Economy & Business

Hilsa: Business And Diplomacy Of The Fishy Ban Now

A culinary crisis has resulted from the recent temporary ban on the export of a specific fish, which former Prime Minister Hasina had previously used as a diplomatic tool.

The Implications of the Hilsa Ban on India-Bangladesh Relations

The national fish of Bangladesh is hilsa. It is known by its native name, ilish, and is considered the queen of fish. It is a staple of the cuisines of Bangladesh and West Bengal, the Indian state that borders Bangladesh.

In a strategic move that highlights the intersection of diplomacy and natural resources, former Bangladeshi Prime Minister Sheikh Hasina leveraged the significance of fish, abundant in the Bay of Bengal and local rivers, to strengthen relations with India. This approach underscores the potential of utilising regional assets to enhance bilateral ties and foster cooperation between neighbouring nations.

However, the decision by Bangladesh’s interim administration to temporarily forbid fish shipments to India in September created a kind of gastronomic crisis just before India’s Durga Puja celebration. The preparation of Hilsa fish in mustard sauce stands out as a cherished culinary tradition during the festival, captivating many palates with its rich flavors and cultural significance. Analysts interpret this action as a diplomatic warning against New Delhi for its support of Hasina, who fled to India after her ousting in late August.

Dhaka has emphasized that the recent ban aims to reduce the domestic costs of freshwater fish, especially considering this year’s reduced harvest. In a surprising turn of events, the decision was reversed in just a fortnight.

The fish at the heart of this discussion raises intriguing questions about its significance beyond being a mere culinary delight.

Hilsa, a prized fish, has become the focal point of a diplomatic dispute between India and Bangladesh. This delicacy, cherished for its unique flavour and cultural significance, has sparked tensions that extend beyond culinary preferences, highlighting the complexities of international relations in the region.

Bangladesh is a dominant player in the global seafood market, exporting an impressive 70 percent of the world’s hilsa. This significant contribution highlights the country’s pivotal role in the international trade of this highly sought-after fish. The prized catch is becoming increasingly rare and costly, driven by factors such as overfishing, heightened demand, and environmental challenges including climate change.

This year, fishermen are facing significant challenges in securing sufficient catches of hilsa, largely attributed to adverse sea conditions. The fish is becoming more scarce as a result of exports, since most Bangladeshis cannot buy it due to its expensive price. A 1.5 kilogramme hilsa fish cost roughly $15 (1,800 Bangladeshi taka) in local markets in 2024, up from approximately $10.9 (1,300 taka) the previous year.

Hilsa, which produces between 550,000 and 600,000 metric tonnes annually, accounts for roughly 12% of Bangladesh’s total fish production, directly employing 500,000 people as fishermen and providing jobs for another two million people in allied businesses. Bhapa ilish (steamed hilsa), ilish polao (pilaf rice with hilsa), and shorshe ilish (hilsa in mustard sauce) are among the popular staples of the region’s cuisine.

Has Bangladesh implemented a prohibition on hilsa exports to India?

In a significant move this September, Dhaka has implemented an export ban on hilsa, with a particular focus on restricting shipments to India. As the Durga Puja festival approaches in October, a notable surge in demand is anticipated across the border, reflecting the seasonal trends that characterise this vibrant time of year. Fisheries officials have articulated that the implementation of the ban is essential for prioritising domestic supply while also addressing the concerning decline in the Hilsa population.

“It is imperative that we prioritise local access to ilish, ensuring that our own citizens have the opportunity to purchase this beloved fish before considering exports.” In a significant move, an official from the Bangladesh Ministry of Fisheries and Livestock has announced that the Ministry of Commerce has been directed to halt all ilish exports to India during the Durga Puja festivities. The official, who prefers to remain anonymous, emphasises the importance of this decision in the context of the upcoming celebrations.

In a surprising turn of events, the Commerce Ministry has lifted its previous ban, granting approval for a substantial 3,000-tonne shipment to India just weeks after the initial decision.

In a significant development for the seafood export sector, the ministry has announced approval for the export of 3,000 tonnes of hilsa fish to India. This decision comes in response to appeals from exporters and is timed to coincide with the upcoming Durga Puja celebrations, highlighting the importance of meeting specific conditions set forth by the authorities.

In a significant market shift, Hilsa prices in India have surged dramatically following a reduction of 1,000 metric tonnes in exports from Dhaka. This development is poised to impact both consumers and businesses in the seafood sector, highlighting the intricate dynamics of supply and demand in the region. The government’s efforts to reduce prices in Bangladesh have not yielded the desired results.

A group of fishermen engaged in the smuggling of hilsa to India has contributed further to the soaring prices. An expert from India characterised the recent brief ban as “a firm departure” from Hasina’s longstanding tradition of utilising fish as a symbol of goodwill and friendship between Dhaka and New Delhi.

Hasina initially leveraged fish as a strategic diplomatic instrument upon assuming office in 1996. In a notable gesture, she presented Hilsa to Jyoti Basu, the then-Chief Minister of West Bengal, just prior to a significant agreement concerning water sharing—a pivotal matter in the relationship between the neighbouring regions. In a notable diplomatic gesture in 2016, the former Prime Minister of Bangladesh dispatched a consignment of hilsa fish to Mamata Banerjee, the Chief Minister of West Bengal, a region that shares its borders with Bangladesh. One year later, the esteemed former President Pranab Mukherjee, a notable figure in Bengali leadership, received hilsa as a symbol of camaraderie.

Experts suggest that the interim government may take a different approach from Hasina’s pro-India foreign policy, indicating potential shifts in India-Bangladesh relations. An trade analyst in Kolkata, expressed his concerns over the interim government’s recent decision, stating that it “compromises the goodwill” between the two nations.

Is there a precedent for such a ban?
Yes.

In 2012, Bangladesh implemented a ban on hilsa exports to India, a decision stemming from ongoing disputes regarding a water-sharing agreement between the two nations. In January 2018, the decision was ultimately reversed, reflecting a strategic move aimed at fostering goodwill.

Over the years, Hasina’s administration has consistently navigated around the established ban by strategically “gifting” hundreds of tonnes of fish in anticipation of Durga Puja celebrations.

In a strategic move to safeguard its prized hilsa fish, Bangladesh periodically enforces local bans on fishing during critical breeding seasons. This initiative underscores the country’s commitment to sustainable fishing practices and the preservation of its aquatic resources.

Enforcement of the primary ban spans a duration of 22 days in October, a practice that has been in place since 2007. The implementation of this restriction during the hilsa spawning season allows for a crucial period of undisturbed reproduction, ensuring the sustainability of this vital fish species.

This situation presents significant economic hurdles for fishermen, a considerable number of whom depend on hilsa as a primary source of income.

In the past, Hasina has used various gifts as instruments of diplomacy.

In a gesture of goodwill, Hasina has presented locally crafted sarees and fresh mangoes to leaders from neighbouring countries. In a notable gesture of goodwill in 2021, Hasina is said to have dispatched an impressive 2,600 kilogrammes of Haribhanga mangoes to Indian Prime Minister Narendra Modi and West Bengal Chief Minister Mamata Banerjee.

In a significant move, Bangladesh has encountered a setback in the timely delivery of COVID-19 vaccine doses from India, prompting a response that underscores the complexities of international health logistics.

The relationship between India and Bangladesh has encountered significant challenges in recent times. Various factors have contributed to the strain, including political disagreements, border management issues, and differing perspectives on regional security. These complexities highlight the need for diplomatic engagement and collaboration to address the underlying concerns and foster a more stable partnership moving forward.

India maintained its support for Hasina throughout her 15-year tenure, a period characterised by allegations of human rights violations, electoral irregularities, and a significant suppression of opposition parties, according to various rights organisations.
New Delhi maintained a notable silence regarding a recent government crackdown that resulted in the deaths of over 300 protesters just prior to her departure from Bangladesh. The recent visit of Hasina to India has sparked discontent within the interim government, which has formally requested her extradition. However, it appears that New Delhi is not inclined to comply with this demand.

In Bangladesh, there is a sentiment that New Delhi has supported Prime Minister Hasina, which has aided her in maintaining an assertive governance style.

The Prime Minister, Shri Narendra Modi meeting the Prime Minister of Bangladesh, Ms. Sheikh Hasina, at the 18th SAARC Summit, in Kathmandu, Nepal on November 26, 2014.

During her 15-year tenure, Hasina has cultivated strong relationships with India, especially through various security cooperation agreements. However, these initiatives have drawn criticism from opposition parties and critics, who argue that they disproportionately favour New Delhi.

Furthermore, the trade agreements established by the Hasina administration with Indian corporations have faced criticism, as detractors allege that these arrangements primarily serve the interests of Indian businesses.

The ongoing dispute over the Teesta River continues to be a significant issue between Bangladesh and India, with both nations heavily dependent on its water resources for agricultural purposes. Bangladesh has consistently advocated for a more equitable distribution of the river’s flow, contending that the existing framework, predominantly managed by India, leads to significant water shortages in the dry season.

The unexpected surge of water during intense rainfall events has played a significant role in triggering flash floods across Bangladesh, notably in August of this year.

In a notable shift from previous practices, officials at Bangladesh’s Flood Forecasting and Warning Centre informed Al Jazeera that India failed to provide a warning to its neighbouring country regarding the release of water last month. The Ministry of External Affairs in India has refuted the recent reports, labelling them as “factually not correct.”

In a notable stance, West Bengal, a state in India, has firmly opposed modifications to the current river-sharing agreement, emphasising the importance of its agricultural requirements.

The relationship between India and Hasina’s Awami League dates back to the 1970s, a pivotal era when the party was engaged in its struggle for liberation from Pakistan. New Delhi has strategically fostered strong relationships with the secular Awami League, while perceiving the opposition parties, Bangladesh Nationalist Party and Jamaat-e-Islami, as being lenient towards Pakistan.

The two nations have expressed their positions regarding the ongoing diplomatic tensions, highlighting their respective concerns and responses to the situation.

Nobel laureate Muhammad Yunus, currently serving as interim leader, has advocated for a fundamental reset in relations. Earlier this month, he expressed concerns regarding Hasina’s directives emanating from her location in India, suggesting that her ongoing involvement in Bangladeshi politics might heighten existing tensions.

Earlier this month, the Fish Importers Association of India reached out to Dhaka with a formal request to permit the export of fish, particularly in light of the upcoming festival.

The future of India-Bangladesh relations appears to be a subject of significant interest and speculation. As both nations navigate their diplomatic landscape, the potential for collaboration and mutual growth remains a focal point for analysts and policymakers alike. Observers are keenly watching how economic partnerships, cultural exchanges, and geopolitical strategies will shape the trajectory of this bilateral relationship in the coming years.

Yusuf, a researcher from Bangladesh, highlights a significant shift in diplomatic relations, noting that “the resentment that was building in common people is reflecting in a more formal diplomatic channel.” He emphasises that, until now, the relationship had primarily been cordial at the highest levels of government.

He emphasises the potential for a mutually beneficial relationship between India and Bangladesh, highlighting the necessity for equity and progress on key issues as foundational elements for success.

“Should the government neglect these issues and fail to sustain a balanced relationship with New Delhi, it risks being viewed in a manner akin to Sheikh Hasina’s administration,” he remarked.

Rahul, a representative from the Banga Economic Forum, asserts that the two nations possess significant potential for enhancing their relationship, driven by a “natural” interdependence that currently exists between them.

“Bangladesh and India share a unique relationship, characterised by their extensive border and a wealth of common resources. From the trade of everyday essentials to deep-rooted familial ties, the two nations are interconnected in numerous ways,” Rahul stated.

He emphasised that the geographic reality is undeniable, regardless of any political changes, highlighting the importance of a functional relationship between India and Bangladesh.

Sunita Krishnan

Sunita is an experienced business leader who is great at communication, strategy and building things ground up. She has worked widely in the areas of Business and Customer Intelligence, Strategy, and Analytics. She looks forward to work with small and medium size business to help them grow and help large business with projects and initiatives that bring growth through social impact. She works globally and is keen on collaborating with people who are mindful of sustainability, environmental impact and equity. She has a degree in Economics and is an IIM Alumni

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