A Supreme Court lawyer has served a legal notice on the government, demanding a complete halt of hilsa exports to India, citing high prices and a supply shortage in the domestic market.
In the notice, SC lawyer Md Mahmudul Hasan Mamun alleged that Indian importers purchase hilsa from Bangladesh at relatively lower prices and then re-export the fish to markets in the United States, Canada, Australia and other countries at higher prices, generating substantial profits. Thus, Bangladesh is allegedly being deprived of potential foreign currency earnings.
The notice was sent on Tuesday to the Cabinet secretary, and the secretaries of the Ministry of Commerce, the Ministry of Fisheries and Livestock, director general of the Department of Fisheries, and chairman of the National Board of Revenue (NBR).
According to the notice, hilsa, Bangladesh’s national fish, is a valuable geographical indication (GI) asset.
However, a one-kg hilsa currently sells for around Tk2,600 to Tk3,000 in wholesale and retail markets across the country. Based on exchange rates cited in the notice, this is equivalent to approximately $21 to $25.
The notice states that such high prices have made hilsa increasingly unaffordable for lower-income, middle-income and ordinary consumers.
In previous years, despite the shortage and high prices of hilsa in the domestic market, a policy was followed of exporting hilsa to India at only $10 per kg.
The notice also states that India has its own hilsa production and has recently exported hilsa to Bangladesh. Indian importers are purchasing hilsa from Bangladesh at low prices and re-exporting it to various countries, including the United States, Canada, Australia, the Middle East and Europe, at $40 to $50 per kg.
It is alleged that Indian intermediaries are making substantial profits by selling Bangladeshi hilsa at higher prices in international markets.
The notice further states that because of this re-export activity, the Bangladesh government is being deprived of potential foreign-exchange earnings equivalent to thousands of crores of taka. It also claims that Bangladesh is not receiving a fair benefit because the country’s valuable resource is being sold in international markets through businesses in another country.
Proposal for direct exports to international markets
Citing Article 21(1) of the Constitution, the notice states that it is the duty of every citizen to observe the law and protect state property.
According to the notice, the government has yet to announce any formal permission or final policy decision regarding the export of hilsa to India. However, the legal notice has been issued in advance to prevent any decision that could harm the interests of consumers in Bangladesh.
If the state needs foreign-exchange earnings, a policy could be adopted to export hilsa directly to markets in the United States, Canada, Australia, the Middle East and Europe, avoiding Indian intermediaries. In that case, however, the notice emphasises that surplus hilsa should be exported only after meeting domestic demand and that emphasis should be placed on ensuring the actual value of hilsa in international markets.
SC lawyer Mahmudul said that hilsa should not be exported at low prices while ignoring the purchasing power and food access of people in Bangladesh and thereby allowing businesses in other countries to re-export it.
Seven-day deadline
The legal notice calls for steps to be taken within the next seven days to prohibit any administrative initiative, executive approval or policy decision regarding the export of hilsa to India.
It also requests measures to increase the supply of hilsa in the domestic market and bring prices within the capacity of ordinary people, as well as the formulation of a permanent policy for directly exporting hilsa to international markets while avoiding Indian intermediaries.
The notice states that if effective steps are not taken on these matters, a writ petition will be filed with the High Court Division under Article 102 of the Constitution.
