Marine
Research and Management
Editors
V.N. Pillai and N.G. Menon
Central Marine Fisheries Research Institute
(Indian Council of Agricultural Research) Tatapuram P.O., Cochin-682 014
Kerala, India
2000
g ' T T Economic evaluation of different types of fishing
* ^ • methods along Indian coast
D.B.S.Sehara, R.Sathiadhas, K.K.P. Panikkar a n d R, Narayanakumar
ABSTRACT
It is imperative to study the economic performance of different types of fishing units for the guidance of fishermen and fishing industry and also for formulation of appropriate fishery policies. The Central Marine Fisheries Research h-istituie has conducted various case studies on the economics of different types of fishing units in maritime States of India during the eighties and nineties. The studies on the economics of trawlers operating along the coast of Gujarat, Maharastra, Coa. Kerala, Tamil Nadu and Andhra Pradesh; Cillnets operated by OBM crafts at Poonthura in Kerala; at Kochra Niuti (Maharashtra) and DhamleJ (Gujarat); gillnetters (boat with inboard engine) at Cochin Fisheries Harbour, Satpati and Khardanda and Tuticorin; 'doV operations along the North West Coast: purse seine in Karnataka and Kerala and several other gear and crafts operated along the Indian coast and deep sea trawling are highlighted.
Introduction
Fisheries development in India was slow during the pre-plan period. Un- der different Five Year Plans of the Central and Stale governments, priority a r e a s in fisheries were identified and a good a m o u n t of funds were made available for development of infrastructure facilities in marine and inland fish- eries sectors. Fishery cooperatives were encouraged a n d financially assisted.
Modernisation of fishing t e c h n i q u e s h a s t a k e n place mainly In t h e sixties and seventies. The cotton material for gear fabrication was replaced by more durable and light materials such a s nylon and synthetic t h r e a d . Technically more effective methods of fishing like trawling and p u r s e seining were intro- duced. Over the years, mechanisation and motorisation of fishing crafts took
place very fast In c e r t a i n maritime S t a t e s s u c h a s Kerala, G u j a r a t a n d M a h a r a s h t r a .
Of late, there developed a competition among various types of fishing u n i t s to h a r v e s t scarce resources in In-shore and off-shore w a t e r s . Besides, m e c h a n i s e d u n i t s which are responsible for most of marine fish landings are competing for same i n p u t r e s o u r c e s . Labour, fuel, gear material, wood a n d capital are some s u c h Input r e s o u r c e s which affect relative economic per- formance of various fishing u n i t s . In s u c h c i r c u m s t a n c e s certain u n i t s would r u n in profit w h e r e a s others in loss. In case of c o n t i n u o u s uneconomical operations for some period, certain diversifications in t h e s e u n i t s were also noticed.
With the increasing n u m b e r of different fast moving m e c h a n i s e d u n i t s and reduction In m e s h size of gears, certain fishery r e s o u r c e s have been over-exploited and the catch per unit effort h a s been reduced in the recent p a s t . Over input resources together with devastating gears a n d m e t h o d s of fishing have caused t r e m e n d o u s p r e s s u r e on fishery resources, specially within the zone of 50 - 60 metre depth creating m a n a g e m e n t a n d financial problems In fishing sector. Due to reduction In the quantity of catch per u n i t effort on one h a n d a n d increasing cost of fishing I n p u t s on the other h a n d , invest- m e n t in capital Intensive fishing u n i t s have become risky. It Is mainly due to c o n t i n u o u s Increase In the price of fishes t h a t the fishing u n i t s are able to earn moderate profits.
For Judicious exploitation of r e s o u r c e s a n d for formulating proper fish- ery policies it is imperative to study the economics of various types of fishing u n i t s operated in Indian EEZ. Considering certain objectives of fishermen welfare a n d fishing Industry, the CMFRl h a s conducted various case s t u d i e s on cost a n d earnings of different types of fishing u n i t s during the recent y e a r s . Besides studying economics of different types of fishing practices, the s t u d i e s have highlighted employment s t a t u s , financial a s p e c t s , c a u s e of so- cial conflicts, various n e e d s of fisheries s u b - s e c t o r s , catching p a t t e r n of re- s o u r c e s , etc. The findings have been highHghted here along with the recom- m e n d a t i o n s which will be helpful to the fishermen, fishing I n d u s t r y and the p l a n n e r s In many ways.
Marine Fisheries Researcli and Management Materials and methods
In different maritime States of India, cost a n d earning s t u d i e s of differ- ent craft-gear combinations have been u n d e r t a k e n since 1982. Due to tech- nical r e a s o n s case s t u d i e s alone could have been u n d e r t a k e n in certain se- lected landing centres. While selecting centre(s), care h a s been t a k e n so t h a t the type of fishing u n i t s in question are properly represented. In a month, ten observation days have been systematically selected a n d d a t a on catch, price, cost of various i n p u t s , details of craft and gear, finance, employment and capital investment have been collected from the randomly selected u n i t s for a period of atleast one fishing season t h r o u g h the proforma specially de- signed for the p u r p o s e . The revenue or the gross income of a u n i t is the sum total of value received by multiplying the quantities of different s p e c i e s / g r o u p s with their respective price. The fixed cost comprises depreciation of craft, engine a n d gear; Interest on initial investment; and i n s u r a n c e . The cost of fuel, labour, repair and m a i n t e n a n c e , marketing charges, ice and t r a n s p o r t a - tion are accounted for towards the operational cost of fishing. In general, income over operating cost, net profit, r e t u r n s to capital, m a n - h o u r productivity and pay back period were considered a s the indicators of economic efficiency of the unit. Seasonal variations in cost, revenue and profits were also found out wherever possible by clubbing a period of 3 m o n t h s to represent a quarter.
E c o n o m i c s of trawl u n i t s
During 1982, the economics of pair trawling in Palk-Bay region of Tamil Nadu was studied . Boats of 9-10m length, fitted with 45-70 HP i n b o a r d engine, conducted pair trawling operations mainly during February, March and April. Pomfrets, rainbow sardines and sciaenids formed the majority of the catch. The gross income h a s been computed to Rs. 2,800 per trip whereas the operational expenditure was Rs. 1,202. The income over operating cost per trip was Rs. 1,598.
The cost and earnings of trawlers and pair trawlers were studied along Nagapattinam coast of Tamil Nadu during 1987-88. The average initial in- v e s t m e n t worked out at Rs. 1.35 l a k h s for a trawl u n i t and Rs. 3.15 l a k h s for a pair trawl u n i t observing 240 a n d 104 fishing trips in a year respectively.
Both trawlers and pair trawlers were found to be highly efficient with an aver- age catch of 394 kg and 1434 kg per trip respectively. The a n n u a l net profit
averaged Rs. 6 8 , 6 3 9 , rate of r e t u r n s to capital 66% and pay back period 1.5 years for trawlers w h e r e a s the value of t h e s e p a r a m e t e r s was Rs. 1.36 lakhs, 58% and 1.7 years respectively for pair trawlers. With the introduction of pair trawling, the migration of boats in search of shrimps d u r i n g the lean season h a s been drastically reduced. It Is note worthy t h a t pomfrets contributed more t h a n 50% of the revenue of pair trawlers a n d p r a w n s a b o u t 50% of the revenue of trawlers. The introduction of more a n d more trawlers in s e a r c h of s h r i m p s led to decline in catch r a t e s in the in-shore w a t e r s .
The s t u d i e s conducted at Cochin Fisheries Harbour comparing economic performance of trawlers between 1982 a n d 1986 showed t h a t the trawl opera- tions were mainly aimed at prawn catch due to its export d e m a n d . But, per u n i t prawn catch decreased over the years. The net r e t u r n s increased from Rs.31,000 in 1982 to Rs. 3.9 l a k h s in 1986. The reduction in prawn catch as well as value over the years was compensated by the increase in other fish catch and its price. While comparing efficiency of different types of fishing gears it was found t h a t labour efficiency, fuel efficiency a n d r e t u r n s to la- b o u r were higher for p u r s e - s e i n e s as compared to trawlers.
During 1990 and 1 9 9 1 , cost and earnings s t u d i e s of trawl operations were conducted at Cochin Fisheries Harbour. Most of the b o a t s were 32 footer fitted with 65-120 HP in-board engine. C r u s t a c e a n s and threadfin b r e a m s were the main catch c o m p o n e n t s . Comparison between different s e a s o n s showed t h a t the s h a r e of prawn catch was low in third q u a r t e r (July-Sept.) whereas the s h a r e of threadfin b r e a m s was high. Because of b a n on monsoon fishing, the n u m b e r of fishing trips was less (50 days) in this q u a r t e r . The a n n u a l catch of 81-89 t valued at Rs. 7.0-8.5 l a k h s for a trawler in a year.
The net profit reduced from Rs. 9 3 , 0 0 0 in 1990 to Rs. 67,000 in 1 9 9 1 . The rate of r e t u r n to capital reduced from 3 9 % to 32%. Labour productivity in t e r m s of fish production was 59 kg per m a n day.
During 1 9 9 1 , economic efficiency of medium (Sona) and small trawlers (Roya, Pablo & Sorrah) was studied at V i s a k h a p a t n a m a n d Kaklnada. Me- dium trawlers of 12-15 m length are fitted with 87- 100 HP engine a n d small trawlers a b o u t 10 m are fitted with 60-90 HP engine. With 180-190 fishing days in a year these trawlers could catch 50-70 t of fish. A medium trawler, having acquisition cost of about Rs. 7.7 lakhs in 1 9 9 1 , earned a profit of a b o u t Rs. 1.79 l a k h s whereas a small trawler with a n initial investment of
Marine Flsherieg Research and Management
Rs. 3.9 l a k h s earned a profit of Rs. 7 7 , 0 0 0 d u r i n g 1 9 9 1 . The pay back period was a b o u t 3 years and the rate of r e t u r n to capital, 34-38%. The average n u m b e r of fishing days was 180 for a medium trawler and 190 for a small trawler. The labour efficiency was higher for medium trawler as the c a t c h per m a n day w a s 49 kg a s compared to 4 5 kg on a small trawler. The medium trawlers were found to be economically more efficient. F u r t h e r addi- tion to t h e fishing fleet is not recommended.
The r e s u l t s of i n p u t - o u t p u t s t u d y of trawlers at Goa during 1991-92 revealed t h a t a trawler of a b o u t 15 m length h a d a n acquisition cost of a b o u t Rs.6 l a k h s and a small trawler (10-12m) Rs. 4 l a k h s . A trawler, on an aver- age, earned a b o u t Rs.6.3 lakhs a s gross revenue and Rs. 25,000 a s net profit d u r i n g 1991-92. With an average of 160 fishing trips in a year, the pay back period was calculated at 6 years and the rate of r e t u r n at 20%. The trawling is observed from the m o n t h of November to May every year. The small trawl- ers go for single day fishing trip w h e r e a s medium trawlers observe 2-3 day fishing trips. The trawling is carried out u p t o 70 m depth of water. On a n average, catch per u n i t effort of a trawler w a s 272 kg valued at Rs.3,930.
Cost a n d earnings study of trawlers operating a t Tuticorin d u r i n g 1985 showed t h a t the initial Investment ranged from Rs. 1 lakh for a 8.5 m(OAL) trawler to Rs. 2.2 l a k h s for a 10 m (OAL) trawler. About 70% of the a n n u a l revenue was realised from prawn catch. With the total operational cost vary- ing from Rs. 3.3 lakhs to Rs. 5.4 lakhs, net profit ranged from Rs. 59,000 for a small trawler to Rs. 76,000 for a big trawler. The fishing days ranged from 2 3 8 to 252 for different size of trawlers. The over-dependence on prawn catch for t h e s u s t e n a n c e of trawlers was reported to be reduced in this area.
The labour productivity, wages, q u a n t u m of catch, gross revenue a n d net profit were comparatively higher for big trawlers since t h e s e were fitted with engines of higher HP and could operate beyond the traditional fishing grounds.
Introduction of bigger boats with operational capacity In deeper waters would further help to avoid the conflict between the mechanised and traditional u n i t s .
During 1987-88, economic feasibility of trawling in M a h a r a s h t r a was studied. At New Ferry Wharf a n d Ratnagiri landing centres most of the trawlers were of 12-15 m length fitted with 3-4 cylinder in-board engine. The a n n u a l operating cost ranged from Rs. 4 lakhs to Rs. 5 lakhs and the fixed cost from Rs. 1.5 l a k h s to Rs. 1.6 l a k h s . The a n n u a l catch of 55-57 t o n n e s
"850"
valued at Rs. 4.6-5.2 l a k h s . The net a n n u a l profit ranged from Rs. 19,000 to Rs. 3 2 , 0 0 0 . The r a t e of r e t u r n to capital w a s 19-22 per cent. At Ratnagiri, a few trawlers were reported to shift over to gillneting and p u r s e - s e i n i n g due to the uneconomical operations of trawlnet since the catch per trawl u n i t h a s been reported decreasing year after year mainly due to the rapid in- crease in n u m b e r of trawlers.
E c o n o m i c s of g i l l n e t t e r s (OBM)
At P o o n t h u r a (Kerala) during 1985-86, the initial Investment in a p l a n k built canoe fitted with OBM, averaged Rs. 4 1 , 0 0 0 . The operational cost of a unit was a b o u t Rs. 75,000. Mackerel, carangids, t u n a , seerfish a n d eels were the main catch c o m p o n e n t s . Annual gross revenue was a b o u t R s . l lakh and the net profit Rs. 12,000. In t e r m s of productivity, gross and net income a n d employment potential, the canoe, fitted with OBM were found more efficient t h a n non-mechanised gillnet u n i t s . The r e s u l t s further showed t h a t n o n - m e c h a n i s e d c a t a m a r a n u n i t s h a d b e t t e r i n p u t - o u t p u t and capital efficiencies as compared to OBM u n i t s mainly b e c a u s e of low initial invest- ment. C a t a m a r a n s with hooks & lines are highly suitable a s a family enter- prise for t h e small investors who are capable to go for fishing In their own u n i t s . But canoes fitted with OBM is more efficient in terms of higher pro- ductivity, employment potential and gross a n d net income.
In n o r t h w e s t coast of India, a study on economics of gillnetters was c o n d u c t e d d u r i n g 1 9 8 6 - 8 7 by s e l e c t i n g OBM u n i t s at Kochra-Nivti in M a h a r a s h t r a and Dhamlej in S a u r a s h t r a (Gujarat). The Initial investment in a gillnet u n i t ranged from Rs. 77,000 to Rs. 9 1 . 0 0 0 . At Kochra-Nivti, the a n n u a l catch of a b o u t 15 t of a u n i t fetched a gross revenue of R s . l . 17 l a k h s and at Dhamlej 17 t of catch fetched a n a m o u n t of Rs. 1.5 l a k h s . The a n n u a l net profit worked out at Rs.799 for 2 2 8 fishing days at Kochra-Niviti a n d Rs.2939 for 212 days at Dhamlej. The rate of r e t u r n to capital was 13-15%.
The pay back period w a s a s s e s s e d at a b o u t 4 y e a r s . Most of the catch was sold to private fish t r a d e r s who provided loan for operational expenses to the fishermen. Some fishermen were selling their catch to Gujarat Fisheries Cen- tral Cooperative Association t h r o u g h fishermen cooperative societies.
' 8 5 1 '
Marine Fisheries Research and Management E c o n o m i c s of gillnetters (In-board engine]
The initial investment in a glllnet unit during 1982 at Cochin Fisheries Harbour was Rs. 9 5 , 0 0 0 . A u n i t fetched a gross revenue of Rs. 1.15 lakhs in 1982 and Rs. 2.02 l a k h s in 1986. The total cost of fishing increased from Rs. 1.12 l a k h s in 1982 to Rs. 1.52 lakhs in 1986. The net income which was a b o u t Rs. 3,000 in 1982 raised to Rs. 51,000 in 1986. Wages, fuel expenditure and auction charges were the major cost c o m p o n e n t s . The aver- age n u m b e r of days fished in a year was 177.
On comparing different types of u n i t s operating from Cochin Fisheries Harbour, the initial investment was the lowest for gillnetters among all the mechanised fishing u n i t s u n d e r s t u d y . Operating cost per kg of fish produc- tion as well a s fuel efficiency for gillnetters was the highest whereas labour efficiency was the lowest as compared to p u r s e seiners and trawlers.
During 1986-87, a study on the economics of m e c h a n i s e d gillnet fishing u n i t s w a s c o n d u c t e d a t S a t p a t i a n d K h a r d a n d a c e n t r e s of M a h a r a s h t r a . Majority of the boats, ranging from 8 to 14 m were fitted with 2-4 cylinders in- board engine. Pomfret, seerfish, catfish, s h a r k a n d croakers Were the promi- n e n t groups in the catch. At K h a r d a n d a , a b o u t 30 t of catch of a u n i t valued at Rs. 2.31 l a k h s w h e r e a s at Satpati, 26 t of catch valued a t Rs. 2.68 lakhs.
Satpati is an i m p o r t a n t centre for pomfret landings. A gillnet unit during 1986-87 had a n initial investment of 2-3 l a k h s . The a n n u a l net profit was found to be Rs. 3,400 at K h a r d a n d a and Rs. 7,500 a t Satpati. The rate of r e t u r n s to the capital was moderate (13-15%) and the pay back period was 4- 5 years at these c e n t r e s .
On a mechanised gillnetter, the crew comprise 6-9 persons, whereas on a c o u n t r y craft fitted with OBM 3-4 p e r s o n s form the crew. Due to continu- ous increase in the n u m b e r of mechanised b o a t s in the State, there was a report of downward trend in landings per unit of effort. About 90% of the total catch is contributed by mechanised boats in this S t a t e .
During 1986-87, economic efficiency of sail b o a t s fitted with in-board engine was studied in Tuticorln region of Tamil Nadu. The initial Investment of a sail boat operating gillnet (Kolavalai) was a b o u t Rs. 4 3 , 0 0 0 which re- sulted in a n a n n u a l fixed cost of Rs. 17,000. The total cost of fishing was Rs. 64,000 w h e r e a s the net profit was Rs. 4,600 during the year. Pay back period of the u n i t was a b o u t 3 y e a r s .
On comparison of mechanised and n o n - m e c h a n i s e d glllnetters, fish pro- duction p e r m a n day w a s found to be 12 kg for n o n - m e c h a n i s e d glllnetters and 17 kg for m e c h a n i s e d glllnetters, valued at Rs. 3 3 a n d Rs. 39 respec- tively. The n u m b e r of fishing days averaged 277 for n o n - m e c h a n i s e d u n i t s a n d 2 9 3 for mechanised u n i t s during 1986-87. In terms of capital and la- b o u r efficiency, n o n - m e c h a n i s e d gillnetters were found to be more efficient, b u t in t e r m s of n u m b e r of fishing days and net operating income, mecha- nised u n i t s performed better.
E c o n o m i c s of 'Dol' operation
The s t u d y on economics of dol operation was conducted during 1984- 85 at three selected centres along northwest coast of India namely, Navedar- Navgaon a n d Madh in M a h a r a s h t r a and Navabunder in Gujarat. Craft of 9- 14 m length fitted with in-board engine of varylhg h o r s e powers were u s e d for reaching the fishing g r o u n d s and t r a n s p o r t a t i o n of the c a t c h . The initial investment in a Khamba system of dol operation a t Navedar-Navgaon was Rs.
2.7 l a k h s . At Madh and Navabunder, the initial investment in a S u s u n i t worked out at Rs. 1.3 l a k h s and Rs. 1.73 l a k h s respectively. Bombaj»duck and Acetes formed the main catch. The a n n u a l n e t profit of Khamba system of dol operation was a b o u t Rs. 18,000 a n d t h a t of S u s system Rs. 2 1 , 000.
The pay b a c k period was found a b o u t 4 y e a r s .
The n u m b e r of fishing days was higher in t h e villages w h e r e crew mem- bers were contracted by boat owners as compared to those where they s h a r e d catch a n d operating expenditure with the boat owners. Similar s t u d y on dol operation was c o n d u c t e d at Sasoon Dock (Maharashtra) d u r i n g 1 9 9 0 - 9 1 . Acetes formed the major catch of dol, contributing a b o u t 44% of total catch.
The a n n u a l gross revenue was a b o u t Rs. 1.94 l a k h s w h e r e a s the total cost of dol operation was a b o u t Rs. 1.76 l a k h s , resulting in a net profit of a b o u t Rs.
18,000 during the year. The rate of r e t u r n to the capital was calculated at a b o u t 2 3 % .
Costs and returns of purse-seiners
During 1989, a s t u d y was conducted in K a r n a t a k a to a s s e s s t h e socio- economic impact of replacement of 'RampanV by mechanised p u r s e - s e i n e r s .
'RampanV which contributed 60% of the total catch u p t o early seventies al- most disappeared from K a r n a t a k a fishery. The per capita a n n u a l revenue of
"853"
Marine Fl«herie» Re»earch and Management
Rampanl fishermen worked out at Rs. 3,370 in 1977. The initial Investment of a p u r s e - s e i n e u n i t was calculated a t Rs. 7.7 l a k h s , revenue Rs. 8.77 lakhs a n d net r e t u r n s Rs. 1.3 l a k h s d u r i n g 1989. The r a t e of r e t u r n to capital was found to be 32%. The introduction of p u r s e - s e i n e s h a s created more employ- m e n t opportunities and was helpful in rehabilitation of unemployed rural fishermen who were earlier working In Rampant u n i t s u p t o middle of the seventies.
In Kerala, economics of p u r s e seine operation was studied comparing a n n u a l performance from 1982 to 1986. The n u m b e r of a n n u a l fishing days ranged from 100 to 140. The a n n u a l gross revenue increased from Rs. 6.5 l a k h s in 1982 to Rs. 11.9 l a k h s in 1986 w h e r e a s the net r e t u r n Increased from Rs. 3 1 , 0 0 0 to Rs. 3.9 l a k h s over t h i s period. It is noteworthy t h a t fuel efficiency a n d labour efficiency were higher for p u r s e seine u n i t s when com- pared with trawl a n d gill- net u n i t s . Purse-seine was considered a s a highly destructive gear, b e c a u s e of its operational method. It was a p p r e h e n d e d t h a t large-scale p u r s e - s e i n i n g would result In the depletion of the pelagic fishes like oilsardine and mackerel. Recently, there h a s been a tendency to u s e both the trawl and p u r s e - s e i n e by the s a m e crafts depending u p o n the s e a s o n a l variations of the marine fishery.
E c o n o m i c s of ring-seine operation
The s t u d y on economic evaluation of ring seine fishery along Kerala Coast w a s conducted d u r i n g 1 9 9 0 - 9 1 . Canoes fitted with 25 HP OBM were u s e d to o p e r a t e ring seine u n i t s . S a r d i n e s , c a r a n g l d s a n d Indian mackerel d o m i n a t e d in the c a t c h . The average fishing trip per u n i t w a s 209 at P u n n a p r a a n d 178 at P u t h l y a n g a d i and per trip gross revenue w a s Rs. 5,997 a n d Rs. 3,039 respectively. The economic efficiency p a r a m e t e r s Indicated t h a t p u r s e seine operating along Kerala Coast w a s highly profitable during the s t u d y period a s the pay back period w a s less t h a n 2 y e a r s and rate of r e t u r n s to capital, a b o u t 50%. Many fishermen are under-employed In ring seine u n i t s a s the existing n u m b e r of s h a r e h o l d e r s are m u c h more t h a n the required n u m b e r of crew for its operation. The less efficient ring seine u n i t s are n o t competitive enough to fetch sufficient c a t c h to provide a d e q u a t e earn- ings to the crew. Number of ring seine u n i t s a n d the active fishermen de- pending on them are likely to d e c r e a s e in the n e a r future. Hence, diversifi- cation of fishing t e c h n i q u e s in the motorlsed sector is highly e s s e n t i a l for Its survival.
E c o n o m i c s of d e e p sea fishing v e s s e l s
Most of the deep-sea fishing vessels are b a s e d at V i s a k h a p a t n a m . It is reported t h a t d u e to uneconomical operations t h e s e Mexican Trawlers are defunct now. The economic p a r a m e t e r s of three types of deep-sea fishing vessels namely trawlers, m u l t i p u r p o s e fishing vessels and t u n a long liners, are b a s e d on the relevant data published by CMFRI, MPEDA and FSl (1989-
1992). A deep-sea trawler of a b o u t 25m OAL, with a n investment of a b o u t Rs.160 l a k h s , could harvest 46 t of catch a n n u a l l y valued a t Rs. 76.2 l a k h s . T h e average net profit is calculated a t Rs. 17.2 l a k h s and r a t e of r e t u r n at 26%. The investment in a multipurpose deep-sea fleet is a s s e s s e d a t Rs. 150 l a k h s . A n n u a l catch of 76 t would fetch a revenue of Rs. 6 8 . 3 l a k h s . With the a n n u a l fishing cost of Rs 56 l a k h s , the net profit would be a b o u t Rs. 12 lakhs. About 8 years are required to recover the initial investment with the given rate of fish production. The cost price of a t u n a long liner (30m OAL) was found to b e Rs. 1641akhs. It could h a r v e s t a n average a n n u a l catch of 9 0 0 t valued at R s . l O l l a k h s . The total a n n u a l cost of fishing was a b o u t five years a n d rate of r e t u r n 27%. For all the three types of above vessels, the r a t e of r e t u r n is not very attractive, b e c a u s e of high a m o u n t of Investment in these u n i t s . The fisheries m a n a g e m e n t policies s h o u l d e n s u r e reduction of fishing p r e s s u r e on p r a w n s a n d diversifying fishing efforts to other r e s o u r c e s .
Costs and returns of operation of n o n - m e c h a n i s e d u n i t s
The economic study of c a t a m a r a n s operating gillnet along Madras Coast during 1984 revealed t h a t t h e initial investment of a unit ranged from Rs.
4 , 0 0 0 to Rs. 13.000. The a n n u a l n u m b e r of fishing days varied from 177 to 276. The average catch of a small unit was 0.23 t a n d for a big u n i t 0.5 t, with profit ranging from Rs. 1,400 to Rs. 4,000. The rate of r e t u r n was 70-
76%. It was observed t h a t there was manifold increase in the price of cata- m a r a n logs. The analysis indicated t h a t earnings of the c a t a m a r a n unit could be increased by increasing the size of the crafts a s well a s n u m b e r of gears.
The initial i n v e s t m e n t which d e p e n d s on the size of c a t a m a r a n a n d n u m b e r of gears used, is the most important factor in determining the net return of fishermen. The occasional a b u n d a n c e in catch usually do not help the fishermen a s it brings down the price to a very low level. The flexibility in
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Marine Flgheries Regearch and Management
demand and supply can be considerably controlled by developing a d e q u a t e storage facilities and fixing minimum s u p p o r t price for different species of fish to avoid monopoly offish t r a d e r s . There m u s t be proper Implementation of regulation of t h e area of fishing operation a n d period of operation for tra- ditional a n d mechanised u n i t s .
If wind is favourable, the sail craft get almost s a m e speed a s t h a t of motorised u n i t s . As a fuel saving m e a s u r e , even the motorlsed u n i t s can uti- lise the sails whenever the wind is favourable. Hence, the motorisatlon of sail crafts should be carried out only a s a s u p p l e m e n t to the sails a n d not to s u p p l a n t it.
The catch r a t e s of non-mechanised fishing u n i t s declined with the ad- vent of m e c h a n i s a t i o n a n d motorisatlon of fishing b o a t s . The r a t e of r e t u r n to capital, capital t u r n over ratio, pay back period a n d net profit per day of operation were found to be better for a plank-built boat at Tutlcorln. But in terms of r e t u r n s to labour and net income per day, the boats, at Malllpattlnam performed better.
Cost a n d earnings s t u d y of traditional fishing u n i t s along Trivandrum Coast showed t h a t the gross revenue of the glllnet u n i t s averaged Rs. 56,000 and net profit a b o u t Rs. 11,000 d u r i n g 1986-87. The initial Investment In a u n i t was Rs. 8,500. In less t h a n one year, the recovery of capital Investment was possible with 263 fishing days.
The c a t a m a r a n with hooks and lines had a n investment of Rs. 3,350.
With a gross revenue of Rs. 38,000, the net profit was Rs. 8,600. The pay back period w a s a b o u t half a year.
Since the initial investment is comparatively less, the c a t a m a r a n u n i t s show b e t t e r i n p u t - o u t p u t a n d capital efficiencies a s compared to OBM u n i t s . Because of this reason, still considerable n u m b e r of traditional u n i t s are non-motorlsed Inspite of fast expansion of motorisatlon in other coastal dis- tricts of Kerala.
The economics of sail b o a t s operating trawlnet (Thallumady) a n d gillnets (Kolavalai) was studied in Tutlcorln region of Tamil Nadu during 1986-87.
The initial Investment of a non-mechanised plank-built boat operating trawl w a s Rs. 18,000, operational cost Rs. 2 6 , 0 0 0 and total cost of Rs. 3 3 , 0 0 0 . The
profit of a trawl u n i t was Rs 3,300 during this period. These u n i t s operated on a n average of 280 days in a year. The rate of r e t u r n to the capital was 70%. The capital investment could be covered In less t h a n 3 years at the given production r a t e .
Sail b o a t s operating glllnet had an investment of Rs. 27,000, a n n u a l cost of operation Rs. 48,000 and gross revenue of Rs. 5 5 , 0 0 0 . The a n n u a l fishing days averaged 277and the net operating income Rs. 7,000. The pay back period w a s less t h a n 2 years. The wages for crews a n d food a n d b a t a accounted for 77% of the a n n u a l operational cost.
During the last few years most of the traditional gears have gone com- pletely out of operation and the operation of shore-seines declined drasti- cally. The emerging gears in recent years in this area are "disco-nets". Non- m e c h a n i s e d sails b o a t s operating glllnets are found to be economically more efficient t h a n sail b o a t s operating trawlnets a n d sail b o a t s with In-board engines. But, In t e r m s of n u m b e r of fishing days, level of Income generated and net operating Income, the mechanised u n i t s were found to be better.
Future research priorities and c o n c l u s i o n
The s t u d i e s on the cost a n d earnings of different craft-gear combina- tions should be conducted on macro-level in different maritime S t a t e s of In- dia since the case s t u d i e s alone would not lead to conclude effectively for future p l a n n i n g in marine fisheries sector. Conducting region-wise bio-eco- nomic s t u d i e s over a regular interval of time is the need of the day so t h a t problems of uneconomical operations of certain gears, fluctuations in catches, seasonal variations In catch and price and risk factor in production could be properly reflected. Non- mechanised, motorised and mechanised sector should be given equal priorities while u n d e r t a k i n g cost and earning s t u d i e s . Such s t u d i e s may also s t r e s s on employment potential, marketing problems, finan- cial needs of various types of u n i t s a n d proper m a n a g e m e n t of I n p u t s u s e d for fishing. Besides, economic s t u d i e s of large fishing vessels should also be conducted since they operate in off-shore regions and catch non-conventional r e s o u r c e s . Though small a n d medium size crafts are found to e a r n moderate profits, no further addition of the fleets Is recommended u p t o 70-80 m depth zone along Indian Coast.
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