(Seafood.com) Contract farming
Exporters said once contract farming is introduced in the country, production of fish would mark cent per cent rise and at the same time foreign currency earnings will reach record high from the sector.
The traceability record, which the European Union recommended for upgradation, would help enhance the credibility of the shrimp industry and acceptability of local shrimps in overseas markets, they said.
The EU Food and Veterinary Office team in its recent report also emphasised on to ensure traceability.
"Contract farming will ensure traceability of the products-one of the main requirements of the European Union (EU) nations," President of Bangladesh Aquaculture Alliance Maqsudur Rahman told the FE.
It is high time Bangladesh should start the contract farming as the main competitor countries like Thailand and Vietnam have already started reaping the benefit of contract farming, he said.
"But we are yet to start it. We have frequently requested the authorities concerned but yet to get any assistance," he added.
Contract farming is a tripartite agreement-based process where banks will finance the exporters and the latter will provide fish fry and other materials to the farmers.
We have urged the government to provide raw materials such as fish fry, diesel as provided to agriculture sector at a subsidised rate under this programme, he added.
Farmers can get the subsidy in their account and there will also provision so that exporters can repay the loan in favour of the farmers, Mr Rahman said adding exporters would be able to directly monitor the activities.
Explaining the potentiality of contract farming officials of Bangladesh Frozen Food Exporters Association (BFFEA) said it would boost the country's third largest foreign currency earning sector.
"Production could be doubled if contract farming is launched and it would be not surprising to earn $1.0 billion in next 2 years," an exporter said.
The production in Bangladesh is only 250 kg per hectare while it could be raised to 500-600 kg per hectare through contract farming, he observed.
It will also open new era for the sector as new technology and modern cultivation procedures would be followed, the exporter said.
The country fetched $625.04 million from frozen fish exports during July-June period of just concluded 2010-11 financial year marking a robust growth of 40.40 per cent growth compared to the same period of corresponding year.
Export Promotion Bureau (EPB) has set a target of $726.48 million for the sector for 2011-12 fiscal.Published by HT Syndication with permission from The Financial Express.