Institutional credit for aquaculture
Investment opportunities in fisheries development/exports
Fisheries production has an important place in Indian economy. Besides a rich source of protein, it provides income and employment to millions of fishermen and farmers , particularly in the coastal state. Inedible Fish is also a rich source of animal protein fish meal for livestock feeding. Fish scales, fishery waste is also a source of organic manure. Prawns have a special place in exports. Production of artificial pearls has been taken up in some coastal areas of Tamilnadu in India.
The world fishery production was around 125 million tons. Almost 30% is contributed by China. The major fish producing countries are China, Japan, India USA, Russian Federation, Indonesia and Chile. India ranks 3rd in World production.
India has a coast line of about 8041 , export economic zone of 2.02 million Sq km with a continental shelf area of 0.5 million sq km along with peninsula . There is about 5.70 million ha of fresh water area suitable for fisheries production (2.85 million ha of ponds and lakes, 0.8 million derelict water bodies and 2.05 million ha water reservoirs) in addition to 1.2 million ha brackish water area. There is also a vast untapped resource for development of mariculture.
At present, India's total annual fish production is about 5.65 million tons ( Inland - 2.82 million tons and marine - 2.83 million tons. However, the estimated potential based on the present levels of productivity is about 8.4 million tons ( Inland 4.50 and marine 3.90 million tons). If modern state of art technologies, are used there is a vast untapped potential which can be exploited. With nearly 250 million potential consumers, there is a tremendous potential domestic market.
Most of the production is in the coast line states. They have grounds for captive rearing of prawns and fish and have many processing plants some of which have set up 100% export oriented projects.
The fish exports from India are rising. The export earnings which were RS 51170 million in 1999-2000 have increased to RS 63000 million in 2000-1. The major export is of shrimp (almost 70% in value terms).
NABARD and banks have played a crucial role in providing credit for marine, inland and brackishwater aquaculture production, processing, packaging, preservation, transportation and marketing of fish and fish products, prawn culture etc. It also assists in establishing fish seed hatcheries, development of new ponds or rejuvenation/ expansion of old ponds, manufacture of ' quality' feed etc. In marine fisheries credit is provided for manually operated and mechanized boats and fishing vessels of different capacities including other inputs like gears , nets etc. For example, as on 31 March 2000, the number of physical units financed in the country through the refinance from NABARD were as under:-
(1) Mechanized Boats- 20774 numbers
(2) Other boats 71004 numbers
(3) Brackishwater aquaculture 4696 ha
(4) Freshwater aquaculture 264000 ha
The ground level credit provided by banks for the sector which was RS 4480 million in 1998-99 increased to RS 5930 million in 2001-2. The NABARD refinance for the sector has also increased as will be seen from the following data:-
RS million
Particulars |
1998-99 |
1999-00 |
2000-1 |
2001-2 |
2002-3 |
Ground level credit by banks |
4480 |
4050 |
4840 |
5930 |
NA* |
NABARD refinance |
297 |
268 |
340 |
360 |
347 |
Source: NABARD Annual reports ( 2001-2,3).NA*=Not available.
The central and state Governments have played a significant role in providing policies and guidelines and providing financial incentives especially for aquaculture production by small , financially vulnerable farmers/fishermen. The Indian Council of Agricultural Research has established research institute for inland and marine fisheries and for fisheries education. Agricultural Universities also have played a role in fisheries education, research and extension.
These are as under:-
In July 2003 a joint workshop on microfinance program with a view to support and help alleviation of poverty amongst women in coastal fishing communities of India was conducted by FAO and NABARD in Goa, India. Following important recommendations have been made :-
The private (corporate) sector in India has played a crucial role in the development especially for introduction of state of art tchnology for increasing production, value addition and exports, particularly with reference ot prawn culture. They have invested in sophisticated fishing vessels, establishing freezing plants. It is estimated that their investment is about RS 600 million , primarily for shrimp farming and exports.
Some of the promising areas for investments by local and foreign investors are as follows:-
