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Dwindling shrimp production

7 out of 8 processing plants in Satkhira closed: Producers processing plant owners blame each other

ABU AHMED, Satkhira
Satkhira, known for producing the lion share of export- earner shrimps, may soon lose the identity.
Production of the 'white gold' (shrimp) is on the wane as seven out of eight processing plants have been closed down.
Shrimp producers blame plant owners' "cheating and dishonesty" for this. But they have also pleas to shift the blame on others.
Sekai Fish, the lone processing plant still open, is also limping. It remains closed occasionally.
Added to this, there is another major problem. Sixteen ice factories are closed.
Talking to this correspondent, most of the owners claimed that they were compelled to close down their plants due to lack of raw materials (shrimps) and working capital from banks.
On the other hand, sources in banks alleged that the owners closed down their plants as a 'trick to avoid loan repayment'.
"Most of them (plant owners) resorted to cheating, besides transferring capital elsewhere due to lack accountability and transparency in their business", a high official of Janata Bank said.
These plants owe about Tk 100 crore to the banks, he said.
According to sources in the
district Fisheries Department, 'tiger' shrimps are cultivated in saline water in 10,421 enclosures covering 2,78,378 acres of land and 'lobster' in sweet water in 876 enclosures covering 5,163 acres in the district.
Over 5 lakh people including women are directly or indirectly involved in the sector, from catching shrimp fries to processing for export.
The eight fish plants were set up in early 80s to process shrimps for export.
These plants now closed are Coromondol Fish Freezing Ltd., Sundarban Fish, Meghna Fish, Satkhira Fish, A Fish, Delta Fish and Penguin Fish Ltd.
When contacted, some of their owners said they are incurring loss due to failure in timely export because of frequent strikes and hartals, unstable and highly competitive market abroad and lack of required raw materials.
Shrimp production also declined significantly over the years due to virus attack and other reasons, they said.
Lack of working capital is also another factor, they claimed.
They also claimed that besides Satkhira, 50 plants in other areas of the country have suspended production due to the problems.
A senior official of Sonali Bank in Satkhira seeking anonymity said
most of the fish processing plants have been closed as the owners resorted to "cheating and malpractice".
Citing an example, the bank official said heavy metals were detected in shrimps exported by Coromondal
Fish Freezing Ltd to the US 15 years back. This damaged Bangladesh's market in that country.
The US company filed a case demanding a huge amount as compensation for cheating. The plant is closed since then.
Sonali Bank also filed a case against Coromondal Fish to realise Tk 15 crore loan. The case is under trial.
Janata Bank filed a case against Meghna Fish to realise Tk 10 crore loan.
Agrani Bank filed a case against Penguin Fish Ltd. to realise Tk 13 crore loan, taken by submitting alleged "false documents", it was gathered.
Other banks have outstanding loans amounting crores of taka with some other plants.
When contacted, reputed shrimp cultivator Abdul Hakim of Kasimary, a remote village in Shayamnogar upazilla, said he had cultivated shrimps on over 1000 acres of land.
Starting in 1988, he had earned profit for some years. He has been
incurring loss for some years now due to virus attack.
But processing plants have nothing to do with this.
"They have closed their plants not for lack of shrimp.
"We were deprived because of faults by the processing plants", he alleged.
Junaid Hossain Lasker, Vicepresident of Satkhira Chamber of Commerce and Industries said, "Most of the plants were closed down as their owners were not sincere.
"Janata Bank and other commercial banks have Tk 100 crore unrealised loans lying with owners of closed plants. They are not repaying the loans".
An official of Janata Bank said, "Defaulter owners are not showing any interest to repay loans even after filing of cases.
"They have declared their plants sick".
Former minister Dr. Aftabuzzaman, who owned Sundarban Fish, said he was compelled to close down his plant as it could not operate fully due to lack of raw materials (shrimps) and bank authorities' dilly-dally tactics in sanctioning running capital.
He however said he will reopen the plant if he gets loan.