Power Shortages Threaten Bangladesh Khulna Shrimp Sector: Export Industry at Risk

Khulna, August 6, 2026 — A deepening electricity crisis in Bangladesh's southwestern coastal belt is threatening the survival of the country's shrimp and prawn export industry — with farmers losing entire crops to oxygen-starved ponds and processors burning costly diesel to keep cold storage running in a sector that supports nearly six million livelihoods.

🐟 The Geography of the Crisis

According to the Fisheries Department, 33,437.13 hectares are under shrimp and prawn farming in Khulna, 38,982.14 hectares in Bagerhat, and 74,249 hectares in Satkhira — together forming the country's most concentrated cluster of export-bound black tiger shrimp production. From semi-intensive farms in Khulna, Bagerhat and Satkhira to processing factories in Rupsha and other industrial areas, unreliable electricity has become the single biggest threat to one of Bangladesh's leading agricultural export sectors, which competes with Vietnam, India and Ecuador for shelf space in European, US and Japanese supermarkets.

⚠️ Farmers Losing Entire Crops

Farmers are struggling to keep shrimp alive in oxygen-starved ponds, while processors are relying on costly diesel to keep cold storage running and meet export commitments. The crisis comes as the industry is already grappling with weak global demand, rising production costs, disease outbreaks, a shortage of quality post-larvae and factory closures — meaning the power shock is hitting an already weakened sector.

"Whenever power goes out for several hours, we become anxious. The aerators stop, oxygen levels fall, and the shrimp begin to suffer. If electricity is not restored quickly, we risk losing an entire crop," said Sutanu Gain, who operates 10 semi-intensive shrimp ponds in Batiaghata upazila. Even a few hours without aeration can sharply increase shrimp mortality in semi-intensive farms, where stock densities are far higher than in traditional ponds.

"There are around 250 semi-intensive shrimp farms in our locality, all of which are facing severe electricity shortages," said Nittananda Mondal of Bandha village in Dumuria. He claimed that at least 20 farm owners had already lost nearly all their shrimp fry because they could not operate their paddle-wheel aerators during extended outages. "We are spending far more on diesel than we planned. Many small and medium farmers simply cannot afford to run generators for long hours every day," said Bipprodash Boiragi, another shrimp farmer from Chak Soilmari.

🏢 Processing Factories on Life Support

The power crisis is also hitting shrimp processing factories, where uninterrupted electricity is essential to maintain the strict food safety and cold-chain standards required by European and US importers. Repeated outages are forcing factories to halt production, rely on diesel generators and absorb soaring operating costs — eroding the thin margins that have already been squeezed by weak post-pandemic global demand.

Mizanur Rahman, assistant manager of Southern Foods Limited, said power outages lasted seven to 10 hours a day, forcing the company to consume around 75 litres of diesel an hour to keep its cold storage running. "We can continue production using generators, but the cost is extremely high. Frequent outages also reduce productivity and disrupt delivery schedules," he said. Nazmul Huda Chowdhury, manager of Rozemco Foods Limited in Rupsha, said continuous load-shedding over the past several days has increased the risk of spoilage, with maintaining the cold chain now an hour-by-hour battle.

📊 Industry-Wide Capacity Utilisation Collapse

According to the Bangladesh Frozen Foods Exporters Association (BFFEA), only 30 of the 109 registered shrimp processing factories in Khulna and 18 in Chattogram are currently operating. The factories can process about 400,000 tonnes annually but are receiving only around seven percent of the shrimp they need — a level that threatens both their export commitments and the livelihoods of the workers they employ.

"This shortage of electricity has already forced many factories to suspend operations temporarily," said Shyamal Das, director of the association and managing director of MU Sea Foods Limited, warning that the disruption could undermine an industry supporting nearly six million people across the southwestern coastal belt.

⚡ The Numbers Behind the Blackout

According to the West Zone Power Distribution Company (WZPDCL), electricity demand in the Khulna zone reached 601 MW at 1:00 pm on Monday, August 3, while supply stood at 486 MW — leaving a deficit of 115 MW, almost double the 59 MW shortfall recorded a day earlier. Khulna district and city recorded the largest shortage, with load-shedding rising to 52 MW from 19 MW a day earlier. Significant shortfalls were also reported in Kushtia, Magura, Jhenaidah, Meherpur, Narail and Chuadanga.

• 📈 Khulna zone demand (Aug 3): 601 MW
• 📉 Khulna zone supply: 486 MW
• 📉 Deficit: 115 MW (nearly 2× the previous day's 59 MW)
• 📊 WZPDCL total (Khulna+Barishal): Demand 773 MW / Supply 657 MW / Deficit 116 MW
• 📉 Khulna city load-shedding: 52 MW (up from 19 MW a day earlier)

Rural shrimp-producing areas served by the Khulna Palli Bidyut Samiti have been among the worst affected. Sanjay Kumar Roy, deputy general manager of the Dumuria Zonal Office, said extensive load-shedding had become unavoidable because electricity allocations were far below demand. "Our four substations require between 23 and 25 megawatts, but in recent days we have received barely half of that," he said. Tushar Kanti Mondal, general manager of the Khulna Palli Bidyut Samiti, added: "Peak demand in our service area is around 80 to 85 megawatts, but we have been unable to meet it in recent days because of supply shortages. We understand that consumers are suffering."

🏛️ Government Awareness

Khulna District Fisheries Officer Md Badiuzzaman told The Daily Star that persistent outages had created serious challenges for semi-intensive shrimp farmers, confirming that the issue has reached the attention of district-level regulators. However, the gap between awareness and action remains wide: the power shortage is a national-level supply problem driven by gas shortages at power plants, not a Khulna-specific distribution issue, meaning local intervention alone cannot resolve it.

🌏 Export and Macro Implications

Bangladesh's frozen shrimp and prawn sector is one of the country's top three agricultural export earners, alongside raw jute and leather. The sector's survival is critical not only for the six million people it directly supports — farmers, processors, factory workers, ice suppliers, transport operators and feed traders — but also for Bangladesh's broader export diversification strategy as the country prepares for LDC graduation and the erosion of duty-free access in key markets. If the power crisis forces a sustained collapse in shrimp exports through August and September, Bangladesh will lose market share to Vietnam and Ecuador that may take years to recover, while thousands of small farmers will be pushed into distress sales of pond stock and land.

✅ What Comes Next

The immediate priority is to restore adequate power supply to the Khulna, Bagerhat and Satkhira shrimp-producing belt before the September–October harvest window — either through preferential allocation from the national grid or through emergency diesel support to processors. The medium-term answer lies in the broader gas supply restoration, including the Excelerate Energy FSRU's full boiler repair expected by August 10 and the eight LNG cargoes approved by the cabinet committee on August 6. Until then, the shrimp sector — like the RMG, textile and plastic sectors — will continue to absorb the cost of the country's energy crisis one diesel litre at a time.