Bangladesh’s Hilsa export ban: A hasty decision reversed

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In a surprise move, the interim government in Bangladesh has lifted its ban on exporting Hilsa to India, a decision made in early September. Following “appeals by exporters”, the government permitted 3,000 tons of this prized fish to cross the border. The Hilsa fish is a delicacy for Bengalis around the globe and is customarily eaten on special occasions. Among the various Hilsa fish sources, the Padma River in Bangladesh produces the most sought-after variety. Dhaka’s decision to retain the ban severely affected the Bengalis in India, especially as the Durga Puja—the largest festival of Bengali Hindus—is around the corner. Local fish sellers thus began selling their limited frozen supplies at almost double and triple the pre-ban prices to cater to the festive demands. There have also been reports of the fish being smuggled across the Bangladesh border to Tripura in India’s Northeast, from where it was transported to Kolkata.

Dhaka’s decision to retain the ban severely affected the Bengalis in India, especially as the Durga Puja—the largest festival of Bengali Hindus—is around the corner.

While the decision to reverse the ban is poised to lower prices and diminish illegal trade, it also bears significant diplomatic connotations for the India-Bangladesh relationship, which is currently at a critical juncture.

Saga of ‘Ilish Diplomacy’

Bangladesh is the world’s largest producer of Hilsa, accounting for almost 75 percent of the global catch, and this industry contributes to more than 1 percent of the country’s GDP. India, which produces only 5 percent of the catch, is the largest importer of Hilsa from Bangladesh, with West Bengal consuming the majority. This asymmetry in production has turned the Hilsa into a unique instrument of diplomacy, in the India-Bangladesh relationship. In 1996, the former Prime Minister of Bangladesh Sheikh Hasina gifted Hilsa to the former Chief Minister of West Bengal Jyoti Basu just before the landmark Ganges Water Sharing Treaty was signed. Since then, she has gifted this fish to the current Chief Minister of West Bengal Mamta Banerjee on several occasions and in 2017, also to the former President of India Pranab Mukherjee, in a diplomatic gesture to resolve the long-standing Teesta River water sharing dispute.

Hasina rekindled ‘Ilish Diplomacy’ by relaxing this ban in the months leading up to the Durga Puja and exporting over 1,000 tonnes of the fish to India, as a goodwill gesture.

However, it is over the same dispute that Bangladesh banned the export of this fish to India in 2012. Seven years later, in 2019, Hasina rekindled ‘Ilish Diplomacy’ by relaxing this ban in the months leading up to the Durga Puja and exporting over 1,000 tonnes of the fish to India, as a goodwill gesture. Although, India received a reduced consignment during the COVID-19 years—1,300 tonnes of Hilsa in 2022 and 2021, and 1,200 tonnes in 2020—the trade picked up the pace once the pandemic restrictions were lifted. In 2023, Hasina “permitted 79 companies to export 50 tonnes of Hilsa each—totalling around 4,000 tonnes—to India, on the occasion of Durga Puja.” This year, however, was a break in tradition.

Contradictory decision-making in the interim government

The new interim government in Bangladesh rejected the request from the Kolkata Fish Importers’ Association to continue Hilsa exports in the festive months. Farida Akhter, adviser to the Bangladesh Ministry of Fisheries and Livestock, stated, “The previous government would lift the ban during the Durga Puja festival. They used to call it a gift. This time I don’t think we need to give a gift because [if we do it] our people will not be able to eat the fish while it is allowed to be exported to India in large numbers.” The interim government’s decision to implement the ban can be interpreted as a move to align more with public opinion by dissociating itself from the policies of the former Prime Minister Sheikh Hasina who was ousted from power on 5 August, following public protests. Currently, widespread anti-Awami League sentiments in Bangladesh have been exacerbated by New Delhi’s close ties with the Hasina government and her continued shelter in India. Since the caretaker government system was abolished in 2011, debates have been ongoing about the interim government's legal status, making it even more dependent on public support for its authority. However, the decision to maintain the ban has proven counterproductive for several reasons:

Widespread anti-Awami League sentiments in Bangladesh have been exacerbated by New Delhi’s close ties with the Hasina government and her continued shelter in India.

1. Despite the imposition of the ban, the domestic price of the Hilsa is even higher than last year in Bangladesh due to supply shortages, higher fishing costs, and unfavourable weather conditions. Meanwhile, the Hilsa exporters are being deprived of Indian revenue.

2. By restricting Hilsa exports, the interim government's decision indirectly affected Hindu celebrations across the border. This casts doubt on Mohammad Yunus’s commitment to protect the rights of the Hindu minorities in Bangladesh, particularly at a sensitive time when the community suffered violence and vandalism in the aftermath of the political transition.

3. The ban threatens to undermine the goodwill between India and Bangladesh, particularly during this critical period of fragile bilateral relations. Although Akhter reportedly said that the ban would not impair goodwill, which would be sustained through other gestures, it would indeed have impacted the outlook of Indian Bengalis.

Consequently, because of these setbacks, the decision to retain the ban was reversed. However, there has predictably been a public backlash, with a lawyer of the Supreme Court of Bangladesh serving a notice to the interim government to stop the export of Hilsa to India. If no action is taken within the stipulated time, a writ petition will be filed with the High Court. In response, while Akhter has put the responsibility of the decision to reverse the ban on the Bangladesh Ministry of Commerce, the latter has vouchsafed that the reversal has been done in heed of the appeals of the exporters and to fulfil, “the specific conditions on the occasion of the upcoming Durga Puja.” Salehuddin Ahmed, the adviser to the Ministry of Commerce, discouraged emotional protests and assured that the consignment of 3000 tonnes allocated for India is equivalent to a single day’s catch in Chandpur (Bangladesh). Thus, it would not inflate domestic rates but rather ensure foreign earnings and decrease illegal trade. Ahmed’s reasoning contradicts Akhter’s earlier premise of retaining the Hilsa export ban, reflecting inconsistencies in the interim government’s decision-making. This illustrates how geoeconomic necessities have towered over geopolitical considerations.

Ahmed’s reasoning contradicts Akhter’s earlier premise of retaining the Hilsa export ban, reflecting inconsistencies in the interim government’s decision-making.

Diplomatic tightrope

As one of Bangladesh's largest trading partners, India plays a crucial role in the country's economy. Dhaka earns substantial revenue from exporting Hilsa to India, benefiting not only the market but also the fishermen and the entire fishing value chain. Negotiations to reduce the 35 percent import tariff duty on the Hilsa, could unlock additional economic benefits for both nations, laying the groundwork for a more robust and diversified bilateral relationship.

The India-Bangladesh partnership extends beyond trade, encompassing shared resources, familial ties, and mutual interdependence due to their 4,096.7-kilometer border, the world's fifth-longest. Their relationship also spans critical areas like medical tourism. Despite current political challenges, maintaining a functional partnership is essential. As Bangladesh's interim government works to restore stability, navigating public sentiment alongside economic and diplomatic needs will be a crucial test of diplomatic prowess. By preserving the Hilsa Diplomacy tradition, both nations can foster a stronger, more cooperative relationship.

Sohini Bose is an Associate Fellow at the Observer Research Foundation

• Neighbourhood
• India
• Neighbourhood
• Bangladesh
• bangaldesh
• fish diplomacy
• hilsa ban
• hilsa export banned
• hilsa fish
• Hilsa Fish Diplomacy
• india bangaldesh relations

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