforcement of TheProtection and Conservation of Fish Act of 1950, as amended in1982.

20. Donors must continue to provide finance, training, and technicalassistance. The Bank has reached an agreement with both GOB and the AsianDevelopment Bank (ADB) to focus its fisheries support on the western partof Bangladesh, with ADB concentrating on the eastern part. The Bank shouldcontinue to play a leading role in the development of the fisheries sector.The fisheries sector in Bangladesh is a priority area in the Bank'sagricultural lending strategy -- second only to the minor irrigationsubsector -- because of its potential for increasing fish production,alleviating poverty, employing women, improving human nutrition, andconserving natural resources.

CHAPTER I

INTRODUCTION

A. Scope

1.1 This report analyzes the conditions under which the development ofthe fisheries sector may be accelerated. It also outlines the mainelements of a fisheries development strategy for Bangladesh. The reviewmakes use of data collected during an agricultural survey mission toBangladesh in March 1987 and a follow-up mission in April 1990. A previousBank review of the fisheries sector in Bangladesh was undertaken in 1983.

B. Sectoral Contribution

1.2 The fisheries sector accounts for 31 of Bangladesh's GDP (Tk 589billion at current market prices) and 81 of the gross value added ofagricultural product (1987188)-.1 Despite its relatively small size, thefisheries sector is crucially important to Bangladesh because:

(1) The country has the resources (floodlands, rivers, ponds, otherbodies of water, and a long coastline), diverse aquatic wealth,and climate suitable for high yields and a considerable increasein fish production.

(2) Fish is an important and probably the cheapest source of protein.

(3) There is considerable scope for increased shrimp and frozen fishexports -- an already fast-growing fishery.

(4) The fisheries sector could significantly contribute to povertyalleviation, environmental protection, and gainful employmentopportunities for women. Most of the rural population engages infisheries at least part-time.

Employment

1.3 Estimates of employment in the fisheries sector are incomplete andvary widely between sources. But the information available indicates thatof about 1.25 million commercial fishermen in 1987-88, 60Z were in inlandfisheries and 401 in marine fisheries.2/ Two trends emerged in the lasttwo decades. First, the number of commercial fishermen increased 56Z, from0.8 million in 1971172 to 1.25 million in 1987/88. Second, the relativeshare of commercial fishermen in the marine sector increased from 251 in1971/72 to 40X in 1987/88. The number of fishermen increased rapidlybecause there were few alternative employment opportunities, fishing was

1i BBS. 1989. Statistical Yearbook of Bangladesh, 1989 and previousissues.

2/ BBS. 1989. Statistical Yearbook of Bangladesh, 1989 and previousissues.

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profitable, and fishermen had access to many common property renewablefisheries resources. About 8t of the population depends on fisheries forits livelihood 31 and about 732 of the households were Involved insubsistence fishing in floodlands in 1987/88.4/ The number of householdsfishing for subsistence in the floodlands was 10.8 million in 1987/88.

1.4 Many people are employed in primary, secondary, and tertiaryfishery-related activities. These activities include aquaculture, fishtrade, fish processing, the manufacture of fishing gear, and employment insuch public sector agencies as the Ministry of Fisheries and Livestock(MFL) and its Department of Fisheries (DOF), the Bangladesh FisheriesDevelopment Corporation (BFDC), the Fisheries Research Institute (FRI), andother public agencies dealing with fisheries.

Nutrition

1.5 Fish is an important source of human nutrition and is expected toremain an integral part of the diet in Bangladesh. But during 1985-86,fish consumption provided some 8 gramsiday, or 122 of the average percapita total intake of protein (63.5 grams) and 712 of animal proteinintake (11.03 grams).51 Two trends have emergeds (a) a decline in percapita fish consumption from 1960s levels exceeding 20 grams;61 and (b) awidening of the gap in fish consumption between rural and urban sectors.From the late 1970s onward, per capita fish intake has either stabilized orimproved. According to the Nutrition Surveys of Rural Bangladesh, averageper capita fish intake in rural areas declined from 27.7 grams/capita/dayin 1962-64, to 23.2 grams/capita/day in 1975-76, and to 23.0grams/capitalday in 1981-82. According to the findings from the HouseholdExpenditure Surveys, average daily per capita fish intake in Bangladesh hasincreased from 27 grams in 1973/74, to 28 grams in 1981/82, 30 grams in1983/84, and 36 grams in 1985/86.

1.6 According to the Household Expenditure Surveys, the average percapita daily fish intake in the rural sector has declined from 972 ofurban sector intake levels in 1973-74 to 752 in 1985/86.7/ These trends,if they continue, should concern policymakers because they indicatedeteriorating nutritional standards among the rural poor. A targetedapproach to expanding fish production, especially inland, can increase percapita fish intake and protein availability and improve the purchasingpower of those who depend on the fisheries sectoL for their employment andlivelihood.

3/ Planning Commission. 1978. The Two-Year Plan, 1978-80.

4/ DOF. 1990. "Fish Catch Statistics of Bangladesh, 1987-88."

5/ BBS. 1988. Report on the Bangladesh Household Expenditurf Survey,1985/86.

6/ See Institute of Nutrition and Food Science. 1977 and 1983. NutritionSurveys of Rural Bangladesh.

7/ BBS. 1980, 1986 and 1988. Reports of the Bangladesh HouseholdExpenditure Surveys: 1981/82, 1983184 and 1985/86.

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ForeiRn Exchange

1.7 The fisheries sector is rapidly emerging as a major source offoreign exchange earnings for Bangladesh. The value of all exports hasincreased more than sevenfold -- from Tk 5.5 billion in 1975/76 to Tk 41.0billion in 1988189 -- but in the same period the value of seafood exportsincreased from Tk 0.2 billion to Tk 4.7 billion, more than twentyfold.81Seafood's relative share in total exports increased from 3.12 in 1975/76 to14.52 in 1985/86, but then declined to 11.42 in 1988/89. The percentagedecline in the latter period was attributable primarily to a rapid increasein garment exports (Tk 14.9 billion in 1988189). But 752 of exportearnings from garments are used to import fabric and accessories, andimports for the seafood sector are small. As a result, net seafood exportearnings were about 1252 of net garment export earnings in 1988/89.

1.8 Frozen shrimp accounted for about 82? of total seafood exports in1988/89. The country has a comparative advantage in shrimp production(extensive culture) and its low production costs should enable it tocompete successfully with other major exporters that practice semi-intensive or intensive shrimp culture.9/ At present, Bangladesh accountsfor about 2.5Z of total world shrimp exports.

C. Recent Developments

1.9 The following key events in the development of the fisheriessector occured in the 1980s:

(1) The government recognized that rehabilitating fisheries resourcesand stocking of floodplains is essential to reversing the declinein fish production and initiated stocking with carp fingerlings in1989.

(2) The IDA-financed Oxbow Lakes Project, completed in 1986,demonstrated that fish yields in large, closed bodies of water(about 300 ha) can be increased from about 100 kg to 950kg/ha/year through appropriate management and culture-basedtechnology.

(3) The proliferation of carp hatcheries and nu-series in the privatesector in the 1980s provided a big boost to aquaculture.

(4) Fish production on shrimp farms increased more than 30? a year inthe 1980s and shrimp exports were equally impressive. The numberof shrimp processing plants more than doubled in less than 10years.

8/ EPB. Bangladesh Export Statistics, 1988-89 and previous issues; andEPB. Exports from Bangladesh During the Fiscal Years 1972-73 to1985-86.

9/ The main characteristics of extensive, semi-intensive and intensiveshrimp culture systems are discussed in Chapter 1V, para 4.25, andAnnex Table 4.9.

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(5) The Fisheries Research Institute was establishec and becameoperational in 1986.

(6) The New Fisheries Management Policy (NFMP) was initiated in 1987to improve the productivity and equitable use of open-accessfisheries resources.

(7) The NGOs demonstrated their ability to organize fishermen, improvetheir income levels, and increase fish production.

(8) The number of trawlers engaged in offshore fishing increased from35 in 1981182 to 74 in 1983184, then declined to 52 in 1987/88.Fish production in the industrial marine sector has reachedmaximum sustainable levels and has limited growth potential.

(9) A fish disease that broke out in 1988 affected 31 fish species andcaused inland fish production to decline.

(10) The contribution of donors to development spending in thefisheries sector increased from 401 in 1982/83 to about 701 in1988/89.

1.10 These developments have demonstrated that: (i) the public sectoralone cannot (and should not tr, to) solve all problems; (ii) the privatesector has to play an important role in achieving national goals;(iii) rehabilitating common-property renewable fisheries resources and useof aquaculture technology are essential to increasing fish production;(iv) unresponsive institutions can be a major barrier to progress; and(v) there is considerable potential for increasing fish production.

D. National Goals

1.11 The Government of Bangladesh recognized the importance of thefisheries sector to the national economy and the need for a well-articulated national fisheries strategy. The major national objectives forfisheries, as stated in the Fourth Five-Year Plan (1989/90 to 1994/95),aret (a) to increase fish production (to 1.2 million mt in 1994/95) andimprove nutritional standards; (b) to expand employment opportunities infisheries and ancillary industries (by about one million additional full-time and part-time jobs); (c) to improve the socioeconomic conditions ofthe fisherfolks, fish farmers, and others engaged in the sector; (d) toincrease exports (to 78,500 mt of frozen seafood in 1994/95); (e) toimprove environmental conditions and public health; and (f) to increaseGDP.10/ These national goals for the fisheries sector are consistent withthose of the previous Five-Year Plans. They will require concertedGovernment and private sector efforts in order to be met, requiringexpanded use of aquaculture technology, increased investment, moreefficient institutions, proper management of fisheries resources, andpolicy reforms.

10/ Ministry of Fisheries and Livestock. 1990. "Fourth Five-Year Plan(1990-95) foe Fisheries Development.'

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CHAPTER II

SECTORAL PERPCRMANCE AND ITS DETERMINANTS

A. Fisheries Resources

2.1 Bangladesh is ideally suited for fish production. Fisheries fallbroadly Into four categoriest (a) inland capture (floodplain. fishery).(b) inland culture (primarily pond fishery and coastal aquaculture), (c)marine Industrial, and (d) marine artisanal (small-scale). The productionperformance of each of these fisheries is shown in Table 2.1 (all texttables follow the references). The data show that from 1983/84 to 1987/88,total fish production increased about 2.42 a year with mixed trends:

(a) inland capture fishery (51.2Z of the total in 1987/88) declined2.72 a year;

(b) inland culture fishery (21.32 of the total in 1987/88) increased10.7? a year;

(c) marine industrial fishery (1.3Z of the total in 1987188) declined8 02 a year; and

(d) marine artisanal fishery (27.5? of the total in 1987188) increased9.6? a year.

Water Area

2.2 About 4.9 million ha, or 34Z of Bangladesh's area, is underwateralmost 6 months a year. Bangladesh has three main rivers -- the Padma(also known as the Ganges), the Meghna, and Jamuna/Brabmaputra -- and about700 rivers and streams totaling 22,155 km in length.I/ The coastline ofBangladesh is about 480 km long.2/ In 1987/88, the area of inlandfisheries totaled 4.3 million ha, of which 94? was open water capture areas(which accounted for 71? of inland fish production) and the remaining 6?was closed water culture fisheries (29? of inland fish production).Details are presented in Table 2.2 and Annex Table 2.1 (all annex tablesfollow the annexes). The floodplains are rich in natural fish food andrequire no supplementary feed to achieve high yields. Bangladesh ranks

1/ BBS. 1989. 1989 Statistical Yearbook of Bangladesh.

2/ DOF. 1986. 'Water Area Statistics of Bangladesh".

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third (after China and India) among the world's largest Inland fish-producing countries.

2.3 The area covered by inland water (except for iloodlands) isdistributed among districts as followss (a) half the c as under rivers andestuaries is in the southwest of the country (in Khul: Jarisal, andPatuakhali); (b) three-fourths of the area under beels i:nd a major shareof the area under floodlands) stretches across the center of the country(in Sylhet, Mymensingh, and Rajshahi); (c) the area under ponds isrelatively evenly distributed; (d) half of the area under baors (the so-called Oxbow lakes) is in Jessore. An important inland fisheries resource,the Kaptai Lake is located in the Chittagong Hill Tract 31 and 73Z of thearea devoted to shrimp farms is in Khulna (see Table 2.3 and maps).

2.4 The total area under water is relatively constant but thefloodlands area is gradually declining because of flood control, drainage,and irrigation projects. The area devoted to shrimp culture (coastalaquaculture) is gradually increasing -- from 52,000 ha in 1983184 to 94,000ha in 1987!88 -- because of a shift away from rice cultivation and thedevelopment of new tidal land for shrimp culture. According to MFL (1990),another 40,000 ha of additional water area -- irrigation canals, roadsideditches, low-lying paddy fields, and low-lying urban areas -- can also beused for fish culture.

Fish Species

2.5 Fish species vary from one fishery to another; there are more than300 species of fish and more than 20 species of prawns in Bangladesh.4/The share of different main species in inland and marine fish production in1987/88 is shown below (also see Annex Tables 2.2 to 2.4)s5S

3/ The Kaptai Lake, with an area of 68,800 ha, was created in 1961 withthe completion of a dam on the Karnafuli River at Kaptai forhydroelectric power generation (Ameen, 1987). The Kaptai Lake is thelargest man-made freshwater body in Bangladesh.

4/ A.K.A. Rahman (198e8 described 260 species of freshwater bony fish fromBangladesh waters in technical detail.

Sl DOP. 1990. 'Fish Catch Statistics of Bangladesh, 1987188.'

Fish Species 1987188 Share in ProductionInland Marine Total-- - - - -- - - -(2)…-- - - - - - - -

Major carps 14.7 - 10.7Exotic and other carps 2.2 - 1.6Catfish and snake head 6.8 - 4.9Live fish 3.9 - 2.8Other inland fish 50.2 - 36.4Hilsa ;3.1 46.1 22.2Shrimp and prawn 9.1 6.6 8.4Bombay duck - 8.5 2.3Indian salmon, pomfret - 2.2 0.6Jew fish and catfish - 11.1 3.0Other marine fish - 25.4 8.7

All 100.0 100.0 100.0

2.6 Hilsa is the predominant fish in both inland and marine fisheries,accounting for about 132 of inland fish production, 422 of riverine fishproduction, 462 of marine fish production, and 222 of total fish production(1987/88). Hilsa accounted for 782 of the fish caught by mechanized gill-net boats -- and mechanized gill-net boats accounted for 54Z of small-scalemarine fishery.61

2.7 HiLsa are migratory river fish that ascend the rivers to spawnduring the onset of monsoons. Hilsa runs have been declining in recentyears because of: (a) the increased catch in coastal waters throughimproved catch efficiency because of fishing by motorized boats; and (b) areduced river flow because of siltation, which limits their ascension tothe upper streams. Since artificial breeding and larval rearing of Hilsaare not yet feasible, neither is intervention to rehabilitate the Hilsaresources in the river system. Hilsa, preferred by consumers, is cheaperthan fish from the carp family and is consumed by low- and medium-incomehouseholds. Moreover, the livelihood of many professional fishermendepends on Hilsa stocks, as Hilsa are caught in public waters.

2.8 Major carps accounted for 522 of pond fishery, or 112 of totalfish production (1987188). Asiatic carps -- rohu, catla, mrigal, silver,bighead, grass, mirror and common carps -_ are relatively fast-growing fishthat can tolerate a high density of fish population.71 Technologies have

6/ DOE. 1990. *Fish Catch Statistics of Bangladesh, 1987/88." The shareof Hilss in fish caught by mechanized gill-net boats increased from 682in 1962 to 782 in 1988.

7I Major carps, also known as Indian carps, include rohu, catla andmrigal; Chinese carps include bighead, silver carp, and grass carp; andEuropean carps include mirror carp. Major carps are indigenous toBangladesh. In Bangladesh, Chinese and European carps are also knownas exotic carps.

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been developed and are currently being used in Bangladesh to artificiallybreed these carps by hormone treatment. Many hatcheries and nurseries havealready been established in the private sector in recent years to breed andsell hatchlings, fries, and fingerlings from the carp family. With goodcare of broodstocks, carps can be bred artificially at least 2-3 monthsbefore their natural breeding season, the monsoon. With artificialfloodplain stocking, optimal stocking densities and ratios, propermanagement, and timely harvesting, inland fish resources can be improvedand inland fisheries production increased substantially.

2.9 Golda (Macrobrachium Rosenbergii) is the most important fresh-water shrimp. Black tiger shrimp (P. monodon -- Bagda chingri) and brownshrimp (M. monoceros -- Harina chingri) are the important species in bothsea and brackish wAters. The shares of black tiger and brown shrimp intrawling catches are 17? and 52?, respectively (1987188). The relativeshare of black tiger in total catches from shrimp farms was about 452.Black tiger shrimp, now well accepted in Japan and the United States(important export markets for Bangladesh), commands a high price in theinternational market. The breeding technology for black tiger and Golda isavailable in Asia but has not yet been adopted in Bangladesh (except fortwo pilot-scale hatcheries).

2.10 The minor carps, climbing perch, and catfish are small-sizedindigenous floodplain fish species that usually spawn during the onset ofthe monsoons. Resources for this group of fish have also been declining.Empty fish catches in the beels and baors, which destroy their broodstocks, is doing serious damage to these and other fish species. Effectiveconservation of brood stocks in the beels, baors, and haors in the dryseason can effectively rehabilitate the resources of these indigenous fishIn the inland water system. The stocks of these fish species must besustained through better management of their brood stocks, breeting groundsand habitat. Research on breeding technology also must be initiated forIndigenous fish species that are commercially important.

B. Pish Production

2.11 Total fish production in 1987/88 was an estimated 827 thousand mt,of which 72.5? was from inland fisheries and 27.5? frow marine fisheries(Table 2.2). Of inland fisheries, 71? was from open water capturefisheries and 29? from closed water culture fisheries (ponds, baors, andcoastal aquaculture).8/ Clearly, inland open water capture fisheries arethe most important part of the fisheries sector, accounting for 512 oftotal fish production. So even small improvements in the average yield ofinland open water capture fisheries could significantly affect nationalfish production and consumption.

8/ Open water capture fisheries consist of rivers, estuaries, floodlands,beels, haors, and Kaptai Lake.

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2.12 Inland fish production remained stagnant in the 1970s, thengradually began to increase (Table 2.4, Annex Tables 2.5 and 2.6, andFigures 2.1, 2.2 and 2.3). A sudden drop in officially reported inlandfish production in 1975176 (a 25Z decline over the previous year) seemsmostly attributable to a change in the method or the per capita consumptionlevels used to estimate fish production. Production estimates for marinefisheries are more accurate than those for inland fisheries, because mostmarine fish production enters the comercial system.9/

2.13 According to Department of Fisheries projections, the annualgrowth in fish priduction from 1987/88 to 1994/95 (terminal year of theFourth Five-Year Plan) would be about 4.02 for inland capture, 10.82 forinland culture, 6.02 for marine industrial, and 2.3Z for marine artisanal.10/The performance and plans for fisheries are summarized beloes

1987188 1987/88 Share Annual production growth LaType of fishery Production in production 1983184-1987I88 1987/88-1994/95

(mt) …------------------…(2)-----------------------

Inland capture 423,598 51.2 -2.7 4.0Inland culture 175,925 21.3 10.7 10.8Marine industrial 10,395 1.3 -8.0 6.0Marine artisanal 217,187 26.2 9.6 2.3

Total 827,105 l 100.0 2.4 5.3

la Future growth is based on DOF projections for fish production.Lb Fish production in 1988189 was about 841,000 mt.

The long-term potential for increasing fish production is substantial (seeChapter V). Fish production could grow at an average annual 4.52 in thenext two decades. But an annual growth rate of 5.32 over the next fiveyears (DOP projections) will be difficult to achieve, especially since the

91 The fish production estimates were based mainly on the NutritionSurveys of Rural Bangladesh for 1962-64, 1975/76, and 1981/82. Theseestimates were arbitrarily adjusted over timi by incorporating thefindings from Household Expenditure Surveys and surveys conducted bythe Department of Fisheries. Since 1983184, DO? has initiated a moresystematic approach to determining national fish production, throughthe Fisheries Resource Survey System (FRSS). Although the PRSS hasdeveloped a reasonably good information base, the system is not freefrom such shortcomings as small samples, different data sources andmethodologt 4 es, and a possible underestimate of fish caught forsubsistence consumption. FRSS is a good start and should be furtherdeveloped and strengthened.

I0/ DOF. 1990. "Fish Catch Statistics of Bangladesh, 1987/88.'

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2.12 Inland fish production remained stagnant in the 19709, thengradually began to increase (Table 2.4, Annex Tables 2.5 and 2.6, andFigures 2.1, 2.2 and 2.3). A sudden drop in officially reported inlandfish production in 1975/76 (a 252 decline over the previous year) seemsmostly attributable to a change in the method or the per capita consumptionlevels used to estimate fish production. Production estimates for marinefisheries are more accurate than those for inlaud fisleries, because mostmarine fish production enters the commercial system.91

2.13 According to Department of Fisheries projections, the annualgrowth in fish production from 1987/88 to 1994/95 (terminal year of theFourth Five-Year Plan) would be about 4.02 fo- inland capture, 10.8X forinland culture, 6.0S for marine industrial, and 2.3Z for marine artisanal.101The performance and plans for fisheries are summarized belows

1987/88 1987/88 Share Annual production 8rowth LaType of fishery Production in production 1983/84-1987188 1987188-1994/95

(mt) ---------------- ______ (z) -----------------------

Inland capture 423,598 51.2 -2.7 4.0Inland culture 175,925 21.3 10.7 10.8Marine industrial 10,395 1.3 -8.0 6.0Marine artisanal 217,187 26.2 9.6 2.3

Total 827,105 lb 100.0 2.4 5.3

La PFture growth is based on DOF projections for fish production.lb Fish production In 1988/89 was about 841,000 mt.

The long-term potential for increasing fish production is substantial (seeChapter V). Fish production could grow at an average annual 4.5? in thenext two decades. But an annual growth rate of 5.3? over the next fiveyears (DOF projections) will be difficult to ach.ave, especially since the

91 The fish production estimates were based mainly on the NutritionSurveys of Rural Bangladesh for 1962-64, 1975/76, and 1981/82. Theseestimates were arbitrarily adjusted over time by incorporating thefindings from Household Expenditure Surveys and surveys conducted bythe Department of Fisheries. Since 1983/84, DOF has initiated a moresystematic approach to determining national fish production, throughthe Fisheries Resource Survey System (FRSS). Although the FRSS hasdeveloped a reasonably good information base, the system is not freefrom such shortcomings as small samples, different data sources andmethodologies, and a possible underestimate of fish caught forsubsistence consumption. FRSS is a good start and should be furtherdeveloped and strengthened.

10/ DOF. 1990. 'Fish Catch Stat;.stics of Bangladesh, 1987188.'

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2.16 Fish production is determined both by the fish area and the fishyield for a particular type of fishery. Past trends (1983/84 to 1987/88)in inland fish area, yield, and production in Bangladesh are summarized inthe following tables

Type of Fishery Area Yield Production

Inland capture D D DRiver and estuaries S D DFloodlands D D DBeels S D DKaptai Lake S D D

Tnland culture I I IPonds S I IBaors S I IShrimp farms I I I

Inland total D S S

Notes D - Decreasing; I - Increasing; and S - Stable.

2.17 There is limited scope for expanding the total area of inlandfisheries. This area is expected to continue declining because of floodcontrol, drainage, and irrigation development. However, there issubstantial scope for increasing fish yields and the area under aquaculture(see Chapter V and Annex I).

2.18 The area under different types of bodies of water varies from onedistrict to another, so fish production also varies (Table 2.5). Exceptfor a few districts, the fish catch per household in floodlands hamdeclined in recent years because of an increase in the number of householdsand a decline in fish production from floodlands (Annes Table.2.9). Sylhetand Mymensingh districts account for about two thirds of total fishproduction from beels (Annex Table 2.10). Barisal accounts for about onefourth of total fish production from rivers and estuaries, and Jessoreaccounts for about two thirds of fish production from Oxbow lakes (baors).Chittagong, n.omilla, and Barisal account for about 372 of fish productionfrom ponds. The number of ponds, the area under ponds, and the relativeshare of cultured, culturable, and derelict ponds vary between districts(Annex Tables 2.11 and 2.12). Xhulna accounts for 732 of the area, 752 ofthe shrimp production, and 82Z of the fish production from shrimp farms(Annex Table 2.13).

2.19 The major growth in artisanal marine fishery has been madepossible by the use of trawlers, motorized fishing boats, and moreefficient fishing equipment (Annex Tables 2.14 and 2.15). The developmentand promotion of these boats has been a contribution of the BangladeshFisheries Development Corporation (BFDC), but since 1983184 the number of

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fishing craft has not increased and the number of trawlers in operation hasactually declined.ll/ The main reason for this is a reduction in theprofitability of trawling, as fish stocks declined and have relativelylimited potential to increase.

2.20 In the last few years, overall fish production has increased by2.42 a year. This growth was boosted by the introduction of aquaculturetechnology in shrimp farms and pond fishery. There is considerablepotential, however, for increasing yields and accelerating growth byadopting proper fisheries management techniques and cultural practices.

2.21 The following factors have slowed the growth in total fishproduction and have led to a decline in inland capture production:

(a) Lack of a comprehensive national policy for developing thefisheries sector, because of: (1) the low priority theGovernment gives the sector; (2) limited technical and socio-economic information on the fisheries habitat and theproduction of different types of fisheries, and thus ignoranceof fishery's economic potential; and (3) lack of properplanning for public sector support, including adequateincantives for the private sector.

(b) Inefficient implementation of development projects and laxenforcement of regulations because ofs (1) the lack ofadequately trained and well-motivated technical staff;(2) little coordination of public organizations dealing withthe fisheries sector; (3) inadequate control and inefficientuse of public bodies of water for fisheries because ofownership conflicts, auction rights, and management problems;(4) frequent delays in releasing allocated government funds tothe fisheries sector; and (5) the limited spending capacity ofthe national fisheries agencies.

(c) Poorly managed public and private bodies of water, because of:(1) the short-term, revenue-oriented system of leasing publicbodies of water; (2) the multiple ownership and use of privateponds; (3) the indiscriminate use of fishing gear, some ofwhich is illegal; (4) the widespread poverty and poor socio-economic living conditions of fishermen; (5) increasingindustrial pollution in river waters and other environmentalproblems; and (6) the lack of direct access to public bodiesof water by genuine fishermen. These conditions have resultedin overfishing, inefficient use of fisheries resources, and

11/ Commercial trawling in Bangladesh's offshore waters began in 1972 andexpanded in 1977 with the discovery of commercially exploitable shrimpresources. The number of shrimp trawlers in operation graduallyincreased and has now stabilized at about 30. The number of fish andmixed (fish and shrimp) trawlers in operation, on the other hand, hasfluctuated; it has now declined from 46 in 1983J84 to 19 in 1987188,indicating limited growth potential for marine fishery.

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poor production performance in inland capture fisheries.According to Ahmed (1989), the open-access character of inlandopen-water fisheries, without consistent and effectivemanagement policy, may have contributed to economicallyinefficient fishing activities.

(d) Inadequate development and transfer of improved fishproduction technologies, because ofs (1) the lack ofappropriate applied and adaptive research; (2) the lack ofextension resources and limited knowledge on the part ofextension agents; (3) inadequate production of fish fries andfingerlings and their limited availability in villages; and(4) a credit system that does not serve the needs of fishfarmers and fishermen.

(e) A reduction in inland fisheries rescurces, because oft(1) the construction of FCDIFCDI projects; and (2) siltationin river basins and floodplain areas. For example, theupstream migration of Hilsa for spawning is believed to havedeclined due to the siltation of rivers. FCD/FCDI projectshave adversely affected aquatic habitat, feeding grounds, andmigratory paths, and has interfered with the natural breedingand life cycles of indigenous fish (see Figures 2.4 and 2.5).

(f) A resource "conflicts between fisheries an6 crop production,because of: (1) the conversion of ponds and other bodies ofwater to rice fields; (2) the increased use of water forirrigation in the dry season; and (3) the use of pesticides,fertilizers, and other chemicals for crop production. Thepreference for rice cultivation may be the direct result ofits greater profitability because of green revolutiontechnology and government incentives.

2.22 As aquaculture technology spreads and its use becomes moreprofitable, farmers may diversify into aquaculture on private ponds, shrimpfarms, and other low-lying areas. But there may be limited incentives forprivate farmers to invest in aquaculture in public waters as they may notbe able to capture all the returns on investment. Fish production couldexpand substantially through polyculture and the stocking of public waters.Such stocking has already begun and will be intensified under the IDA-assisted Third Fisheries Project. Fish production could increase about4.5Z a year, provided appropriate investments are made, projects areimplemented, policy reform is carried out, fisheries resources are pro-erlymanaged, and aquaculture technology is adopted (see Chapter V).121

12/ According to Pathak (1989), Asia plays the most significant role inworld aquaculture production. More than 80X of the world's aquacultureproduction comes from Asia.

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C. Seafood Exports

2.23 Seafood exports are emerging as one of the fastest growing sourcesof foreign exchange earnings. Exports of frozen and processed seafoodincreased from Tk 172 million in 1975/76 to Tk 4.7 billion in 1988/89,nearly a 27-fold increase in 13 years (Table 2.6 and Figure 2.6).Seafood's share in total exports increased from 3.12 in 1975/76 to 11.4Z in1988/89. If properly developed, seafood could surpass the garment sectorin foreign exchange earnings. But the share of fish exports in total fishproduction is rather small -- about 4X in 1987/88.

2.24 Total seafood exports in 1988/89 were 21,400 mt and in 1989/90were about 23,300 mt. (See Annex Tables 2.16 and 2.17). The key seafoodexport items are frozen shrimp, frozen froglegs, and frozen fish -- withfrozen shrimp accounting for about 82Z of the value of all seafood exports(1988/89). In 1988/89, head-on (HO) shrimp production was about 71,000 mt,of which 532 was freshwater shrimp. Shrimp farms accounted for 26X ofshrimp production. But since most of the shrimp exported is high-qualitybrackishwater shrimp, shrimp farms provide more than half of shrimpexports. The seafood export target for 1989/90 (the terminal year of theThird Five-Year Plan) was 38,575 mt, of which 782 was expected to be frozenHO shrimp. Actual exports in 1989/90 were 23,300 mt, including headless(HL) shrimp and other seafood items.

2.25 Bangladesh exports seafood to many countries but a few of theseaccount for most of the exports (Annex Tables 2.18 and 2.19 and Figure2.7). In 1988/89 (a) Japan and the United States received 54X of frozenshrimp exports, (b) the United States received 892 of frozen froglegsexports, (c) the United Kingdom and Kuwait received 552 of frozen fishexports, and (d) Hong Kong received 38Z of dry fish exports and 932 ofprocessed fish exports (Table 2.18).

2.26 Proper inspection and quality control are essential to maintainingand expanding market share in these major export markets. The currentinspection and quality control facilities in Bangladesh are inadequate andshould be improved. The seafood export industry must regulate itself toensure proper hygiene and high quality seafood exports. In 1988, theGovernment charged the Bangladesh Frozen Food Exporters Association (BFFEA)with the responsibility of (a) issuing permits to export seafood, and(b) monitoring and inspecting operations in its members processing plantsand peeling sheds. If a processing plant or peeling shed refuses to carryout suggestions for improvement, the BFFEA may refuse to grant 't an exportpermit (Aquatic Farms, Ltd., 1989).

2.27 The Government offers several export incentives that have led torapid growth in seafood exports and the establishment of fish processingplants. These includes (a) export finance at concessional interest onworking capital, (b) development funds, (c) foreign exchange for businesstravel abroad, (d) an export performance benefit (XPB) equal to 1002 of thedifference between the official exchange rate and the market exchange ratefor every U.S. dollar earned through seafood exports, (e) reduced or noduties and excise taxes, and (f) other financial and nonfinancialincentives. In 1986187, the frozen food sector was earmarked as the thrust

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sector and became eligible for many other government incentives, includingrebates on income taxes, insurance premiums, and freight rates. It willremain a thrust sector through 1991 and possibly beyond. And shrimpculture has now been declared an industry, which makes it eligible for manyother government incentives, such as subsidized credit.131

2.28 The various export incentive programs have led to the establish-ment of many fish processing plants -- mostly by the private sector -- inChittagong, Cox's Bazar, Rkulna, and Satkhira. The number of plants Inoperation increased from 14 in 1975176 to 75 in 1987188. Correspondingly,the annual processing capacity increased from 29,550 mt to 148,350 mt(assuming 300 annual working days) or from 19,700 mt to 98,900 at (assuming200 annual working days) (Table 2.7). The number of fish processing plantsnow exceeds 93. The growth and location of seafood processing plants issummarized belows

Number of Fish Processing PlantsLocation 1983184 1988189

Chittagong 23 29Cox's Bazar 2 9Dhaka 1 6Khulna 17 32Hongla - 5Satkhira - 5Others 1 7

Total 44 93

Some plants in Chittagong are not operational, possibly for lack of rawmaterials. But new plants are still being set up in Khulna, where the areaunder shrimp farms has grown rapidly -- accounting for about 731 of thetotal area under shrimp farms in 1987/88.

2.29 Government incentives appear to have been excessive, resulting inunderused investments. Only about 152 to 202 of total installed processingcapacity has been fully used. The supply of raw material for shrimp islimited and seasonal, so the average utilization rate of shrimp processingplants is generally low. High priority should be given to more efficientuse of axisting capacity. The incentives, for example, could be tied tothe performance of each processing plant. There is no need to continueincentives for establishing additional plants. The private sector shouldbe free to set up new plants, but it should also assume all the risks andbenefits from investing in shrimp processing.

13/ Ministry of Commerce. 1989. Export Policy% 1989-1991.

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sector and became eligible for many other government incentives, includingrebates on income taxes, insurance premiums, and freight rates. It willremain a thrust sector through 1991 and possibly beyond. And shrimpculture has now been declared an industry, which makes it eligible for manyother government incentives, such as subsidized credit.13/

2.28 The various export incentive programs have led to the establish-ment of many fish processing plants -- mostly by the private sector -- inChittagong, Cox's Bazar, Khulna, and Satkhira. The number of plants inoperation increased from 14 in 1975/76 to 75 in 1987/88. correspondingly,the annual processing capacity increased from 29,550 mt to 148,350 mt(assuming 300 annual working days) or from 19,700 mt to 98,900 mt (assuming200 annual working days) (Table 2.7). The number of fish processing plantsnow exceeds 93. The growth and location of seafood processing plants issummarized below:

Number of Fish Processing PlantsLocation 1983184 1988189

Chittagong 23 29Cox's Bazar 2 9Dhaka 1 6Khulna 17 32Mongla - 5Satkhira - 5others 1 7

Total 44 93

Some plants in Chittagong are not operational, possibly for lack of rawmaterials. But new plants are still being set up in Khulna, where the areaunder shrimp farms has grown rapidly -- accounting for about 732 of thetotal area under shrimp farms in 1987188.

2.29 Government incentives appear to have been excessive, resulting inunderused investments. Only about 15? to 202 of total installed processingcapacity has been fully used. The supply of raw material for shrimp islimited and seasonal, so the average utilization rate of shrimp processingplants is generally low. High priority should be given to more efficientuse of existing capacity. The incentives, for example, could be tied tothe performance of each processing plant. There is no need to continueincentives for establishing additional plants. The private sector shouldbe free to set up new plants, but it should also assume all the risks andbenefits from investing in shrimp processing.

13/ Ministry of Commerce. 1989. Export Policys 1989-1991.

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D. Fish Consumption Patterns

2.33 Fish consumption is determined by fish availability, retailprices, household income, and preferences for particular fish species.Recent trends in per capita fish production in Bangladesh are shown below:

Population Annual Fish Production /aof Bangladesh Total Per capita /b

Year (million) (million mt) (kg)

1975/76 79.0 0.640 8.101976/77 81.0 0.641 7.901977/78 83.0 0.643 7.751979/80 87.2 0.644 7.411981/82 92.6 0.686 7.411982183 94.7 0.724 7.651983/84 98.0 0.751 7.661984/85 100.5 0.774 7.701985/86 102.9 0.794 7.721986/87 105.3 0.815 7.741987/88 107.8 0.827 7.671988/89 110.4 0.841 7.621989/90 /c 113.0 0.847 7.501994/95 /d 126.3 1.200 9.50

ia Derived from Five-Year Plan (FYP) documents and mission estimates.Fish production includes both inland and marine fisheries, bothdomestically consumed and exported.

/b Actual per capita availability for consumption was lower because offish exports. During 1987/88, about 4Z of total fish productionwas exported.

/c DOF estimate./d Target for the terminal year of the Fourth Five-Year Plan.

As a result of slow growth in total fish production and a rapid increase inpopulation, per capita fish production declined slightly, then remainedstable at about 7.5 kg/capita.16/ For the terminal year of the FourthFive-Year Plan (1994/95), the Government has established a target of annualfish production of 9.5 kg/capita. To achieve such an ambitious target will

16/ Per capita fish production was reported to be 12.84 kg in 1962/63 and11.69 kg in 1969/70. According to Pathak (1989) and Baluyut (1989),per capita annual fish availability in the mid-1980s for selected Asiancountries and regions wass India, 3.3 kg; China, 4.9 kg; Indonesia,13.6 kg; Thailand, 21.7 kg; the Philippines, 35.7 kg; Malaysia,36.4 kg; Japan, 74.5 kg; West Asia, 17.0 kg; East Asia, 30.0 kg; andthe world, 12.0 kg.

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require an appropriate policy onvironmuent and effective investmentstrategies.

2.34 According to DOF, annual per capita availability of fish fordomestic consumption has stabilized at about 7.5 kg/capita since the late1970s. But data from Household Expenditure Surveys indicate that annualper capita fish intake has actually increased, from 9.84 kg/capita in1973/74 to 13.18 kg/capita in 1985186 (Tabie 2.9). Such a discrepancycannot be easily explained, but could be the result of an underestimate oftotal fish production or other factors. It is especially inconsistent withdata on fish prices, which indicate that fish prices have risen faster thaninflation.

2.35 As shown below, information collected through the HouseholdExpenditure Surveys indicates that fish intake accounts for 50 to 602 ofper capita caloric intake from animal sources and 60X to 70Z of per capitaprotein intake from animal sources:

Sector Year Fish's Contribution to Per Capita AnnualCaloric Intake Protein Intake

… ___________ ----_ (2z)…------------------

Rural 1981/82 67 701983 184 59 681985/86 57 73

Urban 1981182 49 551983184 49 571985/86 53 64

Bangladesh 1981/82 63 661983/84 57 671985/86 55 72

Average per capita fish consumption is higher in urban than in rural areas.But fish's relative contribution to caloric and protein intake is higher inthe rural sector, because the urban diet is more diversified and thecontribution of nonfish animal sources to calories and protein is muchhigher. Moreover, the gap between rural and urban sectors in average percapita fish intake has widened over time.

2.36 In Bangladesh, consumers generally prefer freshwater fish;the share of freshwater fish in total fish consumption for Bangladesh isabout 752:

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Type of Fish Ka/capitalyear PercentageRural Urban Bangladesh Rural Urban Bangladesh

Freshwater 9.52 '- 20 9.74 76 68 75Marine 2.13 4.i4 2.35 17 25 18Dry 0.56 0.45 0.56 4 3 4Others 0.34 0.67 0.34 3 4 3

Total 12.55 16.44 12.99 100 100 100

But the relative share of freshwater fish is higher for the rural sectorthan for the urban sector -- because a large share of marine fish is soldin urban centers. Furthermore, the types of fish consumed in rural areasvaries from one location to another.

2.37 The relationship between household income and per capita fishconsumption in 1985186 is shown below (also see Figure 2.8)s

Monthly Household Annual/Capita Fish ConsumptionIncome Group /a Rural Urban Bangladesh

(Tk) ------------------ (kg)--------------------

< 500 4.36 4.82 4.371,000-1,250 8.51 10.31 8.622,000-2,499 12.88 14.00 12.994,000-4,999 15.46 18.02 16.35> 8,000 21.70 22.06 21.95

All groups 12.55 16.96 12.99

/a Information for other income groups is reported in Annex Table 2.20.

As the table shows, per capita fish consumption, which increases withhousehold income, ranges from 4.4 kg for the lowest-income group to 22.1 kgfor the highest-income group. As income increases, consumption patternsshift in favor of foods such as fish. The income elasticity of demand forfish in Bangladesh ranges between 0.96 to 1.03 (Hossain, 1988 and BBS,1988).

2.38 Over the past decade, the demand for fish has grown faster thanthe supply. This is reflected in rapidly rising fish prices, especiallyfor the preferred indigenous fish species. Many poor households sell thefish they catch to earn extra income. Developments that increase

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participation by poor fishing households will not only reduce poverty butmay also improve nutrition and health for these households.

S. Fish Marketing

2.39 Fish markets of different types are scattered across the countrysl7/

Fish Markets Number Percentage

Primary village 4,500 69Assembly 1,500 23Secondary 450 7Terminal city (wholesale, retail) 50 1

Total 6,500 100

Fish marketing -- which is almost entirely in the hands of the privatesector -- is managed, financed, and controlled by a group of intermediariesknown as aratdars (commission agents) and mahajans (financiers or moneylenders). Wholesale fish markets are mostly run by a few aratdars whogreatly restrict the entry of newcomers.18/ The aratdars provide advancesto fish traders who in turn are required to bring fish to them for sale.The aratdars charge 3? to 62 commission and take 2 to 4 fish for every 80fish sold. The fish traders also provide advances to the fishermen, whoare required to sell fish to them. Competition is not keen, especially atthe fish assembly stage. The assembling of fish from fishermen is perhapsthe most profitable activity in the entire marketing chain, because thefishermen -- lacking access to credit, ice, and market information -- alsolack bargaining power. There is evidence of widespread exploitation offishermen and the extraction of rent by traders and leaseholders. It willbe difficult to reduce this exploitation unless competition is facilitatedand the fishermen are provided with adequate alternative credit andmarketing facilities.

17/ A. Rahman. 1987. "Collection of Fish Marketing Data and Its Prices."

18/ This also may apply to fish seed marketing. According to Lewis andGregory (1989), the fish seed market in northwestern Bangladesh ishighly imperfect. Those participating in market transactions areinterlocked into other types of transactions by informal credit. Atthe same time, the more powerful network members are able to exertconsiderable power over prices and availability. These problems willremain as long as there is a shortage of seed for favored fish species.Reportedly pond owners are also often misled by fry traders who sellthem the wrong fish species.

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2.40 The fish marketing system is a traditional, complex, lesscompetitive but relatively efficient system (under difficult conditions)for distributing finh through a chain of wholesalers and retailers. Thefish marketing system faces serious problems, including heavy losses andwaste and poor fish quality. But fish demand generally exceeds supply, sothere is limited incentive for traders to improve the quality of the fishmarketing system.

2.41 A highly perishable commodity, fish is caught in small quantitiesthroughout the country. The fish marketing infrastructure is inadequateand needs improving to increase marketing efficiency. The marketing systemmust also adjust tot (a) the expanding export demand for quality frozenseafood and different seafood products, (b) the expanding domestic demandfor quality fresh and frozen fish, (c) the large seasonal fish catches inareas far from the main markets and fish landing centers, and (d) expandingfish supplies in development project areas.

2.42 Of the fish harvested, about 85Z is consumed fresh and 15 isdried, dehydrated, smoked, salted, or frozen.191 The wholesaler andretailer network accounts for about a 741 share of the domestic fishmarket:

PercentOutlet Share

1. Taken by producer for home consumption 52. Sold directly by producers to consumers 73. Sold directly by producers to retailers 124. Sold by BFDC, cooperatives, and DOF 25. Sold through wholesalers and retailers 74

Total 100

2.43 According to Karim and Ahsan (1989), some experts believe that inBangladesh 101 to 12X of all fish caught spoils and becomes unsuitable forhuman consumption.20/ This waste can be reduced by cold storage

191 Reported in a study by Rapport Bangladesh Ltd.; originally from N.Ahmed (1978). Fishermen around coastal islands often dry fish in thesun during the peak harvest season (October-January) as they are unableto sell all their catch.

201 According to Shahidullah (1986), harvested shrimp arrives at thelanding centers without ice, and is usually held there withinsufficient ice. Mixed varieties of shrimp -- large and small, andfresh, decomposed, or semidecomposed -- are put together and keptsometimes for more tha.a 24 hours. As a result, the decomposed shrimpcontaminate and quicken the deterioration of good fresh shrimp.

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facilities, insulated and refrigerated transport systems, and adequatesupplies of ice, especially during the peak fish harvest season. Theoperational efficiency of the fish marketing system can be improved byaddressing the followings (a) inadequate and unhygienic marketinginfrastructure, including landing, auctioning, and parking facilities inthe wholesale and retail markets; (b) inadequate cold storage and insulatedtransport facilities; (c) a limited supply of ice near the fish landingcenters; ld) improper grading and packaging of fish; (e) a multiplicity ofweights and measures for which eye estimates of volume are oftensubstituted; (f) limited market information; and (g) apparently highmarketing margins (marketing cost plus traders' profit), which vary between302 to 502 of the retail price for different fish species and 18Z to 60Zfor prawns (Table 2.10 and Annex Table 2.21).

2.44 The private sector accounts for most fish marketing, but a smallfraction is handled by the Bangladesh Fisheries Development Corporation(BFDC). BFDC originally entered fish markezing to develop a modern fishmarketing infrastructure, increase competition, and provide wholesale andretail market stability to protect both fishermen and consumers. Inaddition to marketing the fish caught by BFDC trawlers and from the BFDC-managed Kaptai Lake, BFDC buys fish from Oxbow Project lakes and otherfishermen. BFDC is interested in expanding its share in the national fishmarket, especially by purchasing fish from government project areas.

2.45 BFDC claims to have stabilized the fish market in project areas byprocuring fish at fixed prices that are higher than the prices paid byprivate traders (Annex Table 2.22). But available data indicate that theprices BFDC paid were generally lower than those paid by private traders(Annex Table 2.23). BFDC's market share is also too small to justify itsclaim of a stabilizing effect, and consumers complain about the low qualityof fish it sells in the retail markets. There is no apparent need for BFDCinvolvement in the long run. It should leave fish marketing to the privatesector. GOB should consider divestment or the transfer of BFDC marketingfacilities to such organizations as NGOs, the private sector, or evenmunicipalities. NGO involvement may also reduce the exploitation offishermen by the fish traders. BFDC should focus on development ofappropriate marketing infrastructure (such as fish landing sites, wholesalemarkets, and auction yards), especially in locations that will benefit thefishermen and consumers. However, before initiating new projects, BFDCmust assess the reasons for the underutilization of its marketingfacilities and rectify the underlying problems.

F. Fish Price Trends

2.46 Both wholesale and retail prices of fish vary by season, area,fish variety, and size -- the larger the fish the more expensive (AnnexTables 2.24 and 2.25). Since fish demand is increasing faster than fishsupply (as both population and incomes grow), fish prices are increasingfaster than the prices of other food commodities (Table 2.11 and Figure2.9). In the last 12 years (1975/76 to 1987/88), the annual increase inaverage retail prices was 10.32 for rice, 12.82 for masur (a popularpulse), 13.72 for chicken, and 15.62 for fish.

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2.47 The temporal and spatial wholesale price behavior and trends(based on surveys carried out by the Department of Agricultural Marketing,MOA) for three important fish species are shown below:

Wholesale PriceYear Rohu Catla Hilsa

-------------- (Tk/kg) -----------

1985 43 37 271986 53 45 321987 54 47 311988 57 49 351989 65 57 37

The wholesale (and retai:.) price of fish in Hilsa is about 50? to 60? thatof the wholesale (and retail) price in Rohu. And the increase in annualaverage wholesale prices is different for different species.

2.48 The seasonality of supply is also responsible for monthly pricefluctuations, as shown below for 1989:

Wholesale PriceMonth Rohu Catla Hilsa

______ (-Tk/1 g) ---------------

January 57 50 35February 57 50 38March 87 53 34April 59 52 36May 57 55 44June* 72 66 49July* 74 65 50August* 72 63 42September* 69 59 28October 63 59 27November 66 54 32December 56 57 35

Average 65 57 37

* Monsoon season.

These monthly price fluctuations can be reduced with better cold storageand freezing facilities but this may take some time ass (a) Bangladeshi

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consumers prefer to consume fresh fish and (b) it may take many years tobuild the necessary facilities.

2.49 Fish prices also vary greatly in different parts of the country.The average highest and lowest wholesale prices in selected markets in mid-January 1990 were:

Wholesale Price H/L PriceFish Highest (H) Lowest (L) Ratio

-----------(Tk/kg)…----------

Rohu 110 (Dhaka) 45 (Maherpur' 2.4Catla 80 (Ratrakona) 40 (Mowlavibazar) 2.0Hilsa 65 (Pridpur) 28 (Cox's Bazar) 2.3

Notes These prices were obtained from wholesale markets in thecities given in parentheses.

The price spread for different locations is so great that the highestwholesale fish prices can be more than double the lowest recorded fishprices in the same month. Among other things, these results clearlysuggest that fish transportation is a m.ajor constraint in Bangladesh.

2.50 The relative fish/rice price ratio increased from 4.2 in 1976/77 to6.7 in 1986/87. In the near future, fish prices (especially for preferredspecies) are expected to increase faster than rice prices. High fishprices increase the relative profitability of fish farming or fishharvesting but also harm the nutrition levels (protein intake) of poor,especially rural, consumers. Some rice areas can also be used for Zishculture. As the fish/rice price ratio increases further, farmers arelikely to diversify out of rice cultivation and into fish culture.

G. Fisheries Credit

2.51 Lack of adequate and timely credit appears to be an importantconstraint on aquaculture. Of fish farmers surveyed in Ihulna and Cox'sBazar, 58Z cited lack of capital as the most important problem faced inshrimp culture (Atiur Rabman, 1990). Processing plant owners find itdifficult to get institutional credit for working capital; hatchery/nurseryoperators find the credit process too complex arid bureaucratic; andfish/shrimp farmers and fishermen often fail to qualify for institutionalcredit as they have no collateral.

2.52 Credit is provided by both institutional and noninstitutionalsources (Annex Table 2.26). Fishermen, usually 'neligible forinstitutional credit for lack of collateral, depend mostly (902) on suchnoninstitutional sources as relatives, friends, suppliers, and fishtraders. Fish traders charge high rates of interest (an estimated OX to

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202 a month) and often require the borrowing fishermen (a) to rentessential fisheries equipment (such as boats and nets) from them at higher-than-market rental rates and (b) to sell them fish at lower-than-marketprices.211 So the cost of credit to fishermen may be higher than thenominal interest rate but they have no choice and are forced to pay theexorbitant rates. The high interest rates charged may reflect the highrisk involved, the shortage of funds in the informal sector relative todemand, and rigidities in informal credit markets.

2.53 As reported in Table 2.12, the fishery's relative share (aboutTk 100 million) in total agricultural credit disbursements is small (about1.5Z) and its credit recovery rate is low (about 20Z). Fisheries creditpeaked in 1986 at a total Tk 285 million (Annex Table 2.27). The changesin institutional credit to fisheries as a proportion of credit to theagricultural sector and all sectors, as reported in the FAO/WB CooperativeProgramme (1989) is summarized below:

Year Fisheries Credit as a Proportion or Credit toAgricultural Sector All Sectors

…__________________(2)…------------------

1981 2.20 0.151982 1.90 0.181983 1.20 0.161984 2.34 0.351985 2.12 0.271986 4.52 0.261987 1.50 0.09

2.54 The Bangladesh Krishi Bank (BKB) is the main source of fisheriescredit. The amount of credit disbursed by BIB has declined over time andso has the credit recovery rate (Annex Table 2.28). The total creditallocation by the Bangladesh Bank for fish culture during 1989/90 is Tk 505million (Annex Table 2.29). Given past performance and efforts being madeto improve the quality of lending and recoveries, this allocation isunlikely to be fully used.

211 Credit and fish marketing provide an important link between traders andfishermen. Fishermen need credit and an outlet to sell their fishbefore it spoils. Traders, aware of tbis, often take advantage offishermen's constraints. When Proshica (an NGO) provided credit toriverine fishermen, this cut the fishermen off from traders, whorefused to purchase fish from them. The NGO had to make alternativearrangements to collect, transport, and market the fish.

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2.55 The interest rates banks charge for fisheries are lower than theinterest charged by moneylenders (Annex Table 2.30) but, given the poorrecovery rate (recovery rate for agricultural loans is no better than forfisheries loans), the banks cannot cover the cost of lending. Because ofthe high risks of fish production, banks do not like to lend to fisheries.22/

2.56 The Grameen Bank has pioneered a very successful supervised creditscheme to landless men and women. The disbursements of Grameen Bank loansto fishery and fishery-related activities from its inception to December1988 has been about Tk 87 million or 2.5Z of its disbursements for thisperiod (Annex Table 2.31). About 602 of loan disbursements are to women.According to Karim and Ahsan (1989), the credit recovery rate is about 992,which is remarkably high for loans given with no collateral.

2.57 It is essential to increase the amount of credit available.Several approaches are possible. First, the flow of funds to the*informal" (noninstitutional) sources must be increased, as this is likelyto increase competition between moneylenders and reduce charges tofishermen and fish farmers. The banks should be encouraged to lend toinput suppliers who will provide credit to their clients. This is a morecost-effective way of channeling credit to producers than direct lending tomany small fish farmers or fishermen. Second, the Grameen Bank and NGOsshould be encouraged to increase their lending, as they are better equippedto both lend and recover loans given to the poorest segments of thepopulation, to which fishermen usually belong.23/ Third, the commercialand agricultural banks could also increase lending, although this will haveto be done slowly and be conditional on much better recovery performance.Finally, there is a need to train bankers dealing with fisheries and toimprove coordination between bankers and fisheries extension agencies.

22/ Risks are high, among ctl'er reasons, because of: (a) water problems(too much or too little water), (b) problems about the availability ofinputs and quality fingerlings, (c) disease problems, (d) limitedtechnical know-how on the part of fish farmers, and (e) the possibilityof the theft of fish or the intentional poisoning of fish ponds.

231 According to UNDP (1989), of more than 500 NGOs in Bangladesh, 402 areinternational, 382 are national, and 222 are local. Only about 162 ofNGOs are agriculturally oriented, so there is a nonagricultural bias.The largest NGOs that are also involved in the fisheries sector areBangladesh Rural Adva-,cement Committee (BRAC), CODEC, Proshita andCaritas. According to BAFRU (1989), lack of finance, management, andtechnical manpower trained in fi:h culture appears to limit NGOparticipation in the fisheries sector, especially at the local level.These coritraints need to be removed for NGOs to expand theiractivities in the fisheries sector.

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H. Environmental Impact

2.58 Fish breed and grow in both inland and marine water. Anyintervention that pollutes these waters, reduces available water, orchanges the course of water flow can harm the growth and stocks of thefish. According to evidence summarized by BCAS (1989), Bhouyain (1983),Economic and Social Commission for Asia and the Pacific (ESCAP, 1987), andNuruzzaman (1991), serious environmental problems affect fisheriesdevelopment in Bangladesh. The main problems are outlined below.

2.59 Flood control, drainage, and irrigation (FCD and FCDI) projectsadversely affect fish habitats, migration routes, and breeding grounds.These works reduced floodlands by about 2.1 million ha, thereby reducingthe potential for floodplains fishery production. The FCD projects wereimplemented to increase rice production but available evidence indicatesthat these projects have been of little value for rice production, whereastheir effects on fisheiies have been devastating. The adverse impact ofFCDIFCDI projects on fisheries habitat is well known yet the Ministry ofIrrigation, Flood Control, and Water Development (MOI) has not takennecessary and adequate measures to minimize this problem. There is a needfor a close cooperation between MFL and MOI. FCD/FCDI projects should bedesigned to ensure a minimal negative impact on fisheries, make efficientuse of water resources for fisheries, and contain measures to mitigate anydamaging effect on fisheries.

2.60 The problem may not yet be serious in Bangladesh, but overuse ofagricultural chemicals can harm fish habitats, fish fries, and fishproduction. The use of fertilizer and pesticides in Bangladesh hasincreased as follows:

Year Fertilizer Pesticides lbNutrients Material

--------------------- (000 mt)--------------------

1976177 236.1 512 3.11985/86 538.4 1156 3.71988/89 770.4 1710 5.0

Source: Data on fertilizer from BADC and IFDC; and on pesticides fromKarim and Ahsan (1989) and BBS (1989).

According to ESCAP (1987), more than 25Z of chemicals applied (more than40? of fertilizer applied) are washed away; the residues of the other 75?remain in the soil. Fertilizers can be beneficial to fish, but otherchemicals can kill them, especially fries. About 95Z of pesticides usedare insecticides. It is essential to limit the use of chemicals in areaswhere rice and fish or shrimp are grown in rotation.

2.61 In Bangladesh, about 902 of all agricultural pesticides are usedon rice, mostly on boro rice. The use of pesticides is regulated by thePesticide Ordinance of 1971 and the Pesticide Rules of 1985, but theseregulations have not been well enforced. DDT is banned for agriculture but

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its use is still allowed for mosquito control.241 As a result, DDT entersthe water systems all over Bangladesh. One way to reduce the use ofpesticides for agriculture is to employ integrated pest management (IPM).The training of agricultural extension officers in integrated pestmanagement was initiated in 1988. The initial results indicate that theuse of pesticides can be cut in half by adopting integrated pest managementtechniques.

2.62 According to ESCAP (1987), Bangladesh is a continual target forindustries known to create pollution, some of which are even banned byindustrialized countries. Industrial pollution in inland rivers and marinewaters is becoming a serious problem. There are alarmingly high levels ofheavy metals in marine waters, for example. These problems must becorrected by strict enforcement of pollution regulations by the PollutionControl Board (PCB) and increased public awareness. Annex IT outlines theimpact of selected water pollutants on fish production and public health.

2.63 The use of brackish water to grow shrimp could harm vegetation andgrazing land; its long-term effects on land and drinking water have not yetbeen established. Also, about a third of shrimp by body weight (head andother wastes) is discarded in rivers -- a practice that causes pollution.In 1987188, Bangladesh produced about 70,000 mt head-on shrimp, of whichabout 23,000 mt were discarded. Ways should be found to mitigate andminimize the damage from this practice. This waste in shrimp processingcould be used to manufacture fish meal for animal feed. This couldincrease profitability of shrimp processing.

2.64 An environmental study and a fisheries study are among 26 studiesincluded in the Flood Action Plan that was endorsed by GOB and donors andis being executed under World Bank guidance. The fisheries study and pilotproject, funded by ODA, are designed to provide information for effectivemanagement and protection of cowuon-property renewable fish resources inthe floodplains of Bangladesh. These studies should generate informationneeded to formulate policies leading to rehabilitation of fisheriesresources and reduced environmental damage to fisheries.

2.65 In addition to the above proposals, there is a need to (a) monitorthe nature of pollution and pollutants and their impact on fisheriesreso'xrces, (b) determine safe limits for chemicals in squaculture,(c) identify water areas and fish species that have already been affectedby environmental problems, and (d) determine the potential impact ofenvironmental pollution on fish health and public health. Clearly,environmental challenge to the fishing industry must be addressed in anydebate on the national fisheries policy.

24/ DDT is a water-insoluble insecticide that tends to accumulate inecosystems, with toxic effects on living organisms, including fish.

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CHAPTER III

INSTITUTIONS AND FINANCIAL PERFORMANCE

A. Fisheries Institutions

3.1 Fishery resources in Bangladesh are mainly owned and managed bythe public sector.1/ As a result, government agencies have been heavilyinvolved in the planning, research, promotion, development, management, andregulation of the fisheries sector. The private-sector participation infisheries development has rapidly increased in recent years, especiallywith the introduction of aquaculture, shrimp farming, seafood exports, andmechanized fishing boats. Fish harvesting, marketing, processing, andtrade have remained mainly in the private sector. The cooperative sectorhas been involved in different aspects of the fisheries sector but itsimage and performance have been less than satisfactory.21

3.2 The performance of fisheries institutions has been poor.Institutional weaknesses were recognized by the Planning Commission andhighlighted in the IDA fisheries subsector review of 1983 whichrecommended remedial actions.3/ A UNDP-financed FAO mission and a WorldBank mission (1986) examined the weaknesses and made proposals tostrengthen the Department of Fisheries and related agencies.41 A UNDP-funded four-year project, *Institutional Strengthening in the FisheriesSector,' initiated in 1989, is expected to cost US$2.7 million.

3.3 Of the many national government agencies that deal with thefisheries sector, the most important is the Ministry of Fisheries and

1/ With the introduction of the East Bengal State Aquisition and TenancyAct of 1951, all fisheries except private ponds were placed under thejurisdiction of the government, which holds the exclusive right to setthe terms of access to fisheries resources (Nuruzzaman, 1989).

2/ According to Nuruzzaman (1989), no more than 5 of fishermen belong tofisheries cooperative societies-- and cooperatives tend to exploit bothfisheries and fishermen groups.

3/ Planning Commission. 1978. The Two-Year Plan, 1978-80; World Bank.1983. Bangladesh: Fishery Subsector Review.

4/ Everett, Rawson and Chowdhury. 1985. Bangladesht Strengthening theDepartment of Fisheries; World Bank. 1986. Bangladesh: InstitutionalImprovement of the Department of Fisheries.

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Livestock (MEL), earlier it was part of the Ministry of Agriculture, whichhas overall responsibility for development of the fisheries sector. Otherkey fisheries institutions and their functions are listed below:

Department of Fisheries (DOF) National fisheries management,development, extension, training,conservation, quality control, lawenforcement, policy advice, andinformation collection.

Bangladesh Fisheries Develop- Autonomous national developmentment Corporation (BFDC) of marine fisheries, management of

Kaptai Lake, and marketing andprocessing cf fish.

Fisheries Research Institute National fisheries research on(FRI) riverine fisheries, marine

fisheries, and aquaculture.

Ministry of Land Administration and leasing ofpublic bodies of water (more than20 acres) for fisheries. Thesebodies of water will be graduallytransferred to MFL under the NewFisheries Management Policy (NFMP).

Upazila Parishads Administration of small bodies ofwater (up to 20 acres) forfisheries and fisheries extension.

Ministry of Irrigation, Flood Assessment of impact on fisheriesControl, and Water Development from projects related to flood(MOI) control, water development, and

irrigation.

Ministry of Local Government, Inclusion of the fisheriesRural Development, and component in rural developmentCooperatives projects, development of fisheries

cooperatives, and collection ofrevenue from small bodies of water(up to 20 acres).

Ministry of Industry Licensing of fish processing plantsand trawlers for marine fisheries.

Ministry of Commerce Export of frozen seafood.

Ministry of Shipping Registration of fishing boats.

Ministry of Education Control of fisheries-relatededucation and research.

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Ministry of Finance Budget and administration ofexternally funded fisheriesprojects.

Forestry Department Management of fisheries in reservedforests.

Nationalized Banks Provision of credit for fisheries.

Planning Commission Planning of fisheries sector, aspart of overall national planning.

3.4 Major institutional problems that adversely affect the developmentof the fisheries sector includes (a) too many agencies with poc.lycoordinated and overlapping activities, (b) inadequate planning and poordefinition of crucial functions, (c) inadequate technical manpower, (d) noaccountability for poor financial performance, and (e) a less-than-satisfactory record of project implementation. Moreover, the publicagencies have often undertaken functions that the private sector couldfulfill more efficiently. All fisheries agencies are dominated bytechnocrats or generalists and have few economists or other socialscientists. As a result, these agencies lack a macroeconomic perspectiveand are unable to articulate the proper role of fisheries in the planningand economic development of Bangladesh.

B. Fisheries Laws and ReRulations

3.5 Four sets of laws and regulations could directly and positivelyinfluence development of the fisheries sectors (1) The Protection andConservation of Fish Act, 1950, as amended in 1982, (2) The TanksImprovement Act, 1939, with modification up to August 31, 1986, (3) TheFish and Fish Products (Inspection and Quality Control) Ordinance, 1983,and (4) The Marine Fisheries Ordinance, 1983, and The Marine FisheriesRules, 1983.

3.6 These fairly comprehensive regulations should protect andencourage development of the fisheries sector. They are not beingeffectively enforced, however, for lack of resources (human, physical, andfinancial) or a lack of will to enforce them. Officials responsible forenforcing fisheries laws, for example, lack the transport needed to monitorlarge bodies of water. No new laws or regulations are needed until theexisting laws are effectively enforced. Many people are unaware these lawsexist or what could happen if they violate them.5/

S/ For example, fishing net barriers are often installed across rivers totrap migrating Hilsa, but they are banned under the Fish Act of 1950."Current jals -- a type of fishing net -- is banned by the governmentbut is used all over the country.

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C. Fisheries Planning and Performance

3.7 Major fisheries development projects are planned, financed, andimplemented by the government. All the five-year plans have emphasizedthree key national objectives for the fisheries sectors (a) to increasefish production and improve human nutrition, (b) te increase employmentopportunities, and (c) to increase seafood exports.61 The Fourth Five-YearPlan has added three new objectivess (a) to help increase GDP, (b) toimprove the general environment and public health, and (c) to Improve thesocioeconomic conditions of fisherfolks, fish farmers, and others engagedin the fisheries sector.

3.8 But project performance, in terms of achieving targets, has beenless than satisfactory (Table 3.1 and Annex Table 3.1), possibly forseveral reasons. First, implementation targets have been consistentlyoverestimated despite experience and serious financial, technological andinstitutional constraints. Second, the fisheries sector has always beenunderfunded both in the budget and in the actual expenditure of budgetedfunds. For example, during the Third Five-Year Plan, the planned budgetfor the fisheries sector was only 1.42 of total government financialoutlays, and only 52 of the resources allocated to the agricultural sector,including water resources and rural development. These percentages reflectonly about half of the sector's relative contributiou ro GDP. Third, theimplementation of fisheries development projects has been extremely slow.

3.9 Improving the performance of the fisheries sector requires afundamental change in the government's perception of the sector'simportance to the national economy. There are indications that in the lastfew years the Government has begun to recognize the sector's growthpotential and importance to the economy. At present, government is in theprocess of formulating a national fisheries policy.

D. Financial Performance of DOF

3.10 The Department of Fisheries (DOP) of MFL is the government agencyprimarily responsible for development of the fisheries sector. DOF is themain agency responsible for implementing government programs and projectsin the fisheries sector. The early 1990 status of DOP staff responsiblefor fisheries-related activities is as follows:

61 The country's Five-Year plans include the First Five-Year Plan(1973-78), the Two-Year Plan (1978-80), the Second Five-Year Plan(1980-85), the Third Five-Year Plan (1985-90), and the Fourth Five-YearPlan (1990-95). The implementation of the Fourth Five-Year Plan beganon July 1, 1990.

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Class Staff UnderRevenue Budget Development Budget Total

I 674 110 784II 64 40 104III 1,953 292 2,245IV 806 193 999

Total 3,497 635 4,132

Of the 3,497 staff members under the revenue budget, 2,280 are at theUpazila level. Their main responsibility is fisheries extension. Thefisheries staff at the Upazila level work under the Upazila administration-- a setup that creates serious problems of staff responsibility andaccountability. Other problems include th ! lack of a clear work program, alimited operational budget, and inadequatc means of communication andtransportation. These factors contribute to inefficiency, weak management,poor organization, costly operations, a~ poor financial performance.

3.11 All DOF's activities are non-revenue-generating except for thegovernment fish seed multiplication farms and hatcheries and the OxbowLakes Project. The financial performance of these two activities givessome indication of the financial health of other DOF projects and DOF'sability to manage such projects. Granted, even these two activities arenot purely commercial operations.

Fish Seed Multiplication Farms and Hatcheries

3.12 The number of DOF-managed government fish seed multiplicationfarms and hatcheries declined:

Fish Seed MultiplicationYear Farms Hatcheries Total

1984 99 7 1061987 99 7 1061988 78 4 821989 78 4 82

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In 1988, 20 fish seed multiplication farms were transferred to the GrameenBank (and are not being used as seed farms for aquaculture), and one to theFisheries Research Institute (PRI). Three hatcheries were transferred toFRI. The financial performance of these farms and hatcheries under DO?control has been poor and the units have suffered heavy losses (Table 3.2).

3.13 In contrast, private hatcheries have made substantial profits, andevery year new hatcheries are being established. In 1987, there were 211private-sector hatcheries and the number has recently increased to 500(World Bank, l990a). Following is a breakdown on private hatcheries andtheir production in 1987s

Division Number of Production ofHatcheries Spawn Fingerlings

(kg) (millions)

Chittagong 72 2123 112.3Dhaka 29 372 179.0Khalua 80 3053 194.4Rajshahi 30 1332 180.0

Total 211 6880 665.7

Many of these hatcheries are in the Jessore area. Their establishment wasstimulated partly by the IDA-financed Oxbow Lakes Project.71

3.14 The average production in private hatcheries is much higher thanin government fish seed multiplication farms and hatcheries. The resultsare summarized belows

Sector Year Annual Average ProductionSpawn Fingerlings

(kg) (million)

Private 1987 32.6 3.16

Public 1987 10.1 0.241989 11.9 0.50

Notes Production per hatchery/fish seed multiplication farm.

7/ According to DOF, there were 902 private nurseries in Bangladesh in1987, producing an average 0.74 million fingerlings per nursery.

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Private hatcheries produce about three times more spawn and 6 to 12 timesmore fingerlings than the public sector. Also, the cost of production inprivate hatcheries is lower than in public hatcheries. Many of the publichatcheries are facing serious technical problems.

3.15 There is no justification for continuing major public sectorinvolvement in seed multiplication farms and hatcheries. Units that arestrategically located and technically sound and can be rehabilitated atlittle cost could remain with the DO? -- but their objectives should shiftfrom spawn and fingerling production to fisheries technology testing,demonstration, and promotion, and training in disease control andaquaculture. The remaining units should be divested and transferred to theprivate sector or to NGOs. DOW is prepared to change the mandate of fishseed farms from seed multiplication to demonstration and promotion ofaquaculture technology but is reluctant to divest or transfer them for fearthat they will not be used for aquaculture. However, this report maintainsthat the units which are not technically sound or are too costly torehabilitate should not be used for demonstration and promotion ofaquaculture technology and should be divested or transferred.

Oxbow Lakes Proiect

3.16 There are more than 13,000 bodies of water in Bangladesh, of which70Z are smaller than 20 acres. These are managed by the Ministry of LocalGovernment. Bodies of water greater than 20 acres are managed by theMinistry of Land, but there are plans to gradually transfer the control oflarger bodies of water to the MFL. These plans are a step in the rightdirection, since the Ministry of Land has no technical knowledge offisheries. But a further transfer to genuine fishermen, the privatesector, or NGO management is needed if these bodies of water are to be usedeffectively for fish production.

3.17 The Oxbow Lakes Project (an IDA-funded project) showed that theDOF lacks management capability. The physical and financial performance ofthese lakes and the financial performance of fishermen on these lakes firstimproved and then declined (Table 3.3 and Annex Table 3.2). The projectwas designed to serve as a model for other inland fishery projects and tosome extent it achieved that objective. But four of the six lakes aresuffering losses. The profit from Oxbow Project Lakes -- Tk 2.6 million in1986187 -- dropped to only Tk 0.3 million in 1988/89. Once these and othersuch bodies of water are fully developed and stocked with fries andfingerlings, they should be auctioned off or given to the NGOs to manage.

3.18 Average yields are between 400 kg and 600 kg/ha in well-managedlakes and between 300 kg and 400 kg/ha in all lakes. The importance of theproject was not limited to the introduction of yield-increasingtechnologies, however. The project also stimulated aquaculture in thewestern part of Bangladesh and served as a pilot for testing thefeasibility of polyculture and of stocking large bodies of water (AnnexTable 3.3).

3.19 After project completion in June 1986, there was a long delay intransferring the project to the revenue budget. Serious budget problemsresulted and employee morale dropped to low levels. This seriously damaged

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the integrity and potential of the project, which was not allowed to useresources from the sale of fish harvested from the project lakes. Thesituation has since been corrected but the project lakes continue toperform poorly (Figure 3.1). Two key conclusions from this project arethats (1) the funding for operations and maintenance (O&M) of alldevelopment projects must be transferred to the revenue budget as soon asprojects are completed and (2) after the development of infrastructure forfish production, the bodies of water should be turned over to genuinefishermen, NGOs, or the private sector for management.

E. Financial Performance of BFDC

3.20 The Bangladesh Fisheries Development Corporation (BFDC) was createdas an autonomous organization that would facilitate the development of thefisheries sector, primarly marine fisheries. Gradually, BPDC becameinvolved in other fishery-related activities, including the marketing offish from inland fisheries. It has served as a pioneer in the developmentof trawl fishery and the use of mechanized boats for inshore fishery and hascontributed to the rapid growth in marine fish production. But BFDC hasgradually undertaken commercial activities that can be done more efficientlyby the private sector and has become an increasing burden on the governmentbudget.

3.21 The financial performance of BFDC from 1985186 to 1988/89 and theoverall profit/loss situation is summarized below and in Figure 3.2 (detailsare given in Table 3.4)s

Year Profit/Loss

(million Tk)1980/81 -82.61981182 13.81982/83 2.21983/84 -17.11984/85 -24.91985/86 -16.81986187 2.61987188 -18.01988189 -28.31989190 la

la BFDC claims to have made a small profit during1989/90, but data to substantiate that wasunavailable at the time this report was finalized.

BFDC suffered a financial loss six years out of nine; three years it made asmall profit. In 1988/89, the total financial loss was Tk 28.27 million,and the operational loss about Tk 6 million. Clearly, BFDC was not ableeven to recover its variable production costs. That year, of the 17

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activities BFDC undertook, only 4 (mainly wholesale fish markets) madesmall profits. The other 13 suffered losses (Annex Table 3.4). Thisexplains BFDC's interest in expanding its fish marketing operations. From1980181 to 1988/89, BFDC accumulated net losses of Tk 168.94 million.Between its inception and June 30, 1989, BFDC was given Tk 325.6 million ingrants (Annex Table 3.5).

3.22 BFDC's financial performance may be poor because of itsinvolvement in fishery development and promotional activities that are notcommercial in nature or commercially attractive. But the other primaryreasons are inefficient operations and poor management. It could reduceits losses by exiting from unprofitable operations. There is no reason,for example, for BFDC to remain in trawling operations when the utilizationrate for its trawlers is much lower than that for private trawlers (AnnexTable 2.7).

3.23 BFDC has helped fisheries development in the past and could again,but there is a need to redefine its mandate and hold it accountable for itspoor financial performance. Its activities must be divided intodevelopmental and commercial operations and the government should notsubsidize financial losses from the commercial operations. The governmenthas and will closely scrutinize its performance during the two-yearobservation period that began September 1989. During this period, theGovernment has asked BFDC to get out of redundant, money-losing activities.BFDC has already taken some actions, including divestment of a few assetsand some reduction in staff.

F. Budget Allocation and Expenditure

3.24 Considering its economic potential, the fisheries sector has beenunderfunded in both Five-Year Plans (FYPs) and Annual Development Plans(ADPs). But, the resources allocated to fisheries have never been fullyused, reflecting the poor implementation capability of institutions dealingwith the sector. The financial allocations and expenditures for thefisheries sector during the Five-Year Plans are shown below:

Plan Financial OutlayBudget Expenditure X Spent

------ (million Tk)------ ()

First (1973-78) 485 190 39Two-Year (1978-80) 440 386 88Second (1980-85) 1,743 1,583 91Third (1985-90) 3,500 1,400 40Fourth (1990-95) 7,500 la - -

La Proposed.

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During the Third Five-Year Plan, the FYP allocation was Tk 3,500 million,the ADP allocation Was Tk 2,500 million (71X of FYP), and about Tk 1,400million (401 of FYP and 56X of ADP) is expected to be spent. The plannedallocation for the Fourth FYP was 5.4 times the actual expenditure, 3.0times the ADP allocation and 2.1 times the planned allocatiou for the ThirdFYP.

3.25 The Department of Fisheries accounts for most of the financialresources allocated to the fisheries sector by the government (Annex Table3.6). The allocation is made under both the ADP and the revenue budget(which among other things covers O&M). As Table 3.5 shows, from 1980/81 to1988/89 actual spending was always much lower than the revised FYPallocation (i.e., the ADP allocation). However, spending under the revenuebudget was relatively close to budget allocations. In 1988/89, forexample, all the revenue budget was spent, whereas only 55Z of thedevelopment budget was spent. Expenditures have fallen far below thebudget allocation for two reasonst (1) the limited absorptive capacity ofthe agencies dealing with the fisheries sector; and (2) seriousbureaucratic and procedural problems approving and disbursing funds byother government agencies. Other government agencies share part of theblame for poor project implementation and production performance.

3.26 Obviously, projects cannot be undertaken unless funds are firstapproved. Development projects require the approval of the GOB's ProjectEvaluation Committee (PEC). After PEC approval, the project must beapproved by the Executive Committee of the National Economic Council(ECNEC) of the GOB. Once the project is approved by ECNEC, thedisbursement and release of funds is relatively easy. Otherwise, eachfunding request must first be approved by the Ministry of Finance (MOF) andthe Planning Commission (PC) before any funds are released. This processcan take a long time and seriously delay project implementation. It isessential that ECNEC approve a project soon after PEC does.

G. Cost Recovery on Fishery Projects

3.27 The Government of Bangladesh, bilateral donors, and multilateralfinancial organizations all finance projects in the fisheries sector. Asthe sector expands, public investment is expected to increase to facilitateprivate sector operations. The need for incentive-oriented, practical,efficient, equitable cost recovery mechanisms is crucial.

3.28 Current cost recovery mechanisms in the fisheries sector include(a) revenue from the sale of fish, hatchlings, fries, and fingerlings fromthe public fish seed farms, hatcheries, and bodies of water managed bygovernment agencies; (b) rental from the lease of public shrimp ponds;(c) revenue from the auction of public bodies of water; (d) license feesfor fishing in public waters under the New Fisheries Management Policy(NFMP, also known as Jal Mahal policy); (e) angling fees for sport fishing;and (f) registration and license fees for fishing trawlers. In 1988/89,government revenue (DOF only) from angling fees and the sale of fish,hatchlings, fries, and fingerlings amounted to only about Tk 18 million(Annex Table 3.6). On the other hand, O&M spending for DOF alone amounted

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to Tk 130.5 million. So total revenue accounted for only about 142 of theO&M (revenue) budget for DOF.

3.29 Strategies for increasing government revenues from the fisheriessector should focus on: (a) increasing fish production from public waters,so it is possible to increase the charge (in license fees, lease rates, andauction revenue) for their use, (b) improving the financial performance ofthe commercial activities of DOF and BFDC, and restricting their activitiesto those that cannot be handled by the private sector, (c) reducing oreliminating many of the economic incentives given to fish processingplants, and (d) discontinuing the 1990 cash subsidy scheme for shrimpexporters.

3.30 Much of inland and marine fish production is harvested by poorfishermen for their own consumption or sale. The primary fishing areas arelarge public sector areas. There is a need to increase government revenuefrom the fisheries sector, but one must weigh the benefits of cost recoverymechanisms against the costs, including the administrative cost of thesystem as well as any inequity for fishermen, who are already among thepoorest people in Bangladesh.

3.31 The government has already started stocking public waters,includirg floodplains. In 1989, about 40 million 3-to-4-inch-longfingerlings were released in open waters at 400 points in the cnuntry. Thecost of stocking could be very high so efforts must be made to recoverthese costs. Several cost recovery methods are being considered:(a) auctioning off fishing rights, (b) charging fees for fishing licenses,and (c) imposing specific taxes at the Upazila level. To formulate aviable cost recovery policy requires determining the magnitude of benefitsfrom stocking, the potential beneficiaries, and their location. Stockingwas initiated on a limited scale only a year ago, so most of the neededinformation is not yet available. Stocking of floodplains will beintensified under the IDA-financed Third Fisheries P: Ject and there areplans to determine the benefits and beneficiaries. This information willprovide a basis for designing appropriate mechanisms to recover the cost ofstocking public waters by the government.

3.32 Furthermore, an export cess should be imposed on shrimp exportsand a betterment levy on improved shrimp land for shrimp culture. Theongoing IDA-financed Shrimp Culture Project stipulated two cost recoverycovenants: a betterment levy and an export cess (World Bank, 1985).Direct cost recovery in the form of a betterment levy or licensing fee forsaltwater intake was set at Tk 1,500/ha/year (about US$43) in 1989 and wasto gradually increase to Tk 3,500/halyear (about US$100) in 1994. Indirectcost recovery in the form of an export cess was set at 0.4Z of the f.o.b.value of all shrimp exports in 1989, gradually increasing to 0.92 in 1993.These two covenants are yet to be acted upon. The covenants have beenreplicated under the IDA-financed Third Fisheries Project, with provisionsfor appropriate periodic reviews and adjustments over time.

3.33 One could argue about the fairness (since everyone does notbenefit from public investment in shrimp land) and appropriateness of suchmechanisms at this time (since international shrimp prices declined in 1989and recovered in 1990). But shrimp culture and shrimp exports are still

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highly profitable activities in Bangladesh, and there is no reason whythese two cost recovery mechanisms cannot be implemented immediately,especially since the amounts involved are small compared to the profitsrealized in shrimp culture and exports. Finally, given past performancethere may be some difficulty in collecting a betterment levy. It is highlylikely that the cost of public investments in shrimp infrastructure willhave to be recovered exclusively through an export cess. And collectionprocedures must be improved to ensure full recovery. The government agreesin principle but is reluctant to implement cost recovery covenants on thegrounds that fishermen are poor, the profitability of shrimp culture islow, and the fisheries sector is still in the early stages of development.This report, however, maintains that the cost recovery policy for shrimpculture should be implemented without any delay. Shrimp processing andexports are highly profitable and continue to benefit from many governmenteconomic incentives.

H. Fisheries Management Policy

3.34 There are more than 13,000 bndies of water (Jal Mahals) inBangladesh. They are geographically distributed as follows:

More than Upto 20 acresDivision 20 acres or less Total

Rajshahi 675 3,862 4,537Khulna 844 1,477 2,321Chittagong 1,495 3,215 4,710Dhaka 755 680 1,435

Total 3,769 9,234 13,003

Bodies of water covering more than 20 acres are managed by the Ministry ofLand. Those covering 20 acres or less are managed by the Miuistry of LocalGovernment.

3.35 Inland bodies of water are managed either by auctioning or bygranting licenses for fishing rights. The auction system started in 1950after the ownership of these bodies of water was taken over by thegovernment. The bodies of water can be leased to (a) private entrepreneursfor 1 to 3 years, (b) local cooperatives for up to 5 years, or (c) othergovernment agencies for up to 30 years. Bodies of water of less than 3acres are not leased; they are open to the public for fishing and aremanaged by local officials of the Ministry of Land. Bodies of waterbetween 3 and 20 acres were transferred to the Upazila Parishads for aperiod of 9 years (1984-1993) for management. The auction system isdominated by private entrepreneurs (not necessarily fishermen) who eithersublease the body of water, hire laborers for fish harvesting, or rent the

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fishing rights to fishermen on a catch-sharing basis. The major problemswith this short-term revenue-oriented auction system ares (a) it exploitsfishermen, (b) it depletes fisheries resources, and (c) it results in lowfish productivity.

3.36 The licensing system that was first introduced in 1973 wasreplaced in 1976 by a restricted leasing system because of implementationproblems. The main reasons for the failure of the licensing system werespoor coordination among government agencies dealing with inland waterbodies; weak public management of fisheries; and collusion among privateentrepreneurs (the so-called waterlords) who tried to keep genuinefishermen from obtaining the fishing rights directly from the government.The responsibility for managing bodies of water was transferred to theMinistry of Fisheries and Livestock in 1980, then transferred back to theMinistry of Land in 1983.

3.37 The New Fisheries Management Policy (NFMP) -- which involveslicensing genuine fishermen -- was initiated in 1987 when 140 bodies ofwater were transferred from the Ministry of Land to the Ministry ofFisheries and Livestock. MFL is responsible for implementing this policywith the help of coordination committees at national, district, and Upazilalevels. The main purpose of NFMP is to improve the productivity andsustainability of fisheries and improve equity for fishermen by providingfishing rights directly to genuine fishermen. In the long run, NFMP isexpected to reduce the exploitation of fishermen and rehabilitate common-property fisheries resources. The main elements of the NPMP are to(a) identify genuine fishermen, (b) organize them into groups, lc) provideneeded technical, marketing, and credit facilities, and (d) license them,to allow fishing in well-defined water areas. If properly implemented andmanaged, the NPMP may prove to be efficient and equitable.81 Otherwise,the intended beneficiaries may not benefit and the policy will createunnecessary administrative costs and other management problems.

3.38 BCAS (1989) selected for detailed monitoring 12 bodies of water(three different types) with four management approaches. The approacheswere (a) licensing -- DOF (existing management), (b) licensin- -- DOF(intensive management), (c) licensing -- NGO management, and (d) leasing --traditional auction system. The three types of bodies of water were(a) flowing river, (b) beels/haors within floodplains, and (c) Oxbow lakes(baors).

8F Fishermen, among t. Jorest people in Bangladesh, have only limitedaccess to fisheries resources. Based on a survey of coastal and river-based fishing cnuwwnities in Patuakhali, Barguna, and Bhola, CODEC(1989) concluded that (1) all fishing households are indebted tomoneylenders and fall below the poverty line, (2) family members areeither self-employed as fishermen or work as fish catchers on a catch-share basis (5Os5O) or as fish laborers for a wage, (3) 90-95 ofhousehold income is from fishing, (4) fish wastage is reported to beabout 10, and (5) fishermen have many problems, including a shortageof inputs, low fish prices, low wages, inadequate transport facilities,and no fish landing sites.

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3.39 Preliminary monitoring results reveal many problems with theimplementation o. NFMP in DOF-managed bodies of water, such as(a) difficulty limiting licenses to genuine fishermen, (b) nonrenewal oflicenses, (c) different license fee rates in different districts,(d) collecting license fees, (e) illegal fishing, (f) interference fromtraditional leaseholders, (g) frequent transfer of DOP staff, (h) conflictamong fishermen about the use of fishing gear, (i) promoting a sense ofcollective responsibility among fishermen, (j) nondisbursement of loans byBKB, and (k) providing access to institutional credit, marketing, and otherinputs. Additionally, the NGOs did not have adequate access to fisheriesas planned. There was no conclusive evidence that the benefits expectedfrom NFMP had been realized.91

3.40 The transfer of large bodies of water to MFL as part of the NFMPmust be gradual and consistent with the implementation of NFMP. The keycriteria for such a transfer should be improvements in equity, fishproduction, and cost recovery. The notion of limiting licensing to genuinefishermen appears sound and should be pursued but its implementation islikely to be difficult and should be closely monitored. In the meantime,NGOs should be encouraged to organize fishermen and provide them withnecessary marketing and credit facilities. In addition to a licensingsystem, these fishermen groups should be encouraged to participate in thetraditional auction system. The length of the lease should be increased,however, to provide incentives for proper fisheries management andinvestment.

3.41 The auction system appears to be more efficient than the licensingsystem in recovering costs and raising revenues from public bodies ofwater. In reality this is not true. Nuruzzaman (1989) observed that inalmost all cases the auction bids were (1) undervalued, (2) awarded topolitically or economically influential people, (3) prearranged as far asthe lease fee was concerned, and (4) designed to keep the genuine fishermenout of the auction process.

9/ The methodology and monitoring results of the NFMP and is3ues relatedto inland fisheries mangement in Bangladesh were discussed at twoworkshops and the proceedings of the first workshop were published inAguero, Huq, Rahman, and Ahmed, eds. (1989). The proceedings containmany useful papers, including those by Aguero, Ali, A.K.M. 8aque, Naqi,A.K.A. Rabman, S.8. Rabman, and Siddiqui.

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CHAPTER IV

SECTORAL PROSPECTS AND COMPARATIVE ADVANTAGE

A. Proiected Fish Supplies

4.1 Projections of fish supplies for domestic consumption are based onhistorical performance and future plans. Excluding shrimp culture (most ofwhich is exported), annual growth in fish production from 1983/84 to1987/88 was 1.82. The Department of Fisheries is projecting growth in fishproduction at an optimistic 5.3Z a year from 1987/88 to 1994195.

4.2 The supply of fish for domestic consumption is analyzed under twogrowth scenarios: (1) slow growth, 1.82 a year, and (2) moderate growth,3.02 a year (Annex Table 4.1). The supply of fish is projected to growfrom 795,000 mt in 1987/CS to 1.2 million mt in the year 2009110 under theslow-growth scenario and to 1.5 million mt under the moderate-growthscenario:

Year Fish Supplies /a Fish Exports lbSlow Moderate Moderate HighGrowth Growth Growth Growth

-------------------------(000 mt)--------------------------

1987188 795 795 32.0 32.01989/90 824 843 34.6 36.01994/95 901 978 42.1 48.11999120 985 1,133 51.2 64.42004/05 1,077 1,314 62.3 86.22009/10 1,177 1,523 75.8 115.3

La Supply for domestic consumption only./b Equivalent head-on shrimp and fish.

B. Projected Fish Exports

4.3 The costs of producing shrimp and fish in Bangladesh are among thelowest in the world. Assuming that exporters can further improve the

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quality of export products and aggressively compete in foreign markets,Bangladesh has good prospects for increasing fish exports.

4.4 From 1981/82 to 1988/89, the volume of fish exports (excludingfroglegs) increased more than 131 a year. Since 1984/85, fish exports haveincreased only slightly more than 4.01 a year. This report examines twogrowth scenarios for fish exportss (1) 4.0X a year (moderate growth) and(2) 6.0Z a year (high-growth). As shown in Annex Table 4.1 (and summarizedabove), exports of head-on shrimp and fish are projected to increase from32,000 mt in 1987/88 to 75,800 mt in the year 2009/10 under moderate growthand to 115,300 mt under high growth.

C. Projected Fish Demand and Reouirements

4.5 The growth of domestic demand for fish is determined by populationgrowth, growth in per capita income, the income elasticity of demand forfish, and retail fish prices. According to the World Bank (1989a, 1990b),the population of Bangladesh in mid-1988 (end of fiscal 1987/88) was 108.6million; it is growing at a rate of about 2.41 a year. The populationgrowth rate is expected to decline and the growth rate of per capita incomeis expected to increase. According to BBS (1988) and Hussain (1988), theincome elasticity of demand for fish in Bangladesh ranges between 0.96 and1.03. The projections of fish demand were prepared for four periods, basedon the following assumptionstil

Annual Annual Per Income ElasticityPeriod Population Capita Income of Demand for Fish

Growth Growth

(X) (2)

1987/88-1994195 2.4 1.2 1.01994/95-1999/2000 2.3 1.4 1.01999/2000-2004/05 2.2 1.5 1.02004/05-2009/10 2.1 1.6 1.0

1/ Projections of fish demand were also made under different assumptionsabout the income elasticity of demand, but the differences in projecteddemand were small.

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4.6 Fish demand for domestic consumption is projected to increase from795.000 mt in 1987188 to 1.8 million mt in the year 2009/10 (details inAnnex Table 4.2)s2/

Fish Requirement /aConstant ImprovedPer Capita Per Capita

Year Fish Demand la Consumption Consumption

-________-_----------(000 mt)-------------------------

1987188 795 795 7951989190 853 834 8671994/95 1,018 939 1,0781999/20 1,221 1,052 1,3342004/05 1,464 1,172 1,6422009/10 1,756 1,301 2,011

la For domestic consumption.

4.7 In 1987/88, the average annual per capita domestic fishconsumption/availability was 7.32 kg. The government target for 1994/95(terminal year of the Fourth Five-Year Plan) is to increase fish productionto 9.5 kg/capitalyear.3/ The question is: What would total fishrequirements (hence needed production levels) be if the governmentobjectives weres (a) to maintain current levels of fish availability or(b) to achieve higher levels of fish consumption, such as those thatprevailed in the 1960s?

4.8 To answer this question, fish requirements have been projectedunder two scenarioss (a) constant per capita consumption at the 1987/88level of 7.32 kg and (b) improving per capita consumption by 2.OZ a year,from 7.32 kg in 1987/88 to 11.32 kg in the year 2009/10. The results(Annex Table 4.2) show fish requirements increasing from 795,000 mt in1987/88 to 1.3 million mt in the year 2009/10, assuming constantconsumption, and to 2.0 million mt, assuming improved consumption.

21 According to Nuruzzaman (1990a), the domestic demand for fish by theyear 2000 will be at least 1.5 million mt. Most of this must come frominland fisheries.

31 Average fish availability in the 1960s was about 11.5 kg/capita/year.But statistics about fish production and consumption in Bangladesh areinaccurate, and changes in method of estimating make it difficult toanalyze historical trends.

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D. Per Capita Availability of Fish

4.9 Projected per capita fish consumptionlavailability in a particularyear, for each of the growth scenarios, was determined by dividing theestimated fish supply, demand, or requirements by the correspondingpopulation for a particular year (Annex Table 4.3 and Figure 4.1). Asshown below, average per capita fish availability actually declines underthe slow-growth scenario but improves gradually under the moderate-growthscenario.

Year Fish SuDply /8 Fish Requirements /bSlow Growth Moderate Fish Constant Per Improved Per

Crowth Demand Capita Consumption Capita Consumption

-^- --------------- kg/c*pltla/y*&r)-------

1987/88 7.82 7.82 7.82 7.82 7.82108/0O 7.28 7.41 7.49 7.82 7.621994/95 7.08 7.68 7.94 7.82 8.411999/20 6.88 7.89 8.50 7.82 9.282004/05 6.72 8.20 9.14 7.82 10.262009/10 6.62 8.57 9.88 7.82 11.82

iL Supply for domestic consumption only.Lb For domestic consumption.

To achieve the target of 11.32 kg/capita/year, fish production mustincrease 2.5-fold, from 795,000 mt in 1987/88 to 2.0 million mt in 2009/10.This can be accomplished, but will require heavy investment, betterinstitutional efficiency, widespread adoption of aquaculture technology,and better incentives for private sector participation. These conditionsare unlikely to be satisfied without dramatically changing the priorityassigned to fisheries development in Bangladesh.

E. Potential Gaps in Supply and Demand

4.10 Potential gaps between supply and demand were estimated fort(1) fish demand and v2) fish requirements with improving per capita fishconsumption (a scenario that reflects the government's objective ofimproving fish availability). Projected gaps in supply are summarizedbelows

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Supply Gap as Percentage of Supply Gap as Percentage ofYear Fish Demand Fish Requirements /a

Slow Growth Moderate Growth Slow Growth Moderate Growth

1987/88 0.0 0.0 0.0 0.01989190 3.4 1.2 5.0 2.71994/95 11.5 4.0 16.4 9.31999/20 19.4 7.2 26.2 15.02004/05 26.5 10.3 34.4 20.02009/10 33.0 13.3 41.5 24.3

/a Improved per capita fish consumption.

4.11 Under the fish-demand scenario, the potential gap between demandand supply is projected to be (a) 579,000 mt under the slow-growth supplyscenario, or about 33Z of projected demand in 2009110; and (b) 233,000 mtunder the moderate-growth scenario, or about 13.3? of projected demand in2009/10 (Annex Table 4.4). On the other hand, under the fish-requirementsscenario, the potential gap is projected to be (a) 42Z of projectedrequirements in 2009/10, assuming the slow-growth supply scenario, and(b) 24Z of projected requirements in 2009/10, assuming the moderate-growthsupply scenario (Annex Table 4.5).

4.12 In reality, gaps in demand and supply will be cleared through themarket mechanism. Prices could increase, fish demand could decline, andfish production could increase (in response to higher prices) so thateffective demand equals supply in any particular year. Moreover, as fishprices increase, consumers are likely to seek cheaper sources of animalprotein (chicken, for example). Some of this is already taking place. Theincreased profitability of fish production is likely to encouragediversification out of rice cultivation, especially on lands suitable forboth rice cultivation and aquaculture.

4.13 As far as fish demand is concerned, two disturbing trends areapparent: (a) the amount of unsatisfied domestic demand for fish,indicated by increasing fish prices, is expected to raise relative retailprices for fish even higher and (b) the emerging gap between average ruraland urban per capita fish consumption is expected to widen as per capitaincomes in the urban sector rise. As a result of higher urban incomes,continuing urbanization, and rising fish prices, the relative consumptionof fish will increase in urban and richer households and decline in ruraland poorer households. On the brighter side, poor fishermen will gethigher prices for their fish, enabling them to purchase more goods andservices.

4.14 Total fish production must increase even faster to meet domesticdemand because fish exports are expected to increase faster than domestic

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demand (Annex Table 4.6). If the production from sbrimp culture does notkeep up with the demand for shrimp exports, the supply for domesticconsumption of shrimp (and even fish) may be reduced. Clearly, a big pushstrategy' is needed to increase fish production enough to achieve statednational goals.

P. Fish Meal Production

4.15 The demand for animal feed will grow as livestock production andaquaculture expand. Fish meal is an important component of animal feed.Presently. Bangladesh produces only small quantities of animal feed basedmainly on imported fish meal. Bangladesh should develop a fish-meal-basedfeed industry using low-cost indigenous ingredients, including trash fish.waste fish, and remnants of shrimp processing. As aquaculture expands, theprivate sector should also be allowed to import high-quality animal feed orfish meal for domestic production. According to MFL (1990), the Governmentplans to allow imports of 37,000 mt of fish meal by the end of the FourthFive-Year Plan.

4.16 In addition, other indigenous sources of protein and energy needto be identified for use in animal feed production. The Fisheries ResearchInstitute (FRI) has already identified local ingredients ef plant or animalorigin -- 35 for protein, 28 for energy, and 24 for roughage. There is nowa need to determine their availability, and the technical feasibility andeconomic viability of using them commercially in animal feed production.

4.17 The demand for high quality feed increases with intensiveaquaculture, especially shrimp culture. Now, however, Bangladesh will bebetter off specializing in well-managed, improved, extensive -- rather thanintensive -- shrimp culture. According to USDA (1990), Thailand found thatfeed generally accounts for about 602 of the production cost for intensiveculture shrimp and protein meal accounts for most of the feed cost.Typical commercial shrimp feed contains

30-352 wheat floor (14Z protein),30X fish meal (662 protein),102 soymeal (45-472 protein),5 squid meal (47-502 protein),

plus oils, salts, minerals and vitamins. Corn can be substituted for wheatas a starch base. The animal feed industry in the ASEAN countries grewrapidly between 1985 (5 feed plants) and 1988 (53 feed plants). So farthere are only three feed plants in Bangladesh: one in the public sector(not being fully utilized), one a joint venture (not yet operational), andone in the private sector.

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G. Comparative Production Advantage

Pond Aquaculture

4.18 Bangladesh has many small ponds, many of which are privately owned(individually or jointly). Depending on their current condition (cultured,culturable, or derelict -- see para. 5.6), these ponds can be made suitablefor aquaculture, with some investment in excavation and rehabilitation.Estimated production costs and returns from pond aquaculture (Table 4.1)indicate that a fish farmer can earn TI 43,590/ha in six months (aftercovering production costs, excluding rent). If the farmer uses his or herown labor in fish production and harvesting, the household can earn anadditional TK 22,830/ha. The Fisheries Research Institute (FRI) hasconducted many trials in the experiment station and under farmers' fieldconditions (FRI, 1989 and FRI, 1990). The results support the conclusionthat properly managed pond aquaculture is highly profitable.

4.19 A key input for pond aquaculture is high-quality, disease-freecarp fries and fingerlings. The three sources of spawn for nurseries are:public hatcheries, private hatcheries, and natural sources. Annual spawnproduction (1 kg spawn - 400,000 hatchlings, cA the average) varies a greatdeal from one year to another, as shown belows

Year Artificial Spawning /a Catch fromPublic Private Natural Sources

Hatcheries Hatcheries

-______ ______________-(kg)-----------------

1985 1,010 3,952 19,3621986 1,376 4,911 13,2221987 1,459 6,880 22,0081988 1,152 5,697 12,533

/a Primarily major carps.

The main source of spawn for nurseries is still the catch from naturalsources. At present, there are more than 100 public hatcheries and fishseed multiplication farms and more than 200 private hatcheries andnurseries -- and more are being established. Except for small villages,fries and fingerlings are easily available in most areas. However, mostfarmers are not aware of aquaculture technology and its tremendouspotential for increasing fish production and farm income. The prices ofspawn and fingerlingt vary considerably among the different fish speciesused for aquaculture (Annex Table 4.7).

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Integrated Fish Farming

4.20 FRI has been conducting on-farm trials In integrated fish farmingfor the last several years -- including the production of fish and chicken(broilers or egg-layers) and of fish and ducks. The most profitablecombination has been the production of fish and broilers. Chicken manurehelps fertilize the ponds and space above the fish ponds can be used toraise chicken.4/ Production costs and returns from integrated broiler andfish farming in Mymensingh (Table 4.2) indicate that the combined netrevenue (excluding from production costs rent for land and labor costs forproduction and harvesting) has been estimated at TK l21,8501ha in sixmonths or more than TX 90,000/ha when only rent is excluded.

Rice Cultivaticn

4.21 Not all ponds can be used for rice cultivation, and not all riceland can be used for aquaculture. But some ponds, small closed bodies ofwater, and areas surrounding baors and beels can be used for ricecultivation. Initially, the poldered lands in coastal areas were developedfor rice cultivation. Even now they are being used to cultivate one ricecrop during the rainy season, when the salinity level of the water is notsuitable for shrimp culture.

4.22 The production costs and returns from Aman (HYV) rice (Table 4.3)indicate a net revenue, after all production costs (except land rent), ofan estimated TX 8,760/ha. According to initial estimates made for theWorld Bank agricultural extension project in Bangladesh, net benefits(excluding land rent) for Aman irrigated rice and Aman rainfed rice amountto TK 3,620/ha and TK 3,170/ha, respectively. The cultivation of dry-season Boro rice is much more profitable than Aman rice but the land cannotbe used for aquaculture. Shrimp production is more profitable than riceproduction, as shown below.

Shrimp Culture

4.23 In coastal areas, rice is grown in the rainy season and shrimp inthe dry season. Shrimp cannot be grown in the rainy season (May-October)because of the low level of salinity in the water.51 Similarly, ricecannot be grown in the dry season (November-April) because of the intrusionof brackish water. But rica can be grown in the dry season when brackishwater is not allowed to enter the field. An analysis of costs and returnsfor shrimp culture in Cox's Bazar and Khulua (Table 4.4) indicates that the

4/ According to Ameen (1987), the accumulation of flesh per unit ofassimilated food in carps is 1-1.5 times as rapid as in swine andchicken, and twice as rapid as in cattle and sheep.

5/ Water with a salinity level of 0 ppt is fresh water; of 0-30 ppt isbrackish water; and greater than 30 ppt is marine water. Ideal growingconditions for brackishwater shrimp include a 12-24 ppt salinity levelfor 5 to 6 months.

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average net returns (including operating costs but not land rent) wereabout TX 10,350/ha. Another set of tesults on production costs and returnsfor shrimp farming (Annex Table 4.8) show that after taking opersting costsinto account (excluding land rent), the net returns average TK 14,S80/ha.

Comparison of Net Returns

4.24 The above results are not entirely comparable since they are basedon different studies but they do illustrate the relative profitability ofdifferent enterprises. Excluding land rent and investment costs, the netreturns to aquaculture and rice cultivation ares

Enterprise Average Net ReturnsTK/ha

Pond aquaculture 43,587Pond fish/broiler farming 90,000Aman rice (HYV) 8,763Aman rice (irrigated) 3,619Aman rice (rainfed) 3,168Shrimp farming 10,350Shrimp farming 14,580

Rice cultivation is clearly less profitable than aquaculture (fresh orbrackishwater).6/ And fish prices are expected to increase faster thanrice prices, so aquaculture is expected to become even more profitable.

Shrimp Exports

4.25 Bangladesh is very competitive in shrimp production. The maindifferences among the three main worldwide systems of shrimp culture --extensive, semi-intensive, and intensive -- have to do with stockingdensity, water management, feeding, and the number of crops per year (AnnexTaLle 4.9). Unit production costs are lowest under the extens5ve system,the preferred method under conditions in Bangladesh.

4.26 Average yields in Bangladesh vary considerably. In a recentsurvey, yields averaged 137 kglha for head-on shrimp and 55 kg/ha for fishor a combined total of 192 kg/ha (Annex Table 4.10). About 752 of theshrimp were black tiger, which command high prices in domestic andinternational markets (Annex Table 4.11). The price of black tiger is more

61 Fisheries experts in Bangladesh generally agree about this conclusion.A study carried out almost ten years ago (before aquaculture becamewidely known) in the Chittagong area also concluded that pondaquaculture iL more profitable than rice culture.

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than double that of white prawn and 4 to 5 times that of brown prawn.Prices also vary by grade (Annex Table 4.12). International shrimp pricesstarted declining in early to mid-1989, which was imediately reflected inlower pondbank prices. The prices of black tiger have declined relativelymore than those of white or brown prawns. International shrimp pricesbottomed out in mid-November 1989, however, and have increased since then.

4.27 The average production costs for black tiger shrimp, however, insouth and southeast Asia are about US$1.60/kg for extensive culture andUS$5.00/kg for intensive culture (Table 4.5 and Annex Table 4.13). It isdifficult to rank shrimp producers and exporters in terms of relativeproduction costs because of differences in technology, yields, prices, andlocation. For extensive shrimp culture, however, a broad ranking of sevenAsian countries would probably be: Indonesia, the Philippines, India,Bangladesh, Thailand, China, and Malaysia. Price, quality, and reliabilityare the three most important factors for an importer. In Bangladesh, thereis still substantial scope for improving the quality of export shrimp andthe reliability of delivery.

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CAPTER v

SECTORtAL POTENTIAL, CONSTRAINTS, AND PROGRtYS

5.1 As the gap widens between domestic demand and supply of fish, fishprices are expected to increase faster than inflation and increase theprofitability of investments in the fisheries sector. There is generalagreement on the need to increase domestic fish production to bridgepotential supply gaps. but there may be disagreement on the approach,emphasis. and priorities for different types of fisheries. But fisherydevelopment priorities are closely linked with national goals. To satisfythe objective of increasing foreign exchange earnings, for example,accelerated development of coastal aquaculture (shrimp culture) would bemost appropriate. But the objective of improving the income, employment,and nutrition of landless poor fishermen will be best achieved bydeveloping the floodplain fisheries. Fortunately, these objectives are notmutually exclusive. They can and should be achieved simultaneously.11

A. Floodplains Fishery

Production Potential

5.2 Floodplains fishery can be broadly defined as including fisheriesin rivers and estuaries, floodlands, beels, baors, and the Raptai Lake.The area devoted to floodplains, especially floodlands fishery, has beengradually declining because of flood control, drainage, and irrigationdevelopment projects.2/ Through proper planning, the adverse impact ofsuch projects on fish production can be minimized. Both Hilsa and majorcarp stocks in floodplains have declined because of, for example,embankments, sedimentation, and overfishing.31 This can be offset by

1/ Two recently completed studies examine different production-relatedaspects of the fisheries sector in Bangladesht the National Water Planby the Master Plan Organization, and the Twenty Year FisheryDevelopment Plan for Bangladesh by John C. Marr Associates. Nuruzzaman(1990b) has also analyzed different aspects of fisheries development inBangladesh.

2/ Master Plan Organization, 1985. Technical Reports No. 16 and 17.

3/ According to Tsai and Ali (1985), carp stock has declined in the Padma-Brahmaputra River system, resulting in lower fish production.

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(1) the rehabilitation of Hilsa stocks and stocks of other indigenousspecies and (2) the adoption of culture-based fishebies terhnology andmanagement, which involves continually stocking floodplains withappropriate carp species (primarily polyculture) at optimum stocking ratiosand densities (Annex I).41

5.3 Available estimates for the inland area under rivers andestuaries, beels, baors, and the Kaptai Lake appear relatively accurate andare not expected to change much over time. Estimates of the area underfloodlands vary, sometimes by a large margin, from one source to another,but this area is generally expected to decline over time because of FCDworks.S According to the Master Plan Organization (MPO), the netcultivated floodland area, which is not protected through FCD works, isexpected to decline from the present level of 5.5 million ha to 3.5 millionha by the year 2005. Currently floodland fishery covers onl- 2.8 millionha, so it has considerable potential to expand.

S.' Floodplains fishery production (Table 5.1) could reach between1,090 and 1,410 thousand mt in the year 2010, up from 425 thousand mt in1987/88 (Table 2.1). This implies an annual growth rate of 4.5Z to 5.5S(Table 5.3). The major freshwater fish and shrimp activities in the openwaters of Bangladesh are summarized in Figure 5.1.

Development Constraints and Programs

5.5 The potential for increased production in the floodplains isconsiderable, but realizing it will require Ldequately addressing the majordevelopment constraints outlined belows

(a) A massive public program for continuous restocking of bodies ofwater is required to rehabilitate and improve fish resources inthe floodplains. To compensate for inadequate supplies of qualityseed, this requires the followings

(1) Private sector development of hatcheries and nurseries forthe production of hatchlings, fries and fingerlings.

4/ Polyculture makes efficient use of the available natural food supply(primary production or the production of phytoplankton andzooplankton). Note, for example, the different feeding habits ofdifferent carps: rohu are bottom/mid-water feeders; catla aresurfacelmid-water feeders; mrigal are bottom feeders; and common carpare bottom feeders. According to Nuruzzaman (1990a), fish yields inthe floodplains can be increased to 300-450 kg/ha for areas that getflooded more than 1 meter deep for more than 4 months.

5/ In the mid-1980s, 7.76 million ha of floodland area were underdifferent depths of water (Mandala Agricultural DevelopmentCorporation, 1985). The net cultivated area under various floodingconditions was 6.3 million ha (MPO, 1985b). And the floodland areaunder water for more than 6 months was 4.9 million ha (BBS, 1989).

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(2) Continual stocking of floodplains with species suitable forpolyculture.

(3) Conservation of existing brood stocks and the mitigation ofthe harmful effects on fisheries to be expected from FCD/FCDIprojects.

(4) Improving the survival rate of fries and fingerlings. Thecurrent survival rate from stocked fries to harvestable fishis an estimated 12.5Z.

(b) The environmental conditions for fish growth, especially in therivers, are gradually deteriorating.6/ It is essential torehabilitate fish habitats, reduce water pollution (especiallyindustrial pollution and the pollution caused by the use ofagricultural chemicals), vemove aquatic weeds (fostered by therunoff of fertilizer nutrients), improve fish nutrition, eliminatepredators, and dredge deteriorated sediments.

(c) Overfishing and elimination of brood stocks is now common. Tocontrol and improve the situation, there is a need to monitor andregulate fishing and fishing gear in floodplains, including atfish harvesting times. Brood stocks of Hilsa (which at this timecannot be bred artificially) and other indigenous species of smallfish must be protected through proper fisheries management andadequate enforcement of existing fish regulations. The creationof national fish sanctuaries could be an appropriate solution forBangladesh. Finally, fishermen should be organized, with NGOassistance, to increase their environmentrl consciousness and toparticipate in the licensing and traditional auction systems usedto allocate fishing rights 3n. public bodies of water.

(d) There are conflicts between agricultural production (especially ofrice) and fisheries. For example, the use of pesticides thatincrease agricultural production may harm fish and thereforeshould be used sparingly. Other agricultural activities alsocompete for both land and water. The development of flood controland drainage projects, for example, reduces floodlands andtherefore fish habitats. Introducing into these projectsmeasures to reduce their adverse impact on fisheries can minimizetheir negative impact.

(e) Weak and poorly coordinated fisheries institutions, lack oftechnical manpower, failure to transfer proven fish productiontechnologies, and inadequate credit for fishermen are serious

61 According to the UN Economic and Social Commission for Asia and thePacific (ESCAP, 1988), Bhouyain (1983), and N?lruzzaman (1991), freshand brackishwater pollution in Bangladesh is gradually becoming aserious problem that must be addressed (See Chapter II).

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constraints that must be addressed with a sense of urgency at thenational level.

(f) Inadequate infrastructure -- including roads, transport systems,storage facilities, fish landing sites, and marketing facilities-- are serious zonstraints during peak production months. Thesefacilities are essential for reducing waste, improving the qualityof fish, stabilizing fish markets, and increasing returns tofishermen. Infrastructure for fisheries-related activities mustbe substantially expanded and improved through the participationof both the public and private sectors.

B. Pond Aguaculture

Production Potential

5.6 Pond fishery is an important component of the Bangladesh fisheriessector. The Fisheries Resources Survey System (FRSS) estimated that thereare about 1.3 million ponds in Bangladesh.7/ The total area under ponds isabout 147,000 ha and the average pond size is 0.11 ha.81 Ponds can beclassified as (Annex Table 5.1)s

(a) Cultured: ponds where fish fries were released.

(b) Culturable: ponds where fish fries were not released.

(c) Derelict: ponds that are not suitable for culturing fish.

The distribution of ponds by category varies from one district to another.At the national level, 46? of the ponds (covering 52X of the pond area) arecultured and accounted for about 70? of pond fish production in 1987188.The remaining ponds, either culturable or derelict, produce relatively lowfish yields.

5.7 According to the BBS survey, the fish ponds in Bangladesh have thefollowing attributes:

(1) About 86? of them have a perennial supply of water.

(2) More than 95? of them have water about 5 feet deep.

7/ Based on an earlier survey, BBS (1984) estimated the number of ponds tobe about 1.8 million. Other studies that deal with pond fisheryinclude Mahababullah (1983) and the Master Plan Organization (1985d and1985e). BBS has recently carried out another survey of ponds but thedata are still being processed.

8/ Ponds are classified as small (less than 0.1 ha), medium (0.1-0.6 ha),and large (greater than 0.6 ha).

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(3) About 732 of the ponds are partially (652) or totally (72) silted.

(4) Many ponds have a submerged (112) or floating (21Z) weed problem.

(5) All the ponds have multiple uses: 632 are mainly for washing, 252mainly for fishing, 72 mainly for irrigation, and 52 mainly forother purposes.

(6) About 60 of the pond area is jointly owned by private households,and 562 jointly operated.

(7) Fries are released every year in only about 522 of the ponds;every two to thzee years in 312; and never in the remaining 172.

(8) The primary source of fries has been private vendors (782). Onlyabout 32 were supplied by the DOF from government fish seedmultiplication farms and hatcheries.

(9) About 802 of the ponds were never prepared before the release offries.

(10) About 902 of the ponds were never fertilized.

(11) Average yield and pond size were found to have an inverserelationship, i.e., the average yield for ponds smaller than 0.02ha was about 4,400 kg/ha, whereas the yield for ponds between 0.8and 2.0 ha was about 420 kg/ha.

(12) The reasons some ponds were not used for fishing purposes werereportedly: lack of finance (682), joint ownership (182), and lowprofitability (72).

5.8 Pond fishery production can double from the present level of about150,000 mt (1987/88) to between 296,000 and 335,500 mt in 2010. Theimplied annual growth rates from 1987/88 to 2009/10 are 3.22 for scenario Aand 3.72 for scenario B (Tables 5.2 and 5.3). The estimates are based onthe following assumptions: (a) a small increase in pond area (about 3,000ha); (b) gradual rehabilitation of derelict and culturable ponds; and(c) gradual intensification of all ponds. Over time, the pond area isassumed to shift away from the present system to an improved system at theslow (scenario A) and moderate growth rates (scenario B). Features of theimproved system includes (a) optimal stocking and harvesting, (b) poly-culture, (c) control of predators, disease, and weeds; (d) fertilization,and (e) supply of low-quality feed.9/ The pattern of freshwater pond fish(and shrimp) culture in Bangladesh is summarized in Figure 5.2.

9/ Based on pond culture trials in the Noakhali area, Amen i987) reportsthat at least 2,470 kg/ha of fish -- even 3,700 kg/ha of fish -- can beproduced with simple semi-intensive management practices.

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Development Constraints and Programs

5.9 Realizing the production potential of pond fishery vill requireaddressing the following issuess

(a) Ponds were not specifically designed for fish culture. Host ofthe ponds require physical improvement, including facilities todrain and fill the ponds, remo'val of the predatory fishpopulation, and the removal of weeds.

(b) Moet of the ponds are jointly owned or operated, which makesdecisionmaking difficult, especially if investments are needed forphysical improvement of the ponds.10/ Investment is needed bothfor rehabilitation of ponds and for the intensification of fishculture.

(c) The multiple use of ponds interferes with fish culture.Realistically, nonfishery uses of these ponds cannot beeliminated. There is a need to find ways to minimize the adverseeffects of other activities on fish culture.

(d) Most ponds are owned by private operators who have seriousproduction constraints, such as limited knowledge of aquaculture,lack of quality seed (hatchlings, fries, and fingerlings) inadequate quantity, lack of credit, and high risk. Theseconstraints need to be removed through rapid development ofadequate fisheries extension, credit from institutional andnoninstitutional sources, and private hatcheries and nurseries forfries and fingerlings.

(e) Many ponds have serious problems with respect to access roads,marketing facilities, landing sites, transport and storagefacilities, and easily accessible markets. There is a clear needto develop fisheries infrastructure. Many ponds are owned byindividuals, so there is a need to encourage private sectorinvestment.

C. Coastal Aauaculture

Production Potential

5.10 Coastal aquaculture consists primarily of brackishwater shrimpfarming, for which Bangladesh is endowed with extremely favorable resourcesand conditionss (a) the availability of tidal land, (b) warm temperaturesthroughout the year, (c) fertile pond soils with low internal drainage,(d) favorable water salinity, and (e) abundant cheap labor. Despite these

10/ An ordinance to use all ponds for fish culture was announced in 1986but has never been enacted.

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favorable conditions, shrimp culture is extensive and traditional. Most ofthe shrimp are exported, yet Bangladesh's share of world shrimp exports isvery small.ll/

5.11 According to Karim and Ahsan (1989), the area suitable for shrimpculture is about 150,000 ha in the southwest and 50,000 ha in thesoutheast, or a total of 200,000 ha. But the total area under shrimp farmsin 1987/88 was only about 94,400 ha.12/ Current average shrimp yields inBangladesh are extremely low and more than half the area suitable forshrimp production is still to be developed, so dramatic productionincreases are feasible. Average shrimp yields are estimated to be about300 kg/ha/year in India, Indonesia, Thailand, and the Philippines; 500kg/ha/year in Equador; and 10,000 kg/ha/year in Taiwan.131 Average export-quality shrimp yields under the IDA-financed Shrimp Culture Project aremore than 150 kg/ha for one season and shrimp yields as high as 6,000 kg/hafor two crops in Cox's Bazar have been reported.

5.12 Assuming that the area under shrimp farming in 2010 is about175,000 ha, and average yields increase with the adoption under scenario Aof well-managed extensive (450 kg/ha) aquaculture and under scenario B ofwell-managed and improved extensive (600 kg/ha) aquaculture, the productionpotential for coastal aquaculture in Bangladesh is estimated to be asfollowsS14/

11/ According to Aquatic Farms, Ltd. (1989) total shrimp imports by all theimporting countries were 649,000 mt in 1986. During 1986/87, exportsof frozen shrimp from Bangladesh were 16,275 mt, or only about 2.52 ofshrimp imports by all the importing countries.

12/ The area under shrimp farms in 1988/89 increased to 108,280 ha.According to Nuruzzaman (1987), the coastal tidal area is about 2.5million ha.

13/ Some of these yields, along with the current status of shrimp fisheryin Bangladesh, are reported in Shahidullah (1986). According to theWorld Bank (1990a), shrimp culture land with a perennial water supplycould produce about 800 kg/ha of exportable shrimp in 2 or 3 crops ayear, relying almost completely on natural food supplies in the form ofprimary production.

14/ According to MPO (Report No. 18), potential annual shrimp yields inBangladesh under the improved systems are expected to be:

1. Shrimp/rice rotation 500 kg/ha2. Shrimp/salt rotation 500 kg/ha3. Shrimp/shrimp (semi-intensive) 1,000 kg/ha4. Shrimp/shrimp (intensive) 2,000 kg/ha

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Scenario Area Yield Production Annual Growth(ha) (kg/ha) (It) (Z)

1987188 /a 94,010 269 25,2482010 (A) 175,000 450 78,750 5.32010 (B) 175,000 600 105,000 6.7

/a Actual.

The average yield and production estimates are for both fish and shrimp,with shrimp accounting for more than 80X of the total. The pattern ofbrackish water shrimp and fish culture in Bangladesh is shown in Figure5.3. According to Karim (1986), mullets are the most important brackishwater fish compatible with shrimp.

Development Constraints and Programs

5.13 Following are the main issues facing coastal aquacultures

(a) Much of current shrimp farming in Khulna and Satkhira is in thepoldered area. These polders were built by the Bangladesh WaterDevelopment Board (BWDB) to protect land from saline waterintrusion and develop it for agriculture, primarily rice. Thereis a need to resolve which part of the poldered area should beused for shrimp culture. There is also a conflict between smallrice farmers and large shrimp farmers about land lease and landuse.15/ The benefits of shrimp farming could extend to smallfarniers if instead of leasing their land to large farmers theywould organize and pool their resources for shrimp culture. SomeNGOs are already providing assistance to organize small farmersfor shrimp culture. Such assistance should be intensified.

(b) Shrimp culture is capital-intensive, which restricts smallfarmers' participation. Special credit facilities (banks,cooperatives, suppliers, and NGOs) should be developed to assistsmall farmers. Shrimp farms can be linked with factories so that

15J Based on a detailed survey, Chowdhury, Tahera and Chowdhury (1986)conclude that (a) shrimp cultivation is highly profitable; (b) shrimpcultivation uses less labor than rice cultivation, but the problemsfaced by shrimp labor are serious; (c) land is leased under pressure atlow rates that are generally fixed for 2-6 years. So neither landowners nor laborers really benefit from the *shrimp revolution. Inmore recent surveys, Atiur Rabman (1989, 1990) has reported that mostfarmers feel that shrimp farming has both positive and negativeeffects, but overall has produced individual and social gains.

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the factory provides capital to the farmer, and the farmersupplies shrimp to the factory.

tc) There is a serious shortage of quality seed. The primary sourcefor shrimp juveniles is private traders and fishermen who catchthem from the ocean. The mortality rate of shrimp juveniles isvery high -- 502 before stocking and 67X from stocking to harvest-- so there are supply shortages. Clearly, there is a need todevelop facilities for artificially breeding and raising shrimpjuveniles, and strategies to reduce the mortality rate. Under theIDA-financed Shrimp Culture Project, two pilot-scale, makeshifthatcheries have been established; if successful, the use of thistechnology is expected to alleviate seed shortages. A largeprivate freshwater shrimp hatchery built near Bakkhali River isnow operating successfully. According to the FAO/VB CooperativeProgramme (1989), more than 1.5 billion postlarvae (young shrimp)are collected annually, of which 502 die before reaching shrimpponds because of rough handling and bad transportation.161

Id) Farmers and extension agents have limited technical knowledgeabout scientific shrimp culture. Potentially large profitsthrough shrimp culture technologies are attracting entrepreneurs,who are not traditional fishermen, know very little about fisheryand fish culture, and thus cannot achieve high productivity.There is a serious need to develop a knowledge base, establishdemonstration farms, and transfer appropriate technology andknowledge to shrimp farmers.

(e) Most shrimp farms are located in remote coastal areas withlimited infrastructure. Shrimp are highly perishable, so anydelay in their marketing can cause serious losses. There is thusa need to develop ice, refrigerated storage, transport, andmarketing facilities, as well as electricLty in strategicallylocated areas selected for infrastructure development. However,the cost per ton of providing these infrastructural facilitiesunder the extensive farming system will be much higher than underthe semi-intensive or intensive farming systems.

161 Asaduzzaman (1987), reports growing concern, but limited scientificevidence, that the wild fry catch (catch of young shrimp) is injuringthe wild stock population of P. Monodon shrimp and may reduce marineshrimp production in the future. This issue needs to be resolvedthrough an empirical investigation. In any case, there is a need formany shrimp hatcheries to meet the growing need for quality seed.Hatchery technology is critical to the growth and stabllity of theshrimp industry in Bangladesh.

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D. Marine Fishery

Production Potential

5.14 Marine fishery includes both industrial and artisanal fisheries.Marine fish production has been growing rapidly in recent years, partlybecause of the introduction of trawlers, mechanized fishing boats, andefficient fishing equipment. There is disagreement about the standing andharvestable stocks of marine fishery but experts agree that the marine sectorin Bangladesh suffers from overfishing and overcapitalization and has limitedgrowth potential.17/

5.15 Marine fish production can be somewhat increased by: (a) collectingthe so-called 'trash fish' caught by shrimp trawlers, estimated at about30,000 mt/year; (b) increasing production of pelagic, as opposed to demersal,fishery which could amount to about 25,000 mt/year by 2010; (c) improvingHilsa (both inland and marine) stocks through rehabilitation, conservation,and proper management, which could add another 25,000 mtlyear by 2010; and(d) harvesting fish now allegedly caught by foreign trawlers -- an estimated15,000 mt/year.18/ If these improvements are introduced, marine fishproduction can increase from its present level of 227,582 mt to between300,000 mt and 325,000 mt by 2010, for an annual growth rate of 1.3 to 1.6Z(Table 5.3).

Development Constraints and Programs

5.16 To realize the estimated production potential of marine fisheries,the following constraints must be addressedt

(a) Despite recent efforts by FAO, there is inadequate information onfishery resources and their economic feasibility. Thisinformation needs to be developed and quantified as accurately aspossible and the current catch from marine fisheries should beanalyzed. The information collected in earlier surveys shouldalso be processed and analyzed.

(b) Shrimp trawlers have no economic incentives to keep "trash fish"as they are bulky and lower in value than shrimp. There is a needto determine the economics of collecting trash fish and using themfor human consumption or as fish meal for animal feed.

17/ John C. Marr Associates (1986), the Asian Development Bank (1985), andChowdhury (1988).

181 Rushdi (1986) cites widespread reports that fish worth Tk 1 billion ayear are caught by unauthorized foreign trawlers. According toChowdhury (1988), 15,000 mt of fish are taken away by poachers everyyear.

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(c) There is a shortage of landing sites to handle increasedproduction from marine fishery. There is a need to developlanding sites and market facilities so fishermen get their fairshare and so there is little waste of fish.

(d) Efforts must be made to rehabilitate stocks of Hilsa.

E. Fisheries Production Potential

5.17 Bangladesh could increase annual fish production to between 1.8and 2.2 million mt, or by double to 2.5 times the present level (0.8million mt). Annual growth in total fish production is expected to be 3.5Sto 4.52 (Table 5.3). The greatest potential is in floodplains fishery.19/The realization of this potential, however, will require institutionalstrengthening, policy reform, heavy investment, proper management offisheries resources, and widespread adoption of aquaculture technology.20/

F. New Fisheries Technologies

5.18 The new fisheries technologies discussed in this section -- newfish species, techniques, inputs, cultural practices, and services -- maynot be new to researchers or extension agents but will probably be new tomost fish farmers.21/

5.19 Some species are more suitable than others for fish culture. Itis possible, for example, to accelerate the culture of tilapia, nilotica,and sharputi, which have been successfully cultured on research stations,

19/ According to Huq, Khan, Huq, Dey, Alam, and Mahbubullah (1986),fishermen and fishing communities in Bangladesh are among the poorest.The development of floodplains fishery would most improve equity forBangladesh's many poor fishermen.

20/ UNDP (1989) survey findings also indicate that -- after crop productionbased on minor irrigation -- the fisheries sector in Bangladesh has themost potential for growth.

21/ Regional surveys of aquaculture -- including fisheries technology --are provided by Pathak (1989) for West Asia, and by Baluyut (1989) forEast Asia. Aquiculture scientists in Bangladesh must also remain intouch with scientists from the Network of Aquaculture Centers in Asia(NACA), with headquarters in Thailand, to exchange the latestinformation on aquaculture technology.

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are being tried in farmers' fields and ready for adoption by farmers.22/The results so far are promising. Tilapia are small but fast-growing filbthat, with supplementary feed and proper management, could yield up to6,500 kglha/6 months.23/ The sharputi yield varies between 1,500 and 2,000kg/ha/6 months but has a higher market value than the tilapia. A.L.A.Rabman (1984) documents that many important exotic species suitable forfish culture have already been introduced in Bangladesh:

Name Natural Habitat Source Year of Introduction

Tilapia la Africa Thailand 1954Nilotica fb Africa Thailand 1974Silver carp China Hong Kong 1969Grass carp China Hong Kong 1966Bighead carp China Nepal 1981Black carp China China 1983Common carp Temperate Asia Unknown 1960Mirror carp Europe Nepal 1979

/a Tilapia mossambica.lt Tilapia nilotica.

5.20 There may be potential for catfish production, and there is acatfish farm near Mymensingh. But more information is needed beforeconclusions can be made about the profitability of catfish culture underlocal conditions. FRI management in Mymensingh believes the followingtechnologies are now ready to be used by farmerst

(a) Monoculture of Thai silver carp in seasonal ditches, with apotential yield of 3,000 kglhalyear.

(b) Thai silver carp integrated with rice cultivation, with apotential yield of 1,500 kg/ha/year.

(c) Monoculture of nilotica in seasonal ditches, with a potentialyield of 3,000 kg/ha/year.

(d) Polyculture of Indian and Chinese carp, with a potential yield of5,000 kg/ha/year.

22/ Selected fish species cultured in Asia include carp, goramis, catfish,snakehead, tilapias, mullets, milk fish, sea bass, cockles, mussels,and mud crab.

23/ Tilapia also breed naturally and reproduce continually in pond culture.

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(e) Aquaculture integrated with broilers, with a potential yield of4,000-5,000 kg/ha/year of fish and more than 500 broilers/ha/year.

Several other aquaculture technologies are at different stages of testingand may be ready for adoption by farmers in the next year or so.

5.21 Two other potential technologies are frog nd eel culture.Bangladesh has been exporting froglegs for many years. Export values haveincreased from Tk 11.8 million in 1975/76 to Tk 438.2 million in 1988/89,or almost 37 times what they were 14 years ago. The primary source is wildfrogs. Recently, the government banned exports of froglegs out of concernabout destabilizing the biological balance in reducing the population offrogs that eat mosquitos and other insects harmful to humans or crops. Butfrogs can be grown artificially on frog farms and the viability of thisline of production should be explored. Eel production in Bangladesh iscurrently limited, but there is a growing demand for eel in theinternational market. The potential for eel exports should also beexplored.

5.22 Bangladesh has suitable climate and fisheries resources to grow avariety of aquaculture products, many of them exportable. The initiativestaken so far to introduce and adopt new aquaculture technologies have notbeen adequate. Concerns about the country's ability to deliver the high-quality products required in sophisticated export markets has been a majordeterrent. There is good reason to assume that this problem could beovercome with foreign assistance. It would be useful for the government toencourage joint ventures with specialized international companies tointroduce the scientific culture of shrimp, frogs, eel, and other products,initially for export purposes. This would require initiating aggressiveadaptive research and trials on farmers' fields to generate information forpromotion and technology transfer to farmers.

5.23 With rice production approaching self-sufficiency, inlandfisheries -- including artificial ponds -- is the most promising means ofdiversification. Integrated fish farming -- with broilers, ducks, goats,vegetables, and rice -- and monoculture or polyculture (with carps) offreshwater golda prawn (IMacrobrachium) in ponds and rice fields areespecially promising technologies under conditions in Bangladesh wherefarms are very small. Carp species, monoculture, or polyculture can beused for integrated fish and rice farming. Paddy-cum-fish culture -- apractice common in Southeast Asian countries -- has been very successful inIndonesia and its prospects in Bangladesh are good (Dewan, 1985). Broilerand ftsh farming is already being practiced by some farmers, has provenhighly profitable, and should be promoted aggressively.

5.24 Pen and cage fish culture is currently limited in Bangladesh butthe potential is great, (Karim, 1988). Cage culture originated inKampuchea about 200 years ago and has been used in Indonesia since 1922.In Thailand, P. Monodon shrimp have been raised in cages since 1987. Thecage culture technique has already spread to more than 35 countries inAsia, Africa, America, and Europe. By 1978, more than 70 freshwater fishspecies were being grown in cages in both temperate and tropical waters.Cages range in size from a few square meters to 0.25 ha. Pen culture, on

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the other hand, is of relatively recent origin. It has been used for carpculture since early 1900 in Japan and since the 1950s in China. Penculture of milk fish ranks first among all fish culture activities in thePhilippines, where it was introduced in the 1960s. Pen culture can be usedto culture carps, milk fish, and tilapia in irrigation canals, roadsideditches, rivers, lakes, and floodplains. Pens range in size from less thanone ha to 50 ha. The pen and cage culture system can be cheaper thanexcavating ponds and, as other Asian countries have found, can be extremelyproductive.

5.25 Pen and cage culture, which has been tried successfully in Westernand some Asian countries, was introduced in Bangladesh in the 1980s. Thesystent can be easily destroyed and requires good management, so there is aneed to pilot test it in different bodies of water to determine theappropriate fish species, optimum densities, feed needs, and appropriatepen and cage materials to be used in Bangladesh. Cage culture has beenattempted in the Kaptai Lake (ADB, 1989). Those who stocked Tilapianilotica (in violation of DOF regulations) report that this fish is highlyproductive in cage culture.

5.26 As aquaculture expands, the need for supplementary fish feed, fishor shrimp fry, and disease control measures is likely to increase. Theprivate sector is active in establishing fish hatcheries and nurseries andfeed plants but the total shrimp fry and feed production for fish andshrimp is still small. The public, and those involved in aquaculture,became concerned about preventing fish diseases when an EpizooticUlcerative Syndrome broke out in February 1988. It affected 31 fishspecies and fish prices dropped by 25Z to 402. Fish diseases are likely toincrease under intensive culture and with poor husbandry, so it isnecessary to establish veterinary services to identify, prevent, andcontrol fish diseases.24/

5.27 Introducing and adopting these technologies requires propercoordination of government agencies dealing with fisheries, livestock, andagriculture and fisheries research and extension. In addition toextension workers from DOF, there is a need to use private traders (forboth fish and fish fry) as sources of information on the use of the latestaquaculture technology. Based on surveys in Northwestern Bangladesh, Lewisand Gregory (1989) and Lewis and Ali (1990) conclude that an extension-trader strategy should be promoted. As much as possible, the pilotprograms mentioned here should be tested under ongoing and plannedfisheries development projects.

24/ A breakout of any disease could be disastrous for pond aquaculture orshrimp farms. Shrimp production in Taiwan dropped from 114,000 mt in1987 to 43,700 mt in 1988 because of a disease that affected mostlyblack tiger shrimp. It may take several years for shrimp production torecover to 1987 levels. Disease has also been reported in Thailand.

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G. Investment Needs

5.28 To realize an increase in fish production, massive investments areneeded by the public and private sectors, at all levels -- including fishproduction, harvesting, processing, marketing, and research and development(R&D). Investments must also be made in hatcheries, nurseries, feed mills,embankments, internal canals in poldered areas, and pond excavation.

5.29 Fish harvesting requires investment in manufacturing or procuringof boats, engines, trawlers, and nets for fish catching, and thedevelopment of ports, piers, and landing sites. Fish processing andmarketing requires processing plants, cold storage, ice plants,refrigeration facilities, insulated transport facilities, and wholesale andretail fish markets. There is a need to build access roads to bodies ofwater and fish landing centers. Finally, there is a need to establishtraining centers, fishery research stations, demonstration ponds, andfisheries extension facilities.

5.30 Various factors have contributed to the rapid growth in productionfrom different fisheries. The 'carp revolutions in ponds can be attributedto (a) public sector investment and transfer of technology (the KarnafuliProject, Oxbow Lakes Project, and government seed farms), (b) high-qualityseed supply by hatcheries and nurseries in the private aector, (c) expand-ing domestic demand for fish, and (d) rising fish prices. The shrimprevolution" in coastal areas has been made possible by (a) publicinvestment in polders and embankments, (b) the transfer of shrimp cultureand shrimp processing technology through public sector projects,(c) government incentives to the private sector to invest in shrimpprocessing plants and shrimp exports, (d) expanding international marketsfor shrimp, and (e) high international shrimp prices and the profitabilityof shrimp culture.

5.31 Rapid growth in fish production from artisanal marine fishery wasmade possible by (a) public sector investment and transfer of fishharvesting technology, including trawlers, motorized boats, and efficientfishing equipment, (b) the expanding domestic demand for fish and exportdemand for shrimp, and (c) high international prices for shrimp andincreasing prices for fish.

5.32 Clearly, the public sector has played a major role in transferringtechniology, providing incentives, and creating infrastructure to expandfish production and facilitate private sector participation in thefisheries sector. But public investment in the fisheries s6ctor has beenand is expected to remain very low as Vorld Bank (1990c) estimates,summarized below, shows

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Fiscal measuring Public Expenditure Programs laYear Budget Items Unit Fisheries Agriculture Total

1989 Revenue + ADP Crore Tk 78.3 1,663.3 11,320.0S of totalexpenditures 2 0.7 14.8 100.0

1995 Revenue + ADP Crore Tk 150.0 2,700.0 13,600.0 lbZ of totalexpenditures Z 0.9 16.4 100.0

la At 1989 prices.

Lb Low-growth scenario. Expenditure under the high-growth scenario is aprojected Tk 16,500 crore.

The public investment estimates for the fisheries sector are for two majordevelopment programs. First is for additional infrastructure to supportthe expansion of shrimp culture in the private sector. Average annualspending is expected to be Tk 20 crore (about US$5.7 million a year).Second is the stocking of open public bodies of water such as rivers andfloodplains. The average annual expenditure is expected to be Tk 25 crore(about US$7.2 million/year). These calculations appear to underestimatethe actual cost of these development programs.

5.33 The major infrastructural investment for shrimp culture has beenand must continue to be undertaken by the public sector. The total areaunder shrimp culture by the year 2009/10 is expected to be 175,000 ha.Public sector infrastructure has already been created on 6,000 ha. Theremaining 169,000 ha still needs to be improved, which will mean buildingperipheral dikes, internal canals, regulators, and related infrastructure.The estimated average cost will be about US$1,800/ha.2S/ The total publicsector cost of building the necessary infrastructure on 169,000 ha ofshrimp fares is expected to be US$304 mn.llion or about US$15 million ayear. Shrimp culture will also require an investment from private shrimpfarmers.

5.34 The floodpiains must be stocked annually by the public sector.The cost per ha of stocking depends on many factors, including the stockingrate, size/weight of fingerlings, number of annual stockings, fish species,season, price of fingerlings, and cost of transporting fingerlings.

251 Cost estimates vary from US$950/ha to US$2,250/ha for shrimp farmsinside polders and up to US$2,5001ha for shrimp farms outside polders.The higher estimates for 1990 include the cost of land acquisition forinternal canals and construction of internal canals.

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Information on many of these factors is still incomplete and siould begenerated by the IDA-financed Third Fisheries Project. Preliminaryestimates are that the annual cost of stocking floodplains could beUS$45/ha.261 Given seed supply and institutional and infrastructuralconstraints, the area to be stocked annually by the public sector mustincrease in stages over time.

5.35 By the year 2010, it will cost about US$74 millilon a year to stock3.3 million ha of floodplains ac half the stated rate or to stock half ofthe area at the full stocking rate -- to allow for the natural growth ofother indigenous fish species and areas that are not suitable for stocking.At the end of the next 5 years, however, public stocking may expand to 0.5million ha, which will cost about US$22 million a year. To reduce thestocking cost to the public sector, well-defined and closed bodies of watercould be given on a long-term lease to the piAvate sector and privateentrepreneurs would then be responsible for stmicking them. The cost ofstocking is relatively high, but expected betafits are enormous. Theincremental fish production from stocked floodplains is estimated to beabout 220 kglha worth at least US$220 -- about five times the stockingcosts. Given that high return, a way will undoubtedly be found to recovergovernment costs to ensure the sustainable stocking of the floodplains(para. 3.31).27/

5.36 Public sector investment will facilitate the involvement andinvestment of the private sector. According to the Project ImplementationUnit for the IDA-financed Shrimp Culture Project (1989), there is a need tobuild about 170 small to medium hatcheries to produce fries for black tigershrimp by the year 2000. At 1989 prices, each hatchery may need a Tk 2.3million capital investment. Similarly, the demand for fries andfingerlings for stocking public waters will increase substantially. Thesefries and fingerlings must be supplied by the private hatcheries andnurseries. Depending on its size and location, establishing a carphatchery costs between Tk 0.5-2.0 million. Establishing a 20-ton capacity(daily) ice plant requires a Tk 2.0-2.5 million capital investment.Depending on the size, location, and cost of land, a seafood processingplant requires about a Tk 20-30 million capital investment.

5.37 Insulated vans cost between Tk 0.8 million and Tk 1.4 million.The price of fishing boats varies, depending on whether they arenonmechanized or mechanized and how tig the engine and boat are. The costof nonmechnized boats is between Tk 5,000 and Tk 100,000. On the other

26/ Assuming a stocking rate of 2,500 fingerlingslha, with each fingerlingweighing an average 10 gm. In other words, the total weight offingerlings would be 25 kglha. The cost of stocking will beUS$1811,000 or Tk 63011,000 fingerlings or about Tk 1,570/ha.

271 The estimated economic rates of return for the Third Fisheries Projectare 31Z for the project as a whole, 137Z for the floodplains component,20Z for the shrimp culture component, and 73Z for other fisheriescomponents (World Bank, 1990a).

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hand, the cost of mechanized boats is between TI 0.275 and TS 0.850million. Fish nets are sold by weight and the price varies between Tk 65and Tk 170 a pound, depending upon the yarn (cotton or polyester) and meshsize. Finally, the cost of rehabiliating a derelict fish pond could beanywhere from Tk 50,000 to Tk 100,000/ha. Credit institutions must bemotivated, and financial resources must be made available, to give theprivate sector access to credit for investments this large.

5.38 The Government of Bangladesh is proposing to allocate TK 7.5billion (about US$215 million) to the fisheries sector during the FourthFive-Year Plan (Annex Table 5.2). About 32Z of this will bra spent onaquaculture and seed production; 302 on inland open water fisheriesdevelopment, management, and conservation; 162 on fisheries research,surveys, and studies; and the remaining 22Z on other programs. Theallocated budget is not adequate to accelerate needed growth in thefisheries sector. But one lesson learned from past experience is that, forreasons outlined in Chapter III, the fisheries agencies may not be able toabsorb even the allocated Tk 7.5 billion.

5.39 In the past few years, more than two-thirds of total expenditureshave been for development projects, and about 702 of this was provided byvarious donors (Annex Table 5.3). If the estimated fish productionpotential is to be realized, donors must play an increasingly importantrole in providing finance, training, and technical assistance. Donors needto coordinate their fisheries-related activities in Bangladesh to increasethe relevance and effectiveness of their pr'ograms.

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CHAPTER VI

SECTOR STRATEGY, ISSUES, AND OPPORTUNITIES

A. Fisheries Development Strategy

6.1 The fisheries sector makes a significant contribution -- in theform of income, employment, human nutrition and foreign exchange earnings-- to the national economy. It could contribute even more. To acceleratedevelopment and realize this potential, a concerted and systematic nationaleffort is needed to modernize the fisheries sector and improve itsperformance. This chapter outlines key elements of the proposed nationa'lfisheries development strategy and the actions needed to acceleratedevelopment of Bangladesh's fisheries sector.

6.2 The key elements of the national fisheries development strategyare as follows:

(1) Inland fisheries should be given the highest priority.Development, promotion, and conservation programs should bedirected at varicus carp species, Hilsa, and other promisingnew aquaculture technologies.

(2) The public sector should not be involved in activities thatcan be done by the private sector. It should restrict itsactivities to the development of necessary infrastructure; thegeneration, transfer, and promotion of improved fisheriestechnology; the identification, prevention, and control offishery diseases; the conservation and rehabilitation offisheries resources; the stocking of public bodies of water;and the enforcement of fisheries laws and regulations.

(3) Despite continual development efforts, the fisheriesinstitutions are still weak in the implementation of programsand projects, enforcement of laws and regulations, promotionof aquaculture technology, management of public bodies ofwater, conservation of fisheries resources, and cost recovery.There is a need to increase the accountability andresponsibility of fisheries institutions, improve skillsthrough fisheries education and training, and provideresources needed to implement new and ongoing projectsexpeditiously. The fisheries administration must become atrusted partner of the private sector, encourage competition,and concentrate on a few activities and do them well.

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(4) The private sector has proven its ability to handle fisheriesactivities, such as fish production, harvesting, marketing,trade, management, and the supply of inputs and services. Itis important for the public sector to provide infrastructurefacilities to stimulate private sector investments and tostock floodplains, but the cost of such investments should berecovered and the use of subsidies minimized.

(5) There is a need to direct special assistance to fishermen, whoare among the poorest of the poor, have limited access toinstitutional credit, and often do not benefit from existinggovernment programs. NGOs should be encouraged to organizesmall fishermen (both men and women) into viable groups andprovide them with access to fisheries resources. Otherwise,these fishermen may not be able to escape the poverty trap.However, NGOs lack resources and training and theseconstraints must be removed to enable them to expand theiractivities in the fisheries sector.

(6) Lack of credit is a special constraint in the fisheriessector, particularly for commercial fishermen who have nocollateral and no access to institutional credit. Specialcredit programs should be set up through NGOs and the GrameenBank to cater to the credit needs of fishermen. There is alsoa need to train bankers dealing with fisheries and to improvecoordination between bankers and fisheries extension agencies.

(7) Aauaculture technology for pond fishery and shrimp farms iswell established but farmers (the users) are not yet fullyaware of it and its use locally. There is a need for acomprehensive program to transfer and promote this technologyfrom experiment stations and research farms to bodies of waternear villagas and to stimulate the private sector to providenecessary inputs and services, including fries, feed, anddisease control services.

(8) The public sector should undertake, on a sustainable basis,massive stocking of public open-water bodies with various carpspecies. This will require determining optimal stockingdensities and ratios for polyculture. The private sectorshould be encouraged to supply fries and fingerlings forpublic stocking.

(9) Many fisheries are owned and managed by the public sector, andthe private sector has no incentive to make long-terminvestments since it may not be able to capture all thereturns on this investment. The public sector should financethe infrastructure necessary for the development of thefisheries sector. This includes the development of polders;the rehabilitation of closed public bodies of water; thedevelopment of fish landing sites, wholesale fish markets, andauction yards; and the establishment of research, extension,

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and training facilities. Roads, bridges, and security shouldbe provided to allow the development of aquaculture.

(10) Only a small share of fish production is now attributed toaquaculture and artificial fish breeding. This share isexpected to significantly increase over time. In the nearfuture, however, more than 751 of total fish production willbe from open water capture fisheries. The stocks of thesefisheries have been depleted by overfishing (caused bypopulation pressure) and flood control, drainage, andirrigation projects. There is a need to forcefully implementconservation measures, including the protection, rehabili-tation, and management of existing natural stocks and thereduction of water pollution. There is also a need to developfish sanctuaries and strictly enforce the Protection andConservation of Fish Act 1950, amended in 1982.

B. Sectoral Issues and Opportunities

Production Issues

6.3 Appropriate technology. Despite recent efforts, fish preductiontechnology and management at the fishermen level are still outmoded,traditional, and less productive than they should be. A major push isneeded for aquaculture in both open and closed bodies of water. Thisrequires the generation (research) and transfer (extension) of fishproduction technology and management appropriate for Bangladesh. Theseprograms should focus on all aspects of fish culture, including breeding,hatchling production, fingerling rearing, stocking, feeding, predatorcontrol, disease control, weed control, harvesting, marketing, and evenprocessing.

6.4 As for fisheries production technology, there is no need 4undertake basic research. Well-tested aquaculture technology is alreadyavailable in other Asian countries. This technology needs to be adapted tothe socioeconomic, environmental, and technical conditions and resources inBangladesh. The extension and promotional capabilities of those involvedin the fisheries sector at the national, district, and Upazila levelsshould also be improved. And the Government should encourage jointventures in aquaculture, especially in projects that would transferpromising new technologies.

6.5 Environmental protection. Brackishwater intrusion has adverseimplications for groundwater, vegetation, livestock, and even ricecultivation. Shrimp culture is more profitable than rice cultivation inthe dry season, whereas rice is more profitable in the monsoon season.(The salt content of water is low in the monsoon season, which is good forrice but not for brackishwater shrimp culture.) On the other hand, theimplications of industrial pollution and the use of pesticides are much

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more serious for aquatic resources and fisheries production. This problemwill reach serious proportions in the future unless appropriate protectivemeasures are implemented now.

6.6 Mitigating the adverse impacts of flood control, drainage, andirrigation projects on fisheries should be an integral part of projectdesign. At present, the U.K.'s Overseas Development Administration (ODA)is coordinating a study on the impact of FCD/FCDI pi:ojects on fisheries.This is one of 26 studies being undertaken as part of the Flood Action Planendorsed by the Government. The information it will provide should help informulating policies to minimize damage to fisheries in future projects.

6.7 Multiple ownership of ponds. Multiple ownership of ponds is oneof the main constraints on expanded fish production. But there is reasonto believe that once the owners realize the potential economic losses ofnot using their ponds they will be motivated to use them for fish culture.This should be assisted by programs designed to increase the profitabilityof fish culture, disseminate knowledge about aquaculture techniques,provide facilities for fish marketing, and facilitate access to credit andinputs such as seed, feed, and fertilizer.

6.8 Sectoral conflicts. Points of competition for resource usebetween fisheries and other economic activities include (a) coastal areasand waterways for which small rice farmers and large shrimp farmers competeand inland areas and waterways for which rice farmers and freshwaterfisheries compete; (b) fisheries and FCDIFCDI development projects; and(c) fisheries and other agricultural activities (such as water used forirrigatiou and jute retting). Many of these conflicts are likely to beresolved by economic rationale and financial considerations, with producers*voting" for the use that will render the highest combination of profitsand security.

6.9 The public sector should help to resolve such issues, however,through regulations and its involvement in infrastructure investments. Theguiding principles should be (a) efficiency: efficient use of nationalresources; (b) conservation: minimization of adverse impacts on fishproduction and fish resources; (c) equitys minimizationi of adverse effectson income distribution, especially on the fisherman community; (d) environ-mental protection: minimization of any adverse impacts on environmentalsafety and public health; and (e) maximization of private sectorparticipation. Adherence to these principles will not be easy, because inmany cases the beneficiaries of the current organization and use ofresource are the rich and powerful and the stronger ministries.

Institutional Issues

6.10 Institutional inefficiency. There are serious institutionalproblems related to decisionmaking, coordination, and the overlapping ofresponsibilities. The Department of Fisheries, which is supposed to beresponsible for national development of the fisheries sector, has nocontrol over public bodies of water. The implementation of variousprojects has suffered from institutional inefficiency, inadequate stafftraining, insufficient administrative and financial powers for senior

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management, and the delegation of such powers to field offices. There isan urgent need to streamline the institutional structure, strengtheninstitutions, and improve the technical expertise, management skills, andmorale of the fisheries staff.

6.11 Role of NGOs. The NGOs have been involved in organizing the poorto undertake income-generating activities, including aquaculture. Buttheir activities in the fisheries sector have been limited so far. NGOscan be effectively used to organize fishermen, train them in aquacultureand fisheries management, and facilitate their access to fisheriesresources, credit, fingerlings, markets, and other inputs and services.But NGOs must be given proper training in fisheries and access to adequatefunds. Local NGOs must be encouraged and given necessary resources. TheAssociation of Development Agencies in Bangladesh (ADAB) would be anappropriate body to monitor the activities of the NGOs, since there havebeen instances in which NGO workers have been involved in activities thatwere contrary to their stated mandate. (ADAB is the coordinating agencyfor NGOs involved in development activities in Bangladesh).

6.12 Enforcement of regulations. Four sets of laws/regulations inBangladesh deal with the conservation of fisheries, pond improvement,marine fisheries, and fish inspection and quality control. The mainproblem is not lack of regulations, but poor enforcement. First of all,the public must be made fully aware of these laws and of the potentialconsequences of any violations. Second, the number of inspectors must beincreased and all inspectors given appropriate authority and resources toenforce these laws. Third, those who are caught violating regulations mustbe given quick and proper punishment. Fourth, any fish found in the marketin violation of fisheries laws should be confiscated.

6.13 With increasing population pressure and declining fish resources,the stocks of certain fish spec4is may experience irreversible damageunless these regulations are enforced. Moreover, the inspection andquality control laws should be strictly enforced in the interest of publicsafety and health. This is especially important because certain wild fishspecies Lave been found to suffer from diseases. Hygiene is deplorable andmust be improved.

Financial Issues

6.14 Fisheries credit. The institutional credit programs for pondfishery, shrimp farms, and fish exports should be expanded, strengthened,and closely monitored. Poor commercial fishermen and small fish farmershave little or no access to institutional credit and must borrow from moneylenders (mahajans), cormuission agents (aratdars), or traders on veryunfavorable credit ter-s. Special arrangements should be made to meet thecredit needs of small producers, preferably with credit programs similar tothose initiated by the Grameen Bank. Credit to the fisheries sector couldcome from a variety of sources, including NGOs, private banks, nationalizedbanks, and such suppliers as hatchery operators and fish processing plants.

6.15 Financial performance. BPDC's scope of activities should bedrastically curtailed and limited to those that cannot be undertaken by the

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private sector. The Oxbow Lakes should be turned over to NGOs and localfishermen for management. Fish seed multiplication farms -- except thosethat will be used for fisheries research and/or technology demonstration --should be divested and given to kGOs, cooperatives, or the private sector.

6.16 Cost recovery. Cost recovery from public investments and O&M mustbe substantially increased. The proposed cost recovery strategies shouldbe examined carefully as to their impac on nutrition, revenues, equity,and administrative cost, keeping in mind that commercial fishermen areamong the poorest people in Bangladesh. Thus, it is essential to determinethe benefits, beneficiaries, and their location before implementingmechanisms to recover the cost of stocking floodplains. Despite thesoftening of shrimp prices, shrimp culture and shrimp exports remainprofitable and the proposed 'shrimp export cess' and *betterment levy onimproved shrimp land' should be implemented as soon as possible.

6.17 Inefficiency of processing plants. There are presently too manyfish processing plants and not enough raw materials. As a result, capacityutilization rates are low. Many of these plants were established inresponse to liberal export incentives and subsidies from the Government.There is a need to re-examine the incentive structure, link the shrimpfactories with shrimp farms for the supply of raw material, and link theprovision of economic incentives with the performance of existing plants.Any new allocations of shrimp farms should be to groups of small localfarmers rather than to outsider absentee businessmen or shrimp processingplants.

Other Policy Issues

6.18 Fisheries management. Traditionally, public bodies of water ininland fishery have been leased out on a slort-term basis, many of them tononfishermen or to 'dummy' cooperatives t"-t are only interested inextracting fisheries resources and maximizing short-term gains. The short-term lease system provides disincentives for investment to rehabilitatefacilities or intensify fish culture. Under the Government's New FisheriesManagement Policy (NFMP), genuine fishermen are licensed to fish in publicbodies of water.

6.19 There have been difficulties implementing the NFMP, but it shouldbe given more time to operate before conclusions on its performance aredrawn. In the meantime, NG60 should be encouraged to organize commercialfishermen, and the fishermen groups should be encouraged to participate inboth the licensing system and the traditional auction system -- whichshould be modified to allow their participation and increase the length ofleases. The licensing system should be continued and monitored carefully.

6.20 Marketing inefficiency. The fish marketing system in Bangladeshis almost entirely in the hands of the private sector and has continued tooperate rather well. BFDC's market share is too small to make anydifference to fish prices. There is some evidence of fishermen'sexploitation by traders, high marketing costs, deterioration of fishquality, and heavy losEas from wastage and spoilage. An adequate solutionto these problems will involve: (a) market research, (b) market

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regulations, and (c) developing marketing infrastructure -- landing sites,wholesale fish markets, cold storage, ice factories, refrigerated transportvans, and auction yards.

6.21 Role of women. At present, women are involved in making fishnets, catching shrimp larvae, and feeding and sometimes harvesting fishfrom ponds and other bodies of water. Little is known about the specificroles of women in fisheries and there are no programs specifically directedat women. Womena can be organized under the sponsorship of various localNG0s to operate hatcheries, purchase fishing boats, and manage bodies ofwater. This would require programs specifically geared to meet theirneeds, including extension and :redit. Increasing the number of women onthe staff of govermaent agencies dealing with fisheries can help generatethe information needed to design programs for expanding women's role infisheries.

6.22 Information system. Sound planning, policy formulation, andimplementation of fisheries development programs depend on soundinformation and analysis. In Bangladesh, a lot of information isavailable on the fisheries sector but it is often incomplete, inconsistent,inaccurate, or outdated. The Fisheries Resource Survey System (PMSS),established to remove this constraint, is a step in the right direction.But it should be strengthened to become the central agency in Bangladesh tocollect, analyze, and publish fisheries data annually, preferably in apublication such as the Fisheries Statistical Abstract. A major effort isneeded to improve quality control on this data. The core of theinformation system development programs should include (a) national datacollection and survey facilities, (b) centralized computation and datamanagement facilities, (c) analytical capability for evaluation and policyanalysis, and (d) manpower development and training facilities.

C. Role of the World Bank

6.23 The World Bank and other donors have played an important role inthe fisheries sector since the midseventies, particularly in surpport ofaquaculture (Annex III). The first fisheries-related project was acomponent of the IDA-financed Karnafuli Irrigation Project (Cr. 605-BD),which was implemented in the midseventies and completed in 1982. Thepurpose of the project was to mitigate the adverse impact of flood control,drainage, and irrigation projects and provide technical assistance toestablish a carp hatchery. This project was followed by the IDA-financedOxbow Lakes Fisheries Project (Cr. 890-BD), which was initiated in 1979 andcompleted in 1986. This project financed the establishment of hatchery andfingerling rearing facilities for six Oxbow lakes (baors) and successfullydemonstrated the application of aquaculture techniques in large (about 300ha) bodies of water.

6.24 The support of aquaculture was extended to shrimp in the ongoingShrimp Culture Project (Cr. 1651-BD), which was initiated in 1985 and isscheduled for completion in 1991. The purpose of the project is to fnanceinfrastructure development and improve shrimp culture within the polder

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areas in Khulna and Cox's Bazar. The IDA-financed Third Fisheries Project,which will be implemented in 1991, incorporates the aquaculture conceptsand lessons learned from both the Oxbow Lakes Fisheries and Shrimp CultureProjects. The project supports all types of fisheries developmentactivities in Western Bangladesh but its main focus is increasing shrimpproduction and stocking floodplains with carp species appropriate forpolyculture. Fisheries components were included in several other IDA-financed projects but were too small to have any economic or technologicalimpact. The World Bank has also compleLed a fisheries subsector review in1983, and a review of institutional improvement required in the Departmentof Fisheries in 1986.

6.25 The World Bank, the Asian Development Bank (ADB), 'id GOB haveagreed that future IDA lending will focus on the western part of thecountry and ADB lending will focus on the eastern part, to rationalizedonors' support of fisheries. These projects should focus on increasingproduction potential, removing key constraints on realizing that potential,minimizing fish losses in transit from the fisherman to the consumer. andfacilitating the provision of credit and marketing facilities to poorfishermen.

6.26 The World Bank has played and should continue to play a leadingrole in the development of the fisheries sector in Bangladesh. Throughproject and sector work, the Bank has acquired the necessary expertise andexperience to serve as a lead donor in mobilizing resources, financinginvestments, and stimulating policy reform in the fisheries sector. Inthis context, the fisheries sector in Bangladesh fits into IDA's lendingstrategy, as it has a great potential for growth in fish production,alleviation of poverty, conservation of natural resources, and theinvolvement of women in fisheries development.

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LIST OF TABLES

Page No.

Table 2.1: Fish Production, Relative Share, and Growth forDifferent Types of Fisheries ...................... 90

Table 2.2s Estimated Production, Area, and Average Yield byType of Fishery During 1987188 ................... 91

Table 2.3: Distribution of Area Under Inland Bodies of Waterby District During 1987188 ............ *..* ......... 92

Table 2.4s Trends in Total Inland and Marine Fish Production . 93

Table 2.5: Distribution of Fish Production by Water Bodiesand Districts, 1987188 ....................... #.... 94

Table 2.6: Trends in Value of Annual Seafood Exports ......... 95

Table 2.7s Estimated Capacity of Fish Processing (Freezing)Plants and Their UtLlization Rate ................. 96

Table 2.8: Estimated Average Export Prices for Frozen SeafoodProducts .............. ** *..*...................... 97

Table 2.9: Average Per Capita Intake of Fish by Sector ....... 98

Table 2.10: Fish Prices and Estimated Marketing Margins inBangladesh During 1989 ................. *....*.... ... 99

Table 2.11s Level and Growth of Annual Average Retail Pricesfor Fish and Other Selected Consumer Goods ........ 100

Table 2.12: Agricultural Credit Situation in Bangladesh ....... 101

Table 3.1s Targets and Achievements of Production andFinancial Out!.ay for the Fishery Sector During theFive-Year Plans ........ 00.** *... 102

Table 3.2: Financial Performance of Government Pish SeedMultiplication Farms and Hatcheries ............... 103

Table 3.3s Status and Performance of Oxbow Project Lakes ..... 104

Table 3.4s Evolution of the Financial Performance of BFDC .... 105

Table 3.5: Budget Allocation and Actual Expenditure of theDepartment of Fisheries ........................... 106

Table 4.1s Production Costs and Returns from Pond Aquaculturein Mymensingh, 1989 ............................... 107

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Page No.

Table 4.2: Production Costs and Returns from IntegratedBroiler and Fish Farming in Mymensingh, 198P ...... 108

Table 4.3: Production Costs and Returns from Amn (NYW) Ricein Bangladesh, 1987188 .................... . 109

Table 4.4: Estimated Costs and Returns for Shrimp Culture inBangladesb, 1989 ....... *.....***.** .... .. .... . . . 110

Table 4.5: Estimated Average Production Costs of CulturedShrimp (P. Monodon) in South and Southeast Asia,1989 ......................... .......... .... 111il

Table 5.1: Production Potential for Floodplains Fishery bythe Year 2010 ..................................... 112

Table 5.2: Production Potential for Pond Fishery by theYear 2010 . ........................................ 113

Table 5.3s Long-term Production Potential and Growth Prospectsfor Different Types of Fisheries by the Year 2010 . 114

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Table 2.1: FISH PROOUClION, RELATIVE SHARE, AND GROWTHFOR DIFFERENT TYPES OF FISHERIES L

Relative ShareFish Production in 1987/88 Annual Growth Rate /b

Type of Flshery 1983/84 1987/88 Production (1983/84 to 1987/98)-- ("t) ~~~(X) X

Inland caturo

River and eatuarle 216,549 191,888 28.2 -2.9Floodlands 200,616 182,037 22.0 -2.4Bools 61,878 46,610 6.6 -2.9Kaptal Lake 4,067 4,066 0.5 0.1

Subtotal 471.591 423.598 61.2 -2.7

Inland culture

Ponds 107,944 149,428 18.1 6.6Baore 862 1,264 0.1 9.6Shrimp tfrms 8,219 26,248 8.1 82.4

Subtotal 117.026 175.926 21.8 10.7

Marlno

Induetrial 14,500 10,895 1.8 -8.0Artlsanal 160,862 217,187 26 2 9.6

Subtotal 164.862 227.682 27.5 6.4

Inland total 568,620 699,528 72.5 0.6Marino total 164. M 227.682 27.6 8.4

Bangladash total /c 758,602 627,106 100.0 2.4

Lo Based on data obtained frm DOF.

b Estimated actual compound growth rato.

fc Total fish production durlng 1988/69 was 640,926 at.

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Tabl- 2.2: ESTIMATED PROOUCTIUN, AREA, AND AVERAGE YIELD BYTYPE OF FISHERY OURING 1967/86 L/

ShareProduc- In Production

Type of fishery tion Area Yield Inland Total(at) (he) (kg/ha) -- () --

Inland captureRiver and estuarl- 'b 191,88 1,081,668 166 82.0 2832Floodlands 162,087 2,682,792 64 80.4 22.0Beols Ic 45,610 114,161 899 7.0 5.5KaptalLok. 4,066 68,600 59 0.7 0.6

Subtotal 428,698 4,047,816 105 70.7 51.2

Inland culturePonds 149,428 140,890 1,017 24.9 16.1Baore 1,264 5,488 226 0.2 0.1Shrimp torm Id 25,246 94,010 269 4.2 8.1

Subtotal 176,926 240,366 714 29.8 21.8

Marine LeIndustrial 10,895 /t L 0.0 1.8Artlsanal 217,167 - - 0.0 26.2

Subtotal 227,602 - - 0.0 27.5

Inland total 599,528 4,293,704 140 100.0 72.6Marine ttal 227. C2 - 0.0 27.5

Bangladesh total Lg 627,105 4,298,704 - 100.0 100.0

L Based on infi,:eation obtained from the Department of Fisheries.1987/88 was the latest yeor for which actual date was available.

b Includes Sunderban. During 1987/68, fish production from Sunderban was8,068 at.

Le Including haore.

Ld Coastal squacultur. Production Include, both fin fish (about one-third) andhead-on shrimp (about two-thirds).

Lo Fishing a*re Is estimated to he 14,000 kmt, which Is about 22X of Exclu-slv Economle Zone (EEZ).

LI Fishing area; hence, yields cannot be defined.

Lg During 1988/89, total fish production was 640,926 t and area was 4,807,974 ha.An Increase In area was due to an lnerease In area under shrimp farms fro 94,010ha In 1987/66 to 106,260 ha In 1968/69.

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Tabile 2.8t OtSTRN OF REA UN_ _ AU BODIES OF WATER- ~~~By OZIlicT OUR=O LOP/U La

Greater River and Kaptrl ShrimpDistricts Estuaries leo Lak Ponds BSors Fare Le Total

Chlttagon 5.0 0.1 - 9.7 - 20.8 0.6Chittaong H.Y. 2.0 o.a 100.0 - - - 0.2Nbokhl I.9.J - - 7.0 - - 7.4Coolla 8.6 1.0 - 9.2 - - 8.7Sylhet 2.0 20.0 - 0.2 - - 4.8Dhaka 4.0 4.8 - 4.7 - - 4.1Fartdpur 6.0 1.7 - 4CS 17.0 - 4.2J.amlpur -Id - - 1.0 - - 0.1Mym.naingh 8.4 26.0 - .0 - - 6.0Ton l 1.8 2.0 - 1.0 - - 1.2SarieelI 17.1 0.1 - *.9 - 0.1 12.9Jesore 1.7 4.4 - 4.9 49.8 0.7 2.8Khulna 19.7 0.8 - 8.7 0.0 72.7 18.0Ku.htto 1.1 1.9 - 1.0 26.0 - 1.1PatuakhalI 10.4 - - 4.5 - 0.1 7.8Bogrs 1.8 8.8 - 8.9 - - 1.6olnaipur 0.9 1.1 - 6.6 - - 1.4Pabna 4.0 2.9 - 5.0 - - 8.6Rajehohi 2.0 17.4 - 10.1 - 8.Ronspur 4.5 4.6 - 2.7 - - 8.0

Total (U) Lo 100 0 100 1 100 100 100

(he) (1,081,680) (114,161) (08,600) (146,090) (5,408) (94,010) (1,400,912)

Li Based on informttion obtained tram the Dpartmnt of Fisheries. Area under floodlends Isabout 2,082,702 h; distribution of tloodlands by district Is not ova lable.

Al Out of this, ares under rivers 1s 479,785 ha and area under estuarles Is 661,829 ha.Estuaries reter to the aor whre river watr. meet tth soe water.

Le Arm under ehriop form 1s gradually 1ncrer1ng.

4d None or negligible.

lo The percentage total m*y not dd to exactly 100 du to rounding.

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Table 2.4: TRENDS IN TOTAL INLAND AIM MARINEFISH PRODUCTION la

Production Relative ShareYear lb Inland Marine Total Inland Marine Le Total

--------- ('000 mt) ------- ------------ (2) ------------

1975/76 545 95 640 85 15 1001976/77 541 100 641 84 16 1001977/78 533 110 643 83 17 10019781/9 527 118 645 82 18 1001979/80 524 122 646 81 19 1001980/81 525 125 650 81 19 1001981/82 556 130 686 81 19 1001982/83 583 141 724 80 20 10O1983/84 577 174 751 77 23 1001984/85 586 188 774 76 24 1001985j86 587 207 794 74 26 1001986/87 597 218 815 73 27 1001987/88 599 228 827 72 28 1001988/89 608 233 841 72 28 1001989/90 Id 613 234 847 72 28 100

La Obtained from (1) BBS, 1989 Statistical Yearbook of Bangladesh, and(2) the Department of Fisheries.

Lb Fish production during Vf4/i6 was estimated to be 801,000 mt(720,000 mt inland and 81,u00 at mari-e)g and during 1974/75 fishproduction vas 822,000 mt (733,000 mt inland and 89,000 mt marine).Sudden drop in inland fish production during 1975/76 appears to bepartly due to changes in method and per capita fish consumptionlevels used for estimating fish production. As evidenced by the1975/76 Nutrition Survey, average per capita fish consumptiondropped from 33 grams/day in 1962/65 to 22 grams/day in 1975/76.Decline in floodplains area in response to growth In lCD works hasalso contributed to a decline in fish production from floodplains.

L In mid 1960s and early 19709, the share of marine fishery in totalfish production was about 10X.

Id Projected production estimate.

Table 2.6: DISTRIBUTMON OF FISH PRODUCTION BY BODIES OF WATER AND DISTRICTS, 1987/88 /a

Greeter Ri ers and Keptal ShrimpDistrict Estuortis Sun arban Bees Lake Floodlands Ponds Boors Farms Total

Chittagong and C.H.T. /b 27,009 - 198 4,068 12,519 17,803 - 6,494 66,591CeOill 18,692 - 479 - 15,988 24,988 - - 66,137NoakhtlI 10,588 - 1 - 9,722 11,844 - 6 87,640S I hot 14,198 - 17,090 - 15,596 8,722 - - 55,609DhCke 14,984 - 1,164 - 20,587 6,469 - - 43,194Feridper 2,887 - 445 - 7,461 5,567 162 - 16,518Jamalpur 2,185 - - - 8875 1,587 - - 7,S47Mymeneingih 12,789 - 18,479 - 12,487 9,651 - - 48,206Tnga l1 1,069 - 642 - 8,901 1,448 - - 7,060Barisul 48,800 - 27 - 11,891 18,884 - 25 78,127Jesor 1,289 - 1,781 - 9,417 9,418 793 158 22,80r1Khulna 4,808 8,006 125 - 8,973 5,696 55 19,557 47,280Kuebtia 527 - 76 - 2,611 1,159 244 - 5,196Psatiokhel 15,752 - - - 8,222 6,184 - 14 25,122Bog-r 616 - 1,980 - 6,728 4,51? - - 18,791Dinajpur 219 - 267 - 2,4" 6,860 - - 8,803Paub. 4,246 - 98 - 5,568 6,104 - - 16,856ReJibabi S92 - 4,081 - 18,604 8,202 - - 26,379Rangpur 2.192 - 2.260 _.. 16.176 8.039 -z- 28.e66

Total 118,817 8,066 45,610 4,068 182,087 149,428 1,254 25,248 599,628

(1) (80.7) (1.4) (7.8) (0.7) (80.4) (24.9) (0.2) (4.2) (100.0)

/a Based on data obtaine from thie Dprtment of Fishories.

/b C.H.T. rers to Chittagong Hill Tract.

Table 2.6: TRENDS IN VALUE OF ANNUAL SEAFOOD EX 8RTS la

Fresh/ Pro- Total Seafood asFrozen Frozen Frozen Chitled Dry cessed Sharkfins Seafood All Percentage of

Year Shrimp Froglegs Fish Fish Fish FishL and fishmaws Exports/c Exports All Exports…__- - ______________--- ------- (million Tk) -------------- ___ ________ --- (X)

1976/76 146.0 11.8 0.8 13.0 0.2 - d 1.5 172.1 5,516.8 3.11976/77 246.2 15.2 0.8 - 0.9 - 6.3 269.4 8,255.0 4.31977/78 253.1 21.4 17.2 2.2 0.8 1.8 10.9 307.2 7,406.1 4.21978/79 446.4 71.2 4.6 O.5 1.3 14.4 9.7 548.1 9,282.2 S.91979/80 529.3 32.1 12.0 - 2.0 80.7 3.7 609.8 11,241.6 6.41980/81 549.5 50.0 53.4 - 0.9 22.7 8.8 685.3 11,599.0 5.91981/82 904.4 112.1 41.8 - 3.8 13.1 12.8 1,087.8 12,6S5.4 8.71982/83 1,499.4 119.8 77.0 - 8.3 12.8 17.6 1,734.9 18,162.5 10.71988/84 1,655.0 192.5 147.7 - 8.8 82.1 13.0 1,942.9 19,901.9 9.81984/85 1,994.5 102.7 147.7 - 6.5 8.S 21.2 2,308.1 24,164.9 9.61985/86 2,693.1 300.7 384.9 - 100.6 49.5 10.7 3,619.S 24,314.0 14.51988/87 3,417.6 30S.6 384.1 - 49.0 38.4 34.9 4,199.6 32,832.0 12.91987/88 3,588.5 424.2 283.6 - 66.9 48.1 46.2 4,434.4 38,081.1 11.61988/89 3,820.5 438.2 226.9 - 138.9 41.2 27.7 4,684.8 40,968.4 11.41989/90 4,143.1 102.9 255.8 - 234.0 14.4 28.0 4,787.7 -La 9.8

/a Derived from data obtained from the Bangladesh Export Promotion Bureau.

lb Includes s lted and dehydrated fish.

Lr Including froglesp. Total seafood export during 1974/75 was only aboit Tk33 million.

/d None or negligible.

Le Date not available.

Table 2.7: ESTIMATED CAPACm OF FISH PROCESSINa (FREEZING) PLANTSAND THEIR UTILIZATION RATE /a

QuantityNumber of Estiated Estimated Processe CapacityPlant. tn Deill Annual (Frozen) UtilIIation

Year Operat)on Capality _ Caocitv w Annually _ S Rate800 2C0 8Q0 200

Working Days c Working Days Id Working Days IC Working Dry Id(t) - (

1975/70 14 90.5 29,550 19,700 8,620 12 101970/77 20 149.5 44,850 29,900 5,9D0 18 201977/78 22 168.5 49,060 82,700 6,680 is 201978/79 25 178.5 58,560 85,7W0 10,190 19 291979/00 82 2".5 e8,260 45,t00 10,480 16 281900/81 8a 289.5 n,s60 47,900 7,110 10 151981/82 41 808.5 01,050 00,700 1,080 10 151902/88 47 882.5 9900,0 06,500 12,488 12 191908/84 51 860.0 108,000 72,000 17,440 16 241904/65 s6 878.0 118,400 756,00 17,828 15 281985/06 s0 405.0 121,600 6t,000 18,426 16 281987/88 76 494.5 148,850 08,900 25,900 17 28

/a Based on information obtained from the Departont of Ftshories.

/b Includes hadloss (HL) shrl-p, whitefish, and froglogs.

/a Estimated by assuming 80 worktng days par yar.

/d Estimter by assuming 200 working days par yer.

_.7-

Tabl 2.tS ESTIMTED AVERAG EXUT PRICES FOR fROZESEAFOD PR T

Frozen Frommn Fromen Froee Fromm FrommYear Shrlmp Lb Frogleg floh Le Shrimp p Frogls Fs h

(U/kg) -(--/k)-

199"Jft 0.64 2.71 2.56 101 C9 soI1 t . 7.19 8.16 2.0S 170 77 Ui1#45q_ 6.09 R91 1.74 1i7 75 48196;G 0.66 4.12 2.48 in 122 7nl986A/ 6.91 4.04 2.80 210 141 so197/U8 7.77 s.06 2.19 240 157 so1968/80 7.88 5.16 2.93 24 18 9O1989/90 7.40 4.40 2.28 287 141 7S

La Obtained by dividing estlat.td export value by the exported qantityfor each product. Original data wn obtained from the "agladebExport Promotion Bureau.

b Moetly healee (FL) shrimp.

/c Mlxture ot differnt types of flsh.

Table 2.9: AVERAGE PER CAPITA INTAKE OF FISH BY SECTOR /a

Avorags/Coit Day Fish Intak lb Rural/Urban Averon/Capit. oar Fish Intake tcYear Rurol urban Bangledbsh Ratio Rural Urban Bangladiih

~~ - (8iM) - - - -- ____(kg)

1973/74 26.96 27.90 26.96 0.97 9.64 10.13 9.841981/82 20.08 84.99 27.90 0.70 9.74 12.77 10.181983/84 28.65 39.00 29.76 0.73 10.42 14.28 10.86198s/86 4.70 48.00 86.10 0.76 12.67 16.79 13.10

/a Based on information obtained from "Reports of the Bangladesh Household ExpenditureSurv y*" for 1981/82, 1988/84 and 1985/86.

Ib The contribution of fish to average protein Intke during 1981/82 and 185/6 was about12% and has Improved slightly.

La Dorlved by multiplying avorng./capita/day flsh intak by 865.

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Table 2.10: FISH PRICES AND ESTIMATED MARKETING MARGINS IN BANGLADESHDURING 1989 La

MarketingMargins as

Prices Received Prices Paid Marketing Percentage ofFish Size/Count Lb by Fishermen by Consumers Margins /c Retail Price

--------______--- (Tk/kg) ----------

Hilsa - 25 42 17 40Pangas 3-8 kg 60 90 30 33Rohu 1-3 kg 28 55 27 49Rohu 3-7 kg 52 80 28 35Catla 1-7 kg 27 53 26 49Catla 7-10 kg 50 80 30 38Boal - 30 47 17 36Aor - 42 65 23 35Prawn 5 400 490 90 18Prawn 10 390 460 70 15Prawn 20 270 340 70 21Prawn 30 190 255 65 25Prawn 50 140 190 50 26Prawn 70 108 155 47 30Prawn 90 40 100 60 60

/a Based on data obtained from BCAS (1989).

Lb For prawns, count refers to number of pieces per pound.

ic Marketing margins includes both marketing costs and profits in themarketing chain.

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Table 2.11s LEVEL AND GROWTH OF ANNUAL AVERAGE RETAIL PRICES FOR FISHAM 0HER SELECTED COM OODS a

Av*raa Price Leole /b Prlce IndexFlOh/RIC.

Year RIt. 2e IsourM F.wl/* Flshif Rice Maur Fowl Fish Price Ratlo- (1K/ko) - (Index)

1975/70 4.18 6.40 12.97 14.65 100 100 100 100 8.01976/77 8.57 4.04 14.14 17.21 s6 70 109 110 4.6i9"7/7 4.58 0.00 16.26 19.26 110 108 126 129 4.21978/79 4.95 7.04 19.64 24.85 120 119 15l 104 4.91979/80 0.07 6.88 20.75 27.76 162 189 160 167 4.21960/01 5.74 11.28 28.84 29.96 189 170 180 202 6.21981/82 5.69 11.16 25.42 82.65 140 174 196 219 5.71982/88 7.76 12.00 20.20 84.61 169 169 202 284 4.51998/04 6.40 12.66 82.26 41.70 204 196 249 261 5.0194/865 9.59 12.06 40.70 47.82 282 169 814 822 5.01so5/S0 9.28 16.74 49.92 04.27 225 262 S86 488 6.91996/87 11.07 20.02 51.60 76.78 266 22 896 516 0.9196/S8 2.2 22.19 54.9S 78.05 297 847 424 20 0.4

Annual ggrowthrate O() 10.80 12.80 18.70 15.60 - - - - -

is Based on Intormation obtabne I *re BBS, 1966 and 1969 Statiotical Yearbooks ofBangladesh. Price cre converted free Tk/maund or Tk/oer to Tk/kg.

/f Arithmetic men of weekly pritce over the fical year (July 1 to June 80).

C! Mdium quality.

/d Husked whole.

o Haen, big, lveweight.

/f Robu fish, cut piece.

jg Compound growth rate Is basd on three-yer averags for Initial and terminalyers. On the oter hand, the annual growh rates from 1975/76 to 1987/86were 9.5%, 10.9, 12.6X, and 14.6% for rice, maur, fowl end fish prices,respectively.

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Table 2.12: AGRICULTURAL CREDIT SITUATION IN BANGLADESH la

Item 1987188 1988/89---- (million Tk) ----

Program allocation 10,500 12,500

Disbursements:Crop 2,743 3,626Irrigation equipment 191 372Livestock 590 746Fisheries lb 100 113Others 2.939 3,208Total disbursement 6,563 8,065

Amount due for recovery 25,282 29,177Amount recovered 5,958 5,735Percent recovered 24 20

Amount overdue 19,324 23,494Amount outstanding 38,635 47,107

ia Based on data obtained from the Bangladesh Bank, Dhaka. This creditsituation refers to Bangladesh Rrishi Bank, Rajshahi Krishi Unnyan Bank,four nationalized banks (Sonali, Janata, Agrani and Rupali), and thecooperative sector (Bangaldesh Rural Development Board and BangladeshSamabaya Bank Limited). However, it does not include credit from privatebanks, the Gremeen Bank and NGOs.

/b The relative share of fisheries in total agricultural credit disbursementswas 1.5Z in 1987/88 and 1.4S in 1988189.

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Table 8.1: TARGETS AND ACHIEVEMENTS OF PR0OUCMION AND FINANCIAL OUTLAYFO THE FISHERY SECTOR DiRING THE FIVE-YEAR PUNS /a

Fish Production La Flnancial OutlayPlan b Target Ahi-vement L x chiMved !udget Expenditure x Spent

---- (illon * t)-- - (mliIon Th)

F) ret 1.020 0.48 es 4865 190 39Two-year 0.808 0.646 s0 440 366 soSecond 1.000 0.774 77 1,748 1,68m 91ThIrd 1.000 0.47 Lo a6 8,500 1,400 /9 40Fourthtf 1.200 - - 7,500 - -

La Derived from Fivo-Year Plan documente and slislon estlmtes.

/b First: Firet Five-Year Plan (1972/73 to 1977/76)Two-year: Two-Year Plan (1977/70 to 1979/60)Second: Second Five-Year Plan (1979/60 to 1064/865)Third: Third Fivo-Year Plan (194/865 to 1989/90)Fourth: Fourth Five-Yoer Plan (1989/90 to 1994/96)

Is Both Inland and Marino, Including shrimp.d Actual fish produi Aon during 1969/70 was stimated to be 0.610 millon at.

/! Preliminary estimates.

/f Proposed.

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Table 3.2: FINANCIAL PERFORMANCE OF GOVERNMET FISH SEEDMULTIPLICATION FARMS AND HATCHERIfS La

Amount Coot of StaffProduction of Fish Produe- Salary and Total Gross Not

Seod /b Friou Lo Sold tion Ld Befits Cost Income fr IncomeYear (kg) (mi) (et) -------------- (m II on Tk)

1984 649.9 27.6 16.9 0.2 10.5 16.7 9.8 -7.41985 898.9 80.6 14.6 8.4 12.2 20.4 11.7 -8.71988 696.8 28.2 17.5 9.2 12.1 21.8 11.0 -10.81987 1,068.0 26.2 17.0 9.4 18.5 22.9 10.4 -12.51988 828.1 18.8 10.6 7.6 14.6 22.2 7.2 -16.01989 975.0 40.9 18.7 10.4 12.6 28.0 18.5 -9.6

La Refor* to fish seed multipileation farm and hathehries directly under tho control of DOF.The original data were obtained from DOF.

/b Tot I spawn.

/c Between 2' and 8' length.

d arlable cost of production.

/r Sale of hatchlingo, fries, fingerlings, and flsh.

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Table 8.8: STATUS AND PERFORMANCE OF WIDOW PRfOJCT LAKES Jr

FinancialFinancial Performance: Fishermn

Ph"sical Porformnge P rformance: t L N. o fe

Oxbow Pro- Water /b Expend- BEl- fisher- Total Income perLako duction Area Yield Incom tvr s ane men /d Incomlf fisherman

(mt) (ha) (kg/bh) -- (Th'000) - (no.) (Tk 'OOOV (Tk)

Baluhar 161 262 642 2,171 616 1,85 260 1,447 5,166Joydia 119 169 6O8 1,547 629 912 285 1,027 4,870Fatshpur 8 47 150 00 426 -826 95 se 606MorJad 22 258 67 2 624 -289 175 160 1,066Bergobindepur 7 217 447 1,168 762 426 215 70 8,664Katgora 20 71 264 279 266 11 60 16S 8,100

All Lakes 447 1.OS9 422 5.6*9 8.426 2.187 1.060 8.708 8.498

Ebluhar 108 22 867 1,880 719 61l 260 667 8,167Joydio 74 160 892 oil 606 806 285 607 2,562Fatehpur 15 47 828 191 W87 -196 96 127 1,8'

Jonad P8 258 91 261 S8u -802 175 167 1,066Bergobindepur s0 217 870 02 948 -41 215 50S 2,767Krtgora 22 71 810 266 s87 -109 6o 179 2,08S

All Lakes Sig 1.069 aoo 3.14 _2S 1.080 2.S82 2.48

La Based on Infornation obtained from the Oxbow Lake. Fishery Project Implemetation Unit andthe Department of Fisherles.

9b Sixty percent of gross rcipts from fsoh sales; total f sh production was divided 80:40betwee the goverment and flhermn.

Ic Includes salaries, allowances, operations costs and contingencios.

fd Refers to the number of fshlermen duriag 1905/66. R eent dbta was not avallable.The number of fishermn for each lke he Increased over 1981/62.

A Forty percent of gross receipt fro fish sales.

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Table 8.4: EVOLUTION OF THE FINZNCIAL PERFORMANCE OF EFOC 1

Expend1ture Proft _Le,

Yer Inco_m 0 A M lb Overie"d Deproclaton Interest ToTl Op rationl Overall(all I ton T)

125/66 129.87 120.01 5.09 18.09 1.94 146.18 8.86 -10.70lo6/67 200.26 180.21 5.50 11.90 0.00 197.61 20.06 2.641267/UE 192.76 191.16 5.22 18.65 0.48 210.78 1.60 -17.9W1988/ 180.88 186.61 S.54 18.91 2.90 209.16 -5.98 -28.27

La Iebd on data obtained from IIOC.

b Operation. and maintonance.

-106-

Table 8.5: SUDOET ALLOCATION AND ACTUAL EXPENDITURE OF THE DEPARTMENT OF FISHERIES /a

Expenditure a: PercentageRevised Allocation Actual Emanditure of Allocation

Year u a u L uevelopmnt Total U a a Lb Deovlopment ToiTl - 0 A 7 Development To*Tl-------------------- (nll lI on Tk)------------------- -------

1980/81 31.8 154.6 186.8 29.7 65.8 115.0 98 56 821981/62 82.? 216.2 248.9 81.4 151.4 162.9 96 70 781982/63 46.1 196.6 241.9 41.4 145.5 168.9 90 74 771983/64 67.4 182.5 289.0 60.1 102.6 152.7 67 s6 641984/85 59.7 242.8 802.0 56.5 164.8 289.8 9R 78 791985/86 62.8 220.6 262.9 67.4 125.4 182.6 92 57 e61986/87 111.8 276.4 867.7 10%. 2 162.9 270.1 96 59 701988/88 182.8 488.8 656.6 186.4 174.6 810.S 108 40 661988/89 180.8 404.8 58.6 180.6 221.7 862.2 100 C6 6s

/a Based on date obtained from the Department ot Fisheries.

lb Operations and maintenanco.

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Table 4.1: PRODUCTION COSTS AND RETURNS FROM POND AQUACULTUREIN MYMENSINGH, 1989 La

Costs or ReturnsComponents Per Pond Lb Per Ha 1b

Production costsFingerlings Tk 400 Lc Tk 2,667Fertilizer Tk 557 /d Tk 3,713Feed (rice bran, oil cake) Tk 1,680 Le Tk 11,200Predator control (Rotenone) Tk 375 /f Tk 2,500Disease treatment Tk 150 Tk 1,000Labor charges Tk 800 L& Tk 5,333Total production costs Tk 3,962 Tk 26,413

Harvesting cost Tk 2,625 /h Tk 17,500

Gross revenueProduction 375 kg Li 2,500 kgPrice Tk 35lkg Tk 35/kgValue Tk 13,125 Tk 87,500

Net revenue (distribution)Landowner's income Tk 6,538 Li Tk 43,587Labor income Tk 800 Tk 5,333Fishermen's income Tk 2,625 Tk 17,500

/a Based on estimates made by DANIDA (1987).

lb For a period of 6 months. Pond size is 0.15 ha.

/c 1,000 e Tk 0.4/fingerling.

/d Includes urea (54 kg), TSP (27 kg) and lime (38 kg) I Tk 5/kg of ureaand TSP, and Tk 4/kg of lime.

le 300 kg rice bran I Tk 1.6/kg and 300 kg oil cake e Tk 4.0/kg.

If 3.75 kg rotenone 0 Tk 100/kg.

Jl 20 days I Tk 40/day.

/h About 202 of the groes value of fish on pondbank.

/i Survival rate of fingerlings is about 50X and average weight of fishis 0.750 kg.

Li Gross revenue less production costs and harvesting charges.

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Table 4.2: PRODUCTION COSTS AND RETURNS FROM INTEGRATED BROILER ANDFISH FARMING IN MYMENSINGH, 1989 La

Costs or ReturnsComponents Per Pond .L Per Ha lb

Production cost: broilersChicks Tk 2,576 /c Tk 42,934Feed Tk 5,229 Tk 87,152Fuel Tk 154 Tk 2,567

Subtotal Tk 7,959 Tk 132,652

Production cost: fishFingerlings Tk 408 Ld Tk 6,800

Gross revenue: broilersProduction 242 kg 4,033 kgPrice Tk 44.25/kg Tk 44.25/kgValue Tk 10,708 Tk 178,470

Gross revenue: fishProduction 142 kg 2,367 kgPrice Tk 35/kg Tk 35/kgValue Tk 4,970 Tk 82,835

Net revenueBroilers Tk 2,749 Tk 45,818Fish Tk 4,562 Tk 76,035

Subtotal Tk 7,311 le Tk 121,853 le

la Based on information obtained from vRI.

/b For a period of 6 months. Pond size is 600 m2.

Lc 184 chicks S Tk 14/chicl in four batches e 46 chicks/batch. Survivalrate is about 97.32

/d 408 fingerlings I Tk 1.0/fingerling. The stocking rate is 6,000fingerlings/ha. The survival rate is about 80. The fingerlingsstocking ratio was 10? catla, 35 silver carp, 252 robu, 252 mrigaland 5? grass carp.

/e Pond lease rent and labor charges for both production and harvestingare not included.

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Table 4.3: PRODUCTION COSTS AND RETURNS FROM AMAN (HYV)RICE IN BANGLADESH, 1987/88 la

Costs or ReturnsComponents Tk/Acre Tki/ha b

Production costLabor (family and hired) 2,496 6,168Bullocks (hired and own) 545 1,347Seed (purchased and own) 447 1,105Manure 153 378Fertilizer 555 1,371Pesticides 122 301Irrigation 53 131

Total operational costs 4,371 10,801Cash operational costs 2,052 5,070Interest on cash costs 103 255Land rent 1,600 3,954All costs 6,074 15,009Cash costs Ic 2,155 5,325

Gross revenuePaddy yield (kg/acre or kg/ha) 1,359 3,359Paddy value (price: Tk 5.90/kg) 8.018 19,818

Net revenueNet revenue (over cash costs) 5,863 14,493Net revenue (over all costs) 1,944 4,809Net revenue (over all costs except land rent) 3,544 8,763

la Based on data obtained from Agriculture Economics Research, Ministryof Agriculture.

lb 1 ha - 2.471 acres.

/c Cash operational costs and interest ou cash costs.

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Table 4.4: ESTIMATED COSTS AND RETURNS FOR SHRIMP CULTUREIN BANGLADESH, 1989 /a

Production Gross NetShrimp Area lb Cost /c Returns Ld Returns e

--------- (Tklha)----------------

Cox's Bazar 4,755 19,236 14,481Cox's Bazar 15,956 29,716 13,760Cox's Bazar 10,511 20,936 10,425

Rhulna 17,148 29,080 11,932Rhulna 6,288 11,495 5,206Zhulna 10,499 11,934 1,435

Average 9,056 17,594 8,S38

/a Based on data collected through BIDS' field survey for theIDA-financed Shrimp Culture Projct.

Fb For different farms on different polders.

[c Investment and operating costs. On the average, 80X oftotal production costs were operating costs. Theinvestment costs include spending on dikes and earthcutting, sluice gate, office and guard shelter, boat, net,and machinery. Operating costs include spending on fry,labor, fertilizer, and other variable costs. Family laboris included. Land rent is not included but was Tk 8,000-12,000/ha in Cox's Bazar and Tk 5,000-8,000/ha in Rhulna.

4d Includes returns from shrimp and fish.

e Gross returns less total production costs.

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Table 4.5: ESTIMATED AVERAGE PRODUCTION COSTS OF CULTUREDSHRIMP IN SOUTH AND SOUTHEAST ASIA, 1989 la

Production Cost /bCost Item Extensive Lc Intensive Ld

-_ ----- (US$/kg) ---------

Post larvae 0.60 0.60

Feed - 2.80

Pumping/aeration _ 0.30

Labor 0.50 0.50

Other 0.50 0.80

Total 1.60 5.00

/a Based on information obtained from Aquatic Farms, Ltd.,Honolulu, Hawaii.

jb Production cost refers to whole animals (P. Monodon) atpondbank and does not include land rent, interest ortaxes, and assumes well-managed farms.

/c With reference to extensive shrimp culture, broad rankingof seven Asian countries in terms of comparative advantagewould probably be in the following order: Indonesia,Philippines, India, Bangladesh, Thailand, China andMalaysia.

/d Bangladesh, India and China would &enerally be at acomparative disadvantage compared to Thailand,Philippines, Indonesia and Malaysia.

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Table 5. 1 PiODUCTION POTENTIAL FOR FLOODPLAINS FISHERY BY THE YEAR 2010

Development DevelopmentScenario A /b Scenario B lb

Average AverageArea /a Yield /c Production Yield Id Production

Type of Fishery ('000 ha) (kg/ha) ('000 mt) (kg/ha) ('000 mt)

Rivers and estuaries 1,031.6 315 325.0 410 423.0

Floodlands 2,124.6 315 669.2 410 871.1

Beels 114.2 600 68.5 750 85.7

Kaptai Lake 68.8 315 21.7 410 28.2

Baors 5.5 600 3.3 750 4.1

Total 3,344.7 325 le 1,087.7 422 /e 1,412.1

ia Area under floodplains fishery for river and estuaries, beels, Raptai Lake,and baors is expected to remain unchanged. However, area under floodlandsis expected to decline because of flood control and drainage projects. Thearea under floodlands was 2,832.8 thousand ha in 1987/88.

lb The average maximum potential fish yields under Bangladesh conditions inthe long run for floodplain. fisheries are expected to be 630 kg/ha/yearfor rivers, estuaries, floodlands, and the Kaptai Lake (Annex II); and1,000 kg/ha/year for beels and baors. Actual estimated average fish yields(kg/ha/year) during 1987/88 were: 186 kg for rivers and estuaries, 64 kgfor floodlands, 399 kg for beels, 59 kg for Kaptai Lake, and 228 kg forbaors

/c Scenario A: 502 of the average potential fish yield for rivers, estuaries,floodlands, and the Kaptai Lake; and 60X of the average potential fishyield for baors and beels.

/d Scenario Bs 652 of the average potential fish yield for rivers, estuaries,floodlands, and the Kaptai Lake; and 752 of the average potential fishyield for baors and beels.

Le Weighted average fish yield/ha/year.

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Table 5.2: PROOUCTION POTENTIAL FOR POND FISHERY BY THE YEAR 2010

Development DevelopmentAverage Scenrio A /h Scenario B /c

Pond Ftohery Yield I Jr*iO rro lon Ar* * roductlon(kg/haV ('000 hb) (1t) (1000 he) (Mt)

Present system

Der. lot 400 1S 0,000 10 4,000

Culturable 600 25 15,000 15 9,000

Cultured I /d 2,000 50 100,000 60 100,000

Future improvod system

Cultured II /n 2,500 86 $7,500 40 100,000

Cultured III /f 8,500 25 87.C00 38 122.S00

Tota 150 296,000 La 1S0 35,500 /h

la Obtained from MPOc Technical Report No. 19, DOF and siesion estimates.

/b Slow *doption of the future Improved system.

/c Moderate doption of the future mproved ystemn.

/d Low Intensity. Appiclation of scientifte techniques, including multicrops,polyculture, predator control, di sa* control, and us of organic manure,tnorganic fertilizer and low quality fed.

/r Semi-intensive. Application of scientific techniques at higher lntenlty.

/t Intensive. Application of scientific techniques at an *ven higher Intensity.

Lg I,utl ed weighted average f sh yield Is 1,973 kg/ha/yer. Estimted average yield4 Ag 1987/88 was 1,017 kg.

&l Implie weighted average fish ytold is 2,237 kg/ha/yer. Etimated average yieldduring 1987/88 was 1,017 kg.

Table 5.3: LONG-TERM PRODUCTION POTENTIAL AND GROWTH PROSPECTS FOR DIFFERENTTYPES OF FISHERIES BY THE YEAR 2010

Type of Production Production In 2010 Incrmental Production Annual Growth Rate /aFishery in 1987/88 Scenario A Scenario B Scenario A Scenario B Scenario A scenario B

( 1000 Mt) --- -- ------ ------ t) -

Floodplains fishery 424.9 1,087.7 1,412.1 862.8 987.2 4.4 6.6

Pond fishery 149.4 296.0 885.5 148.6 186.1 8.2 8.7

Coastal squaculture 26.2 78.8 106.0 65.8 79.8 6.8 8.7

Marine fishery 227.8 800.0 826.0 72.4 97.4 1.8 1.6

Total 827.1 1.7B2.5 2.177.0 985.4 1.860.S 8.5 4.6

la Annual compound growth rate In fish production from 1987/88 to 2009/10.

s* ** S* *

*F *œF * I

* s-s

* s * *

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LIST OF FIGURES

Figure 2.1 Trends in Fish Production In Bangladesh ....... 117

Figure 2.2 Production of Difftrent Fisheries inBangladesh ........................ *............ 116

Figure 2.3 Share in Production of Different Fisheries inBangladesh ......................................... .119

Figure 2.4 Trends in FCD Developments, Floodplains Loss andFloodplains Fish Production in Bangladesh ..... 120

Figure 2.5 How Removal of Floodlands Through FCD ProjectsAffects Fisheries in Bangladesh ............... 121

Figure 2.6 Growth in Seafood Exports in Bangladesh ....... 122

Figure 2.7 Bangladesh's Market Shares in Shrimp Exports.. 123

Figure 2.8 Household Income and F.sh Consumption inBangladesh, 1985186 ....... . . ...... . ..... ... . 124

Figure 2.9 Growth in Retail Prices for Fish and Ricein Bangladesh ..................... ...... 125

Figure 3.1 Performance of Baluhar Oxbow Lake inBangladesh ................................................ 126

Figure 3.2 Financial Performance of Bangladesh FisheriesDevelopment Corporation (BFDC) ................ 127

Figure 4.1 Projected Average Per Capita Fish ConsumptionGrowth Scenarios .............................. 128

Figure 5.1 Major Freshwater Fish and Shrimp Activities inBangladesh's Open Waters ...................... 129

Figure 5.2 Pattern of Freshwater Fish and Shrimp Culturein Bangladesh ................................. 130

Figure 5.3 Pattern of Brackishwater Shrimp and FishCulture in Bangladesh .......................... .131

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FIGURE 2.1

TRENDS IN FISH PRODUC11ON IN BANGLADESH

1000

;8So Total Fisheries

Inland Fisheries

o 40000-

X >200 4: 200 Marine Fisheries

0-75 80 85 90

Year

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FIGURE 2.2

PRODUCTION OF DIFFERENT FISHERIES IN BANGLADESH

1000

800 ,

00

600 -0

cca.

CD,

83/84 84/85 85/86 86/87 87/88

YEAR

Q3 FLOODPIAINS M COASTALPONDS MARINE

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FIGURE 2.3

SHARE IN PRODUCTION OF DIFFERENT FSHERIES IN BANGLADESH

A. 1983 /842 1.90os

1430 % 62..0

I3 FLOODPLAINSB PONDS

*COASTALMARINE

B. 1987 /8827.50?o

al5 1.30?%

18,10%7

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FIGURE 2.4

'IRENDS IN FCD DEVELOPMENTS, FLOODPLAINS LOSS ANDFLOODPLAINS FISH PRODUCTION IN BANGLADESH

" Ir X/, , FCD Growth

;< \k>wpiloloodlai

catc

*X s $ 0tontsti? s is is is so ? $ *a

Souce: Alia[7Aan[9891.

FCD - Flood Control and Drainage

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FIGURE 2.5

HOW REMOVAL OF FLOODLANDS THROUGH FCD PROJECTSAFFECTS FISHERIES IN BANGLADESH

noe"im -ZAL w* _ -

Z*M to 044 L

Notes: 1. Water depths are as follows

Ft: Flooddepth of4.03 meterF2: Flood depth of 0.03-1.80 meter

F3: Flood depth of >1.80 meter

2. Pish yields are for 1983/84

Soure: Ali (19891; oxinually fom MPO [1985b].

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FIGURE 2.6

GROWrH IN SEAFOOD EXPORTS IN BANGLADESH

5000 -

O ISHRIMP4000 U | lEl

* FISH

I- 3000

2000

0

1000

0

75 80 85 90

YEAR

-123-

FIGURE 2.7

BANGLADESH'S MARKET SHARES IN SHRIMP EXPORTS

120 -0

100

60

20

0-84 85 86 87 88 89

YEAR

E] JAPAN LI aBOPEU U.S.A. OTHERS

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FIGURE 2.8

HOUSEHOLD INCOME AND FISH CONSUMPTION IN BANGLADESH,1985A86

24

20Ura

cc

zo 12

8

4 'a * I * * * rg a

0.50.7 1.0 1.2 1.5 2.0 2.5 3.0 4.0 5.0 6.0 7.0 8.0>8.0

INCOME LEVEL (000' TKWMONTH)

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FIGURE 2.9

GROWTH IN RETAIL PRICES FOR FISH AND RICE IN BANGLADESH

80

ia 60-Fish

-

75 40 -

LU

20

20-

75 80 85 90

YEAR

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FIGURE 3.1

PERFORMANCE OF BALUHAR OXBOW LAKE IN BANGLADESH

, * ~~~~~~~~~2000

1000 00 2~~~~~~000£

r C,,;/0 SoO

-~~J PROFTLS

w0400

80 UcoAR a:

200 ~ ~ ~ U-FISH VIEWDPROFIT/LOSS

--10000 A80 82 84 86 88 90

YEAR

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FIGURE 3.2

FINANCIAL PERFORMANCE OF BANGLADESH FISHERIESDEVELOPMENT CORPORATION (BFDC)

60

40 X

20- c4 cm

2 .RD -60 -? 0c'

r- I

-80- UI PROFIT/LOSS

-120 -81 82 83 84 85 86 87 88 89

YEAR

FISH CONSUMTON (KG/CAPYR)

X,t . . .. * * a *

XIl- 3

>~~~~~~ e

x 0 X

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FIGURE 5.1

MAJOR FRESHWATER FISH AND SHRIMP ACTIVITIES INBANGLADESH'S OPEN WATERS

~~~~J~u ofbas W.wO ptt*ljtljtoaswettoelpoumlg Metle 1 - - t I O

.st0- t I ~~~~~~~~~~~~~~~I ! : I 1 '

S*ewmIe t3"*a _ * I I

*O sI" ot vhIag Cw I I

.oegivest to ReelS Atw 3m.va ----------- im..mU to bOte tI I I $Is'

.Wes.t Ouvlt 8psualag aS__ _ _ _ _ _ _ _ _ _, I I I

.LoteelMltetla . II

*Ospu ,el,tZ . Growtu ,,, .... m.L..m.. . , I.II

.y o eH tlwetlot I . C

mlodelel** _ I j II *SpodoowalaglI . If

*JwweaII lgetttes t ItemU *O _I* I P|i. 0toi toW | : |

*NtlwegSt tg@

Solurce:MPO [1986].

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FIGURE 5.2

PATTERN OF FRESHWATER FISH AND SHRIMP CULTUREIN BANGLADESH

CROPS JAN F9 MAR Ala MAV JUN JUL AUG UP OCT NOV oDC

fogs" WATaR Fl§"A

PRCISM WATER PRAWN

Culturebie vL

Deuelh ¢ree p

R 5e*1Wt1mp_

r;Dh grotthiproduction b ComPleto oCrvest

riSh growth/produetion arveSt PWak growthoOnum Pnd aOductoSource:owth/prodijcuon f~~ Colof MPrOet high

Source: MPO (1986].

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FIGURE 5.3

PATTERN OF BRACKISHWATER SHRIMP ANDFISH CULTURE IN BANGLADESH

#6 0 14 V --

_ tRAOltlOttAL a& i U .Oa ju jt. av r 00? t0

p. s m/ Pl_otlt i

A. $11. n I _Fis

0) * .a -es ̂ ^*, ..... . ............ __

i s wt., _auCt ~~~~~~~~~~~~~~~~~~Itt- UlC // QIC f'fRt 99 WatCR $tltP

0.

u SALTttt at.

X A .Sh,im* A L.* SI1.1wuAaNtuuh

Sucs'e MtPO.. _19__

_ Owtih/ Pt~tion of Shtrim hra 1Wol$t wrest

G rowth I ProdustIotteI orOS of Shimp RitIe I 'roswtzor Shrimpw Crop

Source: MPO (19861.

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ANNEX I

PRODUCTION POTENTIAL OF FLOODPLAINS FISHERIES 1/

1. Floodplains fisheries production has been declining, primarilybecause of (1) the establishment of FCD/FCDI works that have adverselyaffected fish habitat, fish breeding, and feeding grounds, particularlyduring flood season; (2) reduced volume of water flows in rivers because ofsiltation and sedimentation, which have adversely %ffected upstream runs ofHilsa for spawning; and (3) overfishing and empty fish catches, which haveadversely affected the brood stocks of many freshwater indigenous fishduring the dry season. These unfavorable trends must be reversed torehabilitate fish resources and reverse the declining trend in fishproduction in the floodplains.

2. Fish species for floodplains fisheries can be divided into threegroups: (1) the Hilsa, (2) the minor carps, climbing perch, and catfish,and (3) the Asiatic carps. The Asiatic carps consist of rohu, catla,mrigal, bighead, silver carp, grass carp, and mirror carp. The Asiaticcarps are fast-growing fish that feed on plankton and detritus. They cantolerate high population density and prefer to live in beels, baors, andhaors in the early stages of their life. Mature carp (2-3 years old) moveto rivers in the monsoon season for spawning. In the floodplains only carpstock can be manipulated through artificial breeding, proper stocking, andtimely harvesting.

3. In Bangladesh, technologies are now available and widely practicedto artificially breed carp by hormone treatment. Carp can now be bredartificially 2-3 months before their natural breeding season -- at theonset of monsoon rains. The larvae can be raised in nursery ponds to asize of 5-7 cm (2-5 gms) in 2-3 months. 21 Floodplains can be stocked withthe fingerlings in May and June. Fingerlings have a good chance ofsurviving predation by indigenous carnivorous fish and attaining marketablesize (0.6 to 1.0 kg) by September/October. Large fingerlings of 12-20 cm(15-40 gas), raised in nursery ponds in May-August, can be used to stockthe floodplains again in October/November when the floods recede. Theselarge fingerlings grow to marketable size before the end of the dry season.Through artificial stocking, proper management, and conservation, fish

1/ Y. Tang (c), who participated in the agricultural survey mission during1987, contributed to this annex.

2/ At an average 5 gns weight per fingerling, 200 fingerlings weigh about1 kg, and 1 million fingerlings weigh about 5 mt.

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stocks in the floodplains can be rehabilitated and the declining trend infish production can be reversed.

4. Japan has demonstrated that inland fish stocks can berehabilitated by promoting and developing culture-based fisheries -- forexample, through artificial stocking, reduced mortality rates, and Improvedenvironmental conditions. Since the establishment in 1962, of the culture-based fisheries model in the Sato Inland Sea in Japan, fish production hasincreased substantially. The culture-based fisheries model has beenreplicated in other areas and inland fisheries in Japan.

S. China has also rehabilitated carp stocks in the Central YangtzeRiver Basin after a massive reclamation of low-lying land for grainproduction in the 1950s. The carp stoc1.s were rehabilitated by continuallystocking the inland bodies of water with various types of Chinese carp,including silver carp, grass carp, common carp, and bighead. These inlandbodies of water consist of lakes, canals, river systems, and seasonalflooding basins. Inland fish production more than doubled from 1974 to1984.

6. There are good prospects for reversing the decline in fishproduction in floodplains in Bangladesh by adopting a culture-basedfisheries model. The feasibility of this technique in expanding fishyields has already been demonstrated in Bangladesh's Oxbow Lakes.Manipulation of the carp stock by proper stocking and timely harvesting tobest use available fish food organisms produced in natural inland waters isthe most effective and economic way to increase fish production in thefloodplains in Bangladesh. The biological productivity of a body of waterdepends largely on the available plant nutrients carried in the water andthe fertility of the watersheds surrounding that body of water. The soilsand water in the inland water systems in Bangladesh are highly productive.It appears that a huge quantity of fishfood organisms (about 1.5 milliontons, dry weight), carried with the flood water in the inland water systemsin Bangladesh, are being wasted every year because available fish stocksare unable to effectively use them. Based on the Oxbow Lakes Projectexperience and assuming that the productive season of floodplains is aboutsix months (two-thirds of Oxbow Lakes), average annual fish production ofabout 630 kg/ha is feasible in the floodplains of Bangladesh.

7. According to the FAO/WB Cooperative Programme (1989), thedeclining trend in fish production from floodplains and rivers can bereversed through (1) systematic stocking of bodies of water withfingerlings of the fast-growing carp species, (2) improved resourcemanagement, and (3) enforcement of harvesting regulations. Culture-basedfisheries will make full use of the natural productivity of floodplains,resulting in faster growth and higher fish production.

8. According to the Project Performance Audit Report, the IDA-financed Oxbow Lakes Fishery Project (Cr. 890-BD) in Bangladeshdemonstrated that the productivity of Oxbow Lakes can be increasedsubstantially by using advanced fish stock multiplication and lakemanagement techniques (World Bank, 1989). The mini-hatchery techniquedemonstrated under the project provided a major boost to aquaculture in

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Bangladesh. But effective management and organizational efficiency areessential for the culture-based fisheries to work in large inland bodies ofwater.

9. The combination of tropical climate, natural land fertility,nutrient-rich water, optimal temperature, and intensive light radiationresult in a high level of biological productivity and primary productionconsisting of aquatic microorganisms and phytoplankton on which fish canfeed. Fish feed is at peak during the flooding season, from May/June toSeptember/October. According to the World Bank (1990a), fish stock withan optimal ratio of fish species that feed on plankton could result in asmuch as 800 kg/ha/year of fish production in the floodplains. Withimplementation of the IDA-financed Third Fisheries Project, fish yields areexpected to increase to 410 kg/halyear in the major floodplains and to 900kg/ha/year in the minor floodplains.

10. In rddition, stocks of indigenous fish species must berehabilitated through research and development, the proper management offisheries resources, the appropriate design of FCD/FCDI projects tominimize adverse impact on fish habitat, a reduction in water pollution,and the strick enforcement of fisheries laws and regulations.

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ANNEX II

WATER POLLUTANTS AND THEIR IMPACT ON FISH

Source of Pollution Potential Impact on Fish

Sewages Flow of rivers and tributes 1. Excessive nontreated matter.2. Excessive fertilization of water.3. Production of poisonous species

of plankton.4. Toxic concentration in fishery

products for human consumption.

Industrial effluents

a. Discharge of heavy metals 1. Accumulation of mercury componentssuch as mercury, cadmium, in fish.and copper 2. Production of mercury toxicity in

fish.3. Fatal diseases for human consump-

tion.

b. Halogenated hydrocarbons 1. Accumulation in biological food-chain of fish.

2. Contamination in human bodyfrom consumption of fish.

Dumping rubbish 1. Nuisance and hazard to aquaticlife.

2. Dangerous contaminants transfer-able to human body throughconsumption of aquatic resources.

3. Environmental degradation (pollu-tion of atmosphere and scenery).

Aerial fallout 1. Production of radioactive andnoxious materials.

2. Dangerous to aquatic animals aswell as to human beings whoconsume aquatic organisms.

Microbial contamination 1. Ulcerative disease in aquaticanimals.

2. Massive loss of fish.3. Degradation of fisheries.

Sourcet Haque (19891.

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ANNEX III

INVOLVEMENT OF DONORS IN THE FISHERIES SECTOR

Selected Donors

1. The key bilateral and multilateral (other than the World Bank)donors involved in the fisheries sector in Bangladesh ares

(i) Food and Agriculture Organization of the United Nations (FAO);(ii) United Nations Development Programme (UNDP);(iii) International Fund for Agricultural Development (IFAD);(iv) Asian Development Bank (ADB);(v) Overseas Development Administration of U.K. (ODA);

(vi) Danish International Development Agency (DANIDA);(vii) Ford Foundation;(viii) U.S. Agency for International Development (USAID); and(ix) World Food Prograve (MFP).

FAOIUNDP

2. The major fisheries-related activities of PAOIUNDP include severalstudies and technical assistance projects. The FAO is executing a UNDP-funded (US$2.7 million) four-year project (starting in 1989) oninstitutional strengthening of the fisheries sector -- a result of PAO andWorld Bank recommendations. The FAO has also provided technical assistancefor fisheries-related research (as part of an agricultural researchproject). The first phase was completed in 1989 and Phase II is expectedto follow. The PAO vas also involved in a UNDP-funded project to surveyfish resources in the Bay of Bengal. Phase I is complete and the proposedPhase 1I to survey shrimp resources may not be implemented. UNDP has alsofunded the technical assistance component of the ongoing IDA-financedShrimp Culture Project and is funding the technical assistance component ofthe IDA-financed Third Fisheries Project, which will be implemented in1991.

IFAD

3. The Beel and Baor Small-Scale Fisheries Project is funded by IFAD,along with contributions from DANIDA and World Food Programme (VFP). Thisproject is a follow-up of the IDA-financed Oxbow Lakes Project in westernBangladesh and covers about 2,200 ha dispersed over 35 Oxbow lakes. Thetotal project cost is about US$9 million. The project has been started andshould be completed in 1995.

ADD

4. The first Aquaculture Development Project was begun in 1978 andcompleted in 1988. The actual project cost was US$15.66 million. The

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scope of the project was modified and reduced during implementation. Thekey components of the project weres fish and shrimp aquaculture andconstruction of hatcheries, ice plants and a net factory. The five-yearSecond Aquaculture Project became effective in 1988 but has not beenImplemented because of a delay in hiring consultants. The estimatedproject cost is about US$40 million. The main components of the projectare fish and shrimp aquaculture, stocking floodplains in easternBangladesh, developing public hatcheries, and fisheries extension andciedit. This project will complement many activities planned under theIDA-financed Third Fisheries Project.

ODA

5. ODA is also involved in fisheries studies, technical assistance,and investment projects. ODA's current main activity is the ParbatipurHatchery and Fish Seed Multiplication Project. It was started in 1987 withan estimated project cost of about US$2.6 mllion. The project goal is todevelop a major public hatchery and transfer technology. ODA is alsoparticipating in two other important activities that will be implemented in1991s (1) a study on the impact of flood control and drainage projects onfisheries, and (2) the technical assistance (management) component of theIDA-financed Third Fisheries Project. At Sterling University in Scotland,ODA has funded the Bangladesh Aquaculture and Fisheries Resource Unit(BAFRU) which offers fisheries training and education.

DANIDA

6. Initially, DANIDA provided technical assistance to the FisheriesResearch Institute (FRI). DANIDA is involved now in three projects:(1) the Aquaculture Extension Project in Mymensingh which deals withtransferring aquaculture technology to pond fishery; (2) the Patuakhali andBerguna Project, which deals with river fisheries and with organizingfishermen in villages (with the help of an 'GO* CODEC) and providing themwith essential services; and (3) the Beel and Baor Small Scale FisheriesProject of IFAD, in which DANIDA provides technical assistance and worksclosely with another NGO, the Bangladesh Rural Advancement Committee(BRAC).

Ford Foundation

7. The Ford Foundation's main contribution was funding a projectmonitoring the New Fisheries Management Policy and cosponsoring twoworkshops to discuss the results of the monitoring project. The FordFoundation is concerned with finding ways to improve income levels offishermen (who are among the poorest groups in Bangladesh) and to providethem with efficient credit and marketing facilities.

USAID

8. USAID is currently funding an aquaculture specialist who is thehost country representative of the International Center for Living AquaticResources Management (ICLARM). This project is part of an agriculturalresearch project. The aquaculture specialist works in collaboration with

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BARC and FRI. The project's main focus is technology transfer, technicalassistance, and training in aquaculture techniques in ponds and ditches.

WFP

9. The World Food Programme sponsored a food-for-work program toexcavate government ponds for fish culture. In 1989, 23 ponds wereexcavated and 2,200 mt wheat were distributed. The program is expected toexpand. WFP is also a partner, along with IFAD and DANIDA, in the Beel andBaor Small Scale Fisheries Project.

Donor Aid

10. The donor community is active in the Bangladesh fisheries sector.In addition to providing technical assistance, donors contribute a majorshare of DOF development spending on fisheries.

Donors' Share in DevelopmentYear Donor Aid /j Expenditure la

(million Tk) (Z)

1980/81 25.2 301982/83 58.1 401984/85 99.6 541986187 99.5 611988/89 147.9 67

la Including World Bank.

Donors* contributions to development expenditure on fisheries haveincreased from Tk 25 million in 1980181 to Tk 148 million in 1988/89, ajump from 302 in 1980/81 to 67Z in 1988/89. Donors' contributions todevelopment expenditure on fisheries are expected to increase even further.l/

1/ According to the World Bank (1984), the Bank group support for thefisheries sector from 1969 to 1983 was about US$330 million in loansand credits for 31 fisheries projects in 19 countries. In addition, atleast 48 projects from 1973 onward have included fisheries components.Several fisheries projects were funded after 1983. However, theoverall performance of the Bank's fisheries portfolio has not beenvery good; both project design and implementation have been less thansatisfactory.

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* A******** *****

* *

* MURTALS ** *

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LIST OF ANNEX TABLES

Page No.

Annex Table 2.1: Trends in Area under Different Types ofInland Fisheries ............................ 143

Annex Table 2.2: Fish Production by Species and Source,1987/88 ........ * * * * * * * * * * .* .....* 144

Annex Table 2.3: Inland Fish Production by Species and Source,1987/88 .................. .... ............................. 145

Annex Table 2.4: Marine Fish Production by Species, Source,and Fishing Gear, 1987/88 ................... 146

Annex Table 2.5: Trends and Growth in Fish Production forDifferent Types of Fisheries ................ 147

Annex Table 2.6: Fish Production, Relative Shares, and ProjectedIncrease During Fourth Five-Year Plan ....... 148

Annex Table 2.7s Status and Performance of Trawlers .......... 149

Annex Table 2.8: Trends in Average Fish Yield for DifferentTypes of Inland Fisheries .... *.......* ........ 150

Annex Table 2.9s Regional Distribution and Growth of Fish Catchfrom Floodlands ........................... 151

Annex Table 2.10: Area, Production, and Yield for Beel FisheriesOver Time ................................... 152

Annex Table 2.11: Number and Area Distribution of Fish Ponds,1987/88 ............... 00**.......... * .................... 153

Annex Table 2.12: Number and Area Distribution of Fish Ponds byCurrent Use Status, 1987/88 * ................ 154

Annex Table 2.13: Estimated Shrimp Production from Shrimp Farms,1987188 .............. .*....0................................. l5S

Annex Table 2.14: Number of Fishermen and Fishing Craft ....... 156

Annex Table 2.15: Estimated Number of Trawlers, Boats, andFishing Gear in the Marine Sector ........... 157

Annex Table 2.16: Trends in Quantity of Exports for Frozen andProcessed Seafood ........ . . . . . . . . . . . . . . . . . . . 158

Annex Table 2.17: Targets and Projected Increase in SeafoodExports ......... 1S9

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Page No.

Annex Table 2.18s Diversification of International Markets forShrimp Exports ...... ................ .... .. 160

Annex Table 2.19s Export Destinations for Frozen and ProcessedSeafood ............................................ *400*0 161

Annex Table 2.20s Average Fish Consumption by Household IncomeGroups ..................................... 162

Annex Table 2.21s Estimated Marketing Margins for Fish Procuredand Sold by BFDC, 1989 ...... ................ 163

Annex Table 2.22: BFDC Procurement Prices for Fish from OxbowProject Lakes ............................... 164

Annex Table 2.23: Average Price and Share of Fish Sold inDifferent Markets for Oxbow Project LakesDuring 1985186 ...................... ........ 165

Annex Table 2.24s Vholesale and Retail Fish Prices in Dhakacity, 1990 ............. ..................... 166

Annex Table 2.25: BPDC Retail Prices for Selected Marine andFreshwater Fish ........ ..................... 167

Annex Table 2.26: Relative Shares of InstLtutional and Non-institutional Sources of Rural Credit ....... 168

Annex Table 2.27: Disbursement of Fisheries Credit .... 4*........ 169

Annex Table 2.28: Fisheries Credit from Bangladesh Krishi Bank. 170

Annex Table 2.29s Bangladesh Bank Credit Allocations for FishCulture, 1989190 .................. **0*00... 171

Annex Table 2.30: Bangladesh Bank Guidelines for Rates ofInterest on Lending as of January 1, 1990 ... 172

Annex Table 2.31s Disbursement of Grameen Bank Loans to FLsheryand Fishery-Related Activities from ItsInception to December 31, 1988 .............. 173

Annex Table 3.1s Physical Targets and Achievements forFisheries Sector During Five-Year Plans ..... 174

Annex Table 3.2i Performance of Oxbow Project Lakes Over Time. 175

Annex Table 3.3: Share of Different Carp Species in FishProduction from Oxbow Project Lakes ........ 176

Annex Table 3.4: Overall Financial Performance of BFDC During1988/89 ...................... 177

Annex Table 3.5s Project Loans and Grants by Government to BPDCBPDC from Its Inception to June 30, 1989 .... 178

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Page No.

Annex Table 3.6: Expenditure and Revenue Estimates for theDepartment of Fisheries ..................... 179

Annex Table 4.1s Projections for Fish Supply and SeafoodExports ............ ......................... 180

Annex Table 4.2s Projections for Fish Demand and FishRequirements ................................................ 181

Annex Table 4.3: Projections for Domestic Average per CapitaFish Consumption/Availability ..... .......... 182

Anmex Table 4.4: Projections for Fish Demand, Supply, andPotential Gap ............. ................ 183

Annex Table 4.5: Projections for Fish Requirement, Supply,and Potential Gap ........................... 184

Annex Table 4.6: Projections for Total (Domestic and Exports)Fish Supply, Demand, and Requirements ....... 185

Annex Table 4.7: Retail Prices of Fish Spawn and Fingerlingsin Mymensingh, April 1990 ................... 186

Annex Table 4.8: Estimated Production Costs and Returns fromShrimp Farming in Cox's Bazar, 1988 ......... 187

Annex Table 4.9: Characteristics of Three Major Asian ShrimpCulture Systems ... .......................... 188

Annex Table 4.10: Estimated Average Yield of Shrimp and Fish onDifferent Shrimp Farms, 1989 ................ 189

Annex Table 4.11: Estimated Average Price for Head-on Shrimp onDifferent Farms, 1989 ..... .................. 190

Annex Table 4.12: Pondbank Price for Head-on Shrimp inBangladesh, 1989 .......... 191

Annex Table 4.13: Estimated Comparative Costs of Major Inputsfor Shrimp Culture in Asia, 1989 ......... O... 192

Annex Table 5.1: Number, Area, and Fish Production from FishPonds ................... *.... *................ 193

Annex Table 5.2: Planned Budget Allocation to the FisheriesSector During the Third and Fourth Five-YearPlans ................................................... 194

Annex Table 5.3: Development Expenditure, Donors' Contributionand the Department of Fisheries ............. 195

-143-

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Tabl. 2.1: TRENDS IN AREA UNDER DIFFERENT TYPES OF INLAND FISHERIES /a

Water AreaType of Inland Fisheries 1983/84 1984/8S 198S/88 1988/87 1987/8 1988/6W

-------------------- ----------- -- (he) …------

Inland capture

River and estuaries /b 1,081,683 1,081,688 1,031,668 1,031,688 1,081,568 1,031,568Floodlands /c 2,882,792 2,832,792 2,882,792 2,882,792 2,882,792 2,832,792Seels 114,181 114,161 114,161 114,161 114,161 114,161Kaptal Lake 88,800 68,800 68,800 68,600 66,800 68,800

Subtotal 4,047,816 4,047,816 4,047,816 4,047,810 4,047,818 4,047,816

Inland culture

Ponds 148,890 146,890 148,690 "A0,890 148,690 148,690Baors 5,408 5,486 5,488 5,488 5,486 5,468Shrimp forms /d 51,812 64,246 87,800 87,800 94.010 106,260

Subtotal 204,190 216,824 239,878 289,678 248,B88 280,658

Inland Total 4,261,508 4,2683,940 4,286,994 4,288,994 4,298,704 4,807,974

/a Based on Information obtained from the Department of Fisheries.

/b Includes Sunderban area.

/c Seasonal Inundated area. Over time, floodlands area Is expected to decline In responseto the establishment of FCD/FCDI works.

/d Area under shrimp farms Is expected to continue expanding.

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I-FISHERIES SECTOR mEVW

A^m.. Table 2.2: FMSH PRODUCTSM 5 SPECIES AND SOURCE, 1S07/so L

Fish Fish Production Relo ive fharSpecios intnEd Marine Totar Inlino orie Vogel

-(a() )

Major carp A 855/c 88,865 14.7 - 10.Exotic earp 6Y 8,244 - 6,244 1.4 - 1.0Other carp j 4,947 - 4,947 0.0 - 0.0Catih la 14,102 - 14,102 2.4 - 1.7Snake hiA 26,781 - 20,781 4.4 - 8.2Live flai 28,167 - 2 ,157 8.0 - 2.0Other ta tIs f h 801,071 - 01,071 50.2 - S0.4Hi lea 76,551 104,960 188,501 18.1 46.1 22.2Bobay duck b - 19,884 19,884 - 0.5 2.8Indian slson Li - 948 948 - 0.4 0.1Pomfret - 4,166 4,156 - 1.0 0.5Jew fth7 k - 6,J80 6,J80 - 8.7 1.0See catftil l - 16,812 16,012 - 7.4 2.0Sharks, k and Pas - 2,60 2,6 - 1.1 0.$Other arn lh - 5601 55,01 - 24.8 0.7Shrimp 64,275 15,060 89,856 9.1 0.0 6.4

Total 6.99528 227.562 627.105 AflL 100.0 100 0

(3) (72.5) (27.6) (100.0)

L Based on data troe OO.

b Vajor carp: Rui, Catla, Hritgl.

/e None or negligiblo.

/d Exotic carps-Sliver carp, Comn carp, Mirror Carp, Gras carp.

io Other carps-Ghania, Kalba, KItlb.

t Cattish: Rite, Boal, Panpa, Shilong, Air, Bache.

La Live ftih-Kol, Singhl, Magur.

Lb Herpondon nahoreu.

Li Polydactylus indicuv.

LL Rup, Hall, folt chand./k Poa, Lamb, Kladatina.

11 Tachymrus spp.

BANGLADESH

FISHERIES SECTOR REVIEW

Annox Table 2.8: INLAND FISH PRODUCTION BY SPECIES AND SOURCE, 1987/88 /a

Time. of Inland FisheriesKaptei Shrimp Percent

Fish Speciee Rivora Sunderban Boola Floodiande Score Ponds Lake Farms Total Share(Mt) -() _

Major carp. 1,187 - 1,856 7,864 475 77,461 218 - 88,865 14.?Exotic corp - - - - 429 7,615 - - 8,244 1.4Other carps 1,024 - 1,687 - 1 2,047 288 - 4,947 0.8Catftish 8,862 - 4,897 2,949 1 8,078 415 - 14,192 2.4Snake head - - 488 16,511 54 9,698 85 - 26,781 4.4Live tish 88 - 848 18,092 16 6,665 - - 28,157 8.9Other inlnnd fish 81,886 8,297 86,116 12,086 268 41,987 8,117 7,859 801,071 60.2Hi ISO 77,577 974 - - - - - - 78,661 18.1Big shrimp and prawns 1,141 640 - - - - - 12,400 14,081 2.4Small shrimp and prawns 17,662 265 2,876 18,726 15 672 - 5,489 40,194 6.?

Total Production 188.817 8.066 46.610 182.087 1.264 149.428 4.068 25.248 699.528 100.0

(U Share) (80.7) (1.8) (7.6) (80.4) (0.2) (24.9) (8.8) (4.2) (100.0)

La 8ae on date tram the Deprtamnt ot Fisheries.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.4: MARINE FISH PRODUCTION BY SPECIES, SOURCE, AND FISHDN4 GMER, 1987/88 /a

Flsh SoeclesBomby Indian Jew Cat Sharks Other

Source/Fishing Ger Hi lea Duck Salmon Postret Fish Fish and Rays Marine Fish Shrimp Total

Industrial

1. Trawler Ftshing - - 747 246 1,861 1,108 563 2,851 8,S45 10,805

Artisanal1. Gill Net Fishing

( ) Mechanized Boat 91,728 - 201 1,680 591 10,822 984 12,825 - 118,278

b) Nonmchanized Boat 18,227 - - 2S6 403 99 165 464 - 14,614

Subtotal 104,960 - 201 1,988 994 10,921 1,099 12,789 - 182,690

2. Set Bag NetFishing( Seasonal - 9,900 - 450 - - - 81,500 8,150 45,000

(b) All Season - 7,880 - - 176 269 201 8,987 6,472 18,464

Subtotal - 17,280 - 4S0 175 289 201 86,467 9,622 68,464

8. Long Line Fishing(a) Mechanized - - - - 2,685 1,481 591 so - 4,817

(b) Other LongLine - - - - 847 C72 147 285 - 1,801

Subtotal - - - 8,082 2,068 730 295 - 6,118

4. Trammel Net Fishing - - - 80 585 S85 27 1,889 107 2,678

5. Other Gear Fishing - 2,054 - 1,445 1,801 1,926 - 8,010 1,808 12,042

Artlsanal Total 104,960 19,884 201 8,911 6,587 15,704 2,068 S2,950 ll1,5 217,18?

Total Productlon 104.960 19.884 948 4.116 8.998 16,812 2.60 565.801 16.080 227.682

(U Share) (48.1) (8.6) (0.4) (1.8) (8.7) (7.4) (1.1) (24.8) (6.6) (100.0)

/o Based on data obtaln d from the Department of Filshries.

FISHERIES SECTOR REVIEW

Annex Table 2.5: RBS AND ROt Di FMS PRODUCTN FDR DtFFB TPES OF FISES /

Actua ProjacteAnami ~~~~~~~~~~~~~~~~~~~~AnnualActal Flah Production GroPth PMebed Flab ProductIon *rowtTye of fe lery 198S/U 19u/61 14/as Im#S/s 1987/86 Rat. fe 19/694d 1439/90 140/91 Lsn/1/2 192/93 1993/94 14/ RAO Lo(t) - ) ( t)

Iland captureRPiot and eatuarlee ft 2115.49 219,432 204,712 201,162 191,888 -2.9 187S86 190,000 192,800 19,6000 20,SD 22J,OD0 24,000 8.6FleOdIAnd 200,616 194,180 107,798 188,796 162,087 -2.4 196,128 178,000 l1o6 166,is000 197,400 218,200 237,600 8.88.la 51,878 45,698 45,256 42,077 45,610 -2.9 47,019 SO,000 51,000 58,000 56,200 60,700 67.600 5.8XWOULL. 14,057 2,700 2,488 8,961 4,06 0.1 ,40 6,m00 6,400 60e0 6,800 oo 0,0 7,600 9.1

Subtotal 471,595 462,6 441,79M 41,008 428,5# -2.7 424,140 42,000 480,000 445,400 466,400 50,700 558,6o0 4.0tIlad culture

PFe 107,044 111,567 128,804 142,76 149,428 S.5 l5,012 101,000 190,000 220,000 245,000 279,000 88,400 10.9beora 662 962 as6 1,174 1,24 9.8 ,821 1,0 1,900 2,20 2,750 4,100 5,S0 28.58brlmp ftrum Lt 8,0219 11,292 19,9s6 22,050 25,248 82.4 27,172 17.000 81,000 4U,000 u,6 41,000 45,60 8.8Subto1tl 117,025 12,811 144,728 16,1 175,925 10.7 18,05 N 166,9e0 222,900 256,200 284,80 824,100 659,560 10.6

Induatrlal 14,600 12,440 11,89 12U,J8 lo,0 -8.O 10,s85 12,s5 18,00 18,50 14,tOO 14,600 15,600 6.0Artleana 150,882 176,128 195,808 205,228 217,167 9.6 f2,26s 212,000 226,000 21,000 28,000 245,00k 265,800 2.88.bt.t.l 104,862 187,6S 207,401 217,579 227,52 8.4 288,281 284,500 280,000 244,6D0 252,100 219,6S 270s00 2.S

Inland t.tl 566,620 586,416 566,522 507,106 56,52s 0.5 67,645 12,600 68,700 701,600 782,750 627,8w 08,150 6.8Marlie toa 164,82 187,568 207,401 217,570 227,562 0.4 288,20 284,500 289,000 244,500 252,100 259,000 270,900 2.5S_nglade Total 75,502 773,970 79,S28 914,605 627,105 2.4 840,926 847,100 892,700 06,100 1,004,60 1,087,400 1,189,060 5.8

Lo lb_d on Intonatlon obtabned from the Deparmen of Fletrlee.

a ProjectIon _sda by the Depatme of Flehrlee.

La Anul co_I mp produtio growt rae from 1968/4 to 1087/88.

id PrelIienary produtlon 1tluatu.

L Annual compound prodction grol rate from l96/68 to 1t04/96.

f tIcBudge Sundarban prodtuction.jQInclue. b eer..eo

aA include, b fa

Ab Coezt l Iq"tiore. Prodution Incues both fish rnd b"do srip.

FISHERIES SECTOR REVIEW

Annex Table 2.0: FISH PRODUCTION, RELATIVE SHARES, AND PROJECTED INCREASE DURtNA FOUtNHFIVE-YEAR PLAN La

Actual Production Projocted Production Target Production Target Productbon

1987/88 19890 1999/90 1994195 incremental Production /

quantity SF;hi quantity Shri quantity Share quitijShnr quantity Share

Typ of Fishery (O0 at) () (O00t) (U) (CO at) C%) (0O at) (1) (Om t) (3)

Intand Fiearios 509.6 72.6 012.6 72.8 772.4 77.2 938.0 76.2 825.4 92.2

Ponds 149.4 111 B1 000 19.2 ao8 9 1. M i47.0 941.

Boors 1.2 0.1 1.6 0.2 2.0 0.8 5.6 0.5 8.9 1.1

Coastal *quacultur 26.2 8 1 27.0 S.2 84.2 8.4 81.0 6.8 64.0 1i5.

River, and estuaries 191.9 28.2 190.0 22.4 260.4 25.0 210.0 17.6 20.0 6.?

BoDle and Haore 45.6 6.5 50.0 5.9 75.0 7.6 07.0 5.0 17.0 6.0

Kaptel lake 4.1 0.6 5.0 0.6 8.0 0.8 7.6 0.6 2.6 0.7

Fleodlands 182.0 22.0 170.0 21.0 210.0 21.0 287.5 19.6 69.5 13.0

OtOhre I - - - - - - 20.0 1.7 20.0 6.7

Marine Fisherle 227.6 27.5 284.5 27.7 228.0 22.8 262.0 21.0 27.5 7.0

InduEtrial -io.4 m - 1. - - n. -1.1Artisenal 217.2 26.2 222.0 26.2 - - 249.4 20.7 26.4 7.S

BDngladesh Total 627.1 100.0 847.1 100.0 1,000.4 100.0 1,200.0 100.0 862.9 100.0

Lo Bned on Information obtained from the Departent of Flsherloe and Fivo-Year Plan documente.

Lb Target Incremental production for 1994/96 over projected production for 1989/90.

Ic Irrigation canals, road side ditch"e, frh water poldare and otbr e ncloeuree.

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LAnnex Table &j7 STAIN AND POPUMAC OF TRUU

Average Nume Asmul CatcTlpe ot Nul_r of of flathing Mr IjOr h O DX

Year Trawlers Sector Trwles Daype/Tsawler oI visih

1065/8 Shrimp Privael S1 1s 10 75 641 400

Mixed Private S 1U8 so S60 215 8,061

Fish Publac L 0 68 - 184 - J,8

19007/e Shrimp Private J8 201 102 74 WY SW

Mixed Private S 1S 22 w 186 2,245

Fish Private J 100 2 is 20 9J0

Fish Public Ie 0 9S 1 157 10 1,65

i Based on informtion obtalned bce t Deprtmet of Flihries.

A Head-on (HO) shrimp.

ic Banglh Fishries Development Corporation (PODC). Out of eieht, two weremin tnawI-rc.

BANGADESH

FISHERIES SECTOR REVIEW

Annex Table 2.8: TRENDS IN AVERAGE fISH YIELD FOR DIFFERENT TYPES OF INLAND FISHERIES jL

Actual Avereos Fish Yield Prolected Averm Fish Yield lb

Type of flsheries 1983/84 1984/85 1965/88 1988/87 1987/68 l968j89f 1989/90 1I0/91 1991/92 9M/93 199U/94 1994/95

(kg/ha)

Inland capture

River and estuaries fd 209 218 200 195 186 176 184 Is? 198 202 216 286

Floodiands 71 89 66 65 64 6e 63 64 so 70 75 84

BeIl lO 460 402 896 869 899 412 488 447 464 492 632 692

Kaptai Lek 59 89 86 68 59 s0 78 78 64 02 99 109

Subtotal 117 114 109 106 105 106 106 106 110 116 124 188

Inland culture

Ponds 785 760 s8o 978 1,017 1,05S 1,096 1298 1,498 1,668 1,90 2,100

Beors 1t7 ItS 176 214 228 241 292 846 401 601 747 1,002

Shrimp farms ft 169 176 229 253 269 261 809 8a5 889 419 470 528

Subtotal 768 672 804 69a 714 704 791 980 1,069 1,186 1,852 1,600

Inland Total l88 1i8 187 189 140 141 148 152 164 176 198 214

Lo BeWd on Information obtained troe the Department of Flsherlo.

Lb Proloctions are mede by the Departent of Fisheries.

Le Preliminary yteld estimates.

fd Includes Sunderban area and production.

LO Includes hnors.

if Coastal aquaculturo. Yield lncludes both fish and head-on shrimp.

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BANGAESH

FISHERIES SECTOR REVIEW

Annex Table 2.9i REGIONAL DISTRI8UTION AND GROWTH OF F$5H CATCH FROU FLOODLANDS /

Orater Number of Subsistence Average Catch EstimatedDistricts Ftsheris Households p r Haous hold Total CItch

1964/8. 1987/88 1984/05 108788 1084/W6 1987/ U- C10) --- -- (kg) ---- --- (at) ----

Chittagong 429 726 18.74 15.49 8,021 11,249Chittagong H.T. b 68 82 19.74 15.49 1,274 1,270Comille 757 840 20.51 19.02 16,528 16,988Noakhall 824 521 24.75 18.88 8,019 9,722Sy lht S86 oao 14.84 24.52 9,887 15,506Ohhka 907 1,186 24.95 18.12 24,127 20,587Foridpur 679 447 21.66 16.67 12,641 7,451Jsamlpur 272 412 9.68 0.41 2,61° 8,875Jymonsingh 698 947 9.0M 18.11 6,781 12,487Tan91l 247 280 9.63 16.96 2,879 8,901Barisal 647 578 21.04 19.88 12,077 11,891_ seor. 497 474 26.89 19.86 12,619 9,417

Khulna 289 625 84.61 14.86 10,002 0,978Kushtie 201 129 48.08 19.47 9,652 2,611Patuakhall 265 180 52.82 17.90 18,868 8,222Bogrs 842 488 81.52 15.86 10,780 6,728Dinsjpur 408 562 12.21 4.49 4,982 2,477Pabna 867 281 81.52 19.81 11,568 6,568Rajehahi 747 787 10.94 1?.16 8,172 18,604Rangpur 806 955 12.21 1$-94 9.841 16.176

Total Production 9,511 10,91 20.41 16.87 194,180 182,087

La Based on information obtained from the Deprtment of fisheries.

Lb Chittegong HillI Track.

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f1433 SE CTOR EVw

An e Table 2.10: AREA, PROGUCTION, AM IELD FOR SKEL FSUERIES OVER TIME /

Cr tb r Bol AM9_Lt Production Share YtieldOit**ret Ar ^ Shoer 1984186 99@t/88 -19"4/ 198t/8@

(ha) (U) -l )- -L(k/h.)-

Ch1ttgaogn ad C.M.T. 466 0.4 0.2 0.4 241 484CoailaT 1,108 1.0 0.6 1.1 242 484NoakhaIi I 88.- le 4 -$5Symhet 82,700 $8.. J8 476 628Ohaka 4,918 4.8 2.0 2.0 242 287Far1dpur 1,915 1.7 0.9 1.0 220 282Uy asnlgh Id 29,400 26.6 29.9 1S.. 46? 258Tangall 2,88 2.0 2.2 1.4 480 276Barisal 79 0.1 - 0.1 17n 842jesore 5,087 4.4 2.4 8.9 216 844Khulna a6 0.8 0.2 0.8 214 342Kuahtia 2,19? 1.9 1.0 1.7 215 844Potuakholt - - - - - -3toa 8,601 8.8 1.6 4.2 222 06;BIonjpur 1,252 1.1 0.6 0.6 280 205Pab3 81,266 2.9 2.9 2.1 415 266RaJehohi 19,849 17.4 16.0 8.9 415 206*angpur 6.492 4.8 2.8 4.9 3 412

_ANGLADESH fL 114,161 100.0 100.0 if 100.0 |f 402 400

/a Based on lntormstlon obtailnd troi tbe 04prtment of Flh.rleo.

lb Be area refrs to both 19864/ and 1987/66. Thart was no ch ng lnbeet area vovr tie.

i Kono or negllgible.

Li Jamelpur to Included In Myoanshlngh district.

LI Pernet totals my noS be exact doe to rounding.

/f Fish catch from beel flheris wam 46,6986 atin 1864/65 *nd 46,610 at to 1917/66.

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BANGLADESH

FISHIIES SECTOR REVIEW

nnex Table 2.11: NUMBER AND AREA DIhlRIUTION OF FISH PONDS, 1987/88 la

N b r of PoWs Area Under PondGreater hr *e Area shareDistrlcte tX) (ha) (3)

ChlttOa.n 103,265 6.0 14,305 9.7CalIlla 120,606 9.4 13,561 9.2NHokh lI 99,761 7.6 11,210 7.0Sylh et 117,2W 9.1 9,077 6.2Dhaka 54,26M 4.2 6,662 4.7eridpur 49,994 3.9 6,322 4.3

Jamlpur 10,176 0.6 1,416 1.0Mymenoingh 76,794 6.1 6,639 0.0T ng tl 10,344 0.6 1,456 1.0Brisal 1560,023 12.1 11,765 6.0Jeeare 66,281 6.9 7,161 4.9Khulna 57,019 4.4 5,364 3.7Kuhebtt 31,609 2.4 1,532 1.0patbu ahalI 87,654 6.6 6,600 4.5Begra 25,264 2.0 5,677 3.9Dinajpur 42,702 3.3 9,566 6.5Pabna 36,341 2.6 7,404 6.0Rajohahi 72,623 5.6 14,797 10.1R npur 46.2S9 3.6 3.9B8 2.7

Bengladhb lb 1,268,222 100.0 146,690 100.0

A Based on lnformtion obtained from the Dsprsat of Fisheries.

/b Totals may not be *xeat due to rounding.

-) 54-

BANCLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.12: NUMBER AND AREA DISTRIBUTION OF FISH PONDSBT CURRENT USE STATUS, 1907/88 1

Greater Number of Ponds Amea Under PondsDistrict* Culturedjb Culturabl-le DrelictLd To Cu r u erlictId Total

--------- ~~~- ------- (3)--- ---------

Chittagong 42 46 12 100 SO 46 4 100Comilla 68 80 12 100 67 28 10 100Noakhali 58 80 12 100 07 28 10 100Sylhet 18 84 48 100 22 81 47 100Dhaka 82 26 42 100 86 40 24 100Faridpur 82 20 42 100 86 41 28 100Jamalpur 41 21 86 100 48 29 28 100Mymensingh 61 24 15 100 77 15 8 100Tangail 41 21 88 100 48 29 28 100Bsrosol 65 26 19 100 61 28 16 100Je"sore 72 16 12 100 62 18 5 100Khu1na 62 21 17 100 77 18 10 100Kushtis 49 24 27 100 s6 28 21 100Patuakhali s6 2S 18 100 62 28 15 100Bogra 82 38 as 100 52 84 14 100DinaJpur 82 88 85 100 62 84 14 100Pabna 82 45 28 100 80 45 26 100Rajuhahi 82 45 28 100 80 4C 25 100Rangpur 27 28 s0 100 80 22 48 100

Bangladesh 46 80 24 100 52 81 17 100

/a Based on informatlon obtained froe the DOprtment of Fisheries.

b Where fish try were released; estimated area was about 76S680 ha.

/e Whore fish fry were not released; estimated area was 44810 ha.

/d Where fish fry were not released and condition to not suitable for culturing fish; estimated area was26,460 ha.

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DANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.1): ESTIMAYED SHRIW PRODUCTION FROM SHRII FARIS, 187/88 la

creator Area Under Productlon /bDistricts Shrimp Form Shrimp Fish Toal

(ha) (at)

Chittagong I 24,765 4,244 1,250 5,494Khulna 1<169,36S 1a,493 6,064 19,667Jessor S90 lie s6 153Patuakbull 64 11 9 14Barisal 112 19 S 26Nokkhlil 2S 4 1 5

Total 94,010 17,869 7,359 25,248

1 Sase on tnformtion obtained frm the eprtment of Fisherl-s.

/b Productlon was estimated by assming the following average yields:

Khulna : Shrimp - 197.38 kg/ha: Fish - 88.70 kg/ha

Chittagong and : Shrimp - 171.44 kg/haOther Districts : Fi h - 50.51 kg/ha

/l Bnas on surey of water are In 198S.

/d Basod on survey conducted by UpazilI Fisheries Offticers (FO.) in 109687/.

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UDNWESN

FLSEIES A? REfVI

Annex Table 2.143 MUIE OF FISHERIEN AND FISHING CRAFT la

Niaber of 1;ohermer "Nubr of Fishing CrStt lbYear I"llnd M el Totae rawle Lausche

1972/Ts 460 210 660 10 2001973/74 60 220 660 21 2761974/75 00 200 So0 21 1,0001975/76 600 200 600 20 1,0001976/77 616 206 624 26 1,0501977/78 709 290 996 26 1,10010798/79 717 si1 1,029 26 1,2001979/60 724 334 1,06S 26 1,8001060/61 96 412 1,107 24 2,0001906/62 700 440 1,140 J5 2,0501082/68 706 457 1,168 C3 2,1001938/84 707 468 1,170 74 3,3471964/65 715 450 1,185 67 8,300906/80 719 475 1,19C 45 3,S17i066/6T nc 466 1,221 49 3,8171967/6 752 497 1,249 52 3,817

l Obtained troe 1906 and 1969 Statistical Yearbooks ot Bangiladesh.

/ Ueed for *rln. fisohery.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.16: ESTIMATED NMBER OF TRAWER, BOATS, AND FISHING SEAR IN THE MARINE SECTOR /a

Number of Truwlers and BoatIr of FishFlabing Ti-sr Mechannized Boats Nonmechanuz.d Bot. Ger and E ut_

Operatolm T978 7 178 !U 4 1987187 16816 - 1967156 I /4 96

Trltof 1A 74 52 - - - - 870 -

Gill Ndstlts and Seinitm - - 2,504 2,660 - 8,506 8,060 6,869

Se Sa0 NMt Fishing le - - 170 102 18,500 7,270 16,600 12,015

Loag Line Fshbing - - 820 25 U05 1,127 8,500 2,064

Shrinp-4ll e"ttlng - - - - 105 500 210 500

Cws Nat oBeh Si*n - - - - 1,000 1,006 ,000 2,222

Push Net NWd Otherrahdf - - -u* -

Total 74 *2 $m000 8,817 14,970 14,014 19,280 28,610

Lo Based ea intonation btaei mdr the Department of Flshres.

A Includes shrimp, fish, sNd sizs trawls.

f e Ohore seaseonl d estml".

la Ishllow wate and tidal arase.

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OLADESN

FISHERIES SECTOR REVIEW

Annex Table 2.16: TRENDS IN QUANTITY OF EXPORTS FORFROZEN AND ROCESSED SEAFOOD /a

Froen Frozen Frozen Dry Procesed SharkfinoYear Shrimp Lb Froglegr Fish Fish Fish le and Fishmwe Total

1981/82 6,908 1,589 708 89 128 68 9,420

1982/08 9,812 2,028 1,294 70 186 64 12,915

190U/84 8,618 2,495 2,907 74 288 48 14,620

1984/86 12,682 1,886 8,297 47 882 106 17,861

1086/86 18,681 2,468 5,017 766 422 60 22,869

1986/67 16,275 2,168 4,046 402 205 114 28,800

1987/66 15,028 2,708 4,191 475 872 180 22,690

1980/809 15,886 2,685 2,427 G6 298 68 21,426

1909/90 17,606 780 8,484 1,270 101 85 28,889

Lo Derived froe dabe obtained from the Bangladesh Export Promotion Bureau.

/b Primri y headles shrimp of exportable quality.

/c Includes salted and dehydrated fish.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.17: TARGETS AND PROJECTED INCREASE IN SEAFOD EXPORTS /a

Actual Exports Target Export. Ib Target Exports Targot Ineremental

Seafood I. ./89 1989/90 1994/9S. WXortA /c

Item quantity Vau. quantity Value quaniity Viu* iiit1ty V luo

(at) (mln.Tk) (at) (aIn.Tk) (at) (oln.Tk) (at) (mIn.Tk)

Shrimp (Hosd On) 16,886 3,820.0 80,000 S,O0.0 50,000 7,440.0 20,000 2,440.0

Fish and fish product. 8,856 408.0 5,675 296.0 28,500 8,510.0 20,625 8,214.0

Froglge 2.88C 488.0 2,700 240.0 2.000 880.0 -700 90.0

Tots I 21,426 4,664.0 88,576 6,56.0 78,500 11,280.0 89,925 6,744.0

/a Derived froe Five-Year Plon documents.

lb Actuel oxport. In 1989/90 were 28,389 mt. qz

Ic Target Incremental exporte In 1994/9W over torget export. In 1989/90.

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r SERIES SECTOR ME

Annex Table 1.10: DOVERSIFICATION OF INTERNATIONAL MARKETS FOR SNRIUP EXPUT

ExportYear Japan U.S.A. Europo t Other Totl Ic Vlor

(Ml.. Th)

1968/04 40.0 15.0 22.0 18.2 100 1'M

1904/06 56.0 11.2 22.0 0.0 100 1,99

185608 47.8 1U.4 2n.0 9.7 100 2,18

1080/67 44.0 n1.S 29.5 0.2 100 8,410

19617/60 8.7 28.9 80.2 7.2 100 8,607

1m/00 17.7 25.0 8$.6 7.0 100 8.020

/a Bsed on lnformation obtained tro the Bangledesh Export Promotion Burau.

Ib Includes United Kingdom, Belgium, and Federal Repubitc of Cormany.

La Percet *hrt Is blase on export value. Yotal my not add to 100 due to rounding.

BANGLADESH

FISHERIES SECTOR REVEW

Annex Tablo 2.19: EXPORT DESTINATIONS FOR FROZEN AND PROCESSED SEAFOOD /a

Poroentase Share In Exports forFrozen Sherkfins

Country _Frozn ShPtRD Frgl"s Frozen Fish DY Fish Procosed Fish/b *nd Fishmaws198678B 1988/89 1986/8 1988/B9 1986/88 19*8/819 1955/86 198j8/8i 968 988 96 988

Australi_ -- _ - _ -

Bahrain - - 0.01 - - 0.07 - 0.01 - - - -Belgium 12.08 14.18 4.07 1.40 0.22 0.05 - 4.60 - - - -Canada - 1.86 1.07 2.11 - - 8.72 - - - - -Denmark - 0.81 - - - - - _ _ _ _ _Germany, Fad. Rep. of 5.86 I1.$6 8.74 - - 8.74 - 17.95 - - - -Hbns Kong - - - 2.67 0.09 2.98 89.92 87.09 92.68 96.71 29.70 76.65Italy 4.8 8.77 - - - - 2.26 1.67 - - - -Japan 47.84 27.71 - - - - 27.64 4.94 - 1.52 1.72 2.62Korea(D.P.R) - - - 0.04 - 0.78 - - 0.09Kuwait - - - - 17.2 24.24 1.62 0.84 - 0.89 - -Malaysi 0.f1 0.1 - - 13.67 11.09 - - - - - -Netherlands 4.10 1.82 0.54 2.88 0.75 8.19 - 2.52 - - - -Own - - - - 6.95 1.68 0.49 0.93 - 0.7 - -Pakistan - - - 0.07 1.$8 - -Dakar - - - - 2.74 2.15 0.18 -- - - -Saudis Arabia 0.02 - - - 2.61 0.12 8.04 - - - - -Sinspore - 0.21 - - 1.89 12.00 0.42 - - 0.12 44.4U 8.88Srl Lanka - - - - 8.52 0.78 1.04 O.8S 1.64 0.54Switzrland - 0.04 - - - - - - - -

Tha land - - - - - 0.14 - - - - - -

United Arb Emirate - - - - 18.42 4.1? 4.14 0.82 - - - -United Kingdom 9.06 18.28 1.00 2.85 88.51 80.66 6.06 26.77 4.29 0.26 22.10 7.10United States 16.45 28.67 82.08 88.54 - 2.07 - - - - 7.6Others 0.62 -- - 0.92 - 2.2- - - 2.0 - 1.69

tOal (U) 14 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00(million aila) (2,695.15) (8,820.47) (800.68) (438.17) (364.91) (225.86) (100.67) (189.88) (49.58) (41.23) (10.06) (27.74)

/a Derived tro data from the Bangladesh Export Promotion Bureau.

1b Liclude salted and dehydrated fash.

/a Non or negligible.

Id Total way not ad teo 100 due to rouding.

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OANCLAES

FISHERIES SECTOR mEV

Annex Table 2.20: AVERAGE FISH CONSUUWTWON Y HOUSEHOLD INCOME CROUPS

Monthly HouseholdYear Incom Group Per Canlta Annual Fish Consumtlon

(Tk) Rural Urban Oang sdesh… -------------- (kg)

1981/82 a <800 6.6? 6.60 6.67800-899 6.88 6.64 7.88400-499 7.49 7.22 7.48600-749 6.10 8.80 6.15750-990 9.08 9.54 9.07

1,000-1,249 10.19 9.96 10.171,250-1,499 10.72 11.79 10.861,600-1,999 12.61 12.07 12.442,000-2,499 12.84 18.95 12."2,600-2,999 18.00 16.40 18.698,000-8,999 15.686 16.86 16.044,000-4,999 19.07 19.48 19.245,000-5,999 20.21 18.64 19.87

>6,000 19.89 22.79 21.57

All Groups 9.97 12.90 10.87

1085/86 Lb <500 4.87 4.70 4.87500-749 6.61 6.05 6.61750-999 7.94 7.78 7.88

1,000-1,249 6.51 10.81 6.621,250-1,499 10.07 12.48 10.161,500-1,999 11.42 12.21 11.542,000-2,499 12.98 14.00 12.992,600-2,999 18.11 15.48 18.4'8,000-8,999 18.6 16.12 14.114,000-4,999 16.40 16.02 16.855,000-5,999 14.79 20.04 16.026,000-6,999 19.56 20.04 19.707,000-7,999 20.15 21.80 20.69

>8,000 21.70 22.17 21.96

All Groups Le 12.66 16.48 12.99

/a Infosiation is based on the Bangladesh Household Expenditure Survey,1981-82, B8S.

Ib Information Is based on the Bangladesh Household Expenditure Survey,1986-86, Be$.

Le The amount of fish supplied by different sources during 198S/86was as follows: 75X fresh water, 18X marine, 4X dry f sh and 8Xothers.

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£ANAESH

FISHERIES SECTOR REVIEW

Annex Table 2.21. ESTIMATED MARKETIN MARtVNS FOR FISH PROCUMED AND SOLD ?Y EFOC, 1989

Marketing Margin0 P rcontsa

Fish Type Flsh Siaz Procurement Price Retell Price Marketing Margin of Rit.ll Pric___ _ _- … -^-(Tk/lkg)--- (U)

Ruhl Below 1.6 kg 2S 40 14 351. -8.0kg 86 so 26 42Ov-rS.0okg 45 70 25 as

Kati& Below 1.5 kg 24 as 11 311.6 - 8.0 kg 80 So 20 40Over 8.0 kg 35 60 25 42

Mrigal Below 1.6 kg 21 88 17 451.6 - 8.0 kg 80 46 15 88Ovr a.o kg as 50 15 3o

Grass Carp Below 1.5 kg 21 80 9 801.6 -8.kg 27 40 18 8sOver 8.0 kg 35 - -

Mirror Carp Below 1.6 kg 19 - --1.6 -8.0kg 24 85 1i 81over 8.0 kg 26 40 14 35

Sliver Carp Below 1.C kg 16 - - -1.6 -8.0 kg 18 27 9 a8Over a.o kg 22 82 10 31

'a Based on data obtained from BFDC, Dhaka.

FISHERIES SECTOR mIEW

Annex Table 2.22: SFDC PROCREMET PRICES FOR FISH FROMI O0BO PROECT LAKES /n

188 (Priae 1987 (Priem ettctive 1968 (Priae effectlv 1989 (Prl effectivetroir to 1967 bz fish *sI) Jrnuary 1987 bz fish sizo) /b In 1966 fish sto e I. Aa kg l lato o I

Up to 1.6 Its Over Up to 1.6 to Over up to 1.6 to Over up oi 6tU o UverFish type 1.5 kg 8.0 kg 8.0 kg 1.6 kIg 8.0 kg 8.0 kg 1.6 kg 8.0 kg 8.0 kg 1.6 ig 8.0 kg 8.0 kg

k/KSR)~~~~~~~~(k/g

Ruht 20 22 26 28 S2 88 28 85 40 20 eS 45

Kati* 16 20 22 22 25 28 22 27 80 24 80 as

Wrigal 18 21 28 24 27 80 21 27 80 21 S0 8S

Grow carp is 18 20 20 28 26 20 24 8O 21 n7 as

Mlrror corp 14 1i 1t 20 29 28 17 28 26 19 24 26

31 ver carp 10 12 14 16 17 20 12 14 1 16 1o 22

/a B ad on Isformatlon obtained fren BFDC.

/b Averae price ineras wmm about 01 to SOX.

e Som pries were rIad and oethe were reducd over the previous yer.

Id Avereg. prlce Ineare was ero to 85M.

FISHIES SECTOR REVIEW

Annex Table 2.23: AVERAGE PRItCE AND SHARE OF FISH SOLD IN DOTERT MARKETSFOR OBW PROJECT LAKES DURING 1965/86 /x

Somber Jo Ita 2eobip!ar Ir K!ooi rr bAveragerke A 4 vrae r vrege Market a Marb

Fish maket Price& Share PriceLt Share PriceLb Shere Price/b Shar, Pricejb Share(Tk/kr m(1) (k/kg M) (Tk/kg (M) (Tk/i) (I) (Tk/kS (M)

Landing center atBeor Side 22.0 24.8 28.0 42.8 27.8 57.4 20.0 11.4 20.9 100.0

Kaligoaj Upezil 156.9 11.4 28.4 8.1 - - 20.0 9.0 - -

Jemore Cantement 19.5 4.8 16.0 7.9 18.4 C.0 21.0 4.5 -

Jeeore Dst rict 16.5 6 85.8 J.1 22.S 2 6.0 8.? 20.9 58.6 - -

ODC Dhbk kc 15.9 27.6 16.$ 14.0 - - - - - -

Jhensaldh District 20.8 11.4 82.0 6.6 - - 19.0 19.4 - -

Chosedan District - - 26.9 0- - - -

Totl .d 19.1 100.0 25.4 1J0.0 2W.9 100.0 20.8 100.0 20.9 100.0

(at) (106.6) (76.6) (20.5) (14.2) (7.6)

/a hBed on Infermation obtaoned fre the Oxbo Lakeo Finhery Projoet Iplaoentation Unit Nd the Deparbmntof Fluherlee. No data were ava lable on Fatehpur Lake. Furthermore, no datea were val able after 1965/6.

/b Averg, price io derived by divtding grS sale revenue by gros sales amownt (all fish species) far each lake.

le Durnog 1986/87 (July-February), the average price ond market share ot EDe had incrsd ever 196/66,and had lse lmprov as compared to other fith markets.

/d The peront total may not be exactly 100.0 due to rounding. The quantity In prethe refr. to totlf ih production for each lake, excpt Baluher Lake. For Laluhar ke, total production wa estlmatod at1.7 ab and 645 of It was so d in thes fish mrkets.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.24: WHOLESALE AND RETAIL FISH PRICES IN DHAKA CITY, 1990 /a

Wholesle Prico /c RetlPl PrL; /d AverageAV rnge Aver 9 Price A

Fish Specie. / Range Price Rang. Price Difference--- ~~~~~(Tk/ka)- -- --(X

Rui (b6g) 91-109 100 188-168 146 45Rul (small) 76-50 77 100-110 106 86Catla (big) 62-81 75 100-110 105 40catl (al 1) 70-75 72 - - - LtMrigal 6970 69 - - -Hi ts 40-45 42 60-75 70 67Nala Lg 60-65 S0 - - -Silver Corp (small) o- 80-86 80sNi lotica/Tilople - -p6-40 87 -Bol 60-70 67 70-76 78 9Air 88-90 88 - - -Pangee 100 100 140-150 140 40Sole/4ager 50-5 S0 - - -Chital 658-2 60 80-80 85 42 aFoil - 60-65 62 -Kot - - 100 100 -Singhl 90 90 110 110 22Magur - - 140 40 -Shrlmp (big) 860-400 B80 -Shrimp (s1) W70 8 100-110 110 62Pabda - -0-100 90 -Tangra - - 70-76 72 -Poa 40-46 42 s0o-0 S5 81

/B Based on fish market survey by the mlsson In Dhaka City on Apil 20, 1990. Both whol el-and retl prices *r gneral ly high during AprilI du. to Ramadan.

/b Refers to local name.

/c From tho Swaright, Dhaka.

/d From the Nw Market, Dhaka.

/o Percent lncreoo In retail price over wholealo price.

/f Not calculated because one of the two price. was not avallablo.

Lg Bolow 1 kg rul or catla.

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BANQ1ADESH

FISHERIES SECTOR REVIEW

Annex Table 2.25: BFDC RETAIL PRICES FOR SELECTED MARINE ANFRESHWATER FISH Lr

March 1860 Retnll PricoFish Type Size Whole Fish Cut Fish

-(TK/Kg)--

Marine Fish

Jew Fish Above 9, 80 -Lb

Jew Fish so - 90 24 -

Cat Fish Above 12' 28 82Cot Fish Below 12' 22 28Black Jew Above 8 l 40 44Black Jw 1 - 8 kg 82 86Indian Salmon Above 6 kg 65 70Indian Salmon 8 - 6 kg 52 56Indixn Saloon Below 8 kg 45 49Fatty Catfish Above 8 kg so e6Fatty Catfish Below 8 kg 40 46Chinese Poetret N S Ic 65 -Silver Pomfret N S e -

Black Pof ret N S 86 -

Fresh Water Fish

Rubi Above 8 kg 70 90Ruhi 2 -:8 kg 60 s0Ruhl 1- 2 kg 45 70Rubi Below 1 kg 85 esKatle Above 5 kg 60 70KatIa 2 - 6 kg es e6Kati* 1 - 2 kg 40 50Katie Below 1 kg 85 40Uriagl Above 4 kg 60 6oMrigal 2 - 4 kg 46 66Mrigal Below 2 9 s8 46Catfish Above 8 kg 8s 40Catfish 1 - 8 kg 80 8sCatfish Below 1 kg 27 S0Teilapia Above 0.5 kg 80 -

Teillpie 0.2 - 0.5 kg 24 -

Grass Corp Above 8 kg 46 e6Grass Crp 2 -8 kg 40 soGrass Carp Below 2 kgso 66Silver Carp Above S kg 82 40SliverCorp 1.6-S kg 27 s8Comon Corp Above kg 45 56Comm1n Carp 1.5 -kg E5 s0Comon Carp Rolow 1.5 kg 8o 45Mirror Carp Above 8 k 40 51Mirror Carp 1.5 - 8kg 86 47

o Based on Itformatlon oebtined frae BFDC.

b No price Is fixed.

Le No alsi Is speciflid.

-168-

BANGLADESH

FISHERIES SECTOR REVIEV

An-nex Table 2.26: RELATIVE SHARES OF INSTITUTIONAL AND NONINSTITUTIONALSOURCES OF RURML CREDIT la

Relative Share ofInstitutional Noninstitutional

Study Sources Year Credit Credit…(Z________ -----)…--------

1. Socioeconomic Survey Board,Dhaka University 1956 6.7 93.3

2. Pakistan Census of Agriculture 1960 10.0 90.0

3. Cooperative Statistics andResearch Organization 1966 14.0 86.0

4. Report of the Committee ofAgricultural Credit '169 13.9 86.1

5. Bangladesh Institute ofDevelopment Studies (BIDS) 1982 12.5 87.5

6. BIDS/International FertilizerDevelopment Center (IFDC) 1985 8.0 92.0

La Summarized in FAO/World Bank Cooperative Program (1989) and UNDP (1989).

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BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.27s DISBURSEMENT OF FISHERIES CREDIT la

Amount Relative ShareFiscal Commercial CommercialYear /b BKB Banks Total BKB Banks Total

…____-- (million Tk)------- --------- ()

1981 73.7 11.2 84.9 87 13 1001982 69.5 10.8 80.3 87 13 1001983 55.4 25.3 80.7 68 32 1001984 128.8 106.8 235.6 55 45 1001985 165.1 78.9 244.0 68 32 1001986 103.4 181.9 285.3 36 64 1001987 52.2 52.1 104.3 50 50 1001988 61.2 38.8 100.0 61 39 1001989 64.6 48.4 113.0 57 43 100

,a Based on information obtai%ed from Bangladesh Xrishi Bank and BangladeshBank, Dhaka. ,

AL Fiscal Year 1981 refers to 1980181 and so on.

-170-

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.28: FISHERIES CREDIT FROM BANGLADESH KRISHI BANK La

Recovery asPercentage

Year Lb Disbursement Lc Recovery /c Overdue /c of Overdue-______------- (million Tk) -------------- (Z)

.X984185 179.05 74.66 175.94 42

1985/86 103.38 100.82 230.83 44

1986/87 52.59 114.46 321.61 36

1987/88 61.24 92.43 373.62 25

1988/89 64.59 75.55 507.86 15

a Based on information obtained from the Bangladesh Krishi Bank,Dhaka.

b 1984/85 refers to fiscal year 1985, and so on.

jc Excludes revolving credit line for processing and exports of shrimpand froglegs.

BALAOESH

FISHERIES SECTOR REVIEW

Annex Table 2.29: BANGADESH BANK CREDIT ALLOCATIONS FOR FISH CULTURE, 1989/90 /a

Fish Culture Sonall Janata Agrani Rupall 8KB Rakub BROB BSBL Total

- - - --------- ~~(ml II I icn Tk) ---- ----------------

Short-Term Loons

Shrimp culture 80.0 20.0 40.0 25.0 25.0 - 6.0 - 145.0

Aquacultur, - - - - 5.0 - 6.0 - 10.0

Lons-Term Loons

Pond fish culture 46.0 1S.0 t.0 7.5 70.0 25.0 10.0 20.0 197.6 IL

Shrimp culture 85.0 - 46.0 - 80.0 - - - 110.0

Aquacultur-i - - 7.6 6.0 15.0 - - 27.6

Marine fish culture - -1 15.0 - 15.0

Tot"l 110.0 86.0 90.0 40.0 160.0 40.0 20.0 20.0 050.0 rb

/a Based on lnformation obtained from the Bangiadesh Bank.

lb Total credit disburemnt (excluding pr.ate commercial banks, NGO* and tho Grawoen Bonk) for fish clture

was:

Tk 100 mlllon In 1987188 and TK 118 million In 168,/9.

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BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 2.30: BANGLADESH BANK GUIDELINES FOR RATES OFINTEREST ON LENDING AS OF JANUARY 1, 1990 /a

Rate of InterestCategory Rate of Interest /b Subsidy

1. Agriculture 16.0 1.12. Large and medium-scale industry

(term loan) 13.0-17.0 0.03. Working capital (jute) 9.0 6.14. Working capital (other than jute) 12.0-15.0 0.05. Jute trading 16.0 0.06. Jute and jute goods exports 8.0-11.0 2.67. Other exports 8.0-11.0 2.68. Other commercial lending 18.0 /c 0.09. Urban housing 12.0-15.0 0.0

10. Special programs(i) Small industry (term loan) 10.0 6.0(ii) Other special programs 8.0-13.0 2.6

11. Others 12.0-20.0 0.0

id From Bangladesh Bank (1989).

lb Participating individual banks are free to set up their own interest ratewithin the band set up by the Bangladesh Bank.

lc Maximum rate of interest.

Arm xTble 2.81s DISBUVSESENT O t AMSE SANK LOANS TO FISHERY ANDFIMT-mELCIE 1ThIM FROM m NCETON TO OECEElt 81, IM8 /

Landiw (Male) Landless (Female) TotalIINIMMOr oT ASSS m.uno or r oT Loul n ssuns eV NRr oT LGM om@wu o

Category Loans Loans LOnS"(*000 Tk) ('CO Tk) ('COO Tk)

Dry flos 248 040.5 on 1,4B8.0 1,182 2,120.8

Fishing nat 1,8m 4,047.8 2,207 4,170.8 4,142 8,817.6

Seot for flob;as 06u 2,830.5 844 737.2 1,2#6 8,006.7

Peed excovation 8 S.5 9 11.5 12 20.0

Pissiesteure o10 1,124.7 2,589 8,6.90 8,149 6,110.0

SwbttsI 8.745 $m- *780. 6.9 10s448.0 9.788 190174.2

Fish trading B 7,687 22,187.1 6,069 14,111.0 14,8 86,240.1

Fisbing nebehing 1,109 4*667.6 17,426 25,206.5 108s8 2,76.2

Peddling (dry fish) 191 566.1 90 1,520.7 1,091 2,068.*

SabttIal fLaSh 2T7.M2. 26.024 40.240.2 8.4061 0U.218.1

tOI 17,774 6,lo.8 81,012 5$1,264.0 49,4906 87,8#7.VPeroNIseteg of total

frsme Ssh lesn 5.8 5.4 2.2 2.2 2*. 2.5

Based eO lforwtios obtalie f rom 10 Annua Repet of the Grase, B"akrameen sank El"".

sluds lteen a for fish, dry fsh, fishing net and fineling trading.

-174-BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 8.1: PHYSICAL TARGETS AND ACHIEVEMENTS FOR FISHERIES SECTORDURING FIVE-YEAR PLANS /a

1984/86 /b _ 1989/90 /cAchievement Achievement

Measuring as Psecentage as PercentagePreras unit Target Achievement of Target Target Achievement S of Target

Fish production ml Mt 1.000 0.774 77 1.000 0.847 06

Inland mn Mt 0.820 0.68B 71 0.643 0.428 78

Marine min Mt 0.180 0.188 104 0.228 0.234 103

Aquasulture min ha 0.261 0.090 84 0.229 0.190 88

Production of try/fingerlinp min 820 280 72 - - -

Flsh export Mt 20,100 20,382 101 88,576 25,000 66

Shrimp at 17,000 12,682 75 80,000 -

Froles Mt 1,600 1,865 8S 2,700

Fish and fishproducts Mt 1,500 3,884 266 5,875 - -

/a Derived tfro the Five-Year Plan documents and mission estimates.

b Terminal yer of second five-year plan.

/a Terminal year of third five-year plan.

d Pre liminary Projected achievemnt. Actual export data for 1989/00 Is not avallable.

Io Datat not vallabli.

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BANLADESN

FISHERIES SECTOR REIEW

Annex Table 1.2: PERFORMANCE OF O)B3W PROJECT LAKES OVER TIME LI

Oxbow Proloct Lake.Year baluher Joydia Fatehpur Morjad Brgob1ndapur btgora All lakeo

Fish Yield (kg/ha) lb

1979/80 226 109 52 74 1" -c 1481980/81 89 40 42 59 96 - 691981/82 116 72 so 62 126 15 891982/8B 406 294 91 so 94 sO 2061988/84 S48 i27 71 42 104 10 2081984/85 951 876 200 99 148 89 8881985/86 702 408 206 44 94 111 800l986/87 642 428 161 67 401 1s 86W1987/88 642 680 159 67 447 284 4C21988/89 867 892 282 91 870 810 S00

Proftt/Lows (thousand Tk) /d

1979/80 182 -50 -68 -115 76 - 291980/81 -184 -106 -40 -66 11 - -8661981/82 -107 -218 -65 -270 -81 -52 -7421982/88 578 226 -108 -129 -137 -97 -8821988/84 881 -87 -128 -102 -99 -167 2781984/85 1,811 607 -90 -26 -101 -76 2,0261985/88 1,709 800 -196 -20S -216 -168 1,7691986/67 1,422 704 -178 -01 790 -85 2,5071987/88 1,863 912 -828 -289 426 11 2,1871968/89 6il 30 -198 -802 -61 -109 259

/! Based on Information obtaIned from the Oxbow Lakes Fishery ProjectImplementation Unit and the Department of Fisheries.

;b Total fish production divided by water area for each lake. Yield forall lakes refers to weighted average

/c Not Included In the project during the yar.

/d Sixty percent of gross reocipts from fish salo (the government*s share)minus total expenditure which consisto of sories, allowanes,operations cost, and contingencies.

-176-

A.m. Table 8.8s VANS OP OIPVdfl CAMP WCUM III FMS PRODUCTIONl-M elmsl PROJIC LMIIS La

Mfg of Cars S..el In Fils ProdustIglITForw are" mirror Co_M Fish

Year Oaow Lake rj C Corp Corp Totel Lk Prdutie

1l6s/$1 fluher Is 6 so 0 S I 100 1NJodio 8 is T * 1 - 100 77Mojad 9 1 40 20 7 1 - 100 14orgblmdpu 4 is 7s 2 2 Is - 100 11

Kotjost 3 14 84 0 24- - 100 3

All Lakes 4C 1i 80 3 a 1 0 100 817

190/N Bluhaor t 4 19 2 4 4 11 100 161Jydio 15 8 14 7 1 1 50 100 119

oniod 13 27 9 9 82 - 5 100 22berobldobpur 4 8 81 8 6 6 100 a7

Kotoro a2 10 80 10 10 - 15 1o0 90

AI IaLA" 48 t 21 4 6 2 20 100 450

hosd on lormotioon oWelned fren the Oxbow Lakes Filshries Project leplammmtostIe Unit and theDeprtmet of Flihrle. FPtehpur Lake Is elud.

b Tote I "t od to exact 100 due to rudi no.

,£ Nsiliglble or noe.

BANGAESH

FISHERIES SECTOR REVIEW

Annex Table 8.4: OVERALL FINANCIAL PERFORMANCE OF BFDC DIMINO 1988/69 /a

ExDenditure Profit/Project Income 0 A H L Ovorhed Depreciation Interest Total Los

_- (tillIon Tk) --

Heed Otftice, Dhaka 6.98 10.20 0.00 0.05 0.00 10.29 -8.86Fish Harbour Complex, Chlttagong 88.16 88.S0 1.87 1.66 0.60 41.02 -8.76..t Buiding C.mpix, Chttagong 10.88 12.82 0.48 0.47 0.40 14.12 -S.9Trawler Project, Chittagong 19.48 17.62 0.94 2.6? 0.40 21.6 -2.20Fish Net Factory, Chittagong 8.t7 9.20 0.09 1.05 0.00 10.88 -1.58Fish Procesng Scheme, Cox *azar 18.64 18.74 0.49 0.22 0.09 14.68 -0.68Wholesale Fish Make Cox nazar 88B4 1.58 0.17 0.15 0.06 1.97 1.87Development nd Mak eting F ftah 10.84 8.50 0.52 0.89 0.50 4.91 5.44Fish NMt Factory, Comila 7.59 7.19 0.14 0.26 0.05 7.68 -0.04Marketing and Distribution Project, Pagls 25." 8.S5 0.48 1.91 0. 60 80.47 -10.70Wholesale Fish MareXt, Rajehahi 2.89 2.28 0.08 0.07 0.00 2.84 0.015Wholeoalo Fish Maret, Khulna 4.U4 2.26 0.28 O.Ce 0.06 8.14 1.70Fish Proesng Se Mnla 16.88 22.20 0.86 2.08 0.80 24.92 -6.59Fish Ne Factory, Mong; 6.96 8.6o 0.07 0.69 0.00 9.82 -2.84F.L. lnd rlrvalon Facbtes BorI 1.24 115 0.06 0.60 0.00 1.81 -4.6tMarkting and Ditrton Pro3t, Kepura 1.60 1.82 0.09 0.78 0.00 2.18 -O.5Mase tn and Oistnlbon Project, Patearhaa 1 19 11 0.07 O.5t 0 00 .0 -0.C 1

Tot"l 160.60 166.91 S.54 18.91 2.90 209.15 -2S.2S

1 ae on lnformtlon obtained troe BFDC.

Operatios and mintennc.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 3.6: PROJECT LOANS AND GRANTS BY GOVERNMENT TO BFDCMHOM ITS INCEPTION TO JUNE a0, 1989 /a

Local Pro cts Donor ProeNaw of project Loan uiranit tiT Loan crant Total

(mil lI on Tk)

Bangladesh Fisherle Devolopmnt Corp. (headquarters) 8.4 1.0 9.4 -/bDistribution Proj et and MarketIng 1 Fish at Pag Ia 44.9 - 44.9 32.0 - 82.0Establishment of Fish Noet Factory at Mongla and Chittagong 17.8 - 17.8 21.7 - 21.?Estbl ishmnt of Boat Building Project 87.2 - 37.2 - 96.9 96.9Mechanization of Fishing Ba Project 28.4 - 28.4 47.8 - 47.8Mechanliation of Country Fishing Boat Proj3ct 9.2 0.8 9.6 6.8 - 6.8Mechanization of Fishing Boat In Bay of Beongal Project - 0.1 0.1 -Estblishment of Me rketng Center with Onshore Fa ciities 11.6 - 11.6 - 17.6 17.6Fish Whole* e Market 4.8 0.2 4.6 0.5 - 0.5Fish Procesing Project at Chtetagong 1.7 0.8 2.0 - - -Fish Processeig Projact at Mongla 86.8 0.1 8.4 4.1 - 4.1Fish Landing and Preservation Plant at Barisal 8.9 - 8.9 15.1 - 15.1Fish Net Factory t Comilla 1.1 0.4 1.6 - - -Six Hundred Foot Shrimp Trawler Project 11.8 - 11.8Development and MarkebTng of Karnafull Resrvoir Fish 22.6 0.2 22.8 - - -Introducetion of Two Danish Trawlers for Training 8.6 - 8.5 - 48.4 48.4Scheme for Four Fishing Trawlors at Chitta gon 12.6 1.4 18.9 6.4 - 6.4Fassibility Study of a New Fish Harbor at Chittagong 1.0 - 1.0 - 2.4 2.4Reconstruction of Fish Harbor at Chittagong 12.8 - 12.8 - 14.5 14.5Fish Harbor at Chitteaong 38.2 2.7 85.9 12.0 - 12.0Introduction of Twelve Fl hing Trawlers In the Bay of Bengal 19.8 6.1 25.9 - 72.8 72.8Second Phase Construction of Fish Harbor at Chittagong 16.0 - 16.0 - -Quality Control and Products Development Center at Chittagong 1.0 - 1.0 - -fish Proc ssIng Projoct at Chittasong 16.6 - 16.6 6.2 2.2 7.4Fish Landing and Markoting Projoct at Dabsrghat 17.4 - 17.4 - - -Marin Fisheries Acad"y 10.9 18.6 24.6 - 4.7 4.7Bee! and Boor 1.0 0.6 1.8 - - -Construction of Thre Trawlors In Khulnn Shipyard 14.9 - 14.9 - - -Investment Survey Project - 5.5 5.6 - 7.8 7.8Boat Building and Mechanizatton Scheme - .4 8.4 - 0.7 0.7Mint Trawlers Project - - - - 9.2 9.2Dutch A2lsta*nc - - - - 10.2 10.2U.N.C.D.F - _.8 8.8

Tots I 897.8 85.9 488.2 160.6 289.7 440.8

La Based on lnformation obtained from BFDC.

/b None or negligible.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 3.8: EXPENDITURE AND REVENUE ESTIMATES FOR THE DEPARTMENT OF FISHERIES /a

Fiscal YearItem 1980/8 1981j8Z 198Z/88 1383/54 ILV4Ub 1WI5b/8P /ifI 1WI78 19 is8/8w 1W9UW 9

…-------------- - - ---- (m llIon Tk) --

Expenditure

Revenue Budget Jc 29.7 81.4 41.4 60.1 56.5 67.4 107.2 188.4 180.6 180.9Development Budit /d 86.3 161.4 146.5 102.6 184.8 126.4 162.9 174.5 221.7 842.6

Total 115.0 182.9 186.9 162.7 289.8 182.8 270.1 810.9 862.2 978.5

Revenue

Fish Sale 1o 7.3 5.5 6.8 17.6 11.0 14.6 16.4 16.6 14.6Anging Fe / 0.2 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2wtoer bodwesTe fe 9 5.2 40.8 U4.7 - - - - - -

Othrs /h _ 0.6 0.9 2.0 2.1 2.1 8.4 8.4 8.4

Tote 1 12.7 47.0 41.6 19.8 14.2 16.8 19.0 19.0 10.2

/a Information was obtained from the Department of 9ishories.

/b The prellminry projocted expenditure during 1989/90. Information on revenue ma not availablole.

/a Rovised operations and maintenanco budget. It includes primertly salaries, bwnefits, alowances, and contingencieo.

Id Revised budget for salaries, benefits, el lownces, and capital cost. It Includes fundbs avalable froe the90gornenkt and from project aid.

/o Sale of fries, finger ings, and adult fish from fish sed farms and DOF bodles of water, Including Oxbo lakes.

/f Fee for sport, flshing.

Li From the lesa of bodies of water for fishing. During 19f8/84, the bodies of water were given back to theMinistry of Land. Under the New Fisheries Mhnes " t Policy (Jal Mabel PolIcy), the bodies of water will begradual1y transferred back to the Ministry of Fisheries and Livestock for managemwet.

Ih Sale of old off ico suppi lee and sale of vegetables and fruits from DOP farms.

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Annuo Table 4.1: PROJECTIONS FOR FISH SUPPLY AND SEAFOUO EXPORTS /a

Fish Supply Seafood Exports

Year /b Slow QrowthLa Moderate Growths Moderate Growth Le High Growth Li- ('~~~~~~~000 at)

1987/88 795 ?95 82.0 82.01988/69 809 619 88.8 a8.9Ig/g90 624 648 84.6 U8.01900/91 8a9 U69 86.0 88.11991/92 854 69S 87.4 40.41992/98 89 922 86.9 42.6199M/94 865 949 40.5 45.41994/96 9r7 976 42.1 .11995/98 917 1,007 48.8 6s.01996/97 988 1,087 45.5 U4.11997/99 950 1,068 47.4 57.81999/99 967 1,100 49.8 80.71999/20 986 1,188 61.2 64.42000/01 1,008 1,167 68.8 68.82001/02 1,021 1,208 6t.4 72.82002/08 1,089 1,289 57.6 76.72008/04 1,058 1,276 69.9 61.82004/05 1.077 1,814 62.8 86.22006/06 1,006 1,868 64.6 91.82o00/07 1,116 1,894 67.4 9#.02007/08 1,186 1,486 ?0.1 102.62006/09 1,156 1,479 72.9 106.62009/10 1,177 1,528 75.6 11S.8

Is 1967/88 to taken as the base year. Estimated total fish production during 1987/68was 627,000 Ut, out of which 82,000 at equivalent (25,000 at HO equivalent shrimp,4,500 at frozen flsh and 2500 at quivalent dry and processed fish) was exported,and the balance of 796,000 at was consumed domestically.

/b 1999/20 refrs to 1999/2000.

/e 1.80 average annual growth rate.

d 8.ox average annual growth rate.

L 4.0X average annual growth rate.

It 6.0% average annual growth rate.

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Annex Table 4.2s PROJECTIONS FOR FISH DEMAIS AND PSH RE4UAREMENTS /

Fish Reu _irmntConstant £g Improved

VY rlb Population Fish Demand La Per Cep1t Pep CapitaConeumption Consumption

(millon) ('000 at)

1987/88 109 795 796 795198,/69 111 624 614 680Ing/g0 114 a68 8U 6671900/91 117 684 6S4 9061991;2 119 016 674 041992/93 122 949 89S 9w1998/94 126 Su8 917 1,0821994/95 128 1,016 989 1,0781995/96 181 1,056 960 1,1251996/97 184 1,095 982 1,.741907/0 187 1,186 1,005 1,225190/99 140 1,176 1,026 1,2761 90/2w 144 1,221 1,052 1,8842000/01 147 1,206 1.076 1,8902001/02 160 1,818 1,098 1,449iO02/08 158 1,862 1,122 1,6112008/04 167 1,412 1,147 1,6752004/05 160 1,464 1,172 1,6422005/06 164 1,519 1,197 1,7102006/07 167 1,575 1,222 1702007/06 170 1,688 1,246 1,6542006/00 174 1,604 1,274 1,9812009/10 176 1,756 1,801 2,011

La 1887/88I taken as the base year with 106.6 milIIon population and estimted-6,000 at donestilc fish consumptlon/avallabilty.

Lb 1999/20 ref-es to 1800/2000.

La Annual flsh demnd Is projoeted to grow, on the average, at 8.6X from 1907/88to 1994/06 and at 8.7X fro 1904/95 to 2009/10. Thes annual growth rates areca leulated as follow.:

(Growth In flsh a (Population + (Inwco elasticity of *(Growth In perdomand) growth) Demand for fIsh) capita lncome)

From 197/86 to 1994/05: 2.4 + 1.0 (1.2) a 8.6From 1004/95 to 1090/2000s 2.8 + 1.0 (1.4) * 3.7From 1899/2000 to 2004/05: 2.2 + 1.0 (1.5) a 8.7From 2004/05 to 2009/10: 2.1 + 1.0 (1.6) * 8.7

/d Domestic average annual per capita fish consumption/avai lability was 7.82 kgduring 1987/88.

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Annox Table 4.8: PROJECTIONS FOR DOMESTIC AVERAGE PER CAPITAfISH CONSUMPTION/AVAILABILITYLs

Fish SUDIY _ Fish Roauire entSlo-w Z r te Fish Demand -- Con ztant Improvod

Yearb Growth Growth Per Capita Per CapitaConsumption Consumption

1987/86 7.82 7.82 7.82 7.82 7.321988/89 7.28 7.86 7.41 7.32 7.471989/90 7.28 7.41 7.49 7.82 7.621900/91 7.19 7.45 7.56 7.82 7.771991/92 7.16 7.49 7.67 7.82 7.921992/98 7.11 7.64 7.76 7.82 6.081998/94 7.07 7.56 7.65 7.82 6.241994/95 7.08 7.68 7.94 7.32 6.411998/96 6.99 7.66 6.05 7.82 6.681996/97 6.96 7.78 6.16 7.32 6.761997/98 6.92 7.76 6.27 n 82 0.921998/99 6.89 7.64 6.89 7.82 9.101999/20 6.86 7.89 6.60 7.82 9.262000/01 6.89 7.95 6.63 7.82 9.472001/02 6.80 6.01 6.75 7.82 9.6g2002/0 6.78 6.06 6.68 7.82 9.8652008/04 0.75 6.14 9.01 7.82 10.062004/06 6.72 6.20 9.14 7.82 10.252005/06 6.70 6.26 9.29 7.82 10.45I008/07 6.68 8.36 9.48 7.32 10.662007/06 6.66 6.42 9.68 7.82 10.862008/09 6.64 6.60 9.78 7.82 11.092009/10 6.62 6.57 9.66 7.82 11.82

L 1987/68 Is taken as the base yer with 7.82 kg estimateddomestic averago annual per capita fIsh consumption/avaIlabtiIty.The per capita fish consumption/ovai labilty Is estimted by dividingfish supply, dmand, or requirements by population In the same year.

/b 1999/20 refers to 1999/2000.

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Annex Tabl. 4.4: PROJECTIONS FOR FISH DEMAND, SUPPLY, APD POTENTIAL GAP Lo

Gap as PercentagoFilsh SuD .. Potential Up of Fish Omand

Fish Slo M md.te Slo--ediiiW Slow Moe i raewYarLb Oemand Growth Growth Growth Growth Growth Growth

(--000 Nt) ---- --…(--)

1987/66 795 796 795 0 0 0.0 0.01988/89 824 809 819 14 S 1.7 0.61989/90 6S8 624 648 29 10 3.4 1.21900/91 684 889 869 45 1S 5.1 1.719,1/92 016 864 89S 62 21 6.6 2.B1902/08 949 So9 922 s0 27 8.4 2.91998/94 988 6S6 949 96 64 10.0 8.41994/96 1,016 901 976 116 41 11.5 4.0

Joe 1,056 917 1,007 189 49 13.2 4.0/97 1,095 908 1,087 162 s6 14.6 5.8

1.-./98 1,188 950 1,066 186 67 16.8 6.91998/99 1,176 967 1,100 210 n 17.9 8.61999/20 1,221 986 1,188 266 so 19.4 7.22000/01 1,286 1,008 1,167 264 99 20.6 7.82001/02 1,816 1,021 1,208 298 111 22.6 8.420o2/08 1,362 1,089 1,289 828 128 28.7 9.02003/04 1,412 1,068 1,276 a85 18 25.1 9.72004/05 1,464 1,077 1,814 a86 150 28.5 10.82005/06 1,619 1,096 1,858 428 165 27.6 10.92006/07 1,676 1,116 1,894 459 161 29.1 11.52007/08 1,688 1,136 1,486 497 197 80.4 12.12008/09 1,894 1,156 1,479 587 215 81.7 12.72009/10 1,756 1,177 1,528 579 28a 8.0 18.8

L 1967/68 Is token as th, base year. Estimted total fish production during19807/6 was 627,000 at, out of whIch 82 000 bt equivalentwas exported, and the balance of 79,006 et was consume domesviecal ly.

Ib 1990/20 rofers to 1999/2000.

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Annex Table 4.5: PROJECTIONS FOR FISH REQJIREMENT, SUPPLY, AND POTENTIAL GAP l

Gap as PercentageFish SUPP Pat ote ntll GOD of Fish R!Muic!Mt

Fish slow itod r eo Slow od r to Sl1ow 110"r toYearjb RequlrmmentLj Growth Growth Growth Growth Growth Growth

~~~~~~( 000 at) -- - ----- --

1987/8 795 795 796 0 0 0.0 0.01988/89 680 609 019 21 11 2.5 1.41969/90 667 624 648 4a 24 6.0 2.71900/91 906 689 669 67 87 7.4 4.11991/92 946 654 696 92 51 9.6 5.41982/98 9o6 669 922 119 07 12.0 6.?1998/94 1,032 68S 949 147 O8 14.8 8.01994/95 1,076 901 97 177 100 16.4 9.31995/9 1,125 917 1,007 206 116 16.5 10.51996/97 1,174 WS9 1,037 240 187 20.6 11.01997/96 1,225 960 1,066 275 158 22.4 12.61998/99 1,276 967 1,100 811 176 24.8 18.91999/20 1,884 965 1,188 849 200 20.2 15.02000/01 1,890 1,008 1,167 886 228 2*.9 10.02001/02 1,449 1,021 1,208 429 247 29.6 17.02002/08 1,611 1,089 1,289 472 272 81.2 16.020/04 1,575 1,058 1,270 517 299 82.6 19.0200405 1,642 1,07 1,814 S65 826 84.4 20.0_2005/0 1,710 1,096 1,858 614 856 85.9 20.62006/07 1,760 1,116 1,84 06 88$ 87. 21.72007/06 1,864 1,186 1,4S6 718 418 86.7 22.62006/09 1,981 1,16S 1,479 775 462 40.1 28.4

2009/10 2,011 1,17 1,528 64 486 41.5 24.8

& 1987/68 is taken as the base year. Estimed totel fi h production during1967/88 was 07,000 at, out at wbich 82,000 t equivalent (25,000 at H0euivalent shrimp, 4,500 at frozen f*Ih and 2,500 at equivalnt dry andProcesed fi sh) was exported, and the balanco of 796,000 t consumeddomestically.

fr 1999/20 reftrs to 1999/2000.

c Retfrs to Improved per capita floh conumption scenrlo.

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Annex Table 4.6: PROJECTIONS FOR TOTAL (DOMSTIC AND EXPORTS)FISH SUPPLY, DEMAND, AND REQUIREMENTS&

Fish Suotly /Lc Fish Reuirementa /51ow k1oderotle Fish De nd Lt Constun Improvod

Yenr/b Growth Grow"t Per Capita Per CapitoConsumption Consumption

- - ao (-VoOat)

1967/66 627.0 627.0 627.0 027.0 627.01908/89 648.2 652.6 867.5 648.0 864.21989/90 8659.6 97.4 689.2 869.6 008.21900/91 676.8 006.6 922.1 691.7 9048.91901/92 894.2 985.2 966.2 914.5 066.610m0/98 912.0 964.4 001.6 987.9 1,081.01998/94 980.2 994.7 1,026.8 961.9 1,077.61094/95 948.9 1,025.9 1,066.4 966.6 1,126.21906/96 968.0 1,066.1 1,107.0 :,011.1 1,175.91996/97 087.5 1,091.4 1,149.1 1,086.2 1,227.91997/90 1,007.6 1,125.7 1,192.9 1,062.1 1,262.11008/99 1,028.1 1,161.2 1,288.4 1,066.6 1,886.61999/20 1,049.2 1,197.9 1,285.6 1,115.9 1,898.02000/01 1,070.8 1,285.7 1,884.6 1,142.9 1,456.42001/02 1,092.9 1,274.9 1,388.6 1,170.6 1,S21.2002/06 1,115.6 1,815.8 1,488.5 1,199.2 1,587.42008/04 1,188.9 1,867.0 1,498.5 1,226.4 1,656.12004/05 1,162.8 1,400.2 1,550.6 1,256.6 1,727.62006/06 1,167.4 1,444.6 1,610.0 1,266.4 1,801.020O0/07 1,212.6 1,490.9 1,671.6 1,819.0 1,677.82007/06 1,288.6 1,686.5 1,786.7 1,850.4 1,906.82008/09 1,265.1 1,567.7 1,602.8 1,862.6 2,089.62000/10 1,292.4 1,688.6 1,871.5 1,416.1 2,126.8

Ll 197/68 1s taken as the base yer with estimted 627,000 at total fishproduction which ws usd for dpometle consumption and exports.

1b 100/20 refors to 1900/2000.

Lg Supply to mast domestic consumption and high growth In fish exports.

Id Domestic consumption dmand and high growth In fish exports.

/f Domestic consumption requireomnt and high growth In fish exports.

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Annex Table 4.7: RETAIL PRICES OF FISH SPAWN AND FINGERLINGSIN MYMENSINGH, APRIL 1990

Fish Spawn Price /a Fin&erlings Price tbSpecies FRI /c DOF /d (FRI)

----- (T,K/kg)------ (Tk/1000)

Catla 14,000 -Mirror carp 8,000 6,000 800Grass carp 10,000 10,000Mrigal 6,000 - -Silver carp 6,000 6,000 500Rohu 6,000 - -Bighead 6,000 --

Tilapia - - 100-200Sarputi 5,000 6,000 300-500

la Spawn consists of 4 - 5 days old hatchlings. There areabout 400,000 hatchlings in one kilogram of spawn. Catlaand grass carp are relatively difficult to bpawn. As aresult, spawa prices for catla and grass carp are higherthan for other carps. In 1988, spawn prices at privatehatcheries were:Tk 2,000-4,000/kg for rohu and mrigal;Tk 3,000-6,000/kg for silver carp and mirror carp; andTk 5,000-12,000/kg for catla and grass carp.

/b Fingerlings sizes are 1.5-2.5 inches for mirror carp, 1.0inch for silver ca_p, and about 2.0 inches for sarputi andtilapia.

/c Fisheries Research Institute, Mymensingh.

/d DOF Fish Seed Multiplication Farm, Mashkanda, Mymensingh.

BANGLADESH

FISHERIES SECTOR REVIEW

Annox Tablo 4.8: ESTIMATED PRODUCTION COSTS AND RETURNS FROM SHRIMP FARMING IN COX'S BAZAR, 1988 L

Cost Co"Monenta upe raing Income

Polder Lease Invetent Cost Cost Total Shrimp Lb Other Total Profit

- --- -- ~~~~- (Tk/ha) -- -- ------ --- -----

Cata lt 0,20C 8,026 48 U,912 18,179 16,408 1,421 17,689 1,710

Oshaltall 7,981 1,088 187 6,242 16,198 18,688 1,561 20,237 4,044

Ohalghat 5.488 2.622 279 0.898 14.782 21.867 2.282 24.119 9.337

All 6,229 2,706 802 0,l79 15,416 19,007 1,762 20,759 6,844

/a Based on 1tnforetton obtained fro Rmhman (1999).

/b Average shrimp production was 65 kg/ha In Gomatall, 65 kg/ha In Bahaetali, 79 kg/ha In Dhalghata and 69 kg/ha overall. F

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Annex Table 4.9: CHARACTERISTICS OF THREE MAJOR ASIAN SHRIMPCULTURE SYSTEMS /a

Asian Shrimp Culture SystemsItem Extensive Semi-Intensive Intensive

Pond size 5 ha or larger 1 - 5 ha 1 ha or smaller

Stocking 3,000 - 20,000/ha 25,000 - 80,000/ha over 80,000/hadensit-

Water mostly tidal pumping, some pumping,management aeration aeration, and

treatment

Fry sources wild or hatchery wild or hatchery hatchery

Feeding natural through fertilization with formulated dietfertilization supplementary feed

Crops per 1 - 3 2 2 - 2.5year

Production 300-800 kg/ha/yr 1 - 3 mt/ba/yr 8 - 12 mt/ha/yr

Production US$2.20-3.85/kg US$3.30-6.60/kg US$6.60-10.00/kgcost lb

/a Obtained from INMOPISH, Shrimp 1988 conference proceedings.

/b Total production cost includes cost of packaging and freezing.

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Annex Table 4.10i ESTIMATED AVERAGE YIELD OF SHRIHP ANDFISH ON DIFFERENT SHRIMP FARMS, 1989 j"

Average Yield IcShrimp Area lb P. Monodon Id P. Indicus le M. Monoceros jf Fin Fish Total

- - - - - - - - - - - - - - (kglha) - - - - - - - - - - - - -

Cox's Bazar 96 6 29 77 208Cox's Bazar 120 53 56 208 437Cox's Bazar 108 15 86 67 276

Khulua 178 4 23 54 259Khulna 76 3 5 12 96Ehulna 99 3 3 4 109

Average 103 10 24 55 192

La Based on data collected through BIDS' field survey for the IDA-financed ShrimpCulture Project.

Lb Yield on different farms in different polders.

fc Shrimp yields are for head-on shrimp.

IAd Black tiger or tiger prawn.

Le White prawn.

If Brown prawn.

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Annex Table 4.11: ESTIMATED AVERAGE PRICE FOR HEAD-ON SHRIMPON DIFFER2NT FARMS, 1989 /a

Shrimp area lb P. Monodon /c P. Indicus /d M. Monoceros le-- - - --(Tklkg) - - - - - - - - -

Cox's Bazar 167 59 35Cox's Bazar 178 70 20Cox's Bazar 159 59 22

Khulna 145 78 45Khulna 141 65 45Xhulna 116 70 45

Average 147 66 30

ja Based on data collected through BIDS' field survey for the IDA-financedShrimp Culture Project.

jb Price on different farms in different polders. Average size of shrimp inCox's Bazar is bigger than in Khulna; hence, the price difference.

io Black tiger or tiger prawn.

jd White prawn.

Le Brown prawn.

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 4.12: PONDBANK PRICE FOR HEAD-ONSHRIMP IN BANGLADESH, 1989 /a

Shrimp Average Monthly Prices

Species Count lb June July August September October November December- - - - - - - - - - - - - - - (Tclkg) - - - - - - - - - - - - -

P. Honodon Lc 10 312 300 285 250 200 200 215

15 300 275 200 18u 170 150 150

20 250 200 120 110 100 100 100

30 200 160 110 90 80 80 80

50 150 120 80 70 70 70 70

P. Indicus Id 15 125 120 110 100 100 100 100

20 110 100 90 90 90 90 90

30 100 S+ 80 70 60 60 60

M. Monoceros/e 15 70 60 SO 50 50 50 50

20 50 40 40 40 40 40 40

30 25 20 20 20 20 20 20

/a Based on data collected through BIDS' field survey for the IDA-financed Shrimp Culture Project.

b Number of pieces per pound.

Ic Black tiger or tiger prawn.

Id White prawn.

le Brown prawn.

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Annex Table 4.13: ESTIMATUD COMPARATIVE COSTS OF MAJOR INPUTS FORSHRIMP CULTURE IN ASIA, 1989 Is

Country Post-Larvae lb Feed lc Labor Ld Electricity Diesel(US$1,000) (US$/kg) (US$Iday) (US$k/kh) (US$/litre)

Bangladesh 4 - 30 n.a. 1.00 0.07 0.21India 4 - 30 n.a. 1.00 0.07 0.27Indonesia 9 - 12 1.25-1.50 1.00 0.05 0.13Malaysia 9 - 11 1.25-1.50 5.00 0.07 0.18Philippines 8 - 12 1.25-1.50 2.00 0.09 0.16Thailand 7 - 10 1.25-1.50 4.00 0.10 0.24China 1 - 2 0.50-1.00 le 1.0t 0.09 0.22-0.47

/a Based on information obtained from Aquatic Farms, Ltd., Honolulu, Hawaii.

/b P. Monodon, except for China where post-larvae refers to P. Orientalis.

/c High-quality complete feed, except in China.

Id Unskilled farm labor.

/e Lower quality, supplemental feed.

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FISHERIES SECTOR REVIEW

Annox Table 5.1: WA)BER, AREA, AND FISH PROBUCTION FROM FISH PONDS Is

Relative Status of Ponds

Itom Cultured /b Culturable lo Dorelct Is Total

1964/86 1987/88 1984/8f 1967/S8 1#4/85 1987/98 1984/85 1987/88

Nu-ber of p4nds La 46 40 80 sO 24 24 100 100

Area under ponds It 52 62 81 U 17 17 100 100

Pond fish production La a 70 10 20 4 10 100 100

Lo ased on lntormation obtained from the Department of Fisheries.

Lb Cultured-where fishbtries are released.

Le Cu'turabl,e--were fish tries are not relesed.

Ld Dore lit-where fish fries are not reloeae and conditions are not sui1tabl for culturing fish.

Le Tote l number of ponds was about 1. 3 ilIIon.

if Total are under ponds was 146,890 ha, out of which 76,680 ha culWured, 44,810 ha culturable,and 26,450 ha derellet.

g The estimted fish production and average tlld tfm culture, culturable and der llet pondswas s folIws:

19941/86 1987/88

Culture ponds 1,280 kg/ha 1867 kg/haCulturable ponds 240 kg/ha 062 kg/haDerelict ponds 160 kg/ha 606 kg/he

Average of all Ponds 766 kg/ha 1,017 kg/ha

Pond Fish Production 111,657 mt 149,428 mt

BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 5.2: PLANNED BUDGET ALLOCATION TO THE FISHERIES SECTOR DURING THE ThIRDAND FOURTH FIVE-YEAR PLANS /a

Planned BudgetAllocation

Five-Year Plan Programs M ln. Tk X

Third

1 Survey, investigation, foesibility studios, and rosearch 660.0 16.72 Education and training 20.0 0.63 Fishery oxtension and community development 420.0 12.04 Fish landing, storge", processing, marketing,

and procerssing TcilIties 110.0 3.15 Culturo and capturo (Including production inputo and

development of bodies of water) 2200.0 62.96 Unailocated funds 200.0 5.7

TOTAL 3,500.0 100.0

Fourth

1. Inland open water fisheries development, mnagementand conservation 2,286.0 29.8

2. Aquaculture and seed production 2,877.8 81.7S. M*.-ne capture fisheries 60.0 0.74. Landing, processing, preservation, and quality control 490.0 6.55. Socioeconomic and comunity development 246.5 8.36. Training end eduation 686.3 9.17. Rseoarch, surveys, and studies 1,214.4 16.28. Block provision 2 0 2.7

TOTAL 7,500.0 100.0

la Derived from Five-Year Plans documents.

lb Includes substantial extension components.

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BANGLADESH

FISHERIES SECTOR REVIEW

Annex Table 6.8: DEVELOPMENT EXPENDIT DONORS' CONTRIBUTION AND THEDEPARTMENT 4ISHERIES La

Expenditure Sher* of Donor's Shar. InDevelopment In Development

* Year total Devolopment Donor Aid Total Expenditure Expenditure… (Mil------(Mlion Tk)…-------- --------()…---- ------

1980/81 116.0 65.8 252 74 30

1981/82 182.9 161.4 S6.6 68 37

1982/8S 186.9 145.5 58.1 78 40

1988/84 152.7 102.6 65.7 67 64

1984/85 289.8 184.8 99.6 77 S4

1985/86 182.8 125.4 8b 69 lb

I986/87 270.1 162.9 99.S 60 61

1987/88 810.9 174.5 127.9 S6 78

1988/89 852.2 221.7 147.9 8a 67

1989/90 Ic 973.5 842.8 627.6 87 74

/a Based on date obtained from the Department of Fisheries.

jb Data not avallable.

_ Allocation.

fp

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FISHERIES SECTOR REVIEW

MAJOR "IVts

-26' It~~~~~~~~~~~~~~~~~~~~~~~~~~~~OADS

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~ ~I'46~ 0 DISTRICT CAPITALS* NATIONAL CAPITAL

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THE ADMINISTRATIVE BOUNDARIES AS SHOWN ARE NOT CURRENT.J z | R v V .w .sAs vt I N D I A THIS MAP REFLECrS THE SITUATION PRIOR TO THE MOST RECENT

ADMUNISTRATIVE BOUNDARY CHANGES

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