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7. APPENDIXES

APPENDIX 1. PRODUCTION AND MARKETING IN NORTHERN STATES (A CASE STUDY)

This chapter presents three case studies on different aspects of freshwater aquaculture in a few selected states of India. The case studies are not linked. A survey of a few states was initiated during the year 1999 in order to collect primary information on existing systems of aquaculture production and marketing. The questionnaire solicited information on area under ponds, farm-size and ownership pattern, production and consumption within the region, major market centres and channels, prices of species, infrastructure development, etc. The questionnaire was sent by mail to the officials of State Directorates of Fisheries; field information was collected during the field visits.

Originally, the survey was intended to cover all 16 important states, but due to various constraints encountered during the survey, it had to be restricted to a few states listed in the tables. Table A1-1 presents the area, production and yield under private aquaculture farms in a few selected states. Among the selected states, West Bengal has the largest area under aquaculture with maximum production, followed by Orissa (Table A1-1).

Table TA1-1 also shows the change in area, production and yield per hectare between 1994-95 and 1998-99. The area under aquaculture increased by 44% in Goregaon district of Haryana, followed by West Bengal. The yield doubled from 2.78 t/ha in 1994-95 to 4.68 t/ha in Haryana state. In all the states, average rate of yield increased by 6-8%. In Gujarat, both production and area grew by 50% and, consequently, yield marginally declined.

Table A1-1. Area, production and yield of aquaculture in selected states (1994-98).

State\District

1994-95

1998-99

Area (ha)

Production (t)

Yield (t/ha)

Area (ha)

Production (t)

Yield (t/ha)

Orissa

33 154.00

63 211.00

1.91

36 800.00

75 170.00

2.04

Mizoram

1 600.00

2 000.00

1.25

1 750.00

2 700.00

1.54

Goregaon District (Haryana)

671.42

1860.50

2.77

711.10

3 334.00

4.69

Tripura

22 556.64

25 103.00

1.11

22 845.66

28 410.00

1.24

Ranchi District (Bihar)

1 110.00

1 206.00

1.09

13 100.00

13 500.00

1.03

Nalanda District (Bihar)

4 000.00

5 000.00

1.25

4 750.00

6 000.00

1.26

Gujarat

3 540.16

4 189.89

1.18

6 821.74

5 760.15

0.84

West Bengal

276 000.00

826 515.00

2.99

276 000.00

995 000.00

3.61


There has been a spectacular increase in the area under aquaculture in Gujarat, which is traditionally not a fish-consuming state.

The size of the farm-holdings varied across states (Table A 1-2). Farms with a maximum area of 12 ha per farmer were found in Bihar, followed by Gujarat and Haryana respectively. The minimum size of a farm was 0.1 ha in Bihar. Ownership pattern of the farms presented in the Table A1-3 shows that the majority of the farms were under private ownership.

Table A1-2. Size of farm holdings (ha)

State\District

No. of farms

Minimum (ha)

Maximum (ha)

Total area (ha)

Orissa

93

-

-

266.00

Mizoram

4 710

0.1

4

1 769.62

Goregaon District (Haryana)

250

0.5

10

727.00

Tripura

69 219

0.16

0.24

11 737.00

Ranchi District (Bihar)

64

0.1

12

93.00

Nalanda District (Bihar)

51

0.1

1

85.00

Gujarat

26

1.0

11.3

210.92

Arunachal Pradesh

6 571

0.2

3.0

1 019.00

Manipur

12

1.0

500

775.00

NOTE: The maximum size of farm, i.e. 500 ha, is a company-owned farm in Manipur.
Table A1-3 shows the ownership pattern of the ponds in the selected states/districts. Privately owned, family-based farms are common in all states, with a maximum number of such farms in northeastern states, such as Tripura and Arunachal Pradesh.

Table A1-3. Ownership pattern of aquaculture farms (numbers)

State\District

Private

Government

Collective

Other types

Total (ha)

Orissa

-

266

-

-

266.00

Mizoram

4 700

10

-

-

1 762.62

Goregaon District (Haryana)

250

-

-

-

727.00

Tripura

68 675

544

-

-

1 1737.00

Ranchi District (Bihar)

21

8

30

5

93.00

Nalanda District (Bihar)

16

5

25

5

85.00

Gujarat

-

26

-

-

210.92

Arunachal Pradesh

6 539

32

-

-

-

Manipur

775

-

-

-

775.00


Table A1-4 indicates that aquaculture farms are mostly of polycultural nature, raising mainly catla, rohu and mrigal. Tripura had the highest (63 771) number of polyculture farms among the northeastern states, and 5 448 farms also cultivated fish in rice paddies (integrated farming pattern), followed by Arunachal Pradesh.

Table A1-4. Production systems (numbers)

State\District

Monoculture

Polyculture

Integrated

Mizoram

-

4 750

-

Goregaon District (Haryana)

-

250

10

Tripura

-

63 771

5 448

Ranchi District (Bihar)

40

310

10

Nalanda District (Bihar)

20

700

-

Gujarat




Arunachal Pradesh

409

6 130

902

Manipur

100

350

50

NOTE: Integrated systems are paddy-cum-fish culture farms.
Aquaculture production of different species is presented in Table A1-5 which shows that rohu and catla are gaining greater prominence over other species in all the states. The results show that catla and rohu contributed around 35.80% to 35.75% of the total aquaculture production in the selected states. In Orissa and Gujarat, catla and rohu contributed 40%, and in northeastern states, such as Arunachal Pradesh and Tripura, the contribution from these species was as low as 11% of total production from aquaculture. Common carps were relatively more predominant in the northeastern states, such as Tripura, Mizoram and Arunachal Pradesh.

Table A1-5. Aquaculture production (in t) by species (1998-99)

State

Catla

Rohu

Mrigal

Silver carp

Grass carp

Common carp

Calbasu

1994-95

1998-99

1994-95

1998-99

1994-95

1998-99

1994-95

1998-99

1994-95

1998-99

1994-95

1998-99

1994-95

1998-99

Orissa


23 362

27 662

32 554

28 712

3 729

4 930

679

808

136

162

1 903

2263

948

1 128

(36.90)

(42.13)

(51.42)

(43.72)

(5.89)

(7.51)

(1.07)

(1.23)

(0.21)

(0.25)

(3.01)

(3.45)

(1.50)

(1.72)

Mizoram


200

300

1 200

1 200

200

500

-

200

-

100

400

400

-

-

(10.00)

(11.11)

(60.00)

(44.44)

(10.00)

(18.52)


(7.41)


(3.70)

(20.00)

(14.81)



Goregaon District
(Haryana)

800

1 500

300

500

300

500

-

-

-

-

460.5

8340

-

-

(43.00)

(13.84)

(16.12)

(4.61)

(16.12)

(4.61)





(24.75)

(76.94)



Tripura

8 530

8 833

6 531.8

8 213

5 020.6

5 682

1 110.3

1 000.5

1 300

1 841.5

2 510.3

2 841

-

-

(34.12)

(31.09)

(26.12)

(28.91)

(20.08)

(20.00)

(4.44)

(3.52)

(5.20)

(6.48)

(10.04)

(10.00)



Ranchi District
(Bihar)

10

14

10

18

14

20

1

2

-

3

3

5

-

-

(26.32)

(22.58)

(26.3)

(29.03)

(36.84)

(32.26)

(2.63)

(3.23)

-

(4.84)

(7.89)

(8.06)

-

-

Nalanda District
(Bihar)

9

15

12

20

8

2

1

2


2

3

4



(27.27)

(33.33)

(36.36)

(44.44)

(24.24)

(4.44)

(3.03)

(4.44)


(4.44)

(9.09)

(8.89)



Gujarat


8 132

13 115

8 452

12 707

5 102

8 236

-

-

-

-

828

807

-

-

(36.12)

(37.62)

(37.54)

(36.45)

(22.66)

(23.62)





(3.68)

(2.31)



Arunachal Pradesh

115

172

115

172

115

172

147.5

159

147.5

159

561

725

-

-

(9.58)

(11.03)

(9.58)

(11.03)

(9.58)

(11.03)

(12.28)

(10.20)

(12.28)

(10.20)

(46.71)

(46.50)



NOTE: Figures in parenthesis represent percentage to the total.
Table A1-6 presents the proportion of aquacultural products traded through important market channels. In most of the states, private small businesses control the trade, yet the state-sponsored cooperative federations are also competing for a share in the market. Prices for Indian major carps are generally higher than for other carps, indicating consumer preference for Indian major carps, such as rohu and catla.

Table A1-6. Proportion of quantity traded through different market channels (1998-99)

State\District

Cooperative

Government

Companies

Private Firms

Goregaon District (Haryana)

10

-

-

90

Tripura

50

-

-

50

Ranchi District (Bihar)

30

5

-

65

Nalanda District (Bihar)

30

5

-

65

Gujarat

3

-

7

90

Arunachal Pradesh

-

20

-

80


Table A1-7 shows that in most of the states, trade for most aquatic products is concentrated around a few major market centres. For example, nearly 40% of the fish produced in Haryana is sold in Delhi markets. Similarly, 55% of the production in Orissa is sold in Bhubaneshwar (25%) and Rourkela (30%) respectively.

Table A1-7. Market centres with proportions of aquaculture products traded (1998-99).

State

Market centres

Proportion of quantity traded (%)

Orissa

Cuttock

15.00

Berhampur

10.00

Balasore

6.00

Bhubaneshwar

25.00

Rourkela

30.00

Sambalpur

6.00

Bolangir

5.00

Sunabeda

3.00

Tripura

Maharaj Ganj Bazaar, Agt.

25.00

Battala, Agartala

38.33

Radhakrishnapur, Udaipura

20.00

Dharmanagar, North Tripura

10.00

Kailashar, North Tripura

6.67

Mizoram

Aizawl Fish market

60.00

Haryana

Faridabad

60.00

Delhi

40.00

Manipur

Khwaimamband Bazaar

60.00

Moimang Bazaar

15.00

Thoubal Bazaar

5.00

Kokching Bazaar

5.00

Nambal Bazaar

5.00

Singjamei Bazaar

10.00

APPENDIX 2. PRODUCTION AND CONSUMPTION PATTERNS IN KARNATAKA (A CASE STUDY)

The second case study pertains to producer and consumer preferences for aquaculture products in the southern state of Karnataka. In the first stage, two districts - Mysore and Raichur - two different agro-climatic regions, were selected, based on the reports of the Directorate of Fisheries on number of fish farmers and extent of aquaculture production. From each of the selected districts, two blocks were chosen for the actual survey, based on the list of farmers and production data supplied by the Fish Farmers Development Agency. From each of the selected blocks, data were collected from 30 producers who were registered producers, and 30 consumers were picked from selected district headquarters. Thus, a total of 60 producers and 60 consumers were surveyed. The two districts selected represent different stages of development in aquaculture. Fish culture is expanding in Raichur district, which is influenced by the growth of aquaculture in neighbouring Andhra Pradesh, where irrigation ponds were converted to fish ponds and where fish farming as a main or secondary occupation has increasingly been adopted. In Mysore district, farmers have also started constructing small ponds in their croplands, cultivating other crops and maintaining coconut gardens in order to diversify.

An analysis of the yield gap was done by dividing the farmers into three homogeneous groups of equal size based on the feed-rate of protein (in g) per animal per hectare. The farms with feed-rates of less than 14.2 g of protein/animal/hectare were classified as technology - I, and those with 14.2-59 g of protein/animal/hectare as technology - II, and rates higher than 59 g as technology - III (Table A2-1). We computed the yield gap, defined as the difference between the maximum yield obtained from farms in each group and the actual average yield. Table A2-1 shows the yield gap in kilos per hectare. The maximum yield gap of 2 885 kg/ha was found in the technology II group.

An analysis of producer preference for species showed that carp farmers preferred to stock their ponds with catla and rohu. Common carp is the least preferred species among private farmers. Common carps are widely stocked in common water bodies, such as village tanks, major tanks and reservoirs because of the robustness of carps and easy availability of seeds.

Table A2-1. Yield gap analysis of carp farming in Karnataka (1999-2000).

Technology

Feed-rate
(g protein animal/ha)

Maximum yield
(kg/ha)

Actual yield
(kg/ha)

Yield gap
(kg/ha)

I

<14.2

2 687

1 204

1 483

II

14.2-59.0

4 625

1 740

2 885

III

>59.0

3 500

2 067

1 433


An important trait of fish is shape. Producers highly favour long and thin rohu, short and thick catla, and short and deep common carps (Table 2-2). Another important trait is skin-colour. Data indicate that the majority of producers prefer yellow common carps, ash-coloured catla and reddish rohu. Favoured size of fish among producers was the one-kilo-fish.

Table A2-2. Traits preferred by producers (1999-2000).

Indicators

Species

Percentage of respondents

Long and thin

Short and thick

Short and deep

Shape

Rohu

96.9

1.6

1.6

Catla

1.6

60.9

37.5

Common carp

4.7

37.5

57.8

Colour


Yellowish

Ash

Reddish

Rohu

2.5


97.5

Catla


100


Common carp

100



Size (no. of fish/kg)


1 fish/kg

2 fish/kg


Catla

100



Common carp

84.6

15.6


Mrigal

93.7

6.3


Rohu

100




CONSUMPTION PATTERNS

For the present study, quarterly data was collected from 60 producer-consumers and 60 urban consumers from two districts in Karnataka by means of a food consumption survey. The urban consumers were selected at two stages. First, market centres were identified and one/two consumers were selected from each centre as sample consumers. The other sample consumers were selected from residential neighbourhoods nearby.

Table A2-3 presents data on the fish consumption by producers/consumers (rural) and urban consumers by species and income. Total fish consumption is much higher among producers/consumers compared to urban consumers. On an average, rural producers/consumers consume around 2 kg per caput per month irrespective of income classes. However, for urban consumers, per caput consumption of fish per month increases as annual income rises.

Table A2-3. Per caput fish consumption (kg) (1999-2000) per month

Income classes

Rohu

Catla

Small carps

Marine and others

Total

Rural (Producer - Consumer)






<80 000

0.62

1.01

0.16

0.40

2.20

80 000-95 000

0.82

0.91

0.02

0.37

2.14

95 000-150 000

0.95

0.89

0.00

0.43

2.13

>150 000

0.65

0.81

0.05

0.54

2.05

Urban






<30 000

0.15

0.32

0.00

0.08

0.56

30 000-40 000

0.33

0.34

0.02

0.16

0.86

40 000-65 000

0.35

0.35

0.03

0.12

0.86

>65 000

0.37

0.38

0.02

0.14

0.92


Table A2-4 shows species preferences of rural and urban consumers. Rohu and catla are the most preferred species in both rural and urban areas and gender classes. Table A2-4 further indicates that 56% of males and 42.50% of females in rural areas prefer to eat rohu. On the other hand, 50% of urban consumers (both male and female) favour catla over rohu. Mrigal is the least preferred fish among both rural and urban consumers.

Table A2-4. Most preferred species by consumers (1999-2000) (Percentage of respondents)

Species

Male

Female

Reasons

Rural

Rohu

56.10

42.50

Taste and easy availability

Catla

40.20

49.50

Mrigal

1.90

1.90

Common carp

2.80

6.70

Urban

Rohu

25.00

41.00

Taste and easy availability

Catla

48.00

51.00

Mrigal

-

-

Common carp

10.00

18.00


The most preferred traits of the fish presented in Table A2-5 show that size in catla and colour and shape in rohu are widely favoured.

Table A2-5. Most preferred traits by consumers in Karnataka (1999-2000) (Weighted average scores)

Indicators

Rohu

Catla

Mrigal

Common carp

Rural

Size

6.00

1.00

10.00

10.00

Colour

1.50

10.00

8.50

8.85

Shape

2.10

8.46

8.20

10.00

Flavour

9.00

9.12

8.35

8.70

Fat

10.00

-

7.30

9.44

Urban

Size

1.04

1.60

1.66

10.00

Colour

1.00

6.50

8.00

10.00

Shape

3.00

3.00

8.55

8.00

Flavour

5.00

8.65

-

-

Fat

1.00

-

9.50

-

NOTE: A score value of 10 indicates lowest preference and 1 indicates highest preference.
Table A2-6 shows the most preferred parts of fish. Head, tail and belly are most preferred in rohu and catla. The table indicates that fish eggs are least preferred by consumers as indicated by the very high score for most of the other body parts. However, consumers liked the belly of common carps the most.

Table A2-6. Most preferred parts of carps (weighted average score) by consumers in Karnataka (1999-2000)

Indicators of parts

Rohu

Catla

Mrigal

Common carp

Eggs

10.00

10.00

10.00

10.00

Head

1.00

2.68

1.00

10.00

Back meat

2.42

5.50

-

8.42

Tail

1.00

1.98

1.00

9.94

Belly

1.00

1.02

1.00

1.50

APPENDIX 3. THE MODEL OF ANDHRA PRADESH

Commercial aquaculture started in Andhra Pradesh in the early 1980s with an area of 14 000 ha and 80 000 t of production. At present, Andhra Pradesh's aquaculture sector comprises 75 100 ha under cultivation, 203 970 t of production and a productivity of 4 000 - 5 000 kg/ha, which ranks Andhra Pradesh second in the country for productivity in aquaculture. A few subsistence farmers stock fry in small ponds and sell fingerlings to big farmers. Most of the area under aquaculture is under large-scale production and is market oriented.

The present study is based on the microlevel survey in 1998-99 of producers of aquatic products, conducted by participatory evaluation method. A selected group of producers in the Vijayawada region, where carp farming is most advanced, was observed and group meetings were held to obtain the information. Data for 1990 were based on the study by Veerana et al. (1993).

Initially, low-lying paddy growing areas of low productivity were converted into fishponds. The lucrative market in West Bengal contributed to a large extent to the expansion of area under freshwater aquaculture in the early 1990s. Farmers, who have traditionally been agriculturists, have expanded their area under fish production substantially over the years. Fish production per unit of pond has increased many times over the years. Production was a mere 500 kg/ha in 1989-90. Today, production has reached an impressive 4 000-5 000 kg/ha. The production of aquatic products continued to increase during the mid 1990s due to improved use of fish feed and other advanced technologies. However, production per unit area has been almost stagnant for the last couple of years.

Most of the farms are big. Small-scale farmers with 2-3 acres are not engaged in commercial fish production. They stock large numbers of fry and supply the fingerlings to big farms. Sizes of commercial farms vary between 20 to 50 acres. A few commercial farms of 50-150 acres are owned and managed by two or three big private businesses. Big farmers lease small, clustered farms to develop aquaculture on a commercial scale. Most of the farms in the state are of commercial nature and are owned by individual farmers. The government of Andhra Pradesh has given 40 acres to each fish-farming cooperative in and around Kolleru Lake in West Godavari and Krishna district. Collective private ownership is most common for farms of more than 100 acres.

Andhra Pradesh's aquaculture system consists mainly of polycultures. The ponds are trenches with an average depth of 6 feet. The size of ponds varies from one ha to 4 ha; they have an inlet and outlet to allow water to enter and to drain. Bunds are planted with coconut trees. The main species cultured in the ponds are catla, rohu and mrigal. Mrigal is raised in very small quantities and only in a few areas. Recently, some farmers have started growing freshwater prawns as bottom feeders. Freshwater aquaculture is considered a single enterprise, or stand-alone activity. Some farmers practise aquaculture as part of a larger farming system, where paddy-farming in fertile soils is the main occupation.

Aquaculture practices in Andhra Pradesh

In the late 1980s and early 1990s, the government of Andhra Pradesh introduced subsidies for farmers to encourage freshwater aquaculture and to promote and develop the aquaculture industry. Incentives were given to farmers who took up fish farming. With the expansion of the aquaculture industry, the government stopped giving subsidies to fish farmers during the mid 1990s. Nevertheless, the area under aquaculture is still growing due to the high demand in the West Bengal market. Production reached peak levels due to the use of high-quality/high quantity of feed and other production technologies. Presently, the government of Andhra Pradesh has banned the conversion of paddy growing areas into ponds for aquaculture.

Farmers who were practising aquaculture, were 40-50 years old. Most of them resided close to their farms. Farmers' previous main occupation was in agriculture.

Changes in farming practices between 1990 and 1998 are presented in Table A3-1. The data show that, over a decade, the intensity of farming has increased in terms of input use and management practices. The farmers now stock 14-month-old seeds, an increase in age of three months over seeds used in 1990. Operating costs for labour, diesel, dike maintenance, and lease have doubled. In terms of species composition, mrigal is slowly disappearing, giving way to freshwater prawns. Pesticides, antibiotics, etc. which were negligible in 1990, are now widely used. Chemical fertilizers, such as super phosphate and urea, are also used extensively. Water quality management is regularly practised now; water is changed more frequently.

Table A3-1. Changes in aquaculture practices in Andhra Pradesh

Parameter

1990

1998

Farm size (ha)

8-10

12-15

Number of cultured ponds per farm

2

4 - 6

Number of stunting ponds

1

2 - 3

Size of cultured ponds (ha)

3.5

4 - 5

Type of pond

Trench

Trench

Dyke width (m)

1.54

1.5 - 2

Pond depth (m)

4.95

5

Water source

Irrigation and drain canals

Irrigation and drain canals

Water supply

Seasonal/perennial

Perennial

Age of the farm (years)

5

10 - 30

Previous land usage

Agriculture

Agriculture

Mean land cost (Rs/ha)

118 588

850 000

Lease cost (Rs/ha)

7 794

15 000

Excavation cost (Rs/ha)

21 298

27 000

Technical employees

Absent

Present

Permanent labourers per farm

2-3

4-6

Mean labour wage (Rs/month)

510

1000

Electrical power supply

Partly available

Fully available

Diesel cost (Rs/ha/year)

1 290

3 000

Dike maintenance cost (Rs/ha/year)

Irregular; 445

Regular; 2 000

Land ownership

Own

own + lease

Corporate farms/partnership farms

very few

More large farms (400 - 500 acres)

Lease amount (Rs/ha)

7 000

15 000

Source of seed

Private

Private

Age of seed (months)

11

14

Average weight of seed (g)

135

150 - 175

Stocking density

2 900

2 000 - 2 500

Species ratio (Rohu:Catla:Mrigal)

70:20:10

70:30:0+Freshwater prawns

Prophylactic treatment

Not undertaken

Undertaken regularly

Pesticides

Negligible

2 - 3 litres

Antibiotics

Negligible

1 - 2 litres

Diagnosis of disease

Not possible

Identified depending on mortality

Type of disease

Parasitic

Parasitic

Medication used

Pesticides and antibiotics

Pesticides and antibiotics

Medication strategy

Unspecified duration

Unspecified but more vigilant

Medication information

Friends and drug shops

Institutions and consultants

Buffalo manure

Negligible


Chicken manure

Negligible

5 - 6 t

Pig manure

Negligible


Super phosphate

Negligible

200 - 300 kg

Urea

Negligible


De-oiled rice bran

2 - 3 t

8 - 10 t

Salt

5%

7 - 9%

Water quality

Not monitored

Monitored/watched

Water exchange

Weekly/monthly

Once/twice a week

Liming frequency

Random

Monthly

Source:
1. Figures and information for the year 1990 were taken from Veerana et al., 1993.
2. Figures for 1998-98 are based upon the present survey data by the author.
Cultivation of coconut trees along the dike/bund is a very common practice on most of the farms. Due to the low demand for mrigal in the consumer market, fish farmers are growing freshwater prawns as bottom feeders.

Table A3-2. Comparison of costs and returns from 1992-93 to 1998-99 (Rs/ha/crop).

Items\Year

1992-93

1998-99

% change

Value (Rs)

%

Value (Rs)

%

A. Variable costs

1. Seed

2 912

8.21

10 000

13.91

243.41

2. Fertilizers (organic + inorganic)

6 459

18.21

7 000

9.74

8.38

3. Feed

15 632

44.07

32 000

44.52

104.71

4. Pest and disease control

626

1.77

1 000

1.39

59.74

5. Fuel and electricity charges

1 492

4.21

4 000

5.56

168.10

6. Hired labour

821

2.31

2 800

3.89

241.05

7. Pond preparation costs

1 050

2.96

5 000

6.97

-

8. Interest on working capital

3 654

10.30

10 080

14.02

175.86

9. Family labour

2 821

7.95

-

-

-

11. Total variable costs

35 467

100.00

71 880

100.00

175.97

B. Fixed Costs

12. Supervision & watch & ward

1 582

3.82

7 200

5.37

355.12

13. Insurance charges

692

1.67

750

0.56

8.38

14. Depreciation

864

2.08

2 000

1.49

131.48

15.Lease cost of the land



14 000

10.45


16. Annuity value for pond

1 761

4.25

7 142

5.33

305.57

17. Interest on fixed capital

848

2.05

5 000

3.73

489.62

18. Total fixed costs

5 747

13.86

36 092

26.94

528.01

19. Total cost (11+18)

41 214

100.00

133 972

100.00


20. Total Returns

82 881


168 000



21. Gross Profit (20-11)

47 414


70 120



22. Net Profit (20-19)

41 667


34 028



SOURCE:
1. Figures and information for 1992-93 were taken from Rao and Raju (1997).
2. Figures for 1998-98 are based upon the present survey data by the author.
Cost and returns of freshwater aquaculture have undergone enormous changes and fish producers have seen profits deteriorate. Table A3-2 presents a comparative picture of changes in variable costs, fixed costs, gross returns and net profits between 1992-93 and 1998-99. The cost of feed has doubled from Rs 15 632 to Rs 32 000, and interest on working capital has increased threefold. Family-labour, which used to contribute as much as Rs 2 800, was absent in 1998-99, indicating a trend in commercialization of farms. Total cost (both variable and fixed costs) has grown threefold, while returns increased only twofold from Rs 82 800 to Rs 168 000. The results show that gross profit has increased from Rs 47 414 to Rs 70 120. On the other hand, net profit has decreased from Rs 41 667 to Rs 34 028 during the corresponding period. The yield per hectare during 1992-93 was only 3903 kg/ha. It doubled in 1998-99 to around 6000 kg/ha. However, maximum production has not maximized profitability.

Marketing of products from aquaculture in Andhra Pradesh

We studied the marketing of fish in Nellore city of Andhra Pradesh, which is around 150 km from Chennai city. Nellore city receives carps from 5 000 ha of farms with an estimated total production of about 12 000 t. Most of the cultured fish is exported to northeastern states like West Bengal, Assam etc. Local consumers prefer marine and captured fish. For example, during our visits to markets in Krishnapatnam, which is very close to Nellore, we saw catla, mrigal, eel, short fishes, crabs and other marine shrimps.

Fish farmers normally extend buy-backs options to merchants. Commissioned fish agents supply credit for buying fertilizers, seeds, feed etc. in advance with an understanding that the entire production will be sold to them at a negotiated price, which is based on day-to-day market prices. Generally, an auction market does not exist for cultured fish. After deducting the money the farmer initially borrowed, the marketing agent pays the remaining balance. Another way of marketing fish is for farmers to take their fish to Howrah wholesale market in a rented, insulated vehicle, and for a representative of the group to accompany the truck. In retail markets, weighing is done by hand-held scales, which are often defective. Retailers receive the fish in corrugated plastic boxes on ice; but while they are displayed, only water is sprinkled on the fish in order to preserve them. Sometimes saltwater is used. In general, retail markets are not hygienic. Retailers sell dressed fish at the request of consumers, but charge Rs 5 per kilo for the service. An estimated 10% of total market arrivals are wasted due to quality deterioration in the absence of proper cold storage.

The state capital of Andhra Pradesh, Hyderabad city, gets most of its supplies from coastal towns such as Bhimavaram, Eluru and reservoirs such as Nizamsagar, Nagarjunasagar, etc. Fish that are not sold the same day they arrive in the market are processed into fillets and kept on ice for selling the next day. Demand for fish is higher than normal during the months of July, August, September, October, November and December. During summer months, the demand for fish is relatively low. In Hyderabad, the price of live catla is two times higher (Rs 40.00) than that of dead catla (Rs 22.00). Market price varies for some of the important varieties such as crab (Rs 40.00); murrel live (Rs 110); murrel dead (Rs 50.00); grass and silver carp (Rs 25); they are traded regularly in the market. The Government of Fisheries Department maintains sales counters in places where freshwater fishes are sold that are harvested from the local water bodies. Fish from government sales counters are kept hygienically on ice, and weighing is done on electronic scales. With the support of the government, fishermen's cooperatives have established such sale counters for fish also. Prices in such shops are somewhat higher compared to market prices, which are given below:

Catla, rohu, mrigal

= Rs 45

Hilsa, Crabs, Channa (dead)

= Rs 90-100

Channa (live)

= Rs 135-150

Sea fish

= Rs 80-125


Markets for aquatic products are more organized at the secondary level than at the primary level. Hence, it is important that the infrastructure at the primary market level be strengthened so that fish farmers will be able to realize better prices. Consumer preference for fish, in terms of its share in total food expenditure, is increasing both in rural and urban areas as is revealed by the analysis of NSS data. The percentage of food expenditure on fish, meat and eggs increased in rural areas from 3.4% to 5.5% during the period from 1972-73 to 1992-93, and from 5.1% to 6.5% in urban areas during the same period (National Sample Survey Organization). This increase in food expenditure strengthens the need for improvements in the market to help rural and urban consumers.


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