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Sectoral Paper

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Title : Sectoral Paper on Fisheries and Aquaculture


Written and Published by : Farm Sector Policy Department
NABARD Head Office, Mumbai
Date of Publishing : February 2018
Design & Printing : Wyatt Prism Communications and Image Impression
Contact : Plot No. C-24, ‘G’ Block, Bandra Kurla Complex,
Bandra East, Mumbai- 400 051, India.
Tel: +91 22 2653 0094
Email: fspd@nabard.org
National Bank for Agriculture and Rural Development
Website: www.nabard.org, Farm Sector Policy Department
www.youtube.com/nabardonline Bandra Kurla Complex,
Bandra (East ), Mumbai – 400 051
Photo credits : Dr K Palanisamy, NABARD; Shri S.Alagu Ravi, E- mail : fspd@nabard.org
Svara Biotechnovations; Mrs Annie Alexander, NABARD Website : www.nabard.org
Sectoral Paper on
Fisheries and Aquaculture

Farm Sector Policy Department


National Bank for Agriculture and Rural Development
Mumbai
February 2018
Disclaimer
The views expressed in the sectoral paper are those of the authors and do not necessarily reflect the views or policies of NABARD.
NABARD accepts no responsibility in whatsoever for any loss or damage arising out of use of this document.

February 2018
Foreword
Transforming agriculture and rural economy with focus on doubling farmers’ income has been the
priority of the Government of India. Capital formation in agriculture is of critical importance for increasing
agricultural productivity and off farm employment. Further, with 55% of the Net Sown Area under
cereals, there is a need to diversify agriculture t0 include allied sectors and promote integrated farming
systems to make the farming resilient and ensure farmers get equitable and egalitarian growth in income.
This calls for diversification of agriculture with focus on land and water management, farm mechanisation,
animal husbandry, fisheries & aquaculture, agro forestry and other allied activities.

To diversify farming systems and sustain the growth momentum, there is a need for increased investments
and capital formation “in” and “for” agriculture. To highlight the opportunities for investment credit in
agriculture, NABARD has come out with more than 45 model bankable schemes which are available for
the benefit of the stakeholders at our website. In addition to supplementing the resources of the banking
system to support capital formation in agriculture through refinance, NABARD also provides support for
creation of infrastructure through State Governments and its entities.

Recognising the important role played by interventions such as agricultural engineering, water resources,
land development, plantation & horticulture, forestry, animal husbandry, fisheries & aquaculture and
food processing sectors, an attempt is made by NABARD to prepare interventions/sector wise potential
and scope for development, issues that needs to be addressed to facilitate the stakeholders to have a
comprehensive view of the developmental priorities.

Fisheries sector is identified as sun rise sector having immense potential to contribute to the food
and nutritional security, livelihood, export earnings and also to the goal of doubling of farmers’ income.
The sectoral paper on fisheries and aquaculture is an attempt to capture the current status of potential
and its exploitation, issues that needs to be addressed to sustain the development of the sector, especially
in the light of the Blue Revolution Scheme of Govt of India.

Dr Harsh Kumar Bhanwala


Chairman
National Bank for Agriculture and Rural Development
Mumbai
February 2018
Message
Fish production in India has been growing around 5% per annum and India has
reached the status of second largest producer of fish in the world. However, India is
way behind the world’s number one aquaculture producer accounting for just one
tenth of that of China. Fisheries and Aquaculture sector have been contributing to
food, nutrition, income and livelihoods, export earnings and providing livelihood
to more than 15 million people in India. With its contribution of about 1% to the
Gross Value Added in the economy about 5% to that of GVA from Agriculture, sector
contributed to export earnings of ₹ 37000 crore accounting for about 1.8% of the
total exports and 14% to that of agricultural exports. The sector provides livelihood
opportunities to more than 15 million people.

The fisheries and aquaculture sector has potential to contribute many of the
Sustainable Development Goals covering poverty, hunger and food security,
protection, restoration and management of inland water resources and ecosystems
and biodiversity, economic growth, employment and decent work, consumption
and production, climate change of the SDGs and also faced with challenges of
Natural Resources Management, Conservation of Bio diversity and Climate change.

Recognising the potential of the sector, the Govt of India has come out with a
Centrally Sponsored Scheme on Blue Revolution with an integrated approach to
double fish production and treble the export earnings by 2022. Further, fisheries
has been recognised as important component of integrated farming system being
advocated as one of the strategies for doubling of farmers income. The sectoral
paper has brought out various issues that needs to be addressed to realise the full
potential of the fisheries and aquaculture sector.

H R Dave
Deputy Managing Director
National Bank for Agriculture and Rural Development
Mumbai
February 2018
Contents
1 Introduction 1

2 Fish Production 3

3 Marine Fisheries 7

4 Inland fisheries 11

5 Brackish water aquaculture 19

6 Mariculture 23

7 Post Harvest Infastructure 26

8 Export of Marine Products 30

9 Fish Marketing 33

10 Women and Weaker sections 35

11 Government of India Schemes/


Programmes 37

12 SWOT Analysis - Fisheries Sector 41

13 Problems and Prospects 43

14 Strategies 48

15 Climate change implications for


fisheries and aquaculture 50

16 Sustainable Development Goals 52

17 Capital formation in Aquaculture


and Fisheries sector 55

18 Summary of Issues and


suggested interventions 62

19 Conclusion 75
Executive Summary

01. Fisheries and aquaculture is considered a besides adding to the nutritional security it
sunrise sector in Indian economy and it has also helps in bringing additional income to
witnessed a spectacular growth of over 950 rural households.
per cent, from 0.75 MT to 10.79 MT, during
the last six decades. With a production of 06. With about 60% of the fish stocks in
around 10.79 million tonnes during 2016-17, Exclusive Economic Zone (EEZ) are over
India accounts for about 5.68% of the global exploited and the rest of stock fully
fish production. India reached the status of exploited, the scope for further expanding
2nd largest producer of fish and 2nd largest in fishing pressure is limited to resource
producer of aquaculture in the world next specific deep sea fishing like tunas. There
only to China. is need for balancing act to conserve the
resources by adopting best practices like
02. The sector contributed ` 96824 crore to Code of Conduct for Responsible Fisheries
the GDP (at current prices) during 2013-14, (CCRF) while selectively empowering
which is 0.92 % of the total GDP at factor coastal fishermen to diversify into deep
cost and 5.43% of the GDP at factor cost sea fishing and other fishery dependant/
from agriculture, forestry and fishing. The independent livelihood options.
share of fisheries sector in the total GDP at
factor cost in current prices increased from 07. Mariculture potential of the country is not
0.40% in 1950-51 to 0.92% in 2013-14 while recognised in the sense there is a need for
there is a declining trend in the contribution focussed and enabling policy framework.
of overall agricultural sector from 51.9 per Popularisation of marine cage culture of
cent in 1950-51, to 13.7 per cent in 2013-14. fin fishes, sea weed culture, culture of
oysters/mussels, crab farming in coastal
03. Indian marine exports accounted for about backwaters waters, marine ornamental
3.7% of the Global sea food exports. During fish breeding parks along the coastline may
the year 2016-17, exports of marine products have to be given focus.
aggregated to 11,34,948 MT valued at
` 37870 crores (US$ 5.78 billion). During the 08. Coastal Aquaculture: Interest in shrimp
last 25 years the marine exports achieved farming is being revived with the
CAGR of 7.8% in volume and 12.4% in value introduction of SPF vannamei farming.
terms. The share of marine exports to the However strict regulations in adoption
total exports of the country accounted for of bio security measures is lacking at
1.16% and to that of agricultural exports the ground level. Based on the past
accounted for around 12%. experiences, there is a need for ground
level regulation for orderly and
04. The Indian fisheries sector is characterised sustainable development.
small scale farming. It provided full time/
part time employment to over 14.49 million 09. SPF monodon and
people in 2013-14. indicus to be
developed and
05. The fisheries sector has been recognised to other local
contribute elimination of hunger, promote varieties of
health, reduce poverty by providing shrimp also to
food and Nutritional security to the vast be identified
majority of the population. Fish contributes and developed
substantially to the domestic food security for farming
of India which has a per capita consumption so that
of more than 6.00 kg per annum. With there will be
freshwater aquaculture being a homestead diversification in
activity in several parts of the country, species.
10. Crab culture: Technology developed at of marginal farmers and fishermen.
R&D level need to be popularized and Compared to agriculture,
investment in nursery rearing required to the credit flow in fisheries
commercialise crab culture. Fin fishes like sector, particularly marine
chanos, sea bass and varieties specific to and aquaculture is not
the local area need to be promoted. significant. Lack of
awareness among the
11. Cage culture in reservoirs, composite fish branch level bankers
culture, improved tilapia culture, freshwater on the aquaculture
prawn culture, pangasius culture in clusters technologies and
on an area development mode, utilisation of their techno-
salinity affected areas for culture of shrimp economic feasibilities.
like vannamei, culture of trout in hilly areas, Aquaculture and
ornamental fish breeding clusters are the fisheries sector is also
focus areas for development. perceived to be risky
leading to limits of credit
12. Under the inland sector there is no exposure. Banks/ BIRD
diversification from the carp based may also consider organising
composite fish culture. Composite fish specialised training programme
culture is also practised as subsistence for branch level staff on financing
farming in majority of the states with lack fisheries sector activities.
of commercial scale operations. Almost
there is no investment is being made in 18. There is a need to evolve standard
the development of open water bodies package of practices for each activity and
like reservoirs. Culture of pangasius which dissemination of them to bankers and
picked up momentum is not able to be other stakeholders with the coordination of
sustained due to market factors. The research and development agencies.
technology of Cage culture of pangasius in
reservoirs needs to be popularized 19.
To promote capital formation and
leveraging institutional credit for fisheries
13. All male improved tilapia culture in bio secure and aquaculture sector, there is a need
conditions is emerging as a potential activity to come out with a suitable back ended
that needs to be upscaled. Technology for credit linked capital subsidy scheme on the
Mono sex culture of freshwater prawn to be lines of agriculture and animal husbandry
standardized and popularised sectors.

14. Cold water fisheries needs focus and Race 20. Leasing policy for utilizing open water
way culture of trout to be promoted in bodies for fisheries purpose, both in marine,
the Hilly areas of Himalayan ranges (with brackish water and freshwater domains.
diverted streams). Govt of India may come out with a draft
leasing/licensing policy in consultation
15. Salinity affected areas can be converted with other stakeholders for adoption by the
to shrimp farming/prawn farming and the state govts.
technology and package of practices are to
be standardized and disseminated 21. Aquaculture is not treated on par with
agriculture for supply of electricity in
16. Commercialization of ornamental fish many states and other incentives like
breeding by establishing “Ornamental Fish interest subvention, Insurance coverage
breeding Park” covering both freshwater etc. Facilities like interest subvention
and marine ornamentals with necessary for working capital are not provided.
infrastructure facilities. Similarly insurance facility for the marine
fisheries assets and aquaculture assets
17. Informal sources of credit continue to play and standing crops are charged very high
significant role as the source of financing premium without any subvention by the
Government.
22. Brackish water Aquaculture in India is infrastructure with considerable R&D input,
shrimp centric relying only on a single ICAR institutes may develop the brood stock
variety Litopeneaus vannamei. Develop a facility with budgetary support of DAHD&F,
domestication programme giving emphasis Ministry of Agriculture and consider transfer
on disease tolerant/ resistant and set up of the technology to private entrepreneurs
a Nucleus breeding of P. indicus. Set up a on PPP model to run on commercial scale.
brood stock bank and Nauplii centre of
disease screened animals for supply to 28. Fisher folks lack physical and livelihood
hatcheries. assets, including land that can be
used as collateral. Fisher folks are not
23. Unregistered shrimp hatcheries should not functionally organized, and locationally
be allowed to function, until they comply dispersed and not capable of economies
with CAA guidelines. of scale in production, marketing and
post-harvest handling operations. Special
24. Lack of basic infrastructure like Farm credit products, alternate credit delivery
approach roads, power connection, mechanism, organising them into SHGs/
common ETP, inlet/outlet are major JLGs/ POs are required to be tried.
bottlenecks in the orderly development of
coastal aquaculture. Planned infrastructure 29. Adequate Infrastructure facilities in the
development in aquaculture areas are form of Harbours / landing centres, cold
required with common ETP, properly chain facilities. Govt of India/State Govts
deepened intake canal, Electricity to invest to develop these infrastructure
connection, water inlet/ outlet to facilitate facilities. RIDF funding from NABARD is also
farming in small holdings. RIDF assistance may be made use of by the State Govts.
could be availed by State Government
to develop infrastructure on the linesof 30. Need for close coordination between R&D
Aqua parks/Aquaculture Estates / clusters. Institutions and Financial Institutions so
Investments under PPP mode also could be that technologies developed at the R&D
considered. institutions can be transferred to the field
with suitable package of practices.
25. Lack of resource mapping on a district
level for efficient and effective decision 31. Climate change impacts on water resources
making regarding investment in and fish bio diversity including breeding,
aquaculture. Central & State government recruitment of fish stock. State Govts/
agencies and CAA may take up a micro level ICAR institutions/SAU/ NGOs may consider
survey of brackish water areas needs to be developing suitable concepts for mobilising
done to identify & demarcate suitable areas climate finance- both adaptation and
for allotment. mitigation from domestic and international
funding mechanisms.
26. Availability of quality seed in all the
subsectors of aquaculture is a major 32. There is a need to develop hygienic
bottleneck faced by the farmers. Private domestic fish marketing infrastructure
sector may be encouraged to set up to avoid post harvest loss and ensure
hatcheries with incentives by the Govt. consumers get the good quality product.
The State run seed farms need to be Promotion of value added fish products
strengthened. NABARD also provides needs to be encouraged for better shelf life
RIDF assistance for strengthening seed as well as higher price realisation. Attempts
production infrastructure to state govts. to develop e-marketing of fish products are
Nursery rearing facility for marine and also proving to be gaining traction.
brackish water fin fishes and mud crab seed
production needs to be promoted under 33. There is a need to encourage new
private sector. technologies like aquaponics, application
of IoT in fisheries and aquaculture
27. Availability of quality brood stock to supply operations for the benefit of farmers as well
to the hatcheries - all candidate species as consumers.
used in aquaculture. This being strategic
1. Introduction
1.1 Brief Profile

Sectoral Paper on Fisheries and Aquaculture | 1


Indian marine exports accounted for about
3.7% of the Global sea food exports. During
the year 2016-17, exports of marine products
aggregated to 11,34,948 MT valued at
` 37,870 crore (US$ 5.78 billion). During the
last 25 years the marine exports achieved
CAGR of 7.8% in volume and 12.4% in value
terms. The share of marine exports to the total
exports of the country accounted for 1.16% and
to that of agricultural exports accounted for
around 12%.

The Indian fisheries sector is characterised


small scale farming and provides full time/
part time employment to over 14.50 million
1.1 Brief Profile people. India is home to more than 10 percent
Fisheries and aquaculture is considered a of the global fish diversity. The fisheries sector
sunrise sector in Indian economy and it has been recognised to contribute elimination
has witnessed a spectacular growth of over of hunger, promote health, and reduce poverty
1100 per cent, from 0.75 MT to 10.79 MT, by providing food and nutritional security
during the last six decades. It has been to the vast majority of the population. Fish
recognized as a powerful income and contributes substantially to the domestic food
employment generator as it stimulates growth and nutritional security of India which has a per
of a number of subsidiary industries and capita consumption of about 8-9 kg per annum,
is an important source of nutritious food though it is a poor 50% of the global rates of
besides being a source of foreign exchange 20kg/capita and 12 kg/capita recommended
earner. With a production of around 10.79 by Indian Council of Medical Research. With
million tonnes during 2016-17, India accounts freshwater aquaculture being a homestead
for about 5.68% of the global fish production. activity in several parts of the country, besides
India reached the status of 2nd largest producer adding to the nutritional security it also helps in
of fish and 2nd largest producer of aquaculture in bringing additional income to rural households.
the world next only to China. India is home
to more than 10 percent of the global fish bio Fishery being one of the promising sectors of
diversity. agriculture and allied activities in India, the
Govt of India has come out with a Scheme on
The sector contributed ` 96824 crore to the Blue Revolution to focus on tapping the full
GDP (at current prices) during 2013-14, which production potential and enhance productivity
is 0.92% of the total GDP at factor cost and substantially from aquaculture and fisheries
5.15% of the GDP at factor cost from agriculture, resources with an anticipated growth rate of
forestry and fishing. The share of fisheries 6 to 8% per annum. Substantially increasing
sector in the total GDP at factor cost in the share of Indian fisheries in the export area
current prices increased from 0.40% in 1950-51 would be a key goal. It will ensure doubling
to 0.92% in 2013-14 while there is a declining the income of the fishers and fish farmers with
trend in the contribution of overall agricultural inclusive participation of the socio-economically
sector from 51.9 per cent in 1950-51, to 13.7 per weaker sections and ensure sustainability with
cent in 2013-14. environment and biosecurity.

2 | Sectoral Paper on Fisheries and Aquaculture


2. Fish Production
2.1 Global trend

2.2 Fish Production in India

Sectoral Paper on Fisheries and Aquaculture | 3


2.1 Global trend
Global fish production has grown steadily in
the last five decades with fish supply increasing
at an average annual growth rate of 3.2
percent and reached 167 million tonnes during
2014 with 93.4 million tonnes from capture
fisheries and 73.8 million tonnes from
aquaculture (FAO 2016).

250

200
Millions MT
Production

150

100

50

0
1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013

Capture Fisheries Aquaculture

Figure 1. World Fish production through capture and aquaculture (FAO, 2016)

4 | Sectoral Paper on Fisheries and Aquaculture


Globally the capture fisheries has reached a

Fish production (Millions tones)


saturation while the aquaculture sector has 250
been growing at a faster rate (Fig 1). Aquaculture
has been the fastest growing sector and for the 200

first time ever the world’s population consumed


150
more farmed fish than wild caught fish.
100
Marine fisheries is the dominant sub sector
contributing about 70% of the total fish 50

production globally (Fig 2).


0

1950
1652
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
The share of world fish production utilized for
direct human consumption has increased in
Marine areas Inland waters
recent decades, up from 67% in the 1960s to
87% in 2014. World per capita apparent fish
consumption increased from an average of 9.9 Figure 2. World fish production from marine and inland waters (FAO 2016)
kg in 1960s to 20 kg in 2014. Fish accounted
for about 17% of global populations intake
of animal protein and 6.7% of all protein 7000
Fish production (Millions tones)

consumed. In 2014, 84% of global population 35 year CAGR


6000
engaged in fisheries sector was from Asia. The marine : 2.5%
5000 Inland : 5.74%
global trade in fish and fishery products was to
the tune of US$ 148.3 billion. 4000 Total : 4.12%

3000
2.2 Fish Production in India 2000
From a production level of 0.75 million tonnes
1000
during 1950-51, fish production has reached
10.79 million tonnes during 2015-16. With a 0
1950-51

1960-61

1970-71

1978-79

1980-81

1982-83

1985-86

1987-88

1989-90

1991-92

1993-94

1995-96

1997-98

1999-00

2001-02

2003-04

2005-06

2007-08

2009-10

2011-12

2012-13
share of 6.30% in global fish production and 5%
in global trade, India is 2nd largest fish producer
in the World in terms of total production and also Marine areas Inland
ranked 2nd in aquaculture production. While the
growth in marine sector is stagnating with CAGR Figure 3. Trends in fish Production in India (Source DAHD&F 2016)
of 2.5%, the inland sector has been growing at
CAGR of 5.74% (Fig 3) supported by the growth
in aquaculture production especially carps,
pangaisus and shrimps. Share of Marine and Inland sectors Share of Marine and Inland sectors
in Global fish production 2012 in fish production in India
The marine fisheries sector contributed to 3.58
MT (36%) while the inland sector 7.21 MT (64%)
to the total production. While inland sector is
a major contributor in India, globally marine
sector contributed the major share of 66%
indicating the preponderance of the inland
sector in India (Fig 4).

The shift from marine fisheries to inland sector


has occurred due to stagnation and over
capitalisation in marine sector which is mainly
capture oriented while the inland sector has Marine 66% Inland 34% Marine 36% Inland 64%
expanded at a faster rate due to aquaculture.
Figure 4. Share of Marine and Inland sectors in total fish production - Global
Within inland fisheries there is a shift from position Vs India. (Source: Handbook of fisheries statistics, 2014)
capture fisheries to aquaculture during the last

Sectoral Paper on Fisheries and Aquaculture | 5


two and half decade. Freshwater aquaculture
with a share of 34 percent in inland fisheries in 12 60%

% Share of Aquaculture
mid 1980s has increased to about 80 percent 10 50%

Fish Production (MT)


in recent years, while the overall share of
8 40%
aquaculture is more than 50% of the total fish
production of the country (Fig 5). 6 30%

4 20%
Further, India is the second largest producer
2 10%
of fish in the inland fisheries sub-sector (7.21
million tonnes) and aquaculture (approximately 0 0%
5.3 million tonnes) after China. Contrary to the 1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
production growth of just 125 % from marine
capture fisheries during the last 35 years (1.55
million tonnes in 1980-81 to 3.58million tonnes Capture Fisheries Aquaculture % Share of Aquaculture
2015-16) or annual growth rate of 5.8 %, the
growth from aquaculture at the same time has Figure 5: Marine and Inland Fish production in India. (FAO, 2016)
been stupendous 1420% (0.37 MT in 1980-81
to 5.63 MT in 2014-15) or annual growth rate
of 116.4 %, which is more than significant.
Therefore, aquaculture is the most viable option 25 24
for enhancing the fish production in the country
at a stage when there is absolutely no growth or 20
18
even a decline of fish catch from the open water 17

resources especially the reservoirs and marine 15


Lakh MT

fisheries sector.
10 8 7 7
6 6 5 5 5
Among the states, Andhra Pradesh continued 5
to be the leading state in total fish production
followed by West Bengal and Gujarat and Kerala 0
Andhra Pradesh

West Bengal

Gujarat

Kerala

Tamil Nadu

Karnataka

Maharashtra

Odisha

Bihar

Uttar Pradesh

Others
(Fig 6).

Though India is the second largest producer of


fish through Aquaculture, it is accounting for
only one tenth of the number one producer i.e
China. The aquaculture of open waters largely Figure 6. Total Fish production- Leading States (Source: DAHD&F, 2017)
remains untapped because of lack of technology
and suitable policies. This is best explained by
considering a marginal utilization of 1% of the
water spread area of our reservoirs estimated to
be 3.15 million ha and a production potential of
200 mt/ha/year. The estimated potential would
work out to 6 million tonnes per annum. This
could lead to almost doubling of fish production
of the country. Similar production could be
tapped through utilization of our coastal waters
through cage fish culture.
Marine Crustaceans 10% Marine Aquatic plants 0%
As may be seen, Indian aquaculture is dominated FW Fishes 88% Marine Molluscs 0%
by freshwater fishes (88%) followed by marine
Other 2% FW Crustacean
crustaceans (10%) (Fig 7). Lack of species
Marine Fishes 2%
diversification in aquaculture is an important
issue that needs to be addressed by the Research
Figure 7. Aquaculture Production- Contribution by different environments and
and Development agencies and Planners.
species groups (Source: FAO, 2016)

6 | Sectoral Paper on Fisheries and Aquaculture


3. Marine Fisheries
3.1 Profile

3.2 Deep Sea Fishing

3.3 Sustainability of the marine fisheries

Sectoral Paper on Fisheries and Aquaculture | 7


India with vast resources under marine fisheries Infrastructure
sector and very rich biodiversity and reported Landing centers 1376
more than 1000 species in the landings. The
Major fishing har- 7
marine fish production, mainly based on capture
bours
fisheries, has increased from about 50,000
tonnes in 1950 to 3.63 million tonnes in 2016, Minor fishing har- 50
almost approaching the estimated potential of bours
4.4 million tonnes from the Indian EEZ. Mechanised vessels 72749 Nos
Motorised vessels 73410 Nos
3.1 Profile Non-motorised 52982 Nos
Physical
vessels
Length of coastline 8118 km Estimated Potential 4.45 million tonnes
Exclusive economic 2.02 million sq km Current Exploitation 3.58 million tonnes
zone
Continental shelf 0.53 million sq km The estimated fisheries resource potential of
Inshore area 0.18 million sq km 4.412 million tonnes could be classified into
(< 50 m depth) following broad categories each requiring
Number of Fishing 3202 specific technologies, crafts and gear and scale
villages of investment for their exploitation.
1. Pelagic resources: oil sardine, ribbon fish,
Human Component mackeral, etc accounting for 48% of the
Marine fishers popu- 3.5 million potential.
lation 2. Demersal resources: shrimps, cephalopods,
perches, croakers, etc. Accounting for 47%
Active fishers popu- 0.9 million
of the potential.
lation
3. Oceanic resources: tuna, bill fishes, sharks
etc. accounting for 5% of the potential.

8 | Sectoral Paper on Fisheries and Aquaculture


The resources could also be classified based
on the depth range as given below (Fig. 8). As
may be seen more than 86% of the potential
100 to 200 m
resources are in the depth range of upto 100 m
6%
only, which is the zone fully exploited.
200 to 500 m
Any effort to go beyond 200 m depth range 3%
entails technology and capital intensive and
needs resource specific fishing interventions. Beyond 500 m
5%
There is a need for suitable infrastructure in the
form of fishing harbours, fish landing centres to Upto 100 m
support the fishing operations. The state wise
marine fish landing infrastructure is given below.
Table 1: Marine fish landing infrastructure

Figure 8. Depth wise distribution of potential marine fisheries resources

Table 1: Marine fish landing infrastructure


Sl. State/Union Territory Approximate length of Number of landing centres
No. coast line
1 Andhra Pradesh 974 271
2 Goa 104 34
3 Gujarat 1600 123
4 Karnataka 300 88
5 Kerala 590 178
6 Maharashtra 720 152
7 Odisha 480 57
8 Tamil Nadu 1076 352
9 West Bengal 158 44
10 Andaman & Nicobar Islands 1912 25
11 Daman & Diu 27 7
12 Lakshadweep 132 19
13 Puducherry 45 26
Total 8118 1376

The fishing infrastructure include fishing The Fishing crafts mainly comprise of
harbours, landing centres, The Indian coastline • Mechanized
can be delineated into 22 zones based on • Motorized
the ecosystem structure and functions. The • Non-mechanized
fishing sector in India is essentially traditional • More than 30 craft gear combinations
and technologically under developed as it is
dominated by small fishermen. The sector
has a pyramid structure with large number
of subsistence fishermen at the bottom,
mechanised vessels, deep sea fishing vessels,
cold storage units and processing units make up
the successive layers in the structure.

Sectoral Paper on Fisheries and Aquaculture | 9


The state wise distribution of fishing crafts and marine fish production is given below:
Table 2. Marine fishing crafts and marine fish production by states
Rank State/Union Territory Traditional crafts Motorised crafts Mechanised Total crafts Production
(non motorized) boats (‘000 tonnes)
1 Gujarat 1884 8238 18278 28400 695.58
2 Kerala 5884 11175 4722 21781 522.31
3 Maharashtra 2783 1563 13016 17362 467.46
4 Andhra Pradesh 17837 10737 3167 31741 438.25
5 Tamil Nadu 10436 24942 10692 46070 432.27
6 Karnataka 2862 7518 3646 14023 357.36
7 West Bengal 3066 0 14282 17348 188.24
8 Odisha 4656 3922 2248 10826 120.02
9 Goa 227 1297 1142 2666 109.57
10 Puducherry 662 1562 369 2593 37.81
11 Andaman & Nicobar 1637 1491 61 3189 36.75
Islands
12 Daman & Diu 321 359 1000 1680 18.78
13 Lakshadweep 727 606 129 1462 18.72
TOTAL 52982 73410 72749 199141 3443.12
(Source: Handbook of fisheries statistics, 2014)
Major fishing gears used are: with deep sea fishing vessels of 18 to 24 OAL by
• Trawl nets providing subsidy of 50% of the cost of the deep
• Bagnets sea fishing vessel subject to maximum of ₹ 40
• Gillnets lakhs with option for obtaining bank finance for
• Seines the balance amount.
• Hook & Line
3.3 Sustainability of the marine
Currently the exploitation is concentrated upto fisheries
to 100m depth zone. The deep sea resources In order to improve the marketing of fresh fish
like tuna and a variety of others species are still internally, a number of cold storage, ice plants
under exploited. and cold chains have also been established.
Export trade is completely with the private
3.2 Deep Sea Fishing sector. Despite attempts to reduce post-harvest
Deep-sea fishing include fishing activities beyond losses, handling fresh fish with a minimum
territorial waters of 12 nautical miles from the of spoilage is difficult task in view of the poor
shore line (territorial water) and mostly beyond infrastructure at the landing centres and lack of
the depth range of 100 m. Most of the deep sea adequate cold chain facilities.
fishery resources beyond the traditional fishing
limit and fishing capability of the indigenous craft The marine fisheries sector as has been seen
can be gainfully exploited only if the upgraded above is mostly confined to coastal areas,
and sophisticated vessels of adequate size and is an open access, multi species and multi
capabilities are inducted into the fishery with gear activity. Concerns of overcapacity in
adequate technology and finance. The Govt. of coastal fishing and over exploitation leading
India had been taking several steps in the past to declining profitability, poor infrastructure
to finance deep sea fishing ventures, to bring in at fishing harbours and landing centres, lack
appropriate technologies and to build trained of adequate linkages for domestic marketing,
technical manpower etc. underutilisation of oceanic resources like tuna,
emerging inter and intra sectoral conflicts
To encourage the traditional /artisanal exacerbated by impacts of climate change are
fishermen and their societies/ associations/ need to be addressed to sustainably manage the
SHGs/JLGs/ FPOs to venture into deep sea sector. To address these concerns appropriate
fishing, Govt of India is encouraging them to policy interventions, technology and investment
replace their existing fishing boat/trawlers are the need of the hour.

10 | Sectoral Paper on Fisheries and Aquaculture


4. Inland fisheries
4.1 Freshwater aquaculture

4.1.1 Prospects of freshwater aquaculture

4.2 Reservoir Fisheries

4.3 Seed Production

4.4 Integrated Fish Farming

4.5 Ornamental fish rearing

4.6 Aquaculture in problem soils

4.7 Coldwater fisheries

Sectoral Paper on Fisheries and Aquaculture | 11


Physical Resources The inland fish production has increased from
Rivers and canals 0.19 million ha 0.37 MT in 1980 to 7.21 MT in 2015-16 mainly due
to contribution from fresh water aquaculture.
Reservoirs 3.15 million ha
Inland production, including farming, is now
Ponds and tanks 2.36 million ha catching up and the major states contributing
Flood plain lakes 1.2 million ha are West Bengal, Andhra Pradesh, Bihar,
Brackish water 1.24 million ha Haryana, Orissa, Tamil Nadu, Madhya Pradesh,
Karnataka and Maharashtra (Fig 9).
Estuaries 0.29 million ha.

16
16
Fish Production (lakhtonnes)

14
14
12
10
8
8
6 5
4
4 3 3 3
2 2 2
2
0
Andhra Pradesh

West Bengal

Uttar Pradesh

Bihar

Odisha

Chhattisgarh

Assam

Karnataka

Tamil Nadu

Kerala

Other

Figure 9. Freshwater fish production- Major states

12 | Sectoral Paper on Fisheries and Aquaculture


Lack of Species diversity in aquaculture is a major
cause of concern. Carps accounted for more Minor carps
6%
than 60 % of the total inland fish production,
indicating the lack of species diversification Exotic carps
(Fig 10). Similarly the coastal aquaculture is 9%
dependent on single major species Letopeneaus Murrels
vannamei, the brood stock of which are again 3%
dependent on imported SPF stocks. To avoid Catfishes
the risks associated with single species culture, 5%
there is need to diversify the candidate species
Others
for aquaculture with research and extension 16%
support with overarching policy environment.
Major carps
61%
Other minor carps, Improved Tilapia, Pangasius,
air breathing cat fishes like singhi, magur and non
Figure 10. Share of various groups of fishes in total inland fish production
air breathing catfishes like wallago, ompak spp
could also be promoted to diversify the species
in the freshwater systems. Freshwater prawn is a
potential species having good potential both for catla), rohu (Labeo rohita) and mrigal (Cirrhinus
domestic and export market and can be take up mrigala) contribute the bulk of production to the
either in monoculture or polyculture with carps extent of 70 to 75 percent of the total fresh water
to enhance farm income. fish production, followed by silver carp, grass
carp, common carp, catfishes forming a second
4.1 Freshwater aquaculture important group contributing the balance of 25
As the second largest country in aquaculture to 30 percent.
production, the share of inland fisheries and
aquaculture has gone up from 46 percent in It is estimated that only about 40 percent of the
the 1980s to over 85 percent in recent years in available area of 2.36 million hectares of ponds
total fish production. Freshwater aquaculture and tanks has been put to use and an immense
showed an overwhelming ten-fold growth from scope for expansion of area exists under
0.37 million tonnes in 1980 to 4.03 million tonnes freshwater aquaculture (Handbook of Fisheries
in 2010, with a mean annual growth rate of over and Aquaculture, 2013,). The national mean
6 percent. Freshwater aquaculture contributes production levels from still-water ponds has
to over 95 percent of the total aquaculture gone up from about 600 kg/hectare/year in 1974
production. The freshwater aquaculture centres to over 2 900 kg/hectare/annum at present and
around culture of the following major groups of several farmers are even demonstrating higher
fishes: production levels of 8–12 tonnes/hectare/year
• Carps (Handbook of Fisheries and Aquaculture, 2013,).
• pangasius
• other catfishes (air breathing and non-air In the states of AP, WB, Punjab and Haryana
breathing) the average production has been of the range
• freshwater prawns 3-5 tonnes/ha/yr with several farmers even
• tilapia. demonstrating production levels of 8-12 tonnes/
ha/yr. Introduction of improved varieties of
In addition, in brackish water sector, the carps like Jayanthi rohu also has widened the
aquaculture includes culture of shrimp scope for diversification.
varieties mainly, the native giant tiger prawn
(Penaeus monodon) and exotic whiteleg shrimp Though catfishes possess high commercial
(Litopenaeus vannamei). Thus, the production of importance their culture is yet to take off except
carp in freshwater and shrimps in brackishwater for that of magur and singhi. Production levels
form the bulk of major areas of aquaculture of 3-5 tonnes/ha/yr have been achieved in
activity. monoculture systems of magur. The derelict
water bodies and swamps could be effectively
The three Indian major carps, namely catla (Catla utilised for commercial farming of these

Sectoral Paper on Fisheries and Aquaculture | 13


fishes. Pangassius culture is catching up in for aquaculture. Average national production
non-traditional states like Jharkhand and is from ponds have increased from 0.6 tonnes to
promising. 2.9 tonnes /ha/year at present. These production
systems are amenable to increasing production
Another exotic fish that is being widely cultured and productivity levels to about 5 tonnes /ha/
is pacu (Piaractus brachypomus), a native year. With better inputs in terms of seeds, feed,
of South America, clandestinely introduced and fertilisers, it may be possible to bring in
through Bangladesh, locally known as rupchand. about 8 lakh ha under intensive aquaculture in
It is estimated that nearly one lakh tonnes of a span of 5-6 years. Through adequate forward
pacu is produced from states like West Bengal, and backward linkages, another 50000 ha of
Andhra Pradesh, Tamil Nadu, Assam, Tripura and new area can also be brought under intensive
Uttar Pradesh. It is a fast growing, hardy fish and aquaculture. However, there is an urgent
tolerate wide range of water quality parameters need for diversification of candidate species
and attains 800 to 900 g within six months. for freshwater aquaculture, since the existing
production system is highly dependent on carps.
The giant fresh water prawn Macrobracium
rosenbergii and M.malcomsonii are the two Widening the base of inland aquaculture would
important fresh water prawn species which call for availability of quality fish seed and
has similar demand in the international and capacity building of farmers and entrepreneurs
domestic market as that of the marine shrimp. to take up scientific methods of fish farming
Salination in the inland areas due to the excessive and modern and efficient means of cold chain
use of fertilizers offers scope for converting them to market fish in safe and hygienic conditions.
to fresh water prawn farms. It is estimated that The availability of 60% potential unutilised area
9 million ha are available in states of Haryana, under ponds and tanks and excavation of new
Rajasthan, UPand Gujarat ponds under different governmental schemes
in recent years, has further broadened the scope
The development of the hatchery technology for increasing the production from the sector.
has opened up new areas for supply of good
quality seeds for this lucrative and innovative Species diversification and farming systems
activity. Monoculture of prawns yield production diversification are to be promoted to increase
levels of 1- 1.5 tonnes/ha during the culture of the productivity of water and enhance the
7-8 months. Further, poly culture of fresh water farmers’ income and resilience. Freshwater
prawns with carps is also technologically sound aquaculture is carp centric with 82% accounted
and viable option for enhancing the income by carps. There is need to diversify the species
levels of the farmers. cultured. Similarly, farming systems like running
water fish culture, waste water aquaculture,
Genetically improved GIFT tilapia farming is Integrated farming systems, cage and pen
gaining acceptance and has very good potential culture, aquaponics, Integrated Multitrophic
to transform the freshwater aquaculture sector. Aquaculture (IMTA), etc offer very good potential.
Govt of India has permitted aquaculture of nile
tilapia (Oreochromis niloticus) in bio secure 4.2 Reservoir Fisheries
conditions. Farming of only mono sex male/ The reservoirs, which are manmade open
sterile stock are permitted. The species is waters, offer great potential for fisheries
amenable for cage culture as well as Intensive development in our country. These form one
pond aquaculture. of the most important untapped fisheries
resources. The area is bound to increase with
4.1.1 Prospects of freshwater aquaculture commissioning of new projects over time. There
The coordinated efforts of our research institutes, exists considerable reservoir fisheries resource
developmental agencies involved in technology (3.15 million ha) in the country.
dissemination and technology transfer to
progressive/ receptive farmers have paved the The present fish yield from these waters is very
way for a significant growth in inland sector. As low (15 kg/ha/year). A production of 50-100 kg/
against huge natural resources like ponds and ha/year from large and 200 kg/ha/year medium
tanks of 2.42 million ha only 0.9 million ha is used reservoirs can be realized by adopting scientific

14 | Sectoral Paper on Fisheries and Aquaculture


management practices. The small reservoirs
50000 49550
have the potential of producing 300-500 kg/ha/
45000
year. The fisheries development includes

Fish Seed (Million Fry)


40000
i. capture fisheries development involving 34993
35000

scientific stock, management, 30000

ii. Fish/pen fish farming, 25000 22614


20000
iii. Cage fish farming and 15007 15608
15000
iv. Pond culture in low lying areas in reservoir 10332
10000 6322
periphery. 5000

1985-86

1990-91

1995-96

2000-01

2005-06

2010-11

2015-16
Judicious exploitation of this resource could
result in doubling of fish production in the
country.

Integrated development of reservoirs would Figure 11. Fish seed production in India
involve 1. Treatment of the catchment area from
soil and water conservation point of view, 2. states providing the required fish seeds for
livelihood of displaced families and those living aquaculture. Though the number are impressive,
in the reservoir catchments / command areas the quality of seeds is a concern which needs to
and 3. fisheries development of the reservoir be addressed.
water area, which may include, infrastructure
development (i.e. landing centres, approach While the availability of fish seed (carp) is
road, hatchery, nursery, ice plant, marketing satisfactory in certain parts of the country, in the
etc.), seed production through SHG members other areas the farmers face acute shortage both
of fishermen families/groups for stocking of in terms of quantity and quality. The fish seeds
reservoirs, supply of fishing crafts & gears etc. are transported to deficient areas over long
distances which adds to the cost and also results
All the three components of integrated reservoir in heavy mortality. Availability of quality seed of
development being part of natural resource cultivable fresh water fish species has always
management, livelihood and infrastructure been a limiting factor for intensification of fish
development would qualify for NABARD support culture activities and also to cover new areas
under infrastructure development programme. under aquaculture. Technologies of intensive
Efforts can be made to formulate suitable seed production viz ; nursery rearing of spawn
proposals for coverage under Umbrella Program to fry and fingerlings with standardised package
of Natural Resource Management, Cluster of practices have been able to demonstrate
Development and Rural Entrepreneurship impressive survival rates of 40-60% under
Development Programmes. intensive rearing in nursery and 60-80% in
fingerling production systems.
4.3 Seed Production
The technology of induced breeding of carps The seed production technologies of popular
under controlled conditions has become a food fishes like Labeo fimbriatus, L gonius,
common practice in every corner of the country. L bata, Puntius sarana, P.gonionotus, P
Use of synthetic inducing agents in prolonging pulchelus, chital,singhi, magur, pabda, murrels,
breeding season of carps, the technology of mahseer, pearl spot, koi, pangassius are yet to
multiple breeding, giving 2-3 fold higher spawn be standardized/ commercialised. There are no
production, has been few major strides in carp hatcheries engaged in commercial production
culture in the country. Such innovations have of these fishes. Because of non-availability of
brought the country from dependence on assured source of seed supply, aquaculture of
riverine seed collection to nearly self sufficiency these species have not picked up. Often seed
with production of over 49,000 billion carp fry are imported across the borders leading to risk
(Fig 11). of disease. The industry is largely dependent
on aquaculture systems involving carps. There
It is reported that about 1784 hatcheries of is a need to propagate the technologies of
various sizes are located across different rearing and breeding of these species as these

Sectoral Paper on Fisheries and Aquaculture | 15


are gradually becoming rare commodities 4.5 Ornamental fish rearing
owing to destruction of their natural habitat, Ornamental fish trade is a multibillion dollar
loss of breeding grounds and degradation of industry spread across more than 125 countries.
environment. Ornamental fish breeding and rearing is an
attractive new opportunity available to fish
4.4 Integrated Fish Farming farmers, entrepreneurs and traders all over
Integrated Fish Farming Technology with the world for providing employment. More
agriculture, livestock and horticulture has than 2,500 species are traded of which 60%
shown high potential for adoption due to the are freshwater in origin with 30-35 species
higher efficiency of resource utilisation and dominating the market. While more than 90
also low risk due to crop diversification. As percent of fresh water fishes are bred in captivity,
the system involves recycling of wastes or by- only 25 of the nearly 8,000 marine ornamentals,
products of one farming system as the input are bred in captivity.
to the other systems, the cost of production
remains rather low. In addition to providing the The trade at retail level is worth more than
valuable protein sources like fish, meat, eggs and US$10 billion with an average annual growth
fruits, vegetables, fodder and grains depending of over 10%, while the entire industry including
upon the type of integration, continuous flow plants, accessories, aquarium, feed, and drugs
of income from one of the farming system is estimated to be worth more than US$18-20
minimises the financial burden of the farmer. billion.

Paddy cum fish culture is popular in eastern Global exports of ornamental fish is rising
and north eastern parts of the country which steadily and reached US$350 million in 2014.
needs upscaling with refinement of technology. The top exporting country is Singapore with
The paddy filed are modified with provision of share of 20% followed by Japan (12%), Czech
trenches or deep pit in the deepest portion of Republic (9%), Thailand (7%), Malaysia(7%),
the filed to retain water for the fish to grow and Indonesia(6%) etc while the share of India is
also use the water for irrigation. Pond dykes meagre 0.3%.
could be used for raising vegetables. One of the
good examples is the paddy cum fish culture in The largest importer of Ornamental fish is
Arunachal Pradesh where 300 to 500 kg fish is the USA followed by Europe and Japan. The
produced through integration. emerging markets are China and South Africa

Fish-cum-pig farming is one of the most effective


integrated farming systems in the North Eastern
areas due to the preference of pork as a source
of animal protein. Production level of 2-3 tonnes
/ ha / year is achieved from a pig farming unit of
30-40 animals. Duck-cum-fish culture, poultry- India 0.292% Indonesia 6%
cum-fish culture are also proven technologies Singapore 20% Israel 5%
with an assured production level of 3-4 tonnes
/ ha per year. NABARD has supported integrated Japan 12% Brazil 5%
fish-duck farming in Odisha under UPNRM. Czech Republic 12% Srilanka 4%

Integrated fish farming systems are good option Thailand 7% Colombia 4%


for utilizing the small farm units for generating
Malaysia 7% Other 21%
livelihood, nutritional stability as also income
levels. These systems are effectively tried in the
rural households of Orissa and some tribal belts
of Gujarat with fairly good success rates.
Figure 12. Ornamental fish exports by countries, 2015

16 | Sectoral Paper on Fisheries and Aquaculture


The Ornamental fish trade in India although There is a need to organise the existing units into
growing continuously, our contribution to the integrated clusters with required infrastructure
Global trade is insignificant (0.3%) (Fig 12). comprising of nucleus seed farm, satellite rearing
units and other ancillary units. Ornamental
The major contribution to the trade (50%) is fish breeding parks could be established as an
from West Bengal the major share of the export infrastructure to facilitate entrepreneurs to set
of ornamental fishes is based on wild collection up the units. In this connection the attempts
of fish from the Eastern and North Eastern states by Govt of Kerala in promoting ornamental
of the country. fish breeding park, “Kerala Aqua Ventures
International Limited (KAVIL)” is noteworthy
The potentials are enormous considering the initiative. Such an approach to development
large number of species involved and the ever of the sector would promote export through
growing global and domestic demand. The real infusion of technology, quality control, adoption
opportunity lies in its value addition through of best practices, scale of economy through
selective breeding and genetic manipulations sharing of infrastructure, collectivization of
resulting in development of new and attractive input procurement and marketing.
colour strains and ornamental characters.
At present there is virtually no technology, 4.6 Aquaculture in problem soils
infrastructural and institutional support In India about 2.73mha of salt affected soils
available for promoting this activity. As a result, exist, which are unfit or marginally fit for
the sector is not able to assume commercial agriculture. There are large tracts of salt affected
dimensions despite the potential. land in the semi-arid and arid eco-regions of
northern plains and Central High lands in the
The earning potential of this sector has hardly States of Haryana, Rajasthan, Uttar Pradesh
been understood and the same is not being and Gujarat with surf ace and sub-soil brackish
exploited in a technology driven manner in
harmony with nature. The rich faunistic resources
in the Eastern and the North Eastern States
are being squandered as food resource instead
of harnessing the same for their ornamental
value. The present form of exploitation of the
indigenous species is also not sustainable in
terms of conservation of bio diversity.

Despite these bottlenecks, it is encouraging to


note that a large number of entrepreneurs in
West Bengal have taken to breeding and rearing
of these fishes and is mainly concentrated in
Howrah, Hooghly, 24 Parganas (South) and
24 Parganas (North). In many other states,
ornamental fish breeding units have come
up in clusters providing opportunity for their
collectivisation as Producer Organisation /
Company.

Considering the Global market for Ornamental


fish to continue grow, availability of rich faunistic
resource, favourable climatic factors, skilled
manpower, India is only a marginal player in
the Global trade. However, given the necessary
policy framework, infrastructure, credit and
institutional support, it could play significant
role in the global trade while providing large
number of employment in the rural areas.

Sectoral Paper on Fisheries and Aquaculture | 17


water. These areas can be used for promoting total area of about 75 acres. This technology
brackish water aquaculture. Since the early has widely reached among the farmers and
eighties, development of brackish water fish more and more farmers are showing interest
culture has gained prominence. However, a to adopt this technology. Presently the state
suitable environmental method is required fisheries department, Government of Haryana is
for the disposal of the saline water. In most providing 50% financial assistance to farmers to
situations, this water can be intercepted and take up inland saline shrimp culture technology
pumped through a series of tanks or ponds under RKVY scheme.
in which marine finfish can be cultured. The
farming of commercially important aquatic Culture of shrimp species vannamei was also
species is considered to be a better option demonstrated in salinity affected inland areas of
than agriculture for utilising vast inland surface Maharashtra with very good results.
and subsurface saline water resources which
are mainly distributed in semi-arid and arid The inland saline areas offer great scope for
regions of Rajasthan, Haryana, Punjab and Uttar enhancing fish/shrimp production and also has
Pradesh. the potential to double the income of farmers.
However there is a need to evolve clear policy to
In 2013, CIFE Rohtak centre demonstrated Tiger encourage fish/shrimp farming in inland saline
shrimp culture technology in inland saline areas.
waters in the farmer’s field with the support
of NABARD-SDC Rural Innovation Fund. Then 4.7 Coldwater fisheries
in 2014, 3 farmers of Haryana adopted Pacific Cold water Fisheries occupy an important place
white shrimp culture technology in inland saline amongst the freshwater fishes of India. The cold
waters in a total area of about 12 acres. In 2015, water fisheries deal with fisheries activity in
about 25 farmers took up the technology in a water where temperature of water ranges from
5 to 25 degrees centigrade. Such conditions in
India occur in Himalayan and peninsular regions.
India has significant resources in terms of
upland rivers/streams, high and low altitudes
of natural lakes in addition to man-made
reservoirs existing both in Himalayan
regions and Western Ghats.

Government of India established


National Research Centre
on Cold Water Fisheries
(NRCCWF). It has played
a significant role in
the improvement
and conservation of
indigenous as well as in the
establishment of exotic
species in this region.
Important cold water
species are Mahaseer,
Snow Trout, Barilius, Labeo,
Garra, Exotic Fishes like
Trouts and Cyprinus Carpio
have potential for farming.

18 | Sectoral Paper on Fisheries and Aquaculture


5. Brackish water
aquaculture

Sectoral Paper on Fisheries and Aquaculture | 19


The estimated area of brackish water available
for aquaculture in the country is 1.19 million ha
as against which only 11% of the area has been
developed for shrimp farming. Brackish water
aquaculture is almost synonymous with shrimp
farming which again is export centric, though
many other species could be taken up for culture
in these ecosystems.

Table 3. State wise potential and current status of development of coastal aquaculture
State Estimated State Share in Area developed % of available Shrimp Avg
Potential in ha potential in ha potential area Production Productivity
developed (tonnes) tonnes/ha
West Bengal 4,05,000 34.01% 51,980 13% 68774 1.3
Orissa 31,600 2.65% 8,991 28% 28432 3.2
Andhra Pradesh 1,50,000 12.60% 42,437 28% 299071 7.0
Tamil Nadu& 56,800 4.77% 8,024 14% 45556 5.7
Puducherry
Kerala 65,000 5.46% 8,328 13% 3564 0.4
Karnataka 8,000 0.67% 2,281 29% 1727 0.8
Goa 18,500 1.55% 10 0% 33 3.3
Maharashtra 80,000 6.72% 1,359 2% 6124 4.5
Gujarat 3,76,000 31.57% 4,552 1% 34189 7.5
Total 11,90,900 1,27,962 11% 487470 3.8
(Source: MPEDA)

20 | Sectoral Paper on Fisheries and Aquaculture


Because of its high commercial value, giant tiger
prawn (Penaeus monodon) wasthe dominant 50000
species in commercial production, although
40000
Indian white prawn (Penaeus indicus) with a
lower share was also farmed in several places. 30000

Aquaculture, particularly shrimp farming, is now 20000


regulated by the Coastal Aquaculture Authority
10000
(CAA) of India by licensing. Of late, the culture
of exotic, white-leg shrimp, L. vannamei, has 0
attracted the farmers’ attention because of its Area (Ha) Production (Tons)
fast growth, low incidence of native diseases,
availability of Specific Pathogen Free (SPF) monodon vannamei
domesticated strains and culture feasibility in
wide salinity range. With the production levels of
Figure 13. Area under shrimp farming and production (2015-16)
10–12 tonnes/ha/crop of three to four months’
duration, the production of this species has
reached to a level of 406,044 tonnes during
2015–16. 50000
Shrimp Production (Tonnes)

40000
Very recently, L. vannamei culture is also started
in freshwater ponds particularly in Andhra 30000
Pradesh and few other states in India by the
stocking of PLs acclimatising to zero ppt salinity 20000
at hatchery level. The culture and production
10000
level is encouraging.
0
Farming of white legged shrimp, Litopeneaus
2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16
vannamei using SPF seeds with production
levels often up to 10 tonnes per ha per crop
is being widely practiced in Andhra Pradesh,
Monodon Vannamei Scampi
Gujarat, Tamil Nadu and to a certain extent in
other coastal states. Figure 14. Species wise production of shrimp since 2001(Source: MPEDA)

The SPF vannamei has emerged as a dominant


candidate species for shrimp production with 46
% share in area under culture and accounting for
83% of shrimp produced through culture.

2.01 - 5 Above 40
Shrimp farming is synonymous with export 11% 0%
production. Export oriented aquaculture
production continues to increase year over the 5.01 - 10 Upto 2 Ha
year and the increased production contributed 1% 87%
significantly for the sea food exports from the
country. Aquaculture production has increased 10.01 - 40
to 5,00,581 MT during 2015-16. 1%

Shrimp aquaculture production, mainly


comprising of two species of shrimps (Penaeus
monodon, and Litopenaeus vannamei) and one
species of freshwater prawn (Macrobrachium Figure 15. Size wise (in Ha) classification of shrimp farms (numbers) registered
rosenbergii) has reached 5,00,581 MT during with CAA. (Source: CAA 2016)
the year 2015-16 comprising the Tiger shrimp of
81,452 MT from 68,846 ha, L vannamei of 4,06,018

Sectoral Paper on Fisheries and Aquaculture | 21


MT from 59,116 ha and Scampi of 10,152 MT It is estimated about 283 hatcheries are
(majority being traditional farm of WB/ Odisha, functional in the coastal states of which about
reservoirs/village ponds of Maharashtra/ 215 hatcheries are located in Andhra Pradesh
Gujarat/ Andhra Pradesh). and 51 in Tamil Nadu. However major issue
being faced by the shrimp farmers is the quality
Production of the Pacific white shrimp seed. Similarly many large feed mills have been
(Litopenaeus vannamei) has taken the lead with established to meet demand which a has been
a total production of 4,06,018 MT, contributing estimated to grow at about 6-7 % per annum.
about 81% of the total export oriented
aquaculture production in the country. The In addition to shrimp farming, the coastal areas
increase in export production has occurred also provide immense opportunities for taking up
mainly in the shrimp species, though the commercial aquaculture of fin fishes, crabs and
production of diversified exportable species also other crustaceans. Dissemination of technology
is on the increase, albeit at a very slow pace. for taking up these activities as a commercial
proposition involves large scale demonstration
With the enactment of Coastal Aquaculture and organised training programmes. Crab
Authority Act in 2005, substantial improvement fattening and culture have been successful with
have been noticed in the coastal aquaculture seeds being supplied from Rajiv Gandhi Centre
activities through implementation of Good for Aquaculture (RGCA).
Management Practices (GMP) and also through
group farming. Further most of the farms are Culture production of 15,883 MT of other
small farmer based as 87% of the farming area exportable finfish and shellfish species, viz; Crab,
are owned by farmers owning less than 2 ha Genetically Improved Farmed Tilapia (GIFT) and
area and scope for organising them into clusters Sea bass are reported during 2015-16. Some
of Farmer Producer Organisations (FPOs) for quantity of Cobia, a promising marine fish is also
realising the economy of scale and adopting the tried successfully through cage culture, stocking
good management practices. the seeds from the RGCA.

Table 4: State-wise aquaculture culture production of other species during 2015-16

State Crab Sea bass Tilapia


Area (ha) Production (Mt) Area (ha) Production (Mt) Area (ha) Production (Mt)
West Bengal 3360 936 6327 3884 3338 2848
Odisha 444 242 62 26 45 24
Andhra Pradesh 3975 1687 1314 776 18 128
Tamil Nadu 254 92 261 98 223 191
Kerala 65 23 5 16 115 123
Karnataka 347 197 0.6 31 From Reservoirs 200
Maharashtra 1225 521 2344 762 5322 3078
Total 9670 3698 10314 5593 9061 6592
(Source: MPEDA)

To realise the potential of brackish water


aquaculture in a sustainable manner the
State governments could consider setting
up of aquaculture estates with necessary
infrastructure facilities and leasing out the
production facilities to the prospective
aquapreneurs.

22 | Sectoral Paper on Fisheries and Aquaculture


6. Mariculture

Sectoral Paper on Fisheries and Aquaculture | 23


Mariculture is reported to account for 36 % of fattening in the deltaic region of Sunderbans
the total quantity and 33.6% of the total value and marine ornamental fish breeding and
of aquaculture production globally. However, rearing in Cuddalore, Ramanathapuram districts
in India the mariculture activity at present is of Tamilnadu. There are many more activities
limited to the onshore farming of Mud Crabs and being field tested viz. edible oyster and mussels.
offshore farming of Mussels, Clams and Edible However the aquaculture practices pertaining
oysters in a limited area in Kerala, West Bengal most of the marine species are not complete
and Odisha. Cage culture of fish fishes like cobia, covering different life stages. The important
pompano, sea bass have been proven successful developments in the field of mariculture
and needs to be upscaled. involving small entrepreneurs include sea weed
farming with franchisee network of corporates
Among the most promising mariculture activities and Ventures in the Gulf of Mannar Region for
which have been field tested are pearl culture which, the technology has been provided by
activity in the Gulf of Mannar, seaweed farming in the Central Salt and Marine Chemicals Research
Palk Bay, lobster fattening at Kanyakumari, crab Institute, Bhavnagar/ CMFRI, Kochi.

24 | Sectoral Paper on Fisheries and Aquaculture


Mussel Cultivation Demonstration to the Fishing Community of Goa

NABARD partnered with TERI and had organized closed by having a Harvest function as the
a training workshop to encourage the fishing mussels had attained a marketable
community belonging to a cluster of villages of size. The harvest Program and was
Goa Velha, Siridoa and Batim to cultivate Green attended by NABARD officials,
mussels (Perna viridis) using the Rack & rope / Scientist from National Institute
ren cultivation technique. The members of Agri- of Oceanography (NIO) and the
aqua club formed by TERI under the NABARD’s farmers of the Club, United Agri-
Farmers’ Club programme.in Siridao and Curca, Aqua farmers club. The mussels
members of Mayem Panlot Sangha, and other were harvested by the Agri-aqua
stakeholders from Siridao, Goa-Velha, Batim and Farmers Club and sold in the
Curca villages participated in the workshop. local market at ` 10/- per piece
for the big size mussel and ` 3 to
The broad objective of the training program 5/- per piece for small size mussels.
was to create awareness on mussel farming
to supplement the earnings of the fishing After the successful demonstration
community and improve their socio economic and good harvest, many farmers
conditions while simultaneously conserving have shown interest
local ecosystems. Mussels are in good demand to take up the mussel culture in
locally due to the tourist visits to the State and estuarine and coastal waters in
their preference to fish and shell fish gourmets. Goa in the next season after
monsoon. Thus, this successful
The ropes seeded with naturally collected spat demonstration of mussel culture
was hung from a rack erected in a pond adjacent has created a new option of
to the creek. Mussels were grown naturally in livelihood enhancement and
the pond for a period of four months and was diversification.
monitored regularly by the members to examine
the growth as also the health. The project was

Cage Culture of sea bass, cobia etc are emerging linkages, the inshore and open sea cage fish
as potential activities with support provided farming has not picked up mainly because the
through NFDB. Submerged cage culture activities are technology intensive and capital
potential is still not explored as the same is intensive and for want of enabling policy
practices successfully in many other countries. framework.

The mariculture production of India in relation The projected production is based on


to the Global mariculture productivity would average productivity of 10t /km of coastline.
suggest that India could augment its marine Considering higher level of productivity of other
exports by at least 20,000 MT by undertaking countries, the production could be much higher
mariculture in sheltered bays, and backwaters in in future. However, in India, no systematic
Andaman seas alone. efforts have been made to even assess the
potentials. Formulation of leasing policy,
Where as small scale mariculture activities identification of potential sites, standardization
have not picked up on account of lack of proper of culture practices with closed life cycle and
technology, availability of hatchery bred seeds, implementation of projects remain a distant
feeds, policy support, infrastructure and various possibility.

Sectoral Paper on Fisheries and Aquaculture | 25


7. Post Harvest
Infastructure
7.1 Fish Processing

26 | Sectoral Paper on Fisheries and Aquaculture


Fish processing in India is mainly export driven
with minimum emphasis on domestic market.
However, in terms of volume, almost 74% of
the fish caught is marketed fresh the remaining Frozen 12% Miscellaneous 2%
is used for processing, drying, smoking and
Curing 4% Unspecified 1%
reduction to fish meal etc. Only around 16%
of the total fish produced is exported as of
Canning 1% Others 2%
now that too mainly accounted by the marine
fisheries sector which accounts for about 50% of
Reduction 4% Marketing Fresh 74%
exports. The export trade is constrained by trade
restrictions which are being imposed by the
Offal for reduction 0%
importing countries and also the high standards
of hygiene and sanitation and traceability
required for the buyers.

Domestic marketing infrastructure is not


Figure 16. Disposition of Fish catch in India (2012)
adequate, considering the perishable nature
of the fish products. Lack of domestic storage,
marketing and cold chain infrastructure could
be understood from the share of fish marketed 80 74.24 India Global
fresh in India at 75%. This also explains the 70
distress sale leading to fishermen/fish farmers 60
not getting the fair share of the consumer rupee. 50
In addition fish being highly perishable, need for 39.1
40
proper cold chain to avoid post harvest loss and 30 25.7
also to ensure quality at the consumer level. 20 12.12 10.3 11.6
9.9
10 4.25 3.85 5
3.3
The disposal of fish in India in comparison with 0.54
0
global status indicate the need for adequate Fresh Frozen Curing Canning Reduction Other
cold chain facilities. (Fig 17)

While marine fisheries and coastal aquaculture


production is focussed on exports, inland fish Figure 17. Disposition of fish catch in India vs Global
production is mainly supports domestic supply.

Around 50% of the export is realised from products which result in enormous wastage of
the capture fisheries mainly contributed by non-prime catch. The poor conditions of the
mechanised fisheries and 2-3% from the arrivals make these products unfit for processing
traditional sector. The deep sea sector has a very and value addition for exports.
low share of less than 1% in the exports which
points to the enormous opportunities latent in Fish processing infrastructure
the sector. The fish processing infrastructure are mostly
located on the coastal areas as they are focussed
Most of the mechanised vessels are ill equipped on export production. Shrimps, fin fishes,
to undertake long voyages and lack specialised squids and cuttlefishes are the major items of
fishing equipments like fish finders, global processed. Major infrastructure facilities for fish
positioning systems, refrigerated fish holds / processing/handling are summarised below:
refrigerated sea water systems and power which
Table 5. Fish Processing and Storage Infrastructure
aid in improved efficiency of voyages. India
also lacks mother vessels which can receive the Processing Storage Handling Pre-Processing
Ice plant
harvests from small boats and chill or freeze the Facilities Facilities Facilities Facilities
catch immediately and carry out some value Nos Capacity Nos Capacity Nos Capacity Nos Capacity Nos Capacity
addition aboard on the vessel. Further, there 537 25.80 721 335.54 245 4.03 81 2.28 662 7.17
is no domestic market for a large range of by- (Capacity in ‘000 tonnes) source: MPEDA

Sectoral Paper on Fisheries and Aquaculture | 27


The infrastructure for export is well developed as
India has the largest number of processing units
in the world approved to the European Union
standards with a capacity of 3 million tonnes per
year. There are around 700 registered exporters
in the country. However, around 20-30 % of the
capacity in processing plants is being presently
used.

Table 6. Region wise fish processing


infrastructure
Region No Capacity (T)
1 Mumbai 59 4,640.74
2 Veraval 83 4,197.56
3 Kochi 100 3,396.44
4 Mangalore 44 3,347.86
5 Bhimavaram 37 1,868.27 The narrow range of processed products being
6 Chennai 38 1,571.59 made in India include frozen, breaded and
7 Kolkata 42 1,424.56 battered shrimp individually quick frozen (IQF)
products, pre-cooked products, accelerated
8 Porbandar 26 1,393.34
freeze dried products (dehydrated), cooked
9 Tuticorin 35 944.5
and stuffed meat and surimi. The production of
10 Bhubaneshwar 29 939.6
processed or value added product is less than
11 Goa 14 923.46
10% by volume and less than 15% by value.
12 Visakhapatnam 14 612.9
About 125 processors have IQF facility and 75
13 Quilon 16 534.2
of them have cooking facility and there are 12
Total 537 25,795.02
registered surimi units.
(source: MPEDA)

Table 7. Region wise storage facility with capacity


Cold Storage Chilled Storage Dry Fish Storage Other Storages Total
Region
No Capacity* No Capacity* No Capacity* No Capacity* Capacity*
Kochi 123 57,753 1 861 3 23 7 2413 61,050
Mumbai 60 43,915 1 10 8 5400 2 4700 54,025
Veraval 89 41,970 0 0 13 1196 0 0 43,166
Chennai 39 28,027 1 804 2 175 1 46 29,052
Bhubaneswar 28 15,787 17 10568 0 0 0 0 26,355
Mangalore 26 10,572 0 0 6 1220 20 7414 19,206
Tuticorin 34 14,939 7 1295 4 1775 6 752 18,761
Bhimavaram 40 17,486 0 0 10 897 0 0 18,383
Vizag 25 12,033 1 50 2 3030 0 0 15,113
Porbandar 21 12,598 4 1387 4 484 1 5 14,474
Kolkata 47 10,944 0 0 13 1308 1 60 12,312
Quilon 26 8,796 0 0 0 0 0 0 8,796
Goa 14 6,182 0 0 1 920 1 200 7,302
Total 572 2,81,001 32 14975 66 16427 39 15590 3,27,993
*Capacity in tonnes. (Source: MPEDA)

28 | Sectoral Paper on Fisheries and Aquaculture


However, the domestic market is transforming, Value added Products
based on the increasing demand of the upwardly From block frozen products the sea food
mobile middle class in India for processed and processing industry has evolved into various
semi-processed fish and fishery products. The forms of value added products like Individually
scenario is evident from the stock of these Quick Frozen, battered and breaded items.
products in hyper market stores. This has opened Few emerging technologies like high pressure
up opportunities for small scale fishermen to processing, irradiation, pulsed light technology
involve in value addition. Capacity building of for processing and technologies like modified
these fishermen/women in preparation of value atmosphere, active intelligent packaging have
added products as well as creation of common potential in enhancing the shelf life of fish
facility centres for processing at the landing sites products.
with required cold chain infrastructure could
facilitate fish processing for domestic market.

The Export industry has upgraded its


infrastructure to meet the export standards
like HACCP, EU norms etc. However there are
still issues with sourcing of raw material and
traceability. Value addition, promotion of
domestic marketing, convenience foods, online
marketing with proper cold chain facilities are
having potential for development.

Sectoral Paper on Fisheries and Aquaculture | 29


8. Export of Marine
Products
8.1 Major items of export

30 | Sectoral Paper on Fisheries and Aquaculture


Marine products export has been growing 1200000 40000

Quantity Exported (tonned)


at CAGR of 8.37 % in volume terms and

Value Realised (` Crore)


35000
1000000
17.13% in terms of value over the past 50 years. 30000
The share of marine exports to the total exports 800000
25000
of the country is around 2% while the share of
600000 20000
marine products to the agricultural exports is
15000
around 14%. 400000
10000
200000
5000
During the financial year 2016-17, exports of
0 0
marine products reached an all-time high of US$

1962-63
1964-65
1966-67
1968-68
1970-71
1972-73
1974-75
1976-77
1978-79
1980-81
1982-83
1984-85
1986-87
1988-89
1990-91
1992-93
1994-95
1996-97
1998-97
2000-01
2002-03
2004-05
2006-07
2008-09
2010-11
2012-13
2014-15
2016-17
5780 million. Marine product exports crossed
all previous records in quantity, rupee value
and US$ terms. Exports aggregated to 11,34,948
Value (` Crore) Quantity in Tonnes
tonnes valued at ₹ 37,871 crores / US$ 5780
million.
Figure 18. Growth in Export of marine products
Export Growth
2015-16 2016-17
details %
Quantity
945892 1134948 5.98
Tonnes
Value `crore 30420 37870 60.23
Value US $
4.69 5.78 42.6
Billion
(source: MPEDA)

Compared to the previous year, seafood exports


recorded a growth of 5.98 % in quantity, 60.23%
in rupee and 42.6 % growth in US$ earnings
respectively. The unit value realization also
reached to record high from USD/Kg 3.78
during 2012-13 to USD/Kg 5.09 during 2013-14
and recorded growth of 34.55%. The increased
production of L.vannamei shrimp has helped to
achieve higher exports.

8.1 Major items of export


India has emerged as the largest exporter of
shrimp in the world, though in terms of total
marine products exports India has ranked at
sixth position. Frozen shrimp continued to be
the major export value item accounting for a
share of 66% of the total US$ earnings. There Frozen Shrimp 39% Dried Items 5%
was all time high growth in unit value realization Frozen Fin Fish 24% Live Items 1%
of frozen shrimp at 35.05%.The overall export
of shrimp during 2016-17 was to the tune of Frozen Cuttlefish 7% Chilled Items 3%
4,344,84 tonnes worth US$ 3726 million. USA is Others 12%
Frozen Squid 9%
the largest market for frozen shrimps exports
in quantity terms followed by European Union,
South East Asia and Japan. The contribution
of cultured shrimp to the total shrimp export is
73.31% in terms of US$. The export of cultured
shrimp has shown tremendous growth of Figure 19. Export of marine products –by volume
36.71% in quantity and 92.29% in dollar terms.

Sectoral Paper on Fisheries and Aquaculture | 31


The export of Vannamei has shown tremendous
growth however export of Black Tiger shrimp
reduced from 61,177 MT to 34,133 MT compared
to last year.
Frozen Shrimp 66% Dried Items 3%
Fish, has retained its position as the principal
export item in quantity terms and the second Frozen Fin Fish 11% Live Items 1%
largest export item in value terms, accounting Frozen Cuttlefish 5% Chilled Items 3%
for a share of about 32.97% in quantity and
14.15% in US$ earnings. Unit value realization of Frozen Squid 5% Others 6%
fish also increased by 21.65%.

In value terms shrimp accounted for 66% of the


total value realised followed by fin fishes.

Figure 20. Export of marine products- value realised


In terms of major markets, South East Asian
regions followed by European Union and USA
accounted for major importers of marine
products from India.
Japan 8%

USA 16%

European Union 20%

China 5%

South East Asia 35%

Middle East 6%

Others 10%

Figure 21. Export of marine products- Major markets

32 | Sectoral Paper on Fisheries and Aquaculture


9. Fish Marketing

Sectoral Paper on Fisheries and Aquaculture | 33


The domestic market in India consumes 75% necessitate the need for a balanced distribution
of the fish produced. The average per capita system through a network of wholesale, major,
consumption is 9 kg per year and is lower minor, retail and roadside markets.
than the recommended per capita of 11-13
kg/yr. As against this, the global per capita Majority of the domestic markets are unhygienic
fish consumption has reached 20 kg/capita/ with low / no fish storing and handling facilities.
annum. Thus there is a need to address the Availability of portable water, good quality
issues in domestic fish marketing to improve ice, electricity and waste disposal systems are
the nutritional standards. India has been ranked inadequate in the Indian markets. The wholesale
100 out of 119 nations in 2017 in the Global markets in the country are operating in an
Hunger Index (GHI) by IFPRI which takes into unorganised manner and the trading is through
account parameters like undernourishment, agents and intermediaries. Modernisation of
child wasting and child stunting. Importance the wholesale markets with well developed
of fish in providing the critical nutrients during motorable roads, adequate parking space with
the so called 1000 day window has been well loading and unloading facilities / cold storage,
recognised. etc. is required for effective and efficient fish
marketing in the country. Hygiene and sanitation
Hygienic handling and transportation of the as per the laid out requirements is also the need
fish has been the major concern resulting in of the hour.
heavy post harvest losses and reduction in
quality. Establishment of domestic markets is Of late efforts in online marketing of fresh and
yet another matter of concern for minimising dressed fish is gaining traction and it is expected
the post harvest losses increasing the revenue that this will evolve into major channel of
and enhancing employment opportunities. The marketing in urban areas. However there is a
harvested fish is not evenly distributed to the need to invest in the required logistics and cold
interior areas due to the lack of transportation chain infrastructure.
and non-availability of cold chain which

34 | Sectoral Paper on Fisheries and Aquaculture


10. Women and
Weaker sections

Sectoral Paper on Fisheries and Aquaculture | 35


Women are actively involved in allied fisheries Training and micro finance are provided to
activities like fish seed collection, fishing of encourage and organizing them into groups and
juvenile fishes, collection of mussels, edible capacity building which are the thrust areas for
oysters, sea weeds, fish marketing, fish enhancing their involvement and participation
processing and product development etc. in the fishery sector. Formation of Producer
Women are particularly active in post-harvest Organizations in the sector will definitely help
fisheries; in marine fisheries sector, women the weaker sections to collectively take up
comprise about 75 per cent of those engaged in activities and market their produce through
fish marketing and contribute in significant ways value addition. Crab culture, mussel culture and
to the food security needs of a diverse range of seaweed farming has been successfully carried
consumers out by women groups in some parts of the
country.

36 | Sectoral Paper on Fisheries and Aquaculture


11. Government of India
Schemes/Programmes

Sectoral Paper on Fisheries and Aquaculture | 37


The Government of India has taken several Blue Revolution, the Neel Kranti Mission has
initiatives for the overall growth and the vision to achieve economic prosperity of
development of fisheries and aquaculture the country and the fishers and fish farmers as
sector in the country. As Agriculture, including well as contribute towards food and nutritional
Animal Husbandry, Dairying and Fisheries is a security through full potential utilization of
State subject; the emphasis of the Department water resources for fisheries development in
of Animal Husbandry, Dairying and Fisheries, a sustainable manner, keeping in view the bio-
GOI has been on supplementing efforts of security and environmental concerns. The Neel
the State Governments in development of Kranti Mission will have multi-dimensional
these sectors. approach to all activities concerned with
development of the fisheries sector as modern
The Government of India has identified fisheries world class industry in India. It will focus on
sector as having potential to grow at more than tapping the full production potential and
6% per annum, contribute to export earnings, enhance productivity substantially from
provide livelihood, food and nutrition security aquaculture and fisheries resources, both
and contribute significantly to the overall inland and marine. Substantially increasing
economic development. Fisheries is a State the share of Indian fisheries in the export area
subject and as such the primary responsibility would be a key goal. It will ensure doubling
for its development rests with the State the income of the fishers and fish farmers with
Governments. inclusive participation of the socio-economically
weaker sections and ensure sustainability with
11.1 Centrally Sponsored Scheme environment and biosecurity.
on Blue Revolution
The Ministry of Agriculture and Farmers 2.1 Vision
Welfare, Department of Animal Husbandry, “Creating an enabling environment for
Dairying & Fisheries has come out with a integrated development of the full potential of
Centrally Sponsored umbrella scheme on Blue fisheries of the country, along with substantially
Revolution by restructuring all the existing improvement in the income status of fishers and
schemes. The restructured scheme provides fish farmers keeping in view the sustainability,
focused development and management bio-security and environmental concerns.”
of fisheries, covering inland fisheries,
aquaculture, marine fisheries including deep sea 2.2 Mission
fishing, mariculture and all activities undertaken (i) Formulation of a Neel Kranti Mission Plan
by the National Fisheries Development Board (Blue Revolution Mission Plan) for tapping
(NFDB). the full potential of the inland and marine

38 | Sectoral Paper on Fisheries and Aquaculture


culture fisheries of the country by developing Dairying & Fisheries, Ministry of Agriculture and
it as a professional modern world class Farmers Welfare, Government of India to
industry enhance fish production and productivity in the
(ii) Ensure doubling of income of fishers and fish country and to coordinate fishery development
farmers of the country in an integrated and holistic manner. A wide
(iii) Ensure sustainability of, bio-security and range of fishery development activities viz.,
address environmental concerns for enabling intensive aquaculture in ponds and tanks,
sustainability of the fishing industry. culture based capture fisheries in reservoirs,
Coastal Aquaculture, Mariculture, Sea Weed
2.3 Objectives cultivation, establishment of infrastructure,
(i) To fully tap the total fish potential of the fishing harbours and fish landing centres,
country both in the inland and the marine solar drying of fish, domestic marketing,
sector and triple the production by 2020 deep sea fishing and tuna processing,
(ii) To transform the fisheries sector as a ornamental fisheries, trout culture, artificial
modern industry with special focus on new reefs technology upgradation and capacity
technologies and processes building of fishermen and fish farmers are being
(iii) To double the income of the fishers and fish supported through the State Governments/
farmers with special focus on increasing Implementing agencies.
productivity and better marketing
postharvest infrastructure including 11.2 Financial Assistance
e-commerce and other technologies and Under the Centrally Sponsored scheme on
global best innovations Blue Revolution: Integrated development and
(iv) To ensure inclusive participation of the management of fisheries, the subsidy and
fishers and fish farmers in the income subsidy sharing pattern is given below:
enhancement
(v) To triple the export earnings by 2020 with The total admissible subsidy (Central + State)
focus on benefits flow to the fishers and will be limited to
fish farmers including through institutional
Category of
mechanisms in the cooperative, producer Eligibility of Subsidy
beneficiaries
companies and other structures
40% of the project
(vi) To enhance food and nutritional security of 1. General Category
cost
the country.
2. weaker sections like
60% of the project
SC, ST, women and
Integrated National Fisheries Action Plan cost
their cooperatives
2016 has been drawn by the Govt of India to
unlock the fisheries potential by creating an
enabling environment for an integrated and Of the admissible subsidy as indicated above,
holistic development and management of the Central:State share shall be as follows:
fisheries for the socio-economic development
Category Central Share
of the fishers and fish farmers keeping in
North East & Hilly 90% Central Share and
view the sustainability, bio security and a
States 10% State Share
environmental concerns. The major thrust in
b Union Territories 100% Central Share
fisheries development has been on optimizing
60%Central Share and
production and productivity, augmenting export c Other States
40% State Share
of marine products, generating employment
and improving welfare of fishermen and their Besides, the scheme inter-alia also
socioeconomic status. provide for assistance for proposals/activities
implemented through NFDB on Detailed
11.1.1 National Fisheries Project Report basis, as given below:
Development Board
The National Fisheries Development Board For the proposals/activities under (1) NFDB
(NFDB) was established in 2006 as an autonomous and its activities (2) Development of Inland
organization under the administrative control Fisheries and Aquaculture (3) Development
of the Department of Animal Husbandry, of Marine Fisheries, Infrastructure and Post-

Sectoral Paper on Fisheries and Aquaculture | 39


Harvest Operations the central financial 11.3.2 Ministry Food Processing Industries
assistance would be: Government of India (GOI) has approved a new
(a) 50% pf the project cost/unit cost for general Central Sector Scheme – Pradhan Mantri Kisan
states, leaving the rest to State agencies/ SAMPADA Yojana (Scheme for Agro-Marine
organisation, corporations, federations, Processing and Development of Agro-Processing
boards, Fishers cooperatives, private Clusters) with an allocation of ` 6,000 crore for
entrepreneurs, individual beneficiaries. the period 2016-20 coterminous with the 14th
(b) 80% of the project/unit cost for North- Finance Commission cycle. The scheme will be
Eastern/Hilly States leaving the rest to implemented by Ministry of Food Processing
state agencies/organisations, cooperatives, Industries (MoFPI).
individual beneficiaries, etc.
(c) 100% for the projects directly implemented PM Kisan SAMPADA Yojana is a comprehensive
by the Government of India through its package which will result in creation of modern
institutes/organisations and UTs. infrastructure with efficient supply chain
management from farm gate to retail outlet. It
(However in order to ensure uniformity in funding will not only provide a big boost to the growth
pattern for private entrepreneurs and individual of food processing sector in the country but also
beneficiaries the subsidy will be limited to 40% help in providing better process to farmers and is
and 60% as the case may be as indicated above). a big step towards doubling of farmers income,
creating huge employment opportunities
The fisheries departments of the respective especially in the rural areas, reducing wastage of
state governments are the nodal departments to agricultural produce, increasing the processing
facilitate channelizing the assistance from form level and enhancing the export of the processed
NFDB. foods.

11.3 Convergence for The following schemes will be implemented


development of fisheries sector under PM Kisan SAMPADA Yojana:
Various ministries / departments of Govt of India a. Mega Food Parks
are focusing livestock/fisheries as means of rural b. Integrated Cold Chain and Value Addition
employment and sustainable development. The Infrastructure
programmes of different departments which c. Creation / Expansion of Food Processing &
can be converged with fisheries/aquaculture Preservation Capacities
development are discussed in the following d. Infrastructure for Agro-processing Clusters
paragraphs. e. Creation of Backward and Forward Linkages
f. Food Safety and Quality Assurance
11.3.1 Ministry Agriculture, Cooperation & Infrastructure
Farmers welfare g. Human Resources and Institutions
Rashtriya Krishi Vikas Yojana (RKVY) or National
Agriculture Development Programme (NADP) PM Kisan SAMPADA Yojana is expected to
of Department of Agriculture, Cooperation leverage investment of ` 31,400 crore for
& Farmers welfare aims at achieving and handling of 334 lakh MT agro-produce valued at
sustaining desired annual growth through State ` 1,04,125 crore, benefiting 20 lakh farmers and
Governments by providing public investment generating 5,30,500 direct/indirect employment
in Agriculture and allied sectors. Fund are in the country by the year 2019-20.
released to State Governments on the basis of
projects approved in the State Level Sanctioning 11.3.3 Ministry of Commerce
Committee (SLSC) headed by Chief Secretary Marine Products Export Development Authority
of the concerned State. The scheme provides provide various support in the form of training
sufficient flexibility to concerned states promote and capacity building of fish farmers and also
allied sector programme on the basis of their provide subsidy for export oriented aquaculture/
priorities. ornamental fish breeding/ marine fisheries
activities.

40 | Sectoral Paper on Fisheries and Aquaculture


12. SWOT Analysis -
Fisheries Sector

Sectoral Paper on Fisheries and Aquaculture | 41


Strengths Weaknesses
• Over 8000 km length of coastline • Image of poor quality product, no brand value, poor marketing
• Sizeable seafood resources are available strategy
• India has established itself as a leading player in the global • Many products are not suited for large volume markets
seafood business • Value added products account for a small volume of the total
• The products are exported to more than 70 countries export
• There is feasibility to produce quality products at a lower cost • Excluding shrimp, no other product (squid, cuttlefish etc.) is
of production value added enough to get into other markets.
• Large pool of skilled workers are available at competitive • Latest technical developments not implemented due to capital
wages constraints
• Has well developed processing infrastructure with world class • Slow technological change and poor packaging
processing plants • Absence of potable water supply, peeling sheds, adequate
• Vast untapped resources for Aquaculture, storage facility and processing centers at the landing centers
• Untapped tuna resources & deep sea squid and cuttle fish. • Comparatively weak economic base of the units makes it
difficult for appropriate business decision in time
• Over dependence on shrimp and in the commodity form
• Lack of expertise and resources for retail marketing

Opportunities Threats
• Opportunity for expanding value-added seafood products • Competition from newly emerging exporting countries
• Expansion of fresh and brackish water aquaculture production • Indian products are still treated as raw material by many
• Potential to create a better image and higher value for importing countries and doing nothing will serve to lower the
production image of Indian products further.
• Huge untapped market • To meet the stringent EU standard, high capital investment
is required for the pre-processing industry as well as for the
• Opportunity for importing raw material, process it and export
processing units.
making India as a processing hub.
• Continuing threat of disease in shrimp farms.
• Opportunity for development brands and certified products
• Climate Change
• Introducing new products, which have so far not figured in our
export basket
• Improving capacity utilization of existing plants
• To attract FDI from overseas importers of sea food and other
investors thereby overcoming the inherent weakness of the
industry.

42 | Sectoral Paper on Fisheries and Aquaculture


13. Problems and Prospects
13.1 Untapped resource

13.2 Technology upgradation

13.3 Need for value addition & diversification of sea food


products

13.4 Under utilization of established infrastructure

13.5 Need for cold chain facilities

13.6 Quality control/Traceability

13.7 Integrated development of Infrastructure facilities

13.8 Effectiveness of insurance schemes

13.9 Enabling Policy Framework

Sectoral Paper on Fisheries and Aquaculture | 43


13.1 Untapped resource such as inland open waters (reservoirs, lakes
In marine fisheries sector efforts are largely and beels) and marine resources for cage fish
confined to the inshore waters (50m depth) farming are yet to be realised.
through artisanal, traditional, mechanized
vessels which contribute 90 percent of the As harvest from capture fisheries is stagnant,
present marine landings. Of the deep sea it is imperative that the aquaculture base of
resources available in the EEZ of India, hardly the countries widened to tap the hitherto
any resource at present is exploited due to unaccounted resource with potentials of
constraints of resource specific vessels which doubling country’s fish production. Under
would require considerable investment and such circumstances, the only option would
technology tie-up. Lack of sufficient expertise in be to import suitable technologies with tie up
long lining and also on board handling of tuna arrangements for its transfer to Indian counter
to prepare sashimi grade products is yet another parts. Such technology transfer is the need of
constraint. the hour with respect to various mariculture
activities, cage culture and ornamental fishery.
Mariculture activities which remain totally
untapped could generate additional fish The efforts in development of SPF brood stock
production to the tune of 50,000 tons annually. of prawns and disease free seeds is worth
Although mariculture is a thrust area for the mentioning. Marine fin fish culture technology,
country, it is at present confined to few isolated which has been successfully commercialized
pockets in the country where the activity in in other countries with very high production,
respect of certain marine species has picked up. should be considered for development of
the vast stretches of sea coast and marine
Reservoirs, ponds, beels are resources having waters for aquaculture. The production from
considerable potential. Appropriate technology marine cage fish farming could increase fish
and enabling policy framework in leasing production by 5 million tonnes. Similarly cage
aquatic commons are urgently needed. fish farming in 1 percent of the reservoir water
in the country could enhance fish production by
13.2 Technology upgradation 6 million tonnes. The technologies for inshore
The development of fisheries sector has not cage fish farming and that for offshore areas
been able to tap the aquatic productivity in using submersible type cages are at present
many areas owing to lack of technology so much not available within the country. Since the
so that the production potential on this account technologies in this connection are very exacting
still remains unassessed. The broad areas of fish and capital intensive, only big corporate houses
production affected by technology gap would may be able to mobilise the resources to
include the followings undertake these activities.
i. alternate species to shrimp for coastal
aquaculture Emerging technologies like aquaponics could
ii. mariculture technology in respect of crab, transform the production and supply of fish and
mussels, oysters, lobster, ornamental fish promote entrepreneurship in rural areas.
etc.
iii. Intensive aquaculture 13.3 Need for value addition
iv. marine cage fish farming for sea bass and & diversification of sea food
other candidate species products
v. cage fish farming for freshwater reservoirs For promotion of Value Added Products in the
vi. Re-circulatory Aquaculture System (RAS) sea food industry, the following issues to be
and raceway fish culture for trout and other addressed
species (i) increase of unit value realisation
vii. commercialization of ornamental fish (ii) diversification and broad basing of raw
culture material base
viii. aquaponics (iii) Heavy investments are needed for building
processing facilities for value added
In the absence of appropriate technology and products.
policy framework, large aquaculture resources (iv) Credit support by financial institutions to

44 | Sectoral Paper on Fisheries and Aquaculture


promote value addition and cold chain for value added products and safety related
infrastructure. regulation of importing countries.
• The unit value of frozen fish could
be increased through promotion of 13.5 Need for cold chain
filleting, formulation of breaded & facilities
battered products, other ready to Although there are 17 food parks
cook/eat products in consumer packs. approved by Deptt. of Food
New product development with in Processing Industry (DoFPI),
house expertise specially with respect GOI, but none of them are
to non conventional resource such as located in places close to
deep sea catch should be encouraged the important sea food
to address better utilization of processing bases in the
available raw materials. above states. Although a
• The raw material base could be scheme on infrastructural
widened through exploitation of facility for preservation
oceanic and deep sea resource; and processing of fish is
onshore and offshore mariculture; provided for creation of
utilization of brackish water additional facilities under
aquaculture resource; aquaculture the DoFPI scheme yet the
of high value species in inland same cannot be utilized unless
sector; and import of raw material food parks are planned in areas
for processing. Diversification of close to the fishing/ processing
offshore fishing involves upgradation centres. Similarly, 20 Agri Exports
of the small scale motorized and zones have so far been sanctioned/
mechanized crafts and introduction approved as per the recently announced
of resource specific fleet such as Exim policy of the Ministry of Commerce.
tuna long liners, purse seiners, squid A preliminary scrutiny of the list would
jiggers, pole and long line fishing reveal that all the approved units are related
vessels, etc. Since value addition to horticulture products and not a single
and products diversification are two export zone is ascribed to development of
sides of the same coin, we have to sea food processing industry although 25% of
diversify our export by addition of the total agricultural export is on account
newer species through aquaculture/ of sea food
mariculture. The problems such
as stagnation in marine landings, 13.6 Quality control/Traceability
and non utilization of mariculture Several importing countries are stipulating
resources are to be addressed. The stringent quality control/traceability norms
processing units are also not in a for marine products. Introduction of the
position to import raw material for re concept of HACCP by USFDA, ISO 9000 and
export. European Community directive (EC 91/493)
demand very high hygienic standards in the
13.4 Under utilization of production and processing facilities. There
established infrastructure are only 84 processing plants, 147 processing
The fish processing activity is cyclical with units fully or partially for farm raised raw
peak seasons and off seasons leading to material and 29 exclusive cold storages for fish
underutilisation of the facilities. In addition and fishery products which are EU certified.
to seasonality of landings, non-availability The seafood industry is currently in a
of raw materials for processing, high cost of transitional stage. Modernization of processing
production, issues in availability of power, facilities to meet international standards is
quality manpower add to the problems of of primary importance for the industry in the
idle capacity. Presently, the fish processing coming years and requires heavy investment
industry is utilizing less than 30 to 40% of its for building up the processing facilities for value
installed capacity due to raw material shortage added products.
and its inability to meet the market demand

Sectoral Paper on Fisheries and Aquaculture | 45


13.7 Integrated development of environmental factor is higher compared to
Infrastructure facilities the process that affect field crops in similar
Development of Sea food industry in the ultimate situations. Considering the contribution
analysis is an integrated process of harvesting, of fish and fishery products to the export
post harvest management, processing and earnings of the country i.e. 21 percent of the
marketing. The acceptability and marketability agricultural exports and its contribution to
of the final product being a function of all the the agricultural GDP (5.37%), it is imperative
process steps involved, emphasis of the industry that the insurance coverage needs to deal
has shifted to integrated development instead with the sensitivity of the risk in fisheries
of development of each of the process steps sector if need be through contribution from
independent of the others. The short comings in the cess on export realised by MPEDA.
this regard are reflected in large scale landings
on open beaches; considerable post harvest loss; • Insurance being a useful mechanism for the
product not matching market demand; as well farmers to cover their risks, it is necessary
as non-accreditation of bulk of our processing that the integration of credit and insurance
units by EU/ other importing countries owing takes place for the safety of the farmers as
to non-compliance of food safety regulation. In well as the banking institutions. The farmer
the case of coastal aquaculture the problems who is the major livelihood earner too needs
regarding lack of extension support could be an insurance cover for his life so that in case
overcome through promotion of agriclinics or of untimely death or accident the family’s
franchisee farming involving sea food exporters. hardship is also mitigated to a certain extent.

13.8 Effectiveness of insurance 13.9 Enabling Policy Framework


schemes Government of India has taken various
• In agriculture, insurance against loss due policy measures to unlock the fisheries and
to natural calamities like drought and aquaculture potential of the country. However,
flood has become a necessity to mitigate in order to realize the untapped potentials
the hardships of the farmer. The PMFBY discussed earlier, the following policy support
provides against crop failure in agriculture is necessary to create enabling conditions for
and horticulture. Insurance companies have their implementation as well as investment in
offered insurance cover for all three sectors the sector.
i.e. marine fisheries (boat & net) inland
fisheries and shrimp farming. During the 13.9.1 Formulation of regulatory framework
large scale outbreak of diseases in nineties, For promoting mariculture, suitable policy
the insurance sector lost heavily due to framework needs to be developed such as
complete loss of the crop. Considering the leasing of seabed and marine areas for marine
risk the insurance companies have increased cage fish farming on a sustainable basis without
the premium. Thus insurance for the shrimp encountering conflict with other resource usage.
farms have declined considerably in the
absence of which banks are reluctant to There is a need for carrying out aquaculture
provide loans. A policy has to be user friendly in environmentally sustainable basis without
so as to make it acceptable to the shrimp encountering conflict with other resource
farmers. The insurance cover in inland and usage. The need for carrying out aquaculture in
shrimp farming is restricted to only total loss environmentally sustainable, socially acceptable
unlike agriculture. It is felt that partial loss and in harmony with the principles of common
due to sudden change in climatic conditions resource use, would lead to the formulation of
or disease outbreak also need to be added in integrated coastal zone management plan by
the insurance norms. the coastal states. Such coastal zone planning,
based on assessment of holding capacity,
• The risk to loss of assets and fishermen at nutrient loading from all coastal activities and
sea is much higher than other land based common resource use needs to the worked out
agricultural activities. Besides susceptibility with clear enabling conditions for setting up
of fish/ shell fish to disease and unfavourable such ventures.

46 | Sectoral Paper on Fisheries and Aquaculture


As regard the formulation of regulatory investment subsidy schemes leveraging
framework involving studies related to carrying bank credit.
capacity assessment and site selection,
suitable agencies needs to be identified with 13.9.5 Protocol for organic fish and fishery
experience and facilities for under taking products
oceanographic studies. Organic fish and fishery products is gaining
importance as regard export to American,
13.9.2 Leasing policy for inland open waters European and Japanese market is concerned.
Utilization of reservoirs and large water Despite our inland aquaculture system being
bodies for scientific stock management and ‘Low intensive sustainable aquaculture’ (LISA)
aquaculture would require long term settlement and there being distinct possibility of producing
of these water areas for creating atmosphere for organic shrimp, we are still not in the business of
investment. This would also require preparation organic fish production. Our inland aquaculture
of blue prints for reservoir fisheries development being very close to organic farming, the same
by the respective states. could easily be modified to make the system
organic. Besides we need to incorporate suitable
In order to carryout the programme within fish species which has high export potential.
a time frame, it may be necessary to
prepare development plans with leasing
policy reforms.

13.9.3 Policy on import of Ornamental fishes


This sector has the potential to generate
employment and exports worth at least ` 2500
crore annually on a conservative estimate.
However, the essential pre-requisite for
ornamental fish export is supply of standard
breed of ornamental brood fish and fish seed.
The brood stock in respect of exotic species
needs to be imported in order to breed and
arrange supply of stocking materials. The
existing policy on import of live fish do not
permit such import and as a result, export rejects
from Thailand and Singapore enter the country
clandestinely, which are not fit for re-export. We
also do not have any quarantine protocol for
live fish import. The matter needs immediate
attention at GOI level.

Marine ornamental fish breeding needs focus


to develop along the coastline with proper
infrastructure investments.

13.9.4 Deep sea and oceanic fishery Resource


Despite large untapped potential in the deep
sea fishery sector specially that of Tuna, the
same is not being exploited on account of
(i) Heavy investment requirements (ii) Lack of
infrastructure, (iii) lack of expertise and lack
of marketing facility from the Andaman and
Lakshadweep islands. A suitable policy in
this regard needs to be framed to encourage
public-private partnerships to invest in these
areas and also come out with suitable capital

Sectoral Paper on Fisheries and Aquaculture | 47


14. Strategies

48 | Sectoral Paper on Fisheries and Aquaculture


The interventions required for improving fish • Development of fresh water and marine
production, exports, utilization of untapped pearl culture activity, could cater to the raw
resource, conservation of aquatic biodiversity material requirement of the gem industry
and habitat would call for the following and offset drain on foreign exchange towards
measures. import of this raw material.

• Diversification of offshore and deep sea • Assessment of Biodiversity loss of fish &
fishing involving introduction of resource fishery resource, formulation of conservation
specific deep sea vessels. programme and their implementation

• Creation of adequate integrated/ landing • Sustaining the yields from the marine fishing
and berthing infrastructure in region specific grounds through scientific management and
manner taking into account marketing, conservation measures
processing and cold chain requirements.

• Time bound programme for development of


coastal aquaculture sector and sustainable
shrimp farming.

• Introduction of mariculture programme


involving onshore and offshore resources.

• Aquaculture of high value fresh water species


in inland waters to diversify exports.

• Restructuring of sea food industry taking


into account (i) utilization of idle capacity,
(ii) diversification of product, (iii) increase
in share of value added products, (iv)
upgradation of the processing units
matching HACCP norms and various food
safety regulations and (v) widening of raw
material base.

• Conservation and utilization of our open


water resources such as reservoirs, flood
plain lakes (Beels), lakes, rivers and streams
etc. towards developing capture fishery/
game fishery/ aquaculture

• Development of the Ornamental Fisheries


Sector which has substantial potential for
exports.

Sectoral Paper on Fisheries and Aquaculture | 49


15. Climate change implications
for fisheries and aquaculture
15.1 Climate finance

50 | Sectoral Paper on Fisheries and Aquaculture


The effects related to climate change involving 15.1 Climate finance
oceans, coasts and freshwater ecosystems, are NABARD is the National Implementing Entity
bound to affect fisheries and habitats together (NIE) for the Adaptation Fund under United
with the composition and location of production Nations Framework Convention on Climate
and will have major impacts on aquaculture Change (UNFCCC) and also Direct Access Entity
productivity and livelihood security of fishers. (DAE) of Green Climate Fund (GCF). In addition
Climate change impacts the structure and NABARD has been designated as NIE for
function of already stressed coastal aquatic implementation of adaptation projects under
ecosystems. Estuaries, coral reefs, mangroves National Adaptation Fund for Climate Change
and sea grass beds are critical for production (NAFCC).
of wild fish. In freshwater systems, ecosystem
health and productivity is linked to water quality Under fisheries sector a total of 06 projects
and flow and the health of wetlands. with financial outlay of ` 137.12 crore has
been sanctioned under NAFCC. The project
Small wild fish like anchovies and sardines are interventions would bring positive changes
sensitive to changes in ocean conditions. They in the life of 19,299 direct beneficiaries and
are found in schools in the ocean and are also 15,27,095 indirect local beneficiaries.
processed into fishmeal used to feed other fish
(aquaculture) as well as poultry and pigs. Though A total of 03 projects worth ` 29.94 crore have
precise consequences cannot yet be forecast, been sanctioned under Adaptation Fund with
climate change is likely to affect fisheries and project interventions targeted to improve the
aquaculture, their dependent communities and adaptive capacities and resilience of 25,589
related economic activities along three main direct and 34,003 indirect local beneficiaries.
pathways:

a. Indirect wider socio-economic effects


cutting across sectors (e.g. fresh water use
conflicts affect all food production systems,
adaptation and mitigation strategies in other
sectors impact aquatic systems in general or
fisheries and aquaculture directly)

b. Biological and ecological responses to


physical changes (e.g. productivity, species
abundance, ecosystem stability, stock
locations, pathogen levels and impacts)

c. Direct physical effects (e.g. sea level change,


flooding, storm impacts).

Fishers, fish farmers and coastal inhabitants


will bear the force of these impacts through less
stable livelihoods, changes in the availability
and quality of fish for food, and rising risks to
their health, safety and homes. The fragility of
these communities is further undermined by
overexploited fishery resources and degraded
ecosystems.

Sectoral Paper on Fisheries and Aquaculture | 51


16. Sustainable
Development Goals
16.1 Goal 14: Conserve and sustainably use the
oceans, seas and marine resources

16.2 Facts and Figures

16.3 Goal 14: Targets

52 | Sectoral Paper on Fisheries and Aquaculture


Several SDGs are directly relevant to fisheries and 16.2 Facts and Figures
aquaculture and to the sustainable development • Oceans cover three quarters of the Earth’s
of the sector, and one goal expressly focuses on surface, contain 97 per cent of the Earth’s
the oceans (SDG 14 Conserve and sustainably water, and represent 99 per cent of the living
use the oceans, seas and marine resources for space on the planet by volume
sustainable development).
• Over three billion people depend on marine
The Code of Conduct for Responsible and coastal biodiversity for their livelihoods
Fisheries, adopted by FAO provide a robust
framework in our efforts, including in the • Globally, the market value of marine and
formulation of policies and other legal and coastal resources and industries is estimated
institutional frameworks and instruments, at $3 trillion per year or about 5 per cent of
to ensure sustainable fishing and use of global GDP
aquatic living resources in harmony with the
environment. • Oceans contain nearly 200,000 identified
species, but actual numbers may lie in the
The Voluntary Guidelines for Securing millions
Sustainable Small -Scale Fisheries in the Context
of Food Security and Poverty Eradication • Oceans absorb about 30 per cent of carbon
(SSF Guidelines), complementing the Code dioxide produced by humans, buffering the
of Conduct represent a global consensus impacts of global warming
on principles and guidance for small-scale
fisheries governance and development towards • Oceans serve as the world’s largest source
enhanced food security and nutrition. They of protein, with more than 3 billion people
aim to contribute to and improve the equitable depending on the oceans as their primary
development and socio-economic condition of source of protein
small-scale fishing communities alongside
sustainable and responsible management of • Marine fisheries directly or indirectly employ
fisheries. over 200 million people

Several targets for SDG 14 (“Conserve and • Subsidies for fishing are contributing to the
sustainably use the oceans, seas and marine rapid depletion of many fish species and are
resources for sustainable development”) are preventing efforts to save and restore global
explicitly fisheries-related, while its others may fisheries and related jobs, causing ocean
have implications for fisheries. fisheries to generate US$ 50 billion less per
year than they could
16.1 Goal 14: Conserve and
sustainably use the oceans, seas • As much as 40 per cent of the world oceans
and marine resources are heavily affected by human activities,
The world’s oceans – their temperature, including pollution, depleted fisheries, and
chemistry, currents and life – drive global loss of coastal habitats
systems that make the Earth habitable for
humankind. 16.3 Goal 14: Targets
• By 2025, prevent and significantly reduce
Our rainwater, drinking water, weather, marine pollution of all kinds, in particular
climate, coastlines, much of our food, and from land-based activities, including marine
even the oxygen in the air we breathe, are all debris and nutrient pollution
ultimately provided and regulated by the sea.
Throughout history, oceans and seas • By 2020, sustainably manage and protect
have been vital conduits for trade and marine and coastal ecosystems to avoid
transportation. significant adverse impacts, including by
strengthening their resilience, and take
Careful management of this essential global action for their restoration in order to achieve
resource is a key feature of a sustainable future. healthy and productive oceans

Sectoral Paper on Fisheries and Aquaculture | 53


• Minimize and address the impacts of ocean • Provide access for small-scale artisanal
acidification, including through enhanced fishers to marine resources and markets
scientific cooperation at all levels
• Enhance the conservation and sustainable
• By 2020, effectively regulate harvesting and use of oceans and their resources by
end overfishing, illegal, unreported and implementing international law as reflected in
unregulated fishing and destructive fishing UNCLOS, which provides the legal framework
practices and implement science-based for the conservation and sustainable use of
management plans, in order to restore oceans and their resources, as recalled in
fish stocks in the shortest time feasible, at paragraph 158 of The Future We Want.
least to levels that can produce maximum
sustainable yield as determined by their To achieve the transition to sustainable
biological characteristics development, there is need to establish an
enabling environment of policies, institutions
• By 2020, conserve at least 10 per cent of and governance – grounded in a sound evidence-
coastal and marine areas, consistent with based approach that takes into account the three
national and international law and based on dimensions of sustainability (economic, social
the best available scientific information and environmental) – with closely interwoven
targets. The potential of fisheries sector in
• By 2020, prohibit certain forms of fisheries contributing to achieving several of the SDG
subsidies which contribute to overcapacity goals has been well recognised and responsible
and overfishing, eliminate subsidies that management and governance of fisheries and
contribute to illegal, unreported and aquaculture is the need of the hour.
unregulated fishing and refrain from
introducing new such subsidies, recognizing
that appropriate and effective special and
differential treatment for developing and
least developed countries should be an
integral part of the World Trade Organization
fisheries subsidies negotiation

• By 2030, increase the economic benefits to


Small Island developing States and least
developed countries from the sustainable
use of marine resources, including through
sustainable management of fisheries,
aquaculture and tourism

• Increase scientific knowledge, develop


research capacity and transfer marine
technology, taking into account the
Intergovernmental Oceanographic
Commission Criteria and Guidelines on the
Transfer of Marine Technology, in order to
improve ocean health and to enhance the
contribution of marine biodiversity to the
development of developing countries, in
particular small island developing States and
least developed countries

54 | Sectoral Paper on Fisheries and Aquaculture


17. Capital formation
in Aquaculture and
Fisheries sector
17.1 Institutional Credit

17.2 Role of NABARD in capital formation

17.3 Issues & Constraints for institutional credit flow

17.4 Steps needed to improve Credit Flow to the Sector

Sectoral Paper on Fisheries and Aquaculture | 55


17.1 Institutional Credit share of term loans from 35.40% to 19.6% during
Credit to fisheries is extended by both the same period. Term loans are important
institutional and non-institutional players. for increasing capital formation necessary for
The institutional players include banks such as sustainable economic growth.
Commercial banks, Regional Rural banks, Small
Finance Banks and Cooperative banks and also Historically, the share of credit to fisheries in
agencies like NBFCs, Microfinance Institutions, total agricultural credit has been quite low and
etc. further, it has been steadily declining over the
last several years, particularly last 10 years. From
As reported in the 70th round survey of a share of 1.31% in 2003-04 it dipped to 0.3%
National Sample Survey Organisation (NSSO), during 2013-14 (sub-sector-wise disaggregated
formal institutions account for 60 percent of figures not available after 2013-14). While credit
indebtedness of farmer households in India. This to agriculture recorded an impressive growth
estimate may hold good for fish farmers as well. of 22.04% during the period 2003-04 to 2013-
14, credit to fisheries recorded negative growth
Institutional credit has been a major contributor of 11.83%. Commercial banks had a dominant
to development of agriculture and allied sectors share of 90% in credit flow.
in India. There has been impressive growth in
agricultural credit from ` 2.29 lakh crore to ` 8.77 The ground level credit flow to Agriculture and
lakh crore during the ten-year period from 2006- allied sectors for the years 2007-08 to 2010-11 is
07 to 2015-16. The area of concern was declining given below :-
(` in crore )
S. No Sector 2007-08 2008-09 2009-10 2010-11
I Crop Loan (ST) 181,393 210,461 276656 335550
II Term Loan LT & MT 73,265 91,447 107,858 132741
1 MI 2,840 3,180 5,197 4363
2 LD 2,553 2,887 3669 3615
3 FM 8,303 8,334 10211 12800
4 PH 5,910 6,045 6407 6610
5 AH 9,034 10,398 10260 12773
6 Fish 1,248 1,281 1854 1931
7 Hi-Tech 33,325 41,694 50797 82774
8 Others 10,052 17,628 19463 7875
Total 2,54,658 301,908 384,514 468,291

Commercial banks are the main contributors basis for preparing the district and state credit
to GLC with a share of 75% followed by Co- plans.
operative banks and Regional Rural banks.
The contribution of fisheries sector to GLC is 17.2 Role of NABARD in capital
less than one percent. Despite opportunities, formation
credit to fisheries from institutional sources 17.2.1 Refinance
continues to be dismally poor. There are several NABARD is the apex Development Financial
factors attributed to poor offtake of institutional Institution with a mandate for promoting
credit under fisheries, which are discussed in agriculture and rural development through
forthcoming paras. financial and non-financial developmental
interventions. NABARD extends refinance
The institutional credit targets for the banking support to banks (Commercial Banks,
system are prepared based on the Potential Cooperative Banks and Regional Rural Banks)
Linked Credit Plans prepared by NABARD for their credit to agriculture, including fisheries
every year. The PLPs prepared at district at concessional rate of interest, in order to
level, estimate the sector-wise/activity-wise augment the resources available for credit
exploitable credit potential taking into account expansion. During 2015-16, NABARD disbursed
factors such as infrastructure availability, ` 370.52 cr as refinance to various banks under
Government programmes etc. PLPs form the fisheries.

56 | Sectoral Paper on Fisheries and Aquaculture


Fisheries Total Refinance to fisheries sector account for less
Year sector Refinance than 1% of the total refinance disbursement
(` in crore) (` in crore) of NABARD. No particular trend is observed
2009-10 54.62 12009.08 in refinance disbursements, Commercial
2010-11 47.45 13485.87 banks are the major players in the refinance
2011-12 91.88 15421.70 disbursements with more than 50% share in the
2012-13 37.85 17674.29 total disbursements to the sector. Cooperative
banks also takes a major share in refinance
2013-14 21.81 21486.17
disbursements. The Southern states takes
2014-15 64.15 31427.30 more than 50% of the refinance as it is mostly
2015-16 370.52 48063.72 represented by coastal states with potential for
2016-17 210.57 53505.51 development of all the sub sectors in Fisheries.

Crab cultivation in Goa – A new livelihood diversification to Coastal Community

NABARD has supported “Demonstration and practices that would safeguard optimal
Training of Crab Farming” in Goa in collaboration conditions for the growth of the crabs.
with TERI, Coastal Ecology and Marine Resources
Centre. A pond was prepared at Batim,
Goa, as a demonstration site to
The main objective of the project was to build showcase the crab cultivation
the capacity of the local community and technique in Goa. The pond was
other stakeholders in crab farming through stocked with juvenile crabs, or
exposure visits to successful farms as well as crablets, procured from Rajiv
demonstration-based training. Through this Gandhi Centre for Aquaculture,
project, around 30 fishermen and prospective Chennai. The crablets of
entrepreneurs were taken to Sindhudurg district approximate size of 2.5 cm were
in Maharashtra, to introduce them to the concept released into the demo pond at
of crab farming in mangrove areas and also to Batim. They were then fed with trash
inculcate interest in this activity. This exposure fish and their growth was monitored for
visit gave opportunity to the Goan fishermen a period of eight months until they achieved
and entrepreneurs to interact with the famers harvestable weight of approximately 350 -
practicing crab farming and understand the 400 gm / crab.
prospects of venturing into this new livelihood
opportunity. The demo site was visited by many
interested farmers from across
Sequel to the visit, eighteen entrepreneurs were Goa. This demonstrated options
selected for the training program at Rajiv Gandhi for locals and entrepreneurs
Centre for Aquaculture (RGCA), Sirkali, Tamil to take up crab farming as an
Nadu. Participants were given hands-on training additional livelihood option.
on the methodology for the nursing of crablets, Crabs have very good domestic
cultivation of crabs and assessing the various as well as export demand and
water quality parameters that are required for fetches better price as it can be
good management of the pond and aquaculture exported/marketed live.

Sectoral Paper on Fisheries and Aquaculture | 57


17.2.2 Infrastructure finance of small producers in production and marketing.
The role of infrastructure in improving farm NABARD supports Producer Organizations with
productivity, providing market linkages and credit and non-credit interventions. Under the
the consequent raising of standard of living Government of India scheme viz., PRODUCE
of the rural population. Under the Rural Fund, NABARD has supported promotion of
Infrastructure Development Fund (RIDF), more than 2200 Farmer Producer Organizations
NABARD supports State Governments for partnership with other agencies. PO is a viable
development of infrastructure in agri-allied model for small fish producers in mobilizing
sector, including fisheries. In fisheries sector, their inputs and aggregating their produce for
NABARD has been supporting infrastructure effective marketing. Around 38 Farmer Producer
creation like fishing harbours/landing centres, Organizations have been promoted exclusively
riverine fisheries, strengthening of fish seed in fisheries and aquaculture sector in different
farms, integrate development of beels, etc. states.
In addition development of infrastructure for
fisheries education is also supported under 17.2.5 Support to fishermen federations
the programme. Cumulatively, an amount of NABARD has provided direct credit support to
` 1478 cr has so far been sanctioned by NABARD federation of fishermen cooperative societies
under fisheries sector for 792 projects in in Nagapattinam and Kanyakumari districts of
various states. Tamil Nadu to help the fishermen to get fair price
by releasing them from the clutches of middle
Assistance, on budget and off budget, under man, inculcate habit of thrift leading to greater
NABARD Infrastructure Development Assistance empowerment of fishers. These federations
(NIDA) is also available for development of have successfully borrowed and repaid loan
fisheries infrastructure. Food Processing amounting to ` 6.90 crore from NABARD and
infrastructure, sea food parks etc could be subsequently through NABKISSAN, a subsidiary
considered for assistance from Food Processing of NABARD.
Fund.
17.2.6 UPNRM
17.2.3 Micro credit Umbrella Programme for Natural Resources
NABARD had pioneered the concept of Self Management (UPNRM) is a loan-cum-grant
Help Groups in 1992, which has now become based Indo-German programme implemented
the largest and most cost effective micro credit by NABARD in collaboration with KfW and GIZ.
programme in the world, with over 8 million Under the programme many fisheries and
SHGs covering 100 million poor households. aquaculture programmes were sanctioned
SHG-Bank linkage programme has been, to a involving integrated fish farming with duckery,
great extent, able to free rural poor from the piggery etc. Integrated collective fish marketing
clutches of money lenders. SHG is a popular to provide sustainable livelihoods for traditional
mode of financial support among fisher folk, fishermen communities in Krishna district has
especially women. been one of the successful model in capture
fisheries.
Joint Liability Group (JLG) is another micro
credit innovation introduced by NABARD aimed 17.2.7 Research and Development Fund
at supporting livelihood and income generating NABARD has set up a dedicated R&D fund to
activities through banks credit, without collateral various agencies, and academic and research
security. Cumulatively, 17.2 lakh JLGs have so institutions for the promotion of applied
far been linked with bank credit. Many banks research projects and studies; organization of
have adopted JLG model for financing groups seminars/conferences/workshops, training,
of fishermen and fish farmers for undertaking techno-economic and other surveys in the
small investments. field of rural banking; agriculture and rural
development; setting up of NABARD Chair units
17.2.4 Producer Organisations in Universities and reputed institutions; and
The concept of Producer Organization (PO) is student internship.
introduced to improve the bargaining capacity

58 | Sectoral Paper on Fisheries and Aquaculture


17.2.8 Credit Planning To estimate the potential for taking up various
NABARD has been preparing the Potential investment activities there is a need for
Linked Credit Plans (PLP) every year by taking continuous dialogue with the state government
district as the unit for all the districts in the and other research and development agencies
country. Potential for working capital, term and NABARD so that the development potential
loan are assessed after taking into account the are taken into account in the credit planning
potential available under each sub sector, status process itself.
of backward and forward linkages and other
support services. The PLPs are forming the basis 17.2.9 Other Support
for arriving at the Annual Credit Plan by the Unit Cost for investment activities under
banks in the district. The PLPs have projected agriculture and allied sectors, including fisheries,
the potential for ground level credit of ` 11,989 which is a comprehensive document containing
crore for the year 2017-18. the indicative cost for financing an activity
along with techno-financial norms are prepared
Table 8. Statewise Potnetial Linked Credit
periodically by the Regional offices of NABARD.
Plan Projections for Fisheries and Aquacultrue
This serves as the reference guide or ready
sector for the year 2017-18
reckoner for banks while financing. Similarly,
Sr. NABARD is also involved in finalizing the Scale
Name of the State (₹ Crore)
No. of Finance fixed for financing short term loans
1 Andhra Pradesh 2096.49 for agriculture (including fisheries). NABARD
Andaman & Nicobar prepares model bankable projects for the
2 30.34
Islands guidance of banks and entrepreneurs (available
3 Arunachal Pradesh 14.41 at www.nabard.org). From its R&D Fund, NABARD
4 Assam 210.00 supports applied research, technology transfer,
5 Bihar 914.04 dissemination etc. Establishing NABARD Chair
6 Chhattisgarh 221.24 units at Agricultural Universities/ Universities/
7 Goa 38.50 Research Institutions, etc. is also supported by
8 Gujarat 860.38 NABARD to encourage applied and empirical
9 Haryana 168.38 research with focused attention on a particular
10 Himachal Pradesh 38.92 theme/ area.
11 Jammu & Kashmir 23.75
12 Jharkhand 146.81 17.3 Issues & Constraints for institutional
13 Karnataka 703.61 credit flow
14 Kerala 561.95 As discussed earlier, despite having opportunities
and potential, fisheries sector has not been
15 Madhya Pradesh 602.26
getting the due share of institutional credit.
16 Maharashtra 589.72
There are several factors responsible for this.
17 Manipur -
Some of the major factors are discussed below:
18 Meghalaya 24.90
19 Mizoram
17.3.1 Area based approach
20 Nagaland 29.57
Large resources remain untapped for fisheries
21 New Delhi -
development, which can be developed through
22 Odisha 908.71 institutional credit by formulating region or
23 Punjab 340.02 area-specific plans. Bankers shy away from
24 Rajasthan 135.12 financing investment projects due to lack of
25 Sikkim 0.77 appraisal skills and also lack of linkage support.
26 Tamil Nadu 1047.12 In order to address this issue, NABARD has been
27 Telangana 72.47 propagating the idea of Area Development Plans
28 Tripura 95.10 (ADPs). These plans are prepared for financing
29 Uttar Pradesh 439.52 large number of smaller projects on a cluster
30 Uttarakhand 20.51 mode wherein all the backward and forward
31 West Bengal 1610.31 linkages will be identified and linked to suitable
32 Puducherry UT 44.03 agencies and units will be allocated to banks.
TOTAL 11988.95 The techno-financial appraisal will be done for

Sectoral Paper on Fisheries and Aquaculture | 59


a sample unit. This will obviate the need for 17.3.6 Insurance
individual project formulation and appraisal of Another critical factor affecting credit for
each of the project by the banker, saving time. fisheries is lack of suitable insurance coverage.
The concept has been implemented successfully Fisheries has been perceived as a high-risk
in many sectors. investment by banks and hence, they do not
finance without insurance coverage. The
17.3.2 Technology adoption insurance schemes in vogue are not farmer-
One reason for poor interest for banks in fisheries friendly with high premium, non coverage of full
investments is the low level of technology loss and cumbersome procedural formalities.
adoption by farmers leading to low production As in case of crop insurance, simple and cost
and productivity raising concerns about the effective insurance products should be devised
income and viability. There is a need to transfer for fisheries in order to protect the interest of
commercially viable technologies to farmers both the entrepreneur and the bank.
and incentivise their adoption to make projects
viable. 17.3.7 Interest incentives
Short term agricultural loan upto ` 3 lakh is
17.3.3 Infrastructure available at concessional rate of interest @7%
Many of the activities fail due to lack of p.a, with a further incentive of 3% on prompt
infrastructure support for transport, storage, repayment. This is possible due to interest
processing, marketing etc., which needs to be subvention and interest incentive support
addressed. Being highly perishable commodity, from the Central Government. However, such
timely storage and marketing are crucial in case concessional rate is not available for short term
of fish. Funds available from RIDF of NABARD and or long term loans under fisheries. Introduction
other Central/State schemes may be tapped for of such interest concessions can boost credit
the purpose. off-take under fisheries. Odisha is the 1st state
to have come out with a scheme on interest
17.3.4 Capacity building/Skill training subvention and interest incentive for fish
Lack of skill or capacity is another weak area farmers on both term loan and short term loan.
resulting in low production and productivity. The Odisha model may be followed by other
NABARD has been supporting entrepreneurship states.
and skill development training programmes
linked to bank finance under the schemes 17.3.8 Credit Guarantee
like Rural Entrepreneurship Development Banks insist on collateral security for loans
Programmes (REDPs), Micro Enterprise beyond the free limit (presently ` 1 lakh) fixed by
Development Programmes (MEDPs), Livelihood RBI. However, small farmers and entrepreneurs
Enterprise Development Programmes (LEDPs) usually find it hard to provide adequate
etc., which have resulted in higher success rate of collateral security, thereby not able to avail
enterprises and enhanced confidence of banks. bank credit. Setting up of a Credit Guarantee
Fund with Government support can facilitate
17.3.5 Credit linked Subsidy collateral-free loans to needy farmers.
A number of central and State agencies are
involved in supporting fisheries through subsidy 17.3.9 Integrated farming
to farmers and entrepreneurs, many of which Keeping in view the Govt’s resolve to double the
are not credit linked. Past experience shows farmers’ income by 2022, integrated fish farming
that making the schemes credit linked would with other systems like agriculture, livestock,
improve utilisation due to involvement of banks. horticulture, assumes a lot of significance. This
By inducting credit component in the project, system will bring sustainability to the entire
the per capita subsidy could be reduced so that farming through reduction of input costs and
with the same total allocation, more number diversification of income basket. However,
of persons can be assisted under a particular the promotion of this farming system, need to
scheme. NABARD has successfully implemented be taken up on a priority basis. NABARD may
several such Central schemes for sectors like take the lead, possibly through anchoring a
animal husbandry, horticulture, agri marketing comprehensive subsidy scheme.
etc.

60 | Sectoral Paper on Fisheries and Aquaculture


17.3.10 Proactive credit delivery mechanism f) Small scale fish retailing and dressing units
Banks need to be proactive in supporting g) Fish drying units using solar driers
commercially viable investments under fisheries.
Many a time banks give lukewarm response 17.4.2 Formulation of new/ innovative model
citing reasons of past defaults, painting a bad schemes
impression about the entire sector without any There is a need to identify new investments
specific analysis. activities, prepare the models/profiles for
uploading in the web site. This will be of use to
There is a need to develop innovative credit the banks and also the beneficiaries. Preparation
products to suit the marine fisheries sector, of new and innovative model schemes based
especially the small scale fisheries. on inputs from field studies/ R&D institutions
• Banks are reluctant to finance the sector will go a long way in transfer of technology by
due to the earlier setbacks in the sector leveraging credit.
and the banks are not aware of the recent
developments in the sector 17.4.3 Strengthening of R&D interventions
• Lack of a proper insurance coverage to the There is a need to support R&D efforts in
various investments in the sector. Fisheries sector. The officers who are deputed
• Higher investments are needed for to attend seminars and workshops should
technological upgradation of the processing try to impress upon the Research Institutes/
units as also the working capital requirements. Agricultural Universities interested to submit
It is doubtful whether the lending institutions R&D project proposals, our R&D guidelines and
could meet this requirement as a part of their also the need to submit the proposals in the
overall lending programme given the current appropriate format so as to avoid protracted
share of their lending to sea food sector. correspondence which would ultimately delay
the sanction.
17.4 Steps needed to improve
Credit Flow to the Sector The following are a few identified areas where
The immediate need to increase the credit immediate research needs to be done
flow to the sector is to convince the banks 1. Standardisation of hatchery technology
of the profitability of fisheries investments of alternate species in fresh water and
especially in the aquaculture investments. brackish water culture systems.
Borrower education emphasizing the need 2. Standardisation of farming technology
for prompt repayment also needs to be of alternate species in fresh water and
done simultaneously. Coordination with the brackish water culture systems.
processing units is required for linking them 3. Standardisation of organic aquaculture
directly with the processors which will help practices.
improving the income levels of farmers and 4. Water budgeting in aquaculture.
assured, quality raw material for the processors. 5. Standardisation of culture practices
Need for organizing producer groups for farmers of genetically improved varieties for
for collective bargaining is essential. Designing aquaculture.
of specific credit product and insurance coverage 6. Probiotics and bio remediation in shrimp
are the critical needs. culture systems.
7. Development of fish and fishery based bye
17.4.1 Developing shelf of projects for products.
development of the sector especially focusing 8. Development of value added of fish and
on livelihood based fisheries schemes fishery based products.
a) Integrated fish culture involving agri 9. Yield optimisation from natural water
horticulture options and agri -horti- animal bodies within the ambit of environmental
husbandry projects for small farmers. sustainability and social equity.
b) Ornamental fish units focusing on women 10. Climate change and its effects on Fisheries.
entrepreneurs and their groups 11. Models of Modern fish markets - Retail and
c) Crab culture and fattening in pens and cages whole sale
d) Sea weed farming and value addition
e) Aquarium fabrication units

Sectoral Paper on Fisheries and Aquaculture | 61


18. Summary of Issues and
suggested interventions

62 | Sectoral Paper on Fisheries and Aquaculture


NABARD has organised a National level stakeholder’s consultation meet and important issues identified and suggested interventions
arrived at the meet are summarised below.

Issue Rationale/ background Suggested interventions


Sustainable Resource Marine fisheries sector is plagued with problems such 1) Fisheries Management through Co- management
management as and Ecosystem Approach to Fisheries
i) declining catch rates and reduced per capita management (EAFM) to be adopted.
income, 2) Local/Region specific management measures to
ii) unsustainable fishing efforts due to increasing be decided in consultation with stakeholders and
fleet size (existing fleet size is more than the implemented.
recommended fleet size, ranging from 105% to
3) Functional co- management committees to be
158%),
formed.
iii) excess capacity (horse power/OAL/ net-size/ type)
iv) exploitation of shelf area at potential level v) 4) Fisheries officers and related agencies to be
juvenile /under-size fishery resource exploitation trained in EAFM.

vi) high by-catch etc. 5) Measures for optimization of fishing fleet may be
taken.
There is only limited scope for increasing production 6) Financial and logistic support to be provided for
from present grounds. However, there is untapped modernization of fishing fleet.
oceanic & non-conventional resources available.
Therefore, responsible exploitation of coastal marine 7) Measures to be taken for entrepreneurial
resources, intensification of deep sea fishing and development in fishing and allied activities.
enhancing mariculture are the need of the hour for the 8) R&D for technological up-gradation of fishing
sustainable exploitation of marine fishery resources. methods to be strengthened

Total potential of oceanic waters beyond 500 m depth 9) Conservation measures like closed season, closed
zone is estimated at 2.165 lakh tonnes including fishing areas, Marine Protected Areas (MPAs),
tuna. India is harvesting only 1/5 of the potential
th protected Species, ban on certain destructive
oceanic tuna resources. It is estimated that adopting fishing gears and methods, minimum mesh size
a precautionary approach in fisheries management, regulation, Minimum legal size (MLS) at capture
a fleet size of about 1232 fishing vessels including and marketing may be adopted.
long liners, purse seiners and squid jiggers has been 10) Other conservation Measures like artificial Reefs,
assessed by DADF, GoI. Sea Ranching, Eco-system restoration etc to be
implemented
11) Assistance for deep sea fishing may be provided,
particularly for the traditional fishermen along
with capacity building of fishermen. Island
territories of Lakshadweep and A&N Islands to be
given specific support to catch/process/market
untapped fish resources optimally with sufficient
regulations in place.
12) Certification of specific fisheries with traceability
may be promoted.
13) Green fishing through fuel efficient fishing
methods may be promoted.
14) Fool proof data collection/access to be
strengthened and streamlined for fisheries/socio-
economic/marketing details to support policy
15) Sustainable alternate livelihoods methods may
be created to reduce pressure within fishing.

Sectoral Paper on Fisheries and Aquaculture | 63


Issue Rationale/ background Suggested interventions
State level policies Fishery is a state subject under the constitution of 1) State level policies within national policy
within national policy India but very few states have dedicated bodies for framework with need based local specific
framework with need the development and marketing of fish produced in adaptability encompassing zonal and depth
based local specific the state. Lack of uniformity across states in terms regulations, fleet size/capacity regulation
adaptability of Closed seasons, Legally allowed fishing gears, including freezing fleet strength, seasonal
Destructive fishing methods, Inter-state conflicts regulations, fish size/ mesh size regulations,
regarding landing, Poor compliance to fishing spatial management through MPA/ fish refuges
regulations etc creates problems in Monitoring, may be framed in consultation with maritime
Control & Surveillance (MCS) of marine fishing. state governments.
2) Market/Processor level disincentives for
Lack of guidelines beyond territorial waters - (12 and
undersized fish to be introduced and enforced.
200 nmi of the EEZ)
3) Encroachments by foreign vessels especially
in island territories to be arrested by framing
policies and its strict implementation and
surveillance by concerned authorities.
Post harvest handling More than 70% of the fish produced in the country 1) Improving the hygienic standards and handling
and marketing is utilised by the domestic market, while the rest is facilities at landing centres and market
processed and exported. The landing centres serve as infrastructure including efficient management
primary markets and the wholesale markets situated system.
at a distance away from actual fish landing centers
2) Good fish handling practices on board, landing
act as secondary markets and retail markets are the
centre and marketing may be made mandatory
tertiary markets. Large number of intermediaries is
involved before fish reaches the hands of ultimate 3) Fish producer companies/ cooperatives may be
consumer. Conditions of monopsony promoted and supported for organised marketing
4) An efficient Price Policy of fish to ensure the
and oligopoly characterize the fish marketing
services of middlemen at minimum cost may be
structure in India and hence fishermen do not get
developed.
advantage of the high price prevalent in the consumer
markets. Difficulty in maintaining the quality of fish, 5) Regulation of fish marketing through institutional
lack of proper infrastructural facilities for storage, arrangements.
preservation, processing and transport at various
stages of marketing, lack of information on fish price
and production are other problems being faced in the
post harvest sector.
Marine pollution Anthropogenic activities like Marine debris/ litter, 1) Strict measure to be put in place to control
and monitor marine/ coastal pollution from all
Micro-plastics in fish food web, Oil spill, Ghost fishing, sources
Pelagificationetc

lead to destruction of

marine ecosystems. Further, urbanization and related


impacts on coastal water bodies like Eutrophication,
harmful

algal blooms, conversion of water bodies for urban


settlements etc. also lead to pollution of water bodies.

64 | Sectoral Paper on Fisheries and Aquaculture


Issue Rationale/ background Suggested interventions
Socio-economic Scope of increasing capture fisheries production by 2) Alternate livelihood options to reduce
issues small scale fishers is limited and per capita production vulnerability
is coming down. Fisheries management measures are
3) Economic empowerment of fisher women to be
not effective enough to ensure sustainable fisheries.
given priority.
Landing centre price is not attractive enough to
the producer due to quality of fish and long market 4) Providing effective capacity building and well
intermediaries. Still very little importance is given to managed infrastructure to ensure hygienic
onboard hygienic handling and icing of fish. On an handling of fish on board and throughout the
average the fish retail price is 62% over landing centre value chain for realising best value.
price. Unstable income flows, high population density, 5) Promote value addition that gets better value
and high indebtedness exists among small fishers. to the producers and better product for the
Vulnerability to natural disasters and inadequate consumer
insurance avenues for fishers further exacerbates their
problems. They are still dependent to a greater extent 6) Encourage promotion and development of
on informal financial services for credit, hence often viable intermediary organisations like producer
exploited. Fishermen cooperatives are not strong companies, revive fishermen cooperatives and
enough in many states. finance through them.
7) Understand the variability and seasonality of the
fisheries sector and design/tailor make financial
services accordingly
8) Provide sufficient opportunities to the fisher
communities for quality education and to pursue
different professional/academic courses
9) Labour welfare and labour rights to be protected
Simplification of Each state has its own fisheries policies and very Simplified licensing procedures for issuing of licenses
licensing policy for all complicated systems of licensing involving several and renewals, may be followed.
states for establishing agencies and District Level Committees. The same
seed hatcheries/farms amount of procedures is followed even for renewal of Unique identification cards to be designed for aqua
the licenses. farmers which makes them eligible for approaching
banks and financial institutions for support.

Uninterrupted quality Aquaculture involves high volume of water pumping Un-interrupted power supply at subsidized price
power supply at and aeration for dissolved oxygen supply to the to reduce the cost of production and also pollution
subsidized rates prawns and fishes cultured. Use of diesel for power control.
generation is very expensive. It also causes pollution.
Focused attention Bangladesh is the leading supplier of fish seed to Brood stock selection and multiplication centers for
on establishment India, through West Bengal. all the IMC/ Grass carp/ Pangassius/ Pacu/ Murrels/
of brood stock Anabas etc, are to be established (if needed in PPP
multiplication centers There is need to develop domesticated high yielding mode)
and hatcheries for all fish brood stock varieties in India for producing
important species of quality fish seed indigenously.
prawn and fish
Establishment Aquaculture is being taken up in rural/ coastal Roads may be developed by Govt. Disease diagnostic
of important areas. Further, it is perishable. Hence quick access is labs, hygenic market centers and cold chains need
infrastructures like desirable. Other infrastructure like disease diagnostic to be developed jointly be public and private sector
approach roads, labs, hygienic marketing centers, required for a under PPP mode.
disease diagnostic holistic development.
labs, hygienic State Govts may estimate the infrastructural
marketing centers, requirements and invite private sector for investment
cold chain etc. with proper revenue sharing basis under an attractive
policy.

Sectoral Paper on Fisheries and Aquaculture | 65


Issue Rationale/ background Suggested interventions
Licensing procedures Vannamei is being cultured in fresh water fish ponds. Clear cut policy to be formulated for issuance of
to be simplified and License is not being issued for fresh water areas license for brackish water species to be cultured in
process to be made by Coastal Aquaculture Authority (CAA) and state fresh water ponds like vannamei
faster for carrying out fisheries dept does not issue licenses for shrimp
farming of Tilapia, farming
Vannamei shrimp in
freshwater areas
Establishment of an Banned anti biotics in shrimp aquaculture are still A Policy to control abuse of anti-biotics in aquaculture
agency to register and being used in fish. There is also adulteration in the is necessary with a strong regulatory framework.
approve the suppliers products, feed ingredients used in aquaculture.
of raw materials like State Govts may set up quality labs
de-oiled rice bran, Labs are required so that the feed quality is not
vitamins, chemicals, compromised
mineral mixture, anti-
biotics.
Establishment of
labs for feed quality
monitoring
Immediate focus Manpower shortage is affecting the performance of Training programmes to be organised for working
on capacity the industry in India. managers /technicians/ supervisors/ and farm hands
building programs in commercial aqua farming
so as to train the
manpower for seed
hatcheries, farms,
feed manufacturing,
diagnostic labs,
processing and
marketing.
Banking norms to 1. At present the interest rates on term loans and 1. Interest subvention on both term loan and
be simplified for crop loans are very high (upto 16.5%). working capital loan, may be provided (Odisha
extending credit to Govt’s scheme may be referred).
2. Collateral security is as high as 200% over the
both small as well
loan sanctioned. 2. Banks should fix reasonable norms for collateral
large farmers and
security.
entrepreneurs – I) 3. Further the sanction procedures are complicated.
Need for extending
the collateral free loan
limit up to ` 5.0 lakh.
ii) Collateral may be
insisted by the banks
on reasonable terms
Need for reviewing the A national policy common for all states for aqua Low premium group insurance policies should be
policy on fish/prawn culturists as well as fishermen needs to be framed. introduced for aqua clusters of small aqua farmers,
insurance scheme. This has to be on lower premium. The premium can fish seed nursery operators.
be worked out on the basis of fish/prawn variety being
cultivated
Scientific stocking of The productivity of Indian reservoirs is low. The A study shall be mounted on some reservoirs to know
multi species variety stocking in each reservoir needs to be done as per the the ideal stocking density
of fishes and prawn in carrying capacity and productivity.
the reservoirs

66 | Sectoral Paper on Fisheries and Aquaculture


Issue Rationale/ background Suggested interventions
Leasing policy in the There is no uniform leasing/ licensing policy in India
reservoirs may be for reservoirs. Auction system often results in over
made simple and exploitation of fish. There is need to conserve fish
uniform – single fauna.
window clearance
Long term leasing Long term leasing is required for better management Each state govt may review the leasing policy
policy for the village practices and facilitating bank credit
ponds
Encouragement to State govts of hilly states may come out with policy on
trout and Mahaseer promotion of trout/ mahaseer farming.
culture in all the
potential hilly
regions by way of
establishment of seed
hatcheries, providing
adequate training
to the farmers and
establishment of
raceways and ponds
Brackish water There is a need for diversification in shrimp 1. Develop a domestication programme giving
Aquaculture in India is aquaculture and Indian white shrimp Peneaus indicus emphasis on disease tolerant/ resistant and set
shrimp centric relying is a potential candidate species for diversification up a Nucleus breeding of P. indicus
only on a single
2. Set up a brood stock bank and Nauplii
variety Litopeneaus
rearingcenters of disease screened animals for
vannamei
supply to hatcheries.
Non Availability of The import of brood stock of desirable varieties of More quarantine centres preferably two on the East
quality Brood Stock - shrimp and fish seed is considered essential due to and one on the West coast to be set up in order to take
Reliance on imported high incidence of disease in Indian varieties of shrimp care of the increasing demand of seed.
disease resistant SPR and over reliance on L vannamei which is an exotic
No shrimp hatchery should be allowed to function
/ SPF brood stock of variety.
without registration. There should be accreditation
shrimp
There are unregistered shrimp hatcheries functioning. and periodic inspection to ensure the hatcheries
follow the bio security measures & use SPF brood
There is only one quarantine facility located in Tamil
stock
Nadu which is grossly inadequate to cater to the
increasing demand of seed
Lack of diversification The BW aquaculture need to be diversified as all the 1. Multi species hatcheries need to be set up to take
in Brackish water farmers are concentrating on shrimp due to its good care of the increasing domestic demand for fin
aquaculture to fin export potential. fish and other shell fish seed especially crabs,
fish and shell fish oysters and mussels
In order to take care of the increasing domestic
includaing crab.
demand a shift from shrimp to fin fish and other shell 2. Guidelines and policies on seed production,
Lack of good quality fish is required health, nurseries, transportation etc to be
seed and feed for formulated.
development of
aquaculture in the 3. Need for proper incentives for setting up of
proper perspective nurseries and feed mills for fin fish and shell fish

Sectoral Paper on Fisheries and Aquaculture | 67


Issue Rationale/ background Suggested interventions
Lack of basic 9o % f the aqua farms in brackish water sector are Planned infrastructure development in aquaculture
infrastructure like small with less than 2 ha farm size ad nearly 95% of areas are required with common ETP, properly
Farm approach roads, the farmers have resorted to L vannamei farming in deepened intake canal, Electricity connection, water
power connection, the last 3-4 years requiring strict Biosecure conditions. inlet/ outlet to facilitate farming in small holdings.
common ETP, inlet/
outlet RIDF assistance could be availed by State Government
to develop infrastructure on similar lines as that
of Aqua parks. Aquaculture Estates / cluster
development could be recommended based on the
ground level requirements

Investments under PPP mode also could be thought of


Lack of environmental Unregulated development of aquaculture using Aquaculture Diagnostic and referral laboratories
and animal health spurious seeds, feed and wider use of antibiotics in farming areas to test key inputs for aquaculture
surveillance could lead to sudden and massive disease outbreak such as seed, feed, soil, water etc and also to ensure
programmes & related issues resulting in complete halt to traceability and certification.
aquaculture industry similar to the situation during
mid 1990s. RIDF assistance could be availed by State
Governments to develop this infrastructure
Lack of State 90% of the farms are owned or operated by small This situation to a greater extent could be tackled if a
specific insurance farmers. The capital as well as input cost in shrimp comprehensive insurance programme is chalked out
programmes in farming is very high and banks are not very keen to on similar lines of that of Kerala.
aquaculture support the sector due to the high inherent risk and
their past experience. Products on similar lines as that of PMFBY could be
thought of.
Lack of policy Traditional prawn filteration and paddy cum prawn The activity has lot of potential and need to
guidelines to protect farming is in vogue in Kerala, Karnataka, Goa and West be popularised as improved traditional farms
the interest and Bengal. The area under traditional prawn farming is with selective stocking and feeding using Good
concerns of the dwindling and in many States these farms are in a Aquaculture Practices.
traditional prawn state of neglect and disuse.
farmers These practices in these farms are by default organic
The farming operations in these farms are no longer therefore needs certification for fetching more income
remunerative due to low yield and consequent low to the farmers
income levels.
Lack of a There is no Development Fund in Aquaculture to take 1.0% development fee could be levied to take care of
Development Fund in care of the emergent needs and self reliant R&D in the the emergent needs of the industry.
Aquaculture field

Lack of back up The entire shrimp aquaculture in India is reliant on A robust back up programme for the development
programmes on brood L vannamei and is totally dependent on import of SPF of disease resistant brood stock of all the candidate
stock development brood stock from USA. No back up programme is put species is required for the sustained growth of the
especially that of in place, which is very precarious. industry and export prospects.
L vanammei.
WTO issues like the requirement EU countries that all Strong investment in domestic R&D to be self reliant
import should to be disease free (TBT & SPS) by 2020 is critical
needs to be addressed.
Lack of diversified The farming operations in the country is mainly under Family farming and homestead models to promote
farming techniques small holdings which are not using scientific methods small scale cage farming, integrated multi trophic
leading to unorganised haphazard development farming (IMTA) and ornamental rearing.

68 | Sectoral Paper on Fisheries and Aquaculture


Issue Rationale/ background Suggested interventions
Lack of resource The macro level survey has identified 1.20 million Ha A micro level survey of brackish water areas needs
mapping on a district as brackish water resources suitable for aquaculture, to be done to identify& demarcate suitable areas for
level for efficient and however, micro level surveys to identify the suitable allotment.
effective decision areas is yet to be done
making. Common infrastructure need to be established on
similar lines as that of Aqua Estates for organized and
sustainable development of the sector.

This will also lead to speedy hassle clearance of


proposals and issue of licenses
Lack of indigenous 60-70% of the recurring cost is for feed in any Subsidy available under Blue revolution schemes
feed aquaculture unit and in brackish water shrimp farming may be availed by entrepreneurs/ farmers for setting
the farmers are relying on compounded feed with a up of feed mill for the production of cost effective
price range of ` 45- 50 per Kg. indigenous formulated feed which uses locally
sourced ingredients catering to location specific
Need to encourage feed formulations using locally farming areas need to devised.
available ingredients.
Coordination among Aquaculture being a state subject, a coordination A state development agency for fisheries and
various government mechanism between various state, central agencies aquaculture may be formulated under the
agencies and stake and stake holders would facilitate rapid and smooth chairmanship of the Chief Secretary.
holders. development.
Absence of clear idea This will focus the development on scientific lines. The Based on suitability the State wise potential areas to
on suitable locations quantify parameters like nutrient loading, pollution be identified.
for cage culture and estimated carrying capacity of the common
waters are to be addressed properly.
Classification of This will give idea for to the potential entrepreneurs, These areas could be further classified as IMMEDIATE
potential areas the areas where development is possible immediately where cage culture can be taken up immediately.
without hurdle.
LATER where it is possible after addressing certain
issues like stake holder disputes etc.,
As of now there is no Policy will ensure scientific development. Multi- Draft national policy needs to be frame, which could
Auction policy for traphic aquaculture to be encouraged for taking care be followed by all States with suitable modifications
leasing out common of organic load. Minimum lease period should be 5 addressing stake holders concerns & expectations
waters years.
Disputes/ poisoning Group mode of farming should be given preference in Policy may be designed giving concessions/
by individuals / multi leasing policy This will encourage cooperatives/ SHGs/ preferences to address this conflict
users conflict JLGs
Non availability of Right now farmers procure seeds from CIBA. The More hatcheries needs to be promoted
seeds timely availability of quality seeds could be ensured
only by establishing hatcheries
Huge Mortality Huge mortality occurs due to stocking of spawns. This could be addressed by promoting rearing ponds
rate leading to low Stocking of right size fish will ensure more near cage culture clusters so that the spawns procured
productivity productivity by reduction mortality. This will also be from hatcheries could be reared up to fingerling size
motivating more farmers towards cage culture/open for supply to farmers.
water aquaculture
Lack of Extension As of now the extension machinery is very week. Extension centres with disease diagnostics &
support Hand holding on technical matters especially disease management, technical advisory like call centres to be
management, feed and seed quality is absent. established. The existing ACABC scheme of GOI needs
reinforcement.

Sectoral Paper on Fisheries and Aquaculture | 69


Issue Rationale/ background Suggested interventions
Poor/low level of Training programs needs to be organized for
technical knowhow at interested entrepreneurs on technical knowhow.
farmers level leading
to under- utilization of
resources

Lack of awareness There are very few officers with fisheries/technical Training programs needs to be organized by
among bank officers background in financing banks. Added to “NPA Image” respective banks/ Other training establishments
leading to lower or this sector banks are reluctant to finance. The
Ground Level Credit potential, viability and scope of business has to be
flow explained to banks to make a dent.
Obsolete processing There is a need to upgrade/modernize processing Processing facilities may be upgraded/modernized
infrastructure facilities to cater to growing needs of both export and with credit and grant support
domestic markets
Low capacity Average capacity utilization of existing units is less Allow seafood processors to import raw material
utilization of existing than 30%, mainly due to seasonality in demand and through all major ports and encourage them to
seafood processing availability of raw material reprocess and add value for export.
plants.

Lack of value added Export of value added products is very limited now, Value added product range and facilities may be
product range which needs to be improved to increase export developed through collaborative efforts of industry
and facilities for earnings. Need to develop value added product range and R&D Institutes.
processing value as per demand
added products
Lack of skilled There is shortage of skilled manpower required for Training and skill development programmes for
manpower processing processing may be organized; Automation may be
encouraged wherever feasible

Lack of supporting There is lack of supporting infrastructure facilities Availability of supporting infrastructure such as
infrastructure for such as power, water, connectivity etc., for processing power, water, connectivity etc., to processing units
processing at many centers, affecting the operations and viability. may be ensured

Lack of/or poor Poor infrastructure leads to unhygienic handling Landing centre and harbours to be modernised/
infrastructure at resulting in spoilage and quality deterioration, posing upgraded to maintain highest standards of sanitation/
Fishing harbours/ health hazards to consumers besides loss of economic hygiene
Landing centers value. This is all the more critical if the material is
meant for export.
Lack of institutional/ Involvement of institutions, including cooperatives, Encourage cooperatives/institutions to create
Cooperative for marketing of fish & fish products has successfully marketing infrastructure as also provide working
arrangement for fish demonstrated their efficiency in post-harvest capital to them.
marketing handling, distribution and retail supply. Further,
with the involvement of institutions, including
cooperatives, would ensure fair price for the produce
as also enhance producer’s share in consumer price.
Lack of cold chain for Absence of cold chain connecting production/landing Cold chain may be developed in all the major fish
domestic marketing centres to retails markets restricting supply of fish to producing states with facilities of refrigerated vans, ice
far flung or interior areas plants, cold storages, retail kiosks etc.

70 | Sectoral Paper on Fisheries and Aquaculture


Issue Rationale/ background Suggested interventions
Lack of efforts to There is lack of awareness about nutritious superiority Consumption of fish may be popularised through wide
promote/ popularize of fish over other animal food products; there is also publicity/ad campaigns
fish as a healthy food lack of any campaigns to popularize consumption of
fish as is being done in case of egg, milk etc. Further
the general preference in the domestic market
towards fresh fish in comparison to that of frozen fish
also has to be altered
Lack of Training and Lack of proper skills leads to unhygienic handling of Workers at landing centres and marketing centres may
capacity building for fish and quality deterioration be imparted training on safe handling of fish
safe handling of fish

Lack of efforts Domestic prices of fish & fish products is booming Fish markets, including weekly fairs, on the lines of
to promote local over the years. It is a fact that price realized for fish Maharashtra, may be promoted in other states/UTs.
domestic markets in the domestic market is comparable (if not better)
to that which is exported. By promoting domestic
consumption would help in better price realization
by producers. There are successfully tested market
interventions in Maharashtra by organizing weekly fish
markets, which could be replicated in other states/
UTs.
Lack of adequate Quarantine facilities are presently available only at Quarantine facilities may be setup at all important
Quarantine facilities major seaports. There is a need to create more such seaports
for import of fish for facilities at all seaports to facilitate import of fish for
re-processing/ value re-processing and value addition. This would also
addition enhance capacity utilization of processing plants
Lack of air cargo At present, air cargo facilities are available only at Air cargo facilities for live/chilled fish may be set up at
facilities for export select airports, which need to be expanded to all all major airports
of ornamental, live & major fish producing centres
chilled seafood

Trade/tariff barriers Tariff barriers imposed by some of the importing GoI/MPEDA may address the trade barriers
affecting seafood countries affect export
exports

Inadequate credit, The fishermen, especially small scale marine Purvey of adequate and timely credit by banks for
lack of credit from fishermen are the poorest of the poor in society as production and marketing activities through JLG
banks to fishermen/ also large number of small scale fish farmers and mode by mutual guarantee, like the model adopted in
Fisherwomen/ small entrepreneurs, who are contributing to increased Karnataka with higher recovery prospects.
scale fish farmers/ fish production, export and marketing of the fish and
retail fish vendors/ marine products as part of their livelihood. Due to Concessional refinance facility from NABARD to
small entrepreneurs high cost of funds and inadequate financial leverage, commercial banks for the purpose akin to cooperative
engaged in activities they are unable to enhance the income and profit and RRBs.
related to fisheries margins. The Government of India envisages to double
the income of farmers by 2022. The small scale fishers
are also vulnerable to the effects of climate change
and require adequate financial support for sustaining
their livelihood.

Sectoral Paper on Fisheries and Aquaculture | 71


Issue Rationale/ background Suggested interventions
Low production and The short term credit requirement for production and The scheme of interest subvention for providing loan
investment credit off associated activities in inland, marine and brackish at low interest rate like short term crop loan may be
take - lack of incentive water resources is very high. Roughly less than 1/4th introduced for inland, brackish water and marine
schemes for banks of the demand is met from formal sources. There are fisheries sector.
and fish farmers. no incentive schemes from the Govt. to fish farmers
and also to banks for reducing the demand and supply Credit guarantee fund for small scale aquaculture may
gap. be considered.

The investment credit leads to capital formation and


helps in creating demand for production credit.

Small scale farmers and fishers face difficulty in


providing adequate collateral security to banks.

The blue revolution scheme of Government of India


envisages higher investment credit requirement to
triple fish production and exports by 2020 and so
there is need for higher credit purvey by the financial
institutions.

The credit off take for agricultural crops increased


significantly after the Government of India introduced
interest subvention scheme (loan to farmers @7%
upto ` 3.00 lakh with interest subvention to banks
and interest subvention to farmers for prompt
repayment)
Low level of There are very few officers with fisheries/technical Training programs needs to be organized by
awareness among background in financing banks. Added to “NPA Image” respective banks/ other training establishments
bank officers or this sector banks are reluctant to finance. The
regarding appraisal potential, viability and scope of business has to be
of fisheries schemes, explained to banks to make a dent.
leading to lower
ground level credit
flow
Lack of basic About 9o per cent of the aqua farms in brackish water Planned infrastructure development in aquaculture
infrastructure like sector are small with less than 2 ha farm size areas are required with road connectivity, common
approach roads, ETP, properly deepened intake canal, Electricity
power connection, The contribution of brackish water prawn culture to connection, water inlet/ outlet to facilitate farming in
common ETP/ inlet/ the export is significant. small holdings.
outlet for brackish
water aquaculture The sustenance of brackish water aquaculture, These infrastructure may be developed by the State
sector particularly the culture of SPF L vannamei requires Governments with financial assistance from NABARD.
strict biosecure conditions. Investments under PPP mode may also be considered.

72 | Sectoral Paper on Fisheries and Aquaculture


Issue Rationale/ background Suggested interventions
High investment There is need for additional fish processing facilities Banks may finance viable projects for deep sea
requirement for with cold chain infrastructure. There are no deep sea fishing, fish feed meals, cold chain infrastructure like
development fishing vessels with on board processing to catch high with refinance support from NABARD.
of processing value fishes. The investment under private sector is
infrastructure, required for which credit from banks is required.
cold chain system
complying to
international
standards, deep sea
fishing vessels for
exploitation of tuna
and other high value
fishes in Indian EEZ.
No MIS for reporting The potential linked credit plans are prepared by The MIS reported by the banks may include
of GLC for fisheries NABARD for various fisheries activities by NABARD for achievements
sector as a whole each of the districts but the GLC for fisheries is not
across the regions/ available for all states/districts.
States leading to lack
of focussed planning
for credit off take by
banks
Incentives, schemes Higher duties exists on capital goods for processing Full waver on duties on capital goods for processing
to boost export towards exports, /scope for import finance towards exports especially for projects with annual
promotion/finance turnover of less than ` 50 crore and other exports/
There is need for capacity building of exporters and scope for import finance
other stake holders regarding quality and hygiene
aspects of products meant for export Training programme by MPEDA to exporters and other
stake holders regarding quality and hygiene aspects of
The skilled manpower is required by banks for products.
understanding the finance needs of exporters, speedy
dispensation of export credit. Skill imparting training for Bank Officers in dealing
with exports credit so that speedy dispensation of
credit can be made.
Lack of affordable, The inland fisheries contributes more than 60 per cent A comprehensive insurance scheme on the pattern of
farmer friendly of the total production with large no. of small scale crop insurance i.e. PMFBY may be introduced by the
insurance scheme for farmers, where production is affected due to effect of Government of India
inland fish farming various natural calamities and disease occurrence,
etc. There is need for uniform insurance policy with
low premium payment by farmers with premium
contribution by State and Central Government
Specific insurance 90% of the farms are owned or operated by small
programmes farmers. The capital as well as input cost in shrimp
for capital and farming is very high and banks are not very keen to
technology intensive support the sector due to the high inherent risk and
brackish water shrimp their past experience.
aquaculture

Sectoral Paper on Fisheries and Aquaculture | 73


19. Conclusion

74 | Sectoral Paper on Fisheries and Aquaculture


Fisheries is a sunrise sector with diverse resources food and nutritional security and sustain the
and potentials. The requirement for fish and fish livelihoods of the people employed directly
products are increasing steadily and expected to and indirectly in addition to earning foreign
touch 16 million tonnes by 2025 of which atleast exchange. It is necessary to put in appropriate
12 million tonnes would be required to be met and enabling policy framework capacity
from inland sector and aquaculture is expected building at different levels is duly addressed and
to provide over 10 million tonnes. extension mechanism strengthened. As capture
fisheries is still an important component of
With action plans indicated with matching Indian fisheries, due importance needs to be
investments in the sector, it is expected that given to habitat restoration and biodiversity
the sector would increasingly contribute to the conservation in different eco systems.

Sectoral Paper on Fisheries and Aquaculture | 75


Notes

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