Shrimp Industry Crisis Hits Khulna, Leading to Factory Closures and Job Losses

Shrimp processing factories situated along the Rupsha River in Khulna are facing a severe crisis. Once a major export-oriented industrial hub, many facilities are now silent, with padlocked gates and abandoned processing floors. The decline is attributed to shrinking shrimp production, disease outbreaks, poor-quality fry, and intense competition from cheaper vannamei shrimp. This crisis has led to the closure or drastic reduction of operations at many facilities, resulting in the unemployment of at least 70,000 people connected to the sector.

The collapse of the shrimp processing industry in Khulna is a major economic development for the region. The issues stem from production decline, market challenges, and operational issues like financial mismanagement. This industry was a key economic pillar for the Khulna region of Bangladesh.