Bangladesh, Sept. 7 -- Bangladesh's once-lucrative shrimp export industry is struggling to survive despite a new Tk 2,000 crore special fund launched by Bangladesh Bank to revive the frozen fish sector, with exporters warning that high interest rates, restrictive conditions and bureaucratic hurdles could prevent the money from reaching the businesses that need it most.

The industry, which was once a billion-dollar export earner, has seen shrimp exports fall below $300 million a year, while more than half of the factories registered with the Bangladesh Frozen Foods Exporters Association (BFFEA) have reportedly shut down in recent years.

Exporters say the sector is being squeezed from multiple sides - declining production, raw-material s...