Cost & earnings of aquaculture farm in cherai poyil, kerala

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Its a small short term project which i analysed the present economical situation of some the EXTENSIVE PRAWN FARMS in Cherai poyil, Ernakulam Dist.,Kerala under the Supervising guide Dr. K.T. THOMSON, DIRECTOR, SCHOOL OF FISHERIES, CUSAT. Here i mainly show the COST and EARNINGS DATA of some farms AND ALSO SOME PRESENT PROBLEMS regarding culture practices.. all the information and the data are true..

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Cost & earnings of aquaculture farm in cherai poyil, kerala

  1. 1. COST AND EARNINGS OF BRACKISH WATERCOST AND EARNINGS OF BRACKISH WATERCOST AND EARNINGS OF BRACKISH WATERCOST AND EARNINGS OF BRACKISH WATER FARMFARMFARMFARM ININININ PALLIPURAMPALLIPURAMPALLIPURAMPALLIPURAM PANCHAYATPANCHAYATPANCHAYATPANCHAYAT ofofofof cherai poyilcherai poyilcherai poyilcherai poyil SSSSubmittedubmittedubmittedubmitted totototo Cochin UniversityCochin UniversityCochin UniversityCochin University OfOfOfOf ScienceScienceScienceScience &&&& TTTTechnologyechnologyechnologyechnology inininin partialpartialpartialpartial fulfillment offulfillment offulfillment offulfillment of thethethethe requirementrequirementrequirementrequirement for the degree offor the degree offor the degree offor the degree of MMMMasterasterasteraster OfOfOfOf ScienceScienceScienceScience inininin IIIIndustrialndustrialndustrialndustrial FFFFisheriesisheriesisheriesisheries Submitted By: RAHUL MONDAL (Registration Number:55311010) M.sc. Industrial Fisheries II semester School of Industrial Fisheries COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY Lakeside Campus, Cochin -16,INDIA AugustAugustAugustAugust 2012
  2. 2. ACKNOWLEDGEMENTACKNOWLEDGEMENTACKNOWLEDGEMENTACKNOWLEDGEMENT I express with great happiness my deep sense of gratitude to Dr. KT THOMSON, School of Industrial Fisheries, CUSAT for the guidance and supervision rendered throughout the period of my project work. I also register my heartfelt admiration for his invaluable suggestions and ceaseless encouragement during the course of my work. I m highly grateful to Dr. A. Ramachandran, Director, School of Industrial Fisheries, CUSAT for providing me the necessary facilities for carrying out the dissertation work at the school. I take this opportunity to thank all my Teachers at School of Industrial Fisheries, CUSAT, for their support leading to the completion of my work. Then I give my thanks from the core of my heart to all the fish farmers who gave their valuable time to me among them. Specially I would like to thanks to Shibadas, Sashi, Jayakumar, Rathish, K. Babu Etc. My hearty thanks to Pallipuram panchayat peoples. Then I would like to thank to Antony V.T, Baiju k.k., Soumya De and Swapnil chatterjee etc. for giving their valuable information and help to me. My hearty thanks to my classmates for their timely support and help leading to the successful completion of my work. I take this opportunity to express my heartfelt thanks to my parents for their care, enduring support and inspiration for my study. Last but not least I express my sincere thanks to God Almighty for their Blessings. RAHUL MONDAL
  3. 3. DECLDECLDECLDECLAAAARATIONRATIONRATIONRATION IIII hereby declare that the field studyhereby declare that the field studyhereby declare that the field studyhereby declare that the field study entitled “Cost And Earning of Brackish waterentitled “Cost And Earning of Brackish waterentitled “Cost And Earning of Brackish waterentitled “Cost And Earning of Brackish water Farm ofFarm ofFarm ofFarm of pallipuram panchayath of cherai poyil,pallipuram panchayath of cherai poyil,pallipuram panchayath of cherai poyil,pallipuram panchayath of cherai poyil,KeralaKeralaKeralaKerala,india,india,india,india” is an” is an” is an” is an authentic work done by me under the guidance of Dr. K.T.authentic work done by me under the guidance of Dr. K.T.authentic work done by me under the guidance of Dr. K.T.authentic work done by me under the guidance of Dr. K.T. Thomson, professor, School of IndustrialThomson, professor, School of IndustrialThomson, professor, School of IndustrialThomson, professor, School of Industrial Fisheries inFisheries inFisheries inFisheries in partial fulfilment of the requirements of M.Sc. degree inpartial fulfilment of the requirements of M.Sc. degree inpartial fulfilment of the requirements of M.Sc. degree inpartial fulfilment of the requirements of M.Sc. degree in Industrial Fisheries from Cochin University of Science andIndustrial Fisheries from Cochin University of Science andIndustrial Fisheries from Cochin University of Science andIndustrial Fisheries from Cochin University of Science and TechnologyTechnologyTechnologyTechnology. RAHUL MONDALRAHUL MONDALRAHUL MONDALRAHUL MONDAL PLACE: KOCHI, KERALA DATE: August,2012
  4. 4. Cost and Earnings of Brackish Water farm in Pallipuram of Cherai Poyil School of Industrial Fisheries CONTENTSCONTENTSCONTENTSCONTENTS CHAPTER 1: INTRODUCTION General introduction Literature review Background of the study Objective of the study Chapterization of the study CHAPTER 2: METHODOLOGY Introduction Data collection Sampling design Overview of the study area Data analysis CHAPTER 3: COST & EARNINGS OF BRACKISH WATER AQUACULTURE FARMS Profile of brackish water fish farmers Farm based economics Economics of brackish water farms CHAPTER 4: CONCLUSION & RECOMMENDATION CHAPTER 5: REFERENCES ANNEXURE -A: QUESTIONNAIRE USED FOR SURVEY ANNEXURE -B: PHOTOGRAPHS
  5. 5. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 1 CCCC HHHH AAAA PPPP TTTT EEEE RRRR 1 INTRODUCTION 1. General Introduction 2. Literature Review Status of world aquaculture production Indian aquaculture scenario Status of Fish production in Kerala Integration of Paddy and Shrimp Farming Evolution of Rice – Fish Rotational culture System Traditional prawn filtration practice Shrimp farms in private sector 3. Background of the work 4. Objectives of the Study 5. Chapterization of the work
  6. 6. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 2 1.1 General Introduction Aquaculture is defined as the rearing of fish in artificial or natural bodies of water by manipulation of the environment with the aim of increasing production beyond natural limit. Fish production currently generates less than 3% in aquaculture where as with appropriate promotional strategies it could match capture fisheries output and cost effectiveness (Jamu and Ayinla, 2003). Of the different global food production supply systems, aquaculture is generally viewed as an important domestic provider of much needed high-quality animal protein and other essential nutrients generally at affordable prices to the poor segments of the community (Tacon, 2001). According to WHO (2000) nearly 30% of humanity, including infants, children, adolescent, adults and elderly within the developing countries are currently suffering from one or more of the multiple forms of malnutrition, food insecurity and abject poverty. Aquaculture is viewed as alternative option for increasing fish/shrimp/prawn production. The technological development in the inland fisheries paved the way for making use of inland water resources spread over the different districts of the State for aquaculture development. Aquaculture currently enjoys the distinction of being one of the fast growing food production sectors in the State. But following the wide spread out breaks of viral diseases, the rate of development has declined sharply. Serious concerns were voiced at this time about the future of this sector. The State government is now in the process to formulate a ‘Master plan for aquaculture’ (Harikumar and Rajendran, 2007). Brackish water fish farming is a system of aquaculture that focuses on the production of quality fin and shell fish that are found in the creeks, lagoons, and estuaries through rational rearing. It has a capacity of bridging through wide gap between fish demand and supply. Fish production from aquaculture is seen as the only means to bridge the widening gap between domestic fish supply from depleting return from capture fisheries and demand. (Anyanwu et.al., 2007). To augment production from the aquatic resources, in the form of shrimps, crabs, bivalves and fishes from the low lying, barren, unproductive or marginally productive coastal saline lands, swamps and other brackish water bodies are to be brought under coastal aquaculture. Traditional brackish water aquaculture – the Prawn filtration in Pokkali fields – is an age old practice in Kerala. Modern
  7. 7. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 3 coastal aquaculture is an offshoot of the traditional aquaculture and it is largely confined to shrimp aquaculture (Harikumar and Rajendran, 2007). While the shrimp-oriented aquaculture industry in India recorded exceptional growth for the last three decades in spite of its high exposure to risk and uncertainties, the farming/culture of various other species has not picked up to the expected level enabling the optimum use of potential areas suitable for aquaculture (Sathidas et.al., 2009). 1.2 Literature review: 1.2.1 Status of World Aquaculture Production: Aquaculture remains a growing, vibrant and important production sector for high protein food. The reported global production of food fish from aquaculture, including , crustaceans, molluscs and other aquatic animals for human consumption, reached 52.5 million tonnes in 2008. The contribution of aquaculture to the total production of capture fisheries and aquaculture continued to grow, rising from 34.5 percent in 2006 to 36.9 percent in 2008. In the period 1970–2008, the production of food fish from aquaculture increased at an average annual rate of 8.3 percent, while the world population grew at an average of 1.6 percent per year. The combined result of development in aquaculture worldwide and the expansion in global population is that the average annual per capita supply of food fish from aquaculture for human consumption has increased by ten times, from 0.7 kg in 1970 to 7.8 kg in 2008, at an average rate of 6.6 percent per year (SOFIA,2010). Production from aquaculture is mostly destined for human consumption. Globally, aquaculture accounted for 45.7 percent of the world’s fish food production for human consumption in 2008, up from 42.6 percent in 2006. In China, the world’s largest aquaculture producer, 80.2 percent of fish food consumed in 2008 was derived from aquaculture, up from 23.6 percent in 1970. Aquaculture production supplied the rest of the world with 26.7 percent of its food fish, up from 4.8 percent in 1970 (SOFIA, 2010). Despite the long tradition of aquaculture practices in a few countries over many centuries, aquaculture in the global context is a young food production sector that has grown rapidly in the last 50 years or so. World aquaculture output has increased substantially, from less than 1 million tonnes of annual production in 1950 to the 52.5
  8. 8. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 4 million tonnes reported for 2008, increasing at three times the rate of world meat production (2.7 percent from poultry and livestock together) in the same period. In contrast to world capture fisheries production, which has almost stopped growing since the mid- 1980s, the aquaculture sector maintained an average annual growth rate of 8.3 percent worldwide (or 6.5 percent excluding China) between 1970 and 2008. The annual growth rate in world aquaculture production between 2006 and 2008 was 5.3 percent in volume terms. The growth rate in the rest of the world (6.4 percent) from 2006 to 2008 was higher than that for China (4.7 percent). The value of the world aquaculture harvest, excluding aquatic plants, is estimated at US$98.4 billion in 2008. The actual total output value from the entire aquaculture sector should be significantly higher than this level, because the value of aquaculture hatchery and nursery production and that of the breeding of ornamental fishes are yet to be estimated and included. If aquatic plants are included, world aquaculture production in 2008 was 68.3 million tonnes, with an estimated value of US$106 billion. (SOFIA, 2010). Table 1.1 World Aquaculture Production and Utilization (Source: SOFIA,2010)
  9. 9. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 5 1.2.2 Indian Aquaculture Scenario: Aquaculture has emerged as one of the fastest growing food farming systems at global level with enormous potential for further development. Although India with a production of approximately 2.3 million tonnes per annum is the second largest aquaculture producer, its contribution is hardly 5% of the global production. However, the country is endowed with a long coastline of 8129 km, 1.2 million hectares of potential brackish water area and 0.5 million sq.km of continental shelf with diverse ecosystems, offering vast scope for development and diversification of coastal aquaculture (Sathidas et.al., 2009). According to the information available with MPEDA 13990.53 ha is under shrimp culture during 2000- 2001. This comes around to only 22 % of the potential area. Both Public and private sectors are engaged with shrimp farming in Kerala. 7327 metric tons of shrimps are produced at the rate of 530 kg/ha/crop largely through a low input extensive system of farming (Harikumar and Rajendran, 2007). In India, the traditional system of coastal aquaculture is practised in approximately 50,000 hectares in the low lying brackish water areas of West Bengal, Kerala, Karnataka and Goa without disturbing the ecological equilibrium. Besides the brackish water area, the shallow coastal region up to a depth of 30 meters are suitable for sea farming of approximately 73 species of various marine organisms of potential drug/pharmaceutical importance including fin fishes (food fishes and ornamental fishes), crustaceans, molluscs, seaweeds and sea cucumber (Devaraj and Appukkuttan 2000). 1.2.3 Status of Fish Production in Kerala: State of Kerala situated in the South West part of peninsular India, has a slender stretch of land with a long surf beaten coast on the western side and a lush green mountain range on the eastern side. The State has a geographical area of 38863 sq. km. The comparatively narrow continental shelf sprawls over an area of 39139 sq.km. Kerala being a maritime State has tremendous potential resources teeming with fish. The inland fishing is also a time old practice in the extensive network of backwaters and also in the westerly flowing rivers.
  10. 10. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 6 Kerala fisheries, developed over the years stand great scope for further expansion by way of more rational and fuller utilization of the resources. Estuaries and backwaters have saline waters and only those fishes, which can withstand changes in salinity, thrive best. The brackish water fishery resources consist of 75 species of which 57 species are from fish, 6 species of shrimp, 1 species of prawn, 5 species of crabs and 6 species of bivalves, 28 species were identified as commercially important. Some species of sardine and anchovies, mullets, catfishes, perches, pearl spot, prawns, oysters, mussels, crabs and clams are the most common (Harikumar and Rajendran, 2007). In Kerala, out of 65,000 ha of brackish water area, more than 13,000 ha is under the traditional paddy cum prawn filtration system (Sathidas et.al., 2009) Traditional shrimp farming known as ‘Chemmeen kettu’ is practised in pokkali fields of Ernakulam district since time immemorial. The State has a potential brackish water area of 65000 ha suitable for shrimp farming. At national level Kerala enjoys the 4th position in aquaculture production of shrimp during 2004-05. Scientific shrimp farming with selective stocking and supplementary feeding is yet to pick up in the State. Social constrains and legal problems connected with CRZ and recurrence of shrimp diseases are the major threats to the development of this sector (Harikumar and Rajendran, 2007). 1.2.4 Integration of Paddy and Shrimp farming Integrated farming is the best means of increasing productivity from a unit area of land or water body. Integrated farming with crop, livestock and finfish or shellfish has been found to be a rewarding offer, helping to augment production of highly valued fish with minimum level of inputs. This is made possible by way of recycling of wastes/byproducts of one crop as input for the production of another. In India, integrated farming is done in the Bheries of West Bengal, the Pokkali fields of Kerala, the Khazen lands of Goa and the Khar lands of coastal Karnataka, where during the rainy season, saline resistant traditional varieties of rice are grown. After the harvest of paddy, during the summer months, shrimp seeds along with other finfish seeds entering the fields with tidal water, are entrapped, grown for a period and harvested. In Kerala, during
  11. 11. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 7 this period, a special variety of paddy called ‘Pokkali’, which is tolerant to 6-8 ppt salinity, is grown in these fields. Different species of shrimps together with fishes such as Mugil spp. Chanos chanos, Etroplus suratensis, Megalops cyprinoides, Lates calcarifer and Oreochromis mossambicus enter into the fields with the inflow of tidal water. The shrimp is the dominant one,but in most of the areas it is the commercially least important species like Metapenaeus dobsoni and M. monoceros, which dominates in comparison to the commercially important species like Fenneropenaeus indicus and Penaeus mondon. Regular thinning of crop by filtration is carried out in every new moon and full moon period. Final harvesting will be done at the end of the season by operating sluice net and cast net. The prawn yield from the traditional practice usually varies between 500-1000 kg/ha depending upon the location of the field in relation to the bar-mouth, the distance from main water body, the size of the feeder canal, and the position of the sluice (Sathiadhas et al. 2000). According to Francis, 2010 benefits of rice-fish culture include: 1. The recycling of nutrients by the fish through feeding and depositing feces in the soil. This increases the uptake of nutrients such as phosphorus and nitrogen by the rice 2. An increase in rice yields 3. An increase in income from the production of both rice and fish 4. A reliable source of protein for farmers and their families, countering the decrease in available wild fish in many countries 5. A reduction in insect pests (such as leaf-hoppers, stem-borers and aphids) and weeds, which the fish eat. 6. A reduction in using fertilizers. Polyculture and integrated aquaculture are methods of raising diverse organisms within the same farming system, where each species utilizes a distinct niche and distinct resources within the farming complex. This may involve the rearing of several aquatic organisms together or it could involve raising aquatic organisms in conjunction with terrestrial plants and/or animals. In either case, the wastes from one organism are used as inputs to another, resulting in the optimal use of resources and less pollution overall.40 Polyculture systems can provide mutual benefits to the organisms reared by creating symbiotic relationships while allowing for a balanced use of the available aquatic resources, whereas intensive monoculture systems extract resources from the system and place more stress on the
  12. 12. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 8 surrounding environment. In addition, integrated systems can increase the economic efficiency of fish farms through improved conversion rates of input materials.41 Polyculture and integrated aquaculture have the potential to address some of the problems that arise from the intensive rearing of single finfish species. For example, the integration of fish culture with the culture of algal and/or shellfish species shows potential for reducing the risks of eutrophication and also for exploitation of the large amounts of wastes produced by fish farms. Further research is needed however, to determine the effectiveness of such systems, especially in open marine environments. Polyculture systems are not a new concept; on the contrary, they have been used for centuries. For over one thousand years fish farmers in China have produced four of the most widely cultivated fish species together in the same pond: silver carp (a phytoplankton filter feeder), grass carp (a herbivorous plant feeder), common carp (an omnivorous feeder), and bighead carp (a zooplankton filter feeder). This type of system utilizes available food and water resources, with the effect of reducing costs and increasing efficiency and production. Although still experimental, other systems, such as the integration of seaweed, fish, and abalone culture, and the polyculture of shrimp and tilapia, have proved to be ecologically efficient methods for growing a variety of organisms and may increase profits at fish farms.42, 43 It should also be noted that although polyculture systems based on net/pens may prove beneficial for waste reduction, they fail to eliminate other problems associated with net pen aquaculture, specifically escape of fish, disease transfer, and discharge of chemicals (White et.al., 2004) 1.2.5 Evolution of Rice – Fish Rotational Culture System: Farmers invented the method of culturing rice and fish either concurrently or alternately with rice crops and this method has been in practice in several regions of Asia for a very long time. In India rice-fish culture has been in vogue for centuries in some of the Eastern States of the country such as West Bengal and Southern States like Kerala, Karnataka and Goa. The systems of rice–fish culture that have evolved are known to be ecologically friendly and economically viable. In the pokkali paddy fields of Kerala, even today farmers derive high economic benefits by culturing shrimp and fish. In other areas, rice fields once provided a large amount of fish and other aquatic organisms for consumption but with the adoption of improved varieties of rice for cultivation, pesticide usage became more common and the importance of fish cultivation with rice did not receive the required attention. However,
  13. 13. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 9 now there is greater emphasis on the use integrated pest management (IPM) practices to reduce or eliminate the usage of pesticides and the new approach is gaining increasing acceptance by the scientific and farming community (Nandeesha, 2004). 1.2.6 Traditional Prawn filtration practices The Pokkali fields, a unique eco system cover an area of 1,25,000 ha, where the age old shrimp filtration practice known as ‘chemmeen kettu’is carried out after the harvest of paddy. The Pokkali fields are concentrated in Ernakulam, Alappuzha, parts of Kottayam and Thrissur districts. In the traditional system of culture shrimp and fish seeds brought in through tidal water are trapped in the pokkali fields and are allowed to grow for 4 to 5 months. In this traditional system no selective stocking and supplementary feeding are done. By adopting improved traditional farming with selective stocking and supplementary feeding, the production of shrimp from these traditional fields is increased greatly (Harikumar and Rajendran, 2007). According to Bhattacharya and Ninan, 2009 characteristics of a traditional farming practice include fully tide fed , salinity varies according to monsoon regime, seed of mixed species from the adjoining, creeks and canals by auto stocking, additional stocking of natural seeds, dependence on natural food, water intake and drainage managed through sluice gates, depending on the tidal effects and periodic harvesting during full and new moon periods, collection at sluice gates by traps and bag nets. 1.2.7 Shrimp farms in private sector The district wise details of private sector shrimp farms are furnished below. Out of a total of 2414 farms in private sector more than 58% belongs to the category of small farms with an area of less than 2 ha. In Kollam district almost 90% of the farms belong to this category. 44% of farms belong to 2.5-5 ha category. Bigger farms of more than 10 ha area are mostly prawn filtration fields belonging to Ernakulam, Thrissur and Alappuzha districts. More than 4000 ha of farms belong to small and marginal farmers (Harikumar and Rajendran, 2007).
  14. 14. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 10 1.3 Background of the work : The saline head end of the water body from Pallipuram to Kuzhipilly was used for fishing while the areas beyond Kuzhipilly (up to Nayarambalam) were used by farming communities for paddy cultivation and prawn filtration. During this period agriculture (pokkali and coconut plantation) provides the basic livelihoods to local people while fishing and prawn filtration supplemented it. In order to prevent intrusion of salinity and to protect pokkali lands and bund was constructed between the pallipuram and Kuzhippily panchayaths. Fishing, agriculture and prawn filtration were organized by various communities according to locally agreed normative and communitarian principle (Thomson and Berks, 2006). The top most authority of aquaculture management is the panchayath which participates in this joint management exercise mainly because it receives money from this contract. An importance feature of fisheries governance in Aquaculture is the role of local institutions. The partnership arrangement between local Panchayath and leaseholder and their relations with local communities has been mutually beneficial to the participating agents in a number of ways. Panchayath participates in these joint management efforts as this partnership yields cash income and monitory returns. For the leaseholder, there is clarity in the ownership and tenure which retrains the rest of the communities to encroach his property. Communities accept his procedure as an ideal alternative that delivers the required management services to aquaculture fisheries by reducing their risks and uncertainties. Local communities work together to maintain the ecological stability and environment quality of the water body which is very crucial for the sustainability of various fisheries on which they rely on. After taking over the administration of poyil fisheries the panchayath and Fisheries Department together proposed to convert the poyil into fish sanctuary. 1.4 Objective of the study : Study the economics of fish farms in Pallipuram panchyat. Conduct feasibility analysis of farms
  15. 15. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 11 1.5 Chapterization of the Work: Chapter 1: Introduction deals with the general introduction, literature review, background of the study, identified objectives and limitation of the study. Chapter 2: Deals with the methodology of the study Chapter 3: Deals with the economics of Brackish water “Pokkali” farms. Chapter 4: Include Recommendation and Conclusion 1.6 Limitations of the study : The study was carried within a limited time period of two moths May and June, 2012. Most of the information was collected during the primary survey and their reliability entirely depends on the truthfulness of the respondents.
  16. 16. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 12 CCCC HHHH AAAA PPPP TTTT EEEE RRRR 2 METHODOLOGY 1. Introduction 2. Data collection 3. Sampling design 4. Overview of the study area 5. Data analysis tools
  17. 17. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 13 2.1 Introduction Research methodology for studying the economics of fish farms and analysing the feasibility of farms in Pallipuram panchyath of Cherai poyil area is described in this chapter. 2.2 Data Collection The study involves both primary and secondary data collection. 2.2.12.2.12.2.12.2.1 Primary Data CollectionPrimary Data CollectionPrimary Data CollectionPrimary Data Collection Present study is based on the primary survey of brackish water farms prevailing in Pallipuram panchayat, Cherai area of Ernakulam district of Kerala. The primary data was collected by carrying out survey using Personal Interview method with the help of structured questionnaires. Data collection was done during the month of May, 2012. A questionnaire was developed as a survey instrument for collecting primary data. It was structured in such a way that the primary objectives of the research are addressed. Structured questionnaire include questionnaire include question regarding economic profile of the farmers and cost and earnings details of the farms. 2.2.2 Secondary Data Collection2.2.2 Secondary Data Collection2.2.2 Secondary Data Collection2.2.2 Secondary Data Collection Main sources for secondary data collection were Economics Journals, Online Journals and institution like MPEDA (Marine Product Export Development Authority); official website of government of Kerala and Official website of fisheries department, Govt. of Kerala. 2.3 Sampling Design From the literature survey it was identified that there 25 brackish water farms were prevailing in that area. A random sampling had been done and 11 brackish water farms were selected for the survey. Careful observation had been made during sample selection to show maximum possible variation. 2.4 Overview Of The Study Area The village is 16,5 sq Km in area. It can be divided categorized in some areas viz. Valleys, Even plains, Low-lying paddy feilds, Riverbanks and Marshy wetlands. Red laterite is the most common soil type. Alluvial soil, rich in clay content, can be found on the riverbanks. Monsoon is strongest in the village in july each year. Cherai poyil is brackish water pond with an area of 210
  18. 18. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 14 hectors located in the Kerala state of Indian peninsula at the extreme north-west opening of Cochin estuary, which open to Arabian Sea at Azheekode. The first channel that enters Pallipuram panchayat through the western inlet. The fishing territory managed jointly by local fishing communities and gram panchayat is known as kappuslanting from east to west. The depth of the water declines from 1.8 meters in the east to 1.2 meters in the middle and further to 0.8 meters in the west. Among the water bodies around this area, Cherai Poyil considered as Akshayapatram where people fish round the year and make livelihoods. They believed that its resources never get exhausted. Pokkali paddy cultivation is rarely undertaken by local communities of this region due to high salinity and high costs towards desalinization. We estimated that the local area of cultivable wetland is which has a depth range 0.4 to 1 m. Traditionally, farmers cultivated paddy for the six months followed by prawn culture for the remaining six months. These lands are latter converted into aquaculture farms after the paddy crop is harvested. A detailed examination of the species calendar for Veerampuzha reveals that the fisheries of this region are highly diverse. 72 species were recorded in various gears sampled during 2004 (Thomson and Berkes, 2006). Area 16.5 sq. KM Population 43,523. Male- 21,379, Female-22,144 SC/ST 3256. Male-1, 585 , Female-1671 Village Pallipuram, Kuzhupully Ward 23
  19. 19. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 15 Fig 2.1 Detailed map of the Study Area
  20. 20. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 16 2.5 Data analysis Frequency and percentage analysis was carried out by SPSS-14 software package and MS EXCEL 2007 for analysis of different factors. Costs and earnings analysis was done based on Shang Y. C (1989). Profitability study was carried out by using different economic indicators like Pay-back period, Break-even sales and Avarage rate of return calculation. The Pay-back period is the length of time required for an investment to pay itself out. The acceptability of the investment is determined by comparison with the investor’s required period (RPP). Accept the investment when the PBP<RPP, otherwise reject the investment (Sharma, 2007). It’s expressed as number of year. It is computed as PBP= I/E Where, I= the initial investment E=the projected net cash flows per year from the investment The brea-keven point is the point at which revenue is exactly equal to cost. At this point, no profit is made and no losses are incurred. The break-even point can be expressed in terms of unit sales or rupees sales. That is, break-even unit indicate the level of sales that are required to cover costs. Sales above that number result in profit and sales below that number results in a loss. The break-even sales indicate the INR of gross sales required to break even. It is based on fixed costs and variable costs. Fixed costs are over-head type expenses that are constant and do not change as the level of output changes (Holland, 1999). Variable expenses are not constant and do change with the level of output. The basic equation for determining the break even points are: Break-even unit = Avg. Per unit sell price - Avg. per unit variable costs Break-even sales= annual fixed cost xxxx annual revenue/ annual revenue –variable cost
  21. 21. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 17 CCCC HHHH AAAA PPPP TTTT EEEE RRRR 3 COST AND EARNINGS OF BRACKISH WATER AQUACULTURE FARMS 1. Profile of brackish water fish farmers 2. Farm based economics 3. Economics of brackish water farm
  22. 22. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 18 3.1 Profile of Brackish Water Fish Farmers 3.1.1 Gender and Age: Table 1: Gender of Fish Farmers (Source: Primary Survey, 2012) Table 2: Age group of Fish farmers Age groups Frequency Percent 25-35 1 9.1 36-45 5 45.5 46-55 5 45.5 (Source: Primary Survey, 2012) According Table 1 all the farmers involved in traditional rice fish rotational cropping system of study area was male. One of the major reasons observed during data collection for this kind of gender differentiation is due to the nature of the activity. Traditional culture practices laboured intensive and risky. So household fish farmers discourage female involvement in this production system. According to Table 2 all the male farmers involve in traditional rice fish rotational cropping system of study area was belong to different age groups. There were 45.5% farmers belong in both 36-45 and 46-55 age groups. By nature brackish water fish farming is a labour intensive skilled activity and requires high level of experience. All the farmers surveyed were having experience around 30 years in the fisheries field. 3.1.2 Educational Qualification: Table 3: Age group of Fish farmers Educational Qualification Frequency Percent upto PDC 9 81.8 Upto Degree 2 18.2 (Source: Primary Survey, 2012) Gender Frequency Percent Male 11 100.0
  23. 23. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 19 According to Table 3 82.8 % farmers educational qualification up to PDC and 18.2 % up to degree level those were involved in traditional rice fish rotational cropping system of study area . 3.1.3 Ownership: Table 4: Ownership style of Fish farmers Style of ownership Frequency Percent Owned 3 27.3 Leased 8 72.7 (Source: Primary Survey, 2012) Table 5: Ownership pattern of Fish farmer Pattern of ownership Frequency Percent Single ownership 7 63.6 partnership 4 36.4 (Source: Primary Survey, 2012) According to Table 4, there are two type of ownership style found during data collection, Owned and Leased type. There maximum numbers of culture pond are leased type (72.7%). High capital investment for the activity forced the farmer to take lease, due to low income generation. According Table 5 two type of ownership pattern of traditional rice fish rotational cropping system observed were single ownership and partnership. There were 63.6 % farmers having single ownership and 36.4% farmers are having partnership. Individual profit sharing in the partnership business creates competitive advantage for choosing single ownership. In single ownership the profit is entirely taken by the owner of the farm. On the other way for some partnership farms using large water body for culture practises, it is hard to maintain by a single owner and this is the main reason behind forming partnership.
  24. 24. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 20 3.1.3 Leasing Mode: Table 6: Leasing year of Fish culture practise Year of leasing Frequency Percent <2 years 8 72.7 2-4 years 3 27.3 (Source: Primary Survey, 2012) According Table 6 72.7% farmers have leased period of less than 2 years. Short period of leasing is mainly due to high cost of land, increased maintenance cost and high capital investment. 3.1.4 Subsidy: Table 7: Using Subsidy by Fish farmers Subsidy Frequency Percent NO 4 36.4 YES 7 63.6 (Source: Primary Survey, 2012) According Table 7 63.6% farmers of traditional rice fish rotational cropping system, were using subsidized seed from ADAK and KARA. Maximum numbers of farmers are not using any financial subsidy from any financial organisation.
  25. 25. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 21 3.2 Farm Based Economics in Aquaculture Aquaculture has development in many parts of the world in different patterns under various natural and socioeconomic conditions. Generally, the primary interest is now directed toward establishing viable industries for the purpose of domestic consumption, export, employment opportunities, income distributions, or a combination of these objectives. These development objectives cannot be achieved if a minimum income and profitability are not attained by the producers. The producers’ profit or net income per unit of land or water area (Y) is mainly affected by production (Q), the cost of production and marketing (C), and the price received (P), as shown in the basic equation below: Therefore, increases in yield, reductions costs, and increases in price are the major means of increasing profits. Many disciplines, including biology, genetics, nutrition, engineering, physiology, etc., affect the economics of Aquaculture. Biotechnical forces affect various production possibilities and economic forces determine different levels of profitability (Boonchuwong, 2007). 3.2. 1 Increase in Production As pond culture is the most prevalent kind of Aquaculture used today, the material in this section is mainly based on data gathered from fresh- and brackish-water pond culture. The major factors affecting the productivity per unit of fish pond or water surface are the stocking rate, the survival rate at the time of harvesting, and the average weight of the individual fish at the time of harvesting. Therefore, increasing stocking rate, survival rate, and growth rate are the primary means of increasing production (Boonchuwong, 2007). 3.2.2 Increasing Stocking Rate A fish pond can only support a certain quantity of fish because of its limited space and natural food. This limit has been called the “maximum standing crop,” which is defined as the maximum weight a fish stock can sustain without gaining or losing weight by consuming solely the food produced within the pond. The stocking rate, and hence the maximum standing crop, of a fish pond can be increased by fertilization and supplementary feeding, Polyculture, stock manipulation, and aeration (Boonchuwong, 2007). Y = (QP – C )
  26. 26. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 22 3.2.3 Fertilization and supplementary feeding The stocking rate of a fish pond varies mainly with the fertility of the pond. The fertility rate can be improved by fertilization and/or supplementary feeding. The purpose of fertilization is to increase the production of plankton, which fish prefer as food; and the purpose of feeding is to complement the nutrients that are in short supply in the fish pond (Boonchuwong, 2007). 3.2.4 Stock manipulation The stocking rate of a fish pond can be increased by different kinds of stocking systems such as multiple-size stocking, same-size stocking in a system of ponds, double cropping, etc. Multiple- size stocking. This may be defined as the stocking of the same species in different sizes to make more efficient use of water space. If a suitable density of fry is stocked at the beginning of the rearing period, the environment would be overcrowded when the fry reach adult size. The growth rate will be low at high densities (Boonchuwong, 2007). 3.2.5 Aeration In addition to the different methods of increasing the stocking rate mentioned above, running water and aeration can also increase the dissolved oxygen of the pond water, and hence the stocking rate. However, the economic feasibility of using these techniques depends on whether the additional revenues offset the additional costs (Boonchuwong, 2007). 3.2.6 Increasing Survival and Growth Rates Increased survival and growth rates are important elements in increasing production, and mainly depend on genetic improvements, such as selective breeding and hybridization and pond management. The advantages resulting from genetic improvements are many: more rapid growth rate to shorten the raring period; more disease-resistant strains, and thereby improved survival rates; greater tolerance to wide fluctuations in water temperatures or other conditions, such as water salinity, oxygen content, and pH value; and higher flesh yields. Genetic improvement requires longer research and is beyond the ability of most individual fish farmers. Therefore, pond management is a crucial success factor for individual fish farmers. Good pond management practice includes the correct stocking rate, the right kind and amount of feed Advanced Freshwater or fertilizer, the proper water quality, the prevention of diseases and parasites, and the elimination of predators and competitors (Boonchuwong, 2007).
  27. 27. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 23 Correct stocking rate: An important principle of aquaculture is that a suitable density of fish should always be stocked in a pond. Under stocking may result in under utilization of feed and space; in contrast overstocking may result in competition for food and space and in a decline the survival and growth rates. Several studies of carp culture in East European countries revealed that excessive stocking density may lead to a decrease in individual weight of harvested fish, a reduction of the survival rate, and an increase of feed conversion ratio. All of these have negative effects on the production and economic results (Boonchuwong, 2007). The precise density for maximum production and the best ratio of species combination in a given pond are often determined empirically through experience. The general formula for determining the appropriate stocking rates and stocking ratios (under conditions of Polyculture and non reproduction during the rearing period) is as follows: Where; S= stocking rate (number) A= size of fish pond (ha) Q= expected yield per ha based on experiences of previous years (in kg) W1= average weight of individual fry or fingerling when stocking (in kg) W2= expected average weight of individual fish when harvesting (in kg) H= harvesting rate (percent) The stocking rate can be also be estimated on the basis of the ponds’ productivity. The total productivity of the ponds is equal to the sum of natural productivity and of productivity due to fertilization and/or artificial feeding. The scientific method for predetermining natural production in ponds relies on the study of aquatic flora and fauna. The behaviour of an animal under crowded conditions is an important factor in determining the stocking rate. Territorial or aggressive behaviour makes a species undesirable for high-density culture. Freshwater prawns and many species of crabs are examples of animals that are unsuited to high-density culture. However, aquatic animals can be bred selectively to increase their tolerance to crowding in the long run. Right kind and amount of feed and or fertilizer. Artificial feeding is one of the principal methods of increasing production in aquaculture, as mentioned earlier. Its importance varies according to the intensity of cultivation—extensive, semi-intensive, or intensive. For the latter, artificial feed can be the exclusive food for fish. The practice of more- or less-intensive feeding is simply an economic question. The choice between the two depends on the cost of the feed, its conversion rate, and the costs of land
  28. 28. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 24 and water. When land (or water) is limited by high price and the cost feeding can be offset by the additional revenue, intensive operation is likely to be practiced (Boonchuwong, 2007). 3.2.7 Proper water quality Water temperature and dissolved oxygen are two major factors that affect the water quality, and hence the survival and growth rates of fish. Each species of fish adapts to a certain range of temperature; outside this range they cannot live. There is also a certain intermediate temperature range that maximizes the growth of fish. It is possible to influence the water temperature of a pond by increasing or reducing the water depth (Boonchuwong, 2007). 3.2.8 Cost of Construction The primary considerations in site selection are topography, water supply, and soil quality. The ideal location for a fish pond is on flat (or nearly flat) land. Lands with a slope greater than 5 percent are usually not suitable for fish ponds because of high construction cost and erosion and salutation problems. Low soil permeability, constant availability of high-quality water, and easy access are also important factors in site selection. These factors affect not only the cost of construction, but also the costs of operation (Boonchuwong, 2007). The size, shape, and depth of the pond and the clearing work required also affect the cost of construction. Generally, the larger the pond size the greater the efficiency of land and water utilization and the lower the construction costs. On the other hand, the smaller the pond size the greater the convenience of pond management and the lower the earthwork maintenance. Ponds can be of any shape but a rectangular one is probably the most convenient for harvesting. The depth of the pond depends mainly on the climatic conditions and the species that are cultured. The pond can be shallower in warm regions than in cold regions. As costs of construction increase in proportion to depth, excavation should be minimized. Economy of construction and operation, efficiency of operation, and productivity of the pond are usually the primary factors in determining the size, shape, and depth of a pond (Boonchuwong, 2007). 3.2.9 Cost of Feed and Fertilizer Feed and/or fertilizer are probably the most important cost items for intensive aquaculture. In many cases they compose more than 50 percent of the total cost of production. Therefore, research on suitable low-cost feed or fertilizers a high priority. Cost of feed per unit of fish production (Cf) depends primarily on two elements: the conversion ratio of fish to flesh (R) and the unit price of feed (Pf) as shown in the following simple formula: Cf=RPf
  29. 29. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 25 The conversion ratio expresses the amount of feed necessary to produce a unit of fish. The cost of feed can be reduced by an improvement in the conversion ratio or by lowering the unit price of feed, or by a combination of these two factors. The conversion ratio (amount of feed necessary to produce a unit of fish) can be reduced by eliminating waste and improving the feed formula. The waste can be reduced by supplying the correct amount of feed. The economic principle of feeding is that the amount of feed should be at a level where the additional cost of feed equals its additional revenue. Amounts above this level would be a waste from an economic standpoint. More importantly, the relationships between the effectiveness of different kinds of feed or Combination of feed and their costs should be studied in order to determine the optimum level of feeding or the least-cost combination of feeds. Fish may be kept in the pond longer to produce larger sizes, but this usually results in a significantly greater conversion figure; therefore, cost per unit of fish harvested would be higher. It would not be economically feasible to produce larger sizes if the increased cost of feed could not be offset by the increased unit price of larger fish (Boonchuwong, 2007). The cost of feed may be lowered by utilizing locally available materials or by-products for feed instead of imported feeds. Experiments to test lower feed costs for carnivorous fished and crustaceans (while providing adequate nutrient bases) have been initiated with copra and certain high-protein legume leaf powders. Another means to substitute animal protein ingredients in aquatic carnivore diets its to use bacterial fermentation of cellulose materials, e.g., the grain of maize stalks, which would furnish the bound carbon for nitrogen-fixing bacteria that are an ingredient of feed substitute (Boonchuwong, 2007). 3.2.10 Cost of Seed A reliable supply of good quality fish seed (fry, fingerlings, etc.), obtained at a reasonable cost, is one of the most important requirements for aquaculture. In many cases, seed accounts for a high percentage of total operating cost, especially for those species in which artificial hatching has not been successful. When the supply of fry depends on natural sources, its availability fluctuates. In years of scarcity, the price of fry is high. Expensive fry means a higher cost of production for fish, which either is transferred to consumers by higher prices or to the producers by reduced profits. The Ultimate solution to the shortage of fry appears to be breeding these species in captivity. Meanwhile, short-range efforts should be made to increase the supply of fry by locating new spawning grounds, improving the efficiency of capture and transportation, and improving the survival rate during the pond rearing period. Also, government intervention to prevent monopoly operation by fry dealers may be necessary in some regions as a means of providing fry to fish operators at reasonable prices. The price of fingerlings is higher than that of fry, but the survival rate
  30. 30. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 26 of fingerlings is also relatively greater. Under certain conditions, the cost of seed per unit of marketable fish would be lower and growth period shortened if one starts with larger fingerlings rather than small fry. Carp culture in many countries indicated that the bigger the individual size of stocking material, the higher the production of market fish per unit of area. A further study revealed that the bigger the individual size of stocking material, the lower the cost of production per unit of market fish; consequently, the higher the profit. Hatchery operations require numerous skills and relatively higher technical competence than do pond grow out operations (the latter include the stages from stocking to harvesting). Thus, a certain economy of scale prevails in hatchery operations. Large fish farms may benefit from their own hatcheries and small fish farms would benefit from central hatcheries operated either by government or by cooperatives (Boonchuwong, 2007). 3.2.11 Cost of Labour Labour cost is one of the major expenses of aquaculture because, in most cases, mechanization has not yet been inefficiently developed to replace the intensive use of labour. Harvesting, feeding, and maintenance are the major time consuming tasks (Boonchuwong, 2007). Therefore, efficient management and use of labour are essential in reducing the cost of production. When capital is limited and family labour is relatively abundant—which is true in many developing countries—the operator should utilize labour as fully as possible. On the other hand, when the cost of labour is fixed but the availability of capital is variable, labour efficiency can be increased by utilizing either more machinery or other capital items. But when both labour and capital can vary, which is usually true in the long run, substituting one for the other might be desirable. Of course, the rate of substitution is related to their relative productivities and prices. Additional labour is required for intensive culture because harvesting, feeding, and stocking are done more frequently. However, labour, requirements, and hence labour costs per unit of output, may be relatively low. Through efficient management, such as elimination of unnecessary work and more efficient scheduling of work, labour cost can also be reduced (Boonchuwong, 2007). 3.2.12 Cost of Water An adequate supply of good quality water is essential for pond, raceway, cage, and closed- system fish culture. In many places good quality water, especially freshwater, is one of the major limiting factors for aquaculture because it is in great demand for other uses. In selecting sites for freshwater fish culture, effort should be made to locate the ponds in areas accessible to the water supply, e.g., near streams, rivers, groundwater, etc. In many cases, water recycling or water treatment for reuse is necessary and would increase the quantity of a given water supply many
  31. 31. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 27 times. But the economic justification of this kind of operation should be studied (Boonchuwong, 2007). 3.2.13 Interest The rate of interest varies with the supply of and demands for capital and with the risks involved in an operation. Capital is regarded as a scare resource in the rural areas of the developing countries. The risks involved in aquaculture are relatively high because of several factors: the limited knowledge about controlling diseases and parasites; the difficulty of reproducing species in captivity and controlling predators; and the lack of experience in managing dense populations of aquatic animals. Water population and storm and flood damage are also risks involved in fish culture. Investors in aquaculture encounter high interest rates because of the shortage of Capita land the high risks involved. For instance, interest rates on loans for aquaculture in some developing countries range from 12 to 30 percent per annum. Institutional credit could replace credit from traditional sources thereby checking monopolies that are able to command excessively high interest rates. However, the former source can only be used if farmers are willing and able to assume all the responsibilities of borrowing from public institutions. Insurance is a way of spreading risks, but insurance for fish stocks is rather expensive because of the high risk involved. In many countries the aquaculture industry does not have sufficient demand to provide a market for insurance (Boonchuwong, 2007). 3.2.14 Marketing Costs Marketing costs include preservation, processing, storage, transportation, commission, and waste. Fish is a highly perishable commodity; therefore, preservation is necessary if it is to be transported to distant areas. A substantial proportion of the production in tropical areas is lost because of inefficient methods of preserving the aquatic animal during transportation. Poor transportation and marketing facilities also decrease farm price because they result inpoor quality and oversupply—i.e., dumping in the market nearest production instead of distributing to several markets. With government support for improved transportation, storage, and ice plants, marketing cost can be substantially reduced; consequently, production, either through direct or indirect effect of higher profits for producers, can be increased. Producers in developing countries are often not adequately rewarded for their inputs, although wholesalers and brokers receive more than their share of the profit. In such cases, the development of cooperatives or associations might increase marketing efficiency and lower marketing costs. However, successful cooperatives must first be built upon a solid base of rendering a needed service efficiently (Boonchuwong, 2007).
  32. 32. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 28 3.2.15 Land Lease The value or the rental price of land varies mainly with its quality and its alternative uses. In selecting a construction site for a pond, effort should be made to avoid choosing valuable lands that could have competing or conflicting uses. The leasing system is another factor affecting the rental price of land. Some of the problems the tenants face in developing countries are: expensive leases; leases that are contracted for too short a period of time; and, in many cases, the lack of a written contract specifying the responsibilities of each party. Government intervention either by laws and regulations or by leasing public lands suitable for aquaculture may improve the situation (Boonchuwong, 2007).
  33. 33. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 29 3.3 Economics of Brackish Water Farms 3.3.1 Details of Cost and Earnings of Different Farms: Farm 1 CAPITAL INVESTMENT Rupees 1. Cost of land(23 hac) 1000000 2. Formation of pond : (a) pond dyke 20000 (b) screening 35000 Total 55000 3. Nets and seives 7000 4. Pump costs 5000 5. others 40000 TOTAL Capital Investment (A) 1107000 FIXED COST 6. Depriciation :- (a) Land (@15%) 150000 (b) Pond maintainance (@15%) 8250 (c ) Nets and seives (@10%) 700 Total Depriciation(a) 158950 7. Taxation (b) 24700 8. License renewal charge (c ) 750 TOTAL Fixed cost (a +b+c)(B) 184400 VARIABLE COST 9. Cost of seed PRAWN seed (@ 35 paisa per seed for 950000 seed, 332500
  34. 34. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 30 Stocking density 25000 seed / ha) 10. Cost of feed 200000 11. Wages 325000 12. Miscellnious cost 30000 TOTAL Variable cost (C) 887500 TOTAL ANNUAL COST (B+C) 1071900 ANNUAL REVENUE Annual production (in kg.) Fin fish 1000 Shell fish 5000 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 350 REVENUE Fin fish 200000 Shell fish 1750000 TOTAL REVENUE 1950000 GROSS PROFIT 878100 NET PROFIT 694450 Econometric Indicators : PAY BACK PERIOD 1.26 Break Even Point (Sales) 338428.24 Average Rate of Return 62.73
  35. 35. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 31 Farm 2 CAPITAL INVESTMENT Rupees 1. Cost of land(20 hac) 900000 2. Formation of pond : (a) pond dyke 12000 (b) screening 15000 Total 27000 3. Nets and seives 5000 4. Pump costs 3000 5. others 20000 TOTAL Capital Investment (A) 955000 FIXED COST Depriciation (a) Land (@15%) 135000 (b) Pond maintainance (@15%) 4050 (c ) Nets and seives (@10%) 500 Total Depriciation(a) 139550 7. Taxation (b) 7800 8. License renewal charge (c ) 850 TOTAL Fixed cost (a +b+c)(B) 148200 VARIABLE COST 9. Cost of seed PRAWN seed (@ 40 paisa per seed for 200000 seed, 80000 Stocking density 17000seed / ha)
  36. 36. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 32 10. Cost of feed 12000 11. Wages 60000 12. Miscellnious cost 20000 TOTAL Variable cost (C) 172000 TOTAL ANNUAL COST (B+C) 320200 ANNUAL REVENUE Annual production (in kg.) Fin fish 600 Shell fish 2000 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 500 REVENUE Fin fish 120000 Shell fish 1000000 TOTAL REVENUE 1120000 GROSS PROFIT 799800 NET PROFIT 652450 Econometric Indicators : PAY BACK PERIOD 1.19 Break Even Point (Sales) 175088.61 Average Rate of Return 68.31
  37. 37. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 33 Farm 3 CAPITAL INVESTMENT Rupees 1. Cost of land(18 hac) 800000 2. Formation of pond : (a) pond dyke 14000 (b) screening 17000 Total 31000 3. Nets and seives 5000 4. Pump costs 4000 5. others 24000 TOTAL Capital Investment (A) 864000 FIXED COST Depriciation (a) Land (@15%) 120000 (b) Pond maintainance (@15%) 4650 (c ) Nets and seives (@10%) 500 Total Depriciation(a) 125150 7. Taxation (b) 10400 8. License renewal charge (c ) 850 TOTAL Fixed cost (a +b+c)(B) 136400 VARIABLE COST 9. Cost of seed PRAWN seed (@ 40 paisa per seed for 304000 seed, 80000 Stocking density 19000seed / ha) 10. Cost of feed 10000
  38. 38. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 34 11. Wages 120000 12. Miscellnious cost 22000 TOTAL Variable cost (C) 232000 TOTAL ANNUAL COST (B+C) 368400 ANNUAL REVENUE Annual production (in kg.) Fin fish 500 Shell fish 2750 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 350 REVENUE Fin fish 100000 Shell fish 962500 TOTAL REVENUE 1062500 GROSS PROFIT 694100 NET PROFIT 558550 Econometric Indicators : PAY BACK PERIOD 1.24 Break Even Point (Sales) 174503.31 Average Rate of Return 64.65
  39. 39. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 35 Farm 4 CAPITAL INVESTMENT Rupees 1. Cost of land(13 hac) 600000 2. Formation of pond : (a) pond dyke 20000 (b) screening 30000 Total 50000 3. Nets and seives 5000 4. Pump costs 4000 5. others 10000 TOTAL Capital Investment (A) 669000 FIXED COST Depriciation (a) Land (@15%) 90000 (b) Pond maintainance (@15%) 7500 (c ) Nets and seives (@10%) 500 Total Depriciation(a) 98000 7. Taxation (b) 5850 8. License renewal charge (c ) 800 TOTAL Fixed cost (a +b+c)(B) 104650 VARIABLE COST 9. Cost of seed PRAWN seed (@ 40 paisa per seed for 207000 seed, 82800 Stocking density 23000seed / ha) 10. Cost of feed 10000
  40. 40. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 36 11. Wages 200000 12. Miscellnious cost 15000 TOTAL Variable cost (C) 307800 TOTAL ANNUAL COST (B+C) 412450 ANNUAL REVENUE Annual production (in kg.) Fin fish 500 Shell fish 2000 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 400 REVENUE Fin fish 100000 Shell fish 800000 TOTAL REVENUE 900000 GROSS PROFIT 487550 NET PROFIT 383700 Econometric Indicators : PAY BACK PERIOD 1.37 Break Even Point (Sales) 159042.55 Average Rate of Return 57.35
  41. 41. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 37 Farm 5 CAPITAL INVESTMENT Rupees 1. Cost of land(3.5 hac) 150000 2. Formation of pond : (a) pond dyke 20000 (b) screening 30000 Total 50000 3. Nets and seives 5000 4. Pump costs 3000 5. others 20000 TOTAL Capital Investment (A) 228000 FIXED COST Depriciation (a) Land (@15%) 22500 (b) Pond maintainance (@15%) 7500 (c ) Nets and seives (@10%) 500 Total Depriciation(a) 30500 7. Taxation (b) 3250 8. License renewal charge (c ) 800 TOTAL Fixed cost (a +b+c)(B) 34550 VARIABLE COST 9. Cost of seed PRAWN seed (@35 paisa per seed for 100000 seed, 82800 Stocking density 20000seed / ha) 10. Cost of feed 10000
  42. 42. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 38 11. Wages 100000 12. Miscellnious cost 20000 TOTAL Variable cost (C) 212800 TOTAL ANNUAL COST (B+C) 247350 ANNUAL REVENUE Annual production (in kg.) Fin fish 400 Shell fish 1000 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 300 REVENUE Fin fish 80000 Shell fish 300000 TOTAL REVENUE 380000 GROSS PROFIT 132650 NET PROFIT 98900 Econometric Indicators : PAY BACK PERIOD 1.72 Break Even Point (Sales) 78522.73 Average Rate of Return 43.38
  43. 43. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 39 Farm 6 CAPITAL INVESTMENT Rupees 1. Cost of land(21 hac) 900000 2. Formation of pond : (a) pond dyke 15000 (b) screening 28000 Total 43000 3. Nets and seives 6000 4. Pump costs 7000 5. others 25000 TOTAL Capital Investment (A) 981000 FIXED COST Depriciation (a) Land (@15%) 135000 (b) Pond maintainance (@15%) 6450 (c ) Nets and seives (@10%) 600 Total Depriciation(a) 142050 7. Taxation (b) 1300 8. License renewal charge (c ) 850 TOTAL Fixed cost (a +b+c)(B) 144200 VARIABLE COST 9. Cost of seed PRAWN seed (@40 paisa per seed for 500000 seed, 200000 Stocking density 25000seed / ha) 10. Cost of feed 100000
  44. 44. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 40 11. Wages 250000 12. Miscellnious cost 25000 TOTAL Variable cost (C) 575000 TOTAL ANNUAL COST (B+C) 719200 ANNUAL REVENUE Annual production (in kg.) Fin fish 300 Shell fish 4000 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 300 REVENUE Fin fish 60000 Shell fish 1200000 TOTAL REVENUE 1260000 GROSS PROFIT 540800 NET PROFIT 397450 Econometric Indicators : PAY BACK PERIOD 1.81 Break Even Point (Sales) 265243.8 Average Rate of Return 40.51
  45. 45. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 41 Farm 7 CAPITAL INVESTMENT Rupees 1. Cost of land(3 hac) 100000 2. Formation of pond : (a) pond dyke 25000 (b) screening 25000 Total 50000 3. Nets and seives 3000 4. Pump costs 4000 5. others 15000 TOTAL Capital Investment (A) 172000 FIXED COST Depriciation (a) Land (@15%) 15000 (b) Pond maintainance (@15%) 7500 (c ) Nets and seives (@10%) 300 Total Depriciation(a) 22800 7. Taxation (b) 1950 8. License renewal charge (c ) 750 TOTAL Fixed cost (a +b+c)(B) 25500 VARIABLE COST 9. Cost of seed PRAWN seed (@35 paisa per seed for 57000 seed, 19950 Stocking density 19000seed / ha) 10. Cost of feed 10000
  46. 46. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 42 11. Wages 200000 12. Miscellnious cost 20000 TOTAL Variable cost (C) 249950 TOTAL ANNUAL COST (B+C) 275450 ANNUAL REVENUE Annual production (in kg.) Fin fish 400 Shell fish 650 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 450 REVENUE Fin fish 80000 Shell fish 292500 TOTAL REVENUE 372500 GROSS PROFIT 97050 NET PROFIT 72300 Econometric Indicators : PAY BACK PERIOD 1.77 Break Even Point (Sales) 77509.18 Average Rate of Return 42.03
  47. 47. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 43 Farm 8 CAPITAL INVESTMENT Rupees 1. Cost of land(5 hac) 200000 2. Formation of pond : (a) pond dyke 20000 (b) screening 30000 Total 50000 3. Nets and seives 4000 4. Pump costs 5000 5. others 10000 TOTAL Capital Investment (A) 269000 FIXED COST Depriciation (a) Land (@15%) 30000 (b) Pond maintainance (@15%) 7500 (c ) Nets and seives (@10%) 400 Total Depriciation(a) 37900 7. Taxation (b) 2600 8. License renewal charge (c ) 850 TOTAL Fixed cost (a +b+c)(B) 41350 VARIABLE COST 9. Cost of seed PRAWN seed (@35 paisa per seed for 80000 seed, 28000 Stocking density 20000seed / ha) 10. Cost of feed 15000
  48. 48. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 44 11. Wages 200000 12. Miscellnious cost 15000 TOTAL Variable cost (C) 258000 TOTAL ANNUAL COST (B+C) 299350 ANNUAL REVENUE Annual production (in kg.) Fin fish 500 Shell fish 1000 Price per kilogram Fin fish (Rs.) 150 Shell fish (Rs.) 400 REVENUE Fin fish 75000 Shell fish 400000 TOTAL REVENUE 475000 GROSS PROFIT 175650 NET PROFIT 135150 Econometric Indicators : PAY BACK PERIOD 1.53 Break Even Point (Sales) 90512.67 Average Rate of Return 50.24
  49. 49. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 45 Farm 9 CAPITAL INVESTMENT Rupees 1. Cost of land(2.5 hac) 100000 2. Formation of pond : (a) pond dyke 10000 (b) screening 25000 Total 35000 3. Nets and seives 3000 4. Pump costs 5000 5. others 15000 TOTAL Capital Investment (A) 158000 FIXED COST Depriciation (a) Land (@15%) 15000 (b) Pond maintainance (@15%) 5250 (c ) Nets and seives (@10%) 300 Total Depriciation(a) 20550 7. Taxation (b) 1950 8. License renewal charge (c ) 750 TOTAL Fixed cost (a +b+c)(B) 23250 VARIABLE COST 9. Cost of seed PRAWN seed (@40 paisa per seed for 60000 seed, 21000 Stocking density 20000seed / ha) 10. Cost of feed 12000
  50. 50. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 46 11. Wages 150000 12. Miscellnious cost 20000 TOTAL Variable cost (C) 203000 TOTAL ANNUAL COST (B+C) 226250 ANNUAL REVENUE Annual production (in kg.) Fin fish 400 Shell fish 550 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 450 REVENUE Fin fish 80000 Shell fish 247500 TOTAL REVENUE 327500 GROSS PROFIT 101250 NET PROFIT 78750 Econometric Indicators : PAY BACK PERIOD 1.56 Break Even Point (Sales) 61159.64 Average Rate of Return 49.84
  51. 51. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 47 Farm 10 CAPITAL INVESTMENT Rupees 1. Cost of land(2 hac) 90000 2. Formation of pond : (a) pond dyke 5000 (b) screening 17000 Total 22000 3. Nets and seives 1500 4. Pump costs 3000 5. others 10000 TOTAL Capital Investment (A) 126500 FIXED COST Depriciation (a) Land (@15%) 13500 (b) Pond maintainance (@15%) 3300 (c ) Nets and seives (@10%) 150 Total Depriciation(a) 16950 7. Taxation (b) 1300 8. License renewal charge (c ) 750 TOTAL Fixed cost (a +b+c)(B) 19000 VARIABLE COST 9. Cost of seed PRAWN seed (@35 paisa per seed for 34000 seed, 21000 Stocking density 17000seed / ha) 11900 10. Cost of feed 9000
  52. 52. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 48 11. Wages 72000 12. Miscellnious cost 15000 TOTAL Variable cost (C) 128900 TOTAL ANNUAL COST (B+C) 147900 ANNUAL REVENUE Annual production (in kg.) Fin fish 300 Shell fish 500 Price per kilogram Fin fish (Rs.) 200 Shell fish (Rs.) 350 REVENUE Fin fish 60000 Shell fish 175000 TOTAL REVENUE 235000 GROSS PROFIT 87100 NET PROFIT 68850 Econometric Indicators : PAY BACK PERIOD 1.45 Break Even Point (Sales) 42082.94 Average Rate of Return 54.42
  53. 53. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 3.3.2 Economic Feasibility Study of 3.3.2.1 Capital Investment of Brackish water Farms Figure: 1. According Fig. 1, the Capital investment varies between Rs. 1, 26,000 to Rs. 11, 07,000 in 10 farms surveyed during the study. The capital investment varies upon the size of the pond and scale of production. Size of the pond varied between 2 ha. for Farm 10 to 38 ha. varied between Rs. 10, 00,000 to Rs. 90,000 depending on size of the pond. In the same way cost of pond formation (Rs. 55,000 to Rs. 22,000) 1500) is increased with respect to increase of the area. None of the farm had taken loan or subsidy in the study area. 3.3.2.2 Total Cost of Brackish water Farms Total cost could be divided into two components: remain constant in total, regardless of changes in volume up to a certain level of output. They are not affected by changes in the volume of production. They will have to be incurred even when FARM 1 FARM 2 T.C.I. 110700 955000 0 200000 400000 600000 800000 1000000 1200000 ValueinRupees Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil Economic Feasibility Study of Different Farms: 3.3.2.1 Capital Investment of Brackish water Farms Total capital investment of different farms the Capital investment varies between Rs. 1, 26,000 to Rs. 11, 07,000 in 10 farms surveyed during the study. The capital investment varies upon the size of the pond and scale e of the pond varied between 2 ha. for Farm 10 to 38 ha. for Farm 1. Cost of leasing varied between Rs. 10, 00,000 to Rs. 90,000 depending on size of the pond. In the same way cost of (Rs. 55,000 to Rs. 22,000), generator and cost of fishing equipments is increased with respect to increase of the area. None of the farm had taken loan or subsidy Total Cost of Brackish water Farms Total cost could be divided into two components: Fixed cost and Variable cost. remain constant in total, regardless of changes in volume up to a certain level of output. They are not affected by changes in the volume of production. They will have to be incurred even when FARM FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 955000 864000 669000 228000 981000 172000 269000 Total Capital Investment Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 49 Different Farms: otal capital investment of different farms the Capital investment varies between Rs. 1, 26,000 to Rs. 11, 07,000 in 10 farms surveyed during the study. The capital investment varies upon the size of the pond and scale or Farm 1. Cost of leasing varied between Rs. 10, 00,000 to Rs. 90,000 depending on size of the pond. In the same way cost of equipments (Rs.7000 to Rs. is increased with respect to increase of the area. None of the farm had taken loan or subsidy Variable cost. Fixed costs remain constant in total, regardless of changes in volume up to a certain level of output. They are not affected by changes in the volume of production. They will have to be incurred even when FARM FARM 9 FARM 10 269000 158000 126500
  54. 54. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries output is nil. There is an inverse fixed costs don not change in volume but vary per unit of volume inversely with volume and Maheshwari, 2005). Variable costs are those costs that vary depending on production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, insurance and office supplies, production output. Variable costs can include direct to complete a certain project (Varsheny and Maheshwari, 2005). Figure: 2. Total Fixed Cost and Variable Cost Figure: Figure 2, depicts the total amount of Fixed a varied on the depreciation cost, taxation etc. According to the Fig. 2 highest amount and variable cost was in Farm 1 lowest fixed and variable cost. FARM 1 FARM 2 FC 18440 14820 VC 88750 17200 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 valuesinRupess fixed cost and Variable cost 1071900 320200 368400 FARM 1 FARM 2 FARM 3 Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil output is nil. There is an inverse relationship between volume and fixed cost per unit. Thus total fixed costs don not change in volume but vary per unit of volume inversely with volume Variable costs are those costs that vary depending on production they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, insurance and office supplies, which tend to remain the same regardless of production output. Variable costs can include direct material costs or direct labour costs necessary Varsheny and Maheshwari, 2005). Figure: 2. Total Fixed Cost and Variable Cost Figure: 3. Total Annual Cost of different farms the total amount of Fixed and Variable cost of different farms. The total Fixed Cost varied on the depreciation cost, taxation etc. According to the Fig. 2 highest amount arm 1 (Rs. 184400 and Rs. 1887500 respectively), whereas FARM FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 14820 13640 10465 34550 14420 25500 41350 17200 23200 30780 21280 57500 24995 25800 fixed cost and Variable cost 412450 247350 719200 275450 299350 226250 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 FARM 9 Total Cost Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 50 relationship between volume and fixed cost per unit. Thus total fixed costs don not change in volume but vary per unit of volume inversely with volume (Varsheny Variable costs are those costs that vary depending on production they rise as production increases and fall as production decreases. Variable costs differ from which tend to remain the same regardless of material costs or direct labour costs necessary . The total Fixed Cost varied on the depreciation cost, taxation etc. According to the Fig. 2 highest amount of Fixed cost respectively), whereas Farm 10 have FARM FARM 9 FARM 10 41350 23250 19000 25800 20300 12890 226250 147900 FARM 9 FARM 10
  55. 55. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries According to Fig. 3 71,900 in 10 Farms surveyed. H lowest amount of total cost incurred fixed cost and variable cost. The Total cost varies upon the size of the farm, amount tax, cost of the seed, labour wages etc. Taxation depends upon the size of the land. Similarly it also license renewal charge of the farms. Maintenance cost is also another factor which forcing the farmer to lease there water body. 3.3.3.3.3333 Total Revenue of Brackish water Farms Figure: 4. Total Revenue of different farms According to Fig. 4, Total Revenue varied be surveyed. In Farm 1 had highest and Farm 2 had lowest total revenue of 2,35,000 respectively. Revenue varied due types of organism cultured and mortality rate. also on price of fish and stocking density in culture area. Farm 1 is higher Farms. 3.3.3.3.4444 Gross and Net Profit of According to Fig. 5, Total Net Profit is varied between Rs Total Gross profit is varied between 694450 and farm 10 had low net profit margin. In other way farm 1 had high gross profit Rs. 8, 78,100 and farm 10 Rs. 87100 1950000 1120000 1062500 FARM 1 FARM 2 FARM 3 Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil Fig. 3, the Total Annual cost varies between Rs.1, 47,900 to Rs.10, Highest amount of total cost incurred in Farm 1 amount of total cost incurred in Farm 10 Rs. 1, 47,900. The total cost changes due to different fixed cost and variable cost. The Total cost varies upon the size of the farm, amount tax, cost of the seed, labour wages etc. Taxation depends upon the size of the land. Similarly it also license renewal charge of the farms. Maintenance cost is also another factor which forcing the farmer to lease there water body. Total Revenue of Brackish water Farms Figure: 4. Total Revenue of different farms Total Revenue varied between Rs. 19, 50,000 to Rs. 2, 35 surveyed. In Farm 1 had highest and Farm 2 had lowest total revenue of Rs. 19, 50,000 and Rs. ,000 respectively. Revenue varied due types of organism cultured and mortality rate. also on price of fish and stocking density in culture area. Farm 1 is higher Farms. Gross and Net Profit of Brackish water Farms Total Net Profit is varied between Rs. 68,850 to Rs. 6, 94,450 ried between Rs. 8,7 8, 100 to Rs. 87,100. In farm 1 had high net profit 694450 and farm 10 had low net profit margin. In other way farm 1 had high gross profit Rs. 8, 900000 380000 1260000 372500 475000 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 Total Revenue Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 51 the Total Annual cost varies between Rs.1, 47,900 to Rs.10, amount of total cost incurred in Farm 1 Rs. 10, 71,900 and . The total cost changes due to different fixed cost and variable cost. The Total cost varies upon the size of the farm, amount tax, cost of the seed, labour wages etc. Taxation depends upon the size of the land. Similarly it also varies upon the license renewal charge of the farms. Maintenance cost is also another factor which forcing the tween Rs. 19, 50,000 to Rs. 2, 35,000 in 10 farms Rs. 19, 50,000 and Rs. ,000 respectively. Revenue varied due types of organism cultured and mortality rate. Revenue also on price of fish and stocking density in culture area. Farm 1 is higher Farms. 68,850 to Rs. 6, 94,450 and In farm 1 had high net profit 694450 and farm 10 had low net profit margin. In other way farm 1 had high gross profit Rs. 8, 327500 235000 FARM 9 FARM 10
  56. 56. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries Figure: 5. Gross and Net Profit of different farms . Figure: 6. Area of 3.3.3.3.4444 Pay-back Period of Brackish water Farms The payback period method, sometimes referred to as “payoff”, provides a rudimentary Measurement for appraising an investment. It’s simply estimates the time required initial investment out of the expected earnings from the investment before any allowance for depreciation, (Shang Yung C. ,1981 0 200000 FARM 1 FARM 3 FARM 5 FARM 7 FARM 9 FARM 1 FARM 2 FARM 3 N.P. 694450 652450 558550 G.P. 878100 799800 694100 GP and NP comparison FARM 1 FARM 2 FARM 3 T.R. 195000 112000 106250 T.C. 107190 320200 368400 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil Figure: 5. Gross and Net Profit of different farms Figure: 6. Area of Profit of different farms Brackish water Farms The payback period method, sometimes referred to as “payoff”, provides a rudimentary Measurement for appraising an investment. It’s simply estimates the time required initial investment out of the expected earnings from the investment before any allowance for Shang Yung C. ,1981) 200000 400000 600000 800000 FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 558550 383700 98900 397450 72300 135150 694100 487550 132650 540800 97050 175650 GP and NP comparison FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 106250 900000 380000 126000 372500 475000 368400 412450 247350 719200 275450 299350 Area of PROFIT Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 52 The payback period method, sometimes referred to as “payoff”, provides a rudimentary Measurement for appraising an investment. It’s simply estimates the time required to recover the initial investment out of the expected earnings from the investment before any allowance for 1000000 FARM 9 FARM 10 78750 68850 101250 87100 FARM 9 FARM 10 327500 235000 226250 147900
  57. 57. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries Where , T= the payback period (number of years) C=initial investment cost E=average annual profit expected from the investment before depreciation The major limitation of this method are that it does not account for profit realised after the capital recovery period and it fails to consider the timing of expenditures and incomes. Subsequently, this method does not measure the profitability of an investment nor does it provide a correct measure for ranking it among other investment projects. Figure: 7 According to Fig. 7, pay Farm 6 had high Pay-back period of 1 i.e., farm 2 is the most feasible and farm 6 is least feasible among others investment and gross profit. 3.53.53.53.5 Break even sales of Brackish water Farms Break-even analysis has been used to assess the economic feasibility of the culture systems along with other indicators like net profit generated, annual fixed cost, and annual operating cost . The rate of return for each culture practice was calculated using the formula FARM 1 FARM 2 FARM 3 P.B.P. 1.26 1.19 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 Time Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil T=(C/E) T= the payback period (number of years) expected from the investment before depreciation The major limitation of this method are that it does not account for profit realised after the capital recovery period and it fails to consider the timing of expenditures and incomes. hod does not measure the profitability of an investment nor does it provide a correct measure for ranking it among other investment projects. Figure: 7. Pay-back period of different farms pay-back period varies between 1.19 and 1.81 year. back period of 1.81 years and farm 2 had lowest pay-back period i.e., farm 2 is the most feasible and farm 6 is least feasible among others. It depends on initial Brackish water Farms even analysis has been used to assess the economic feasibility of the culture systems along with other indicators like net profit generated, annual fixed cost, and annual operating cost . The rate of return for each culture practice was calculated using the formula- RR (%) = [(NR+R)/Ci] x 100 FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 1.24 1.37 1.72 1.81 1.77 1.53 Pay Back Period Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 53 expected from the investment before depreciation The major limitation of this method are that it does not account for profit realised after the capital recovery period and it fails to consider the timing of expenditures and incomes. hod does not measure the profitability of an investment nor does it provide a year. Fig. 7, showed that back period of 1.19 years . It depends on initial even analysis has been used to assess the economic feasibility of the culture systems along with other indicators like net profit generated, annual fixed cost, and annual operating cost . The FARM 8 FARM 9 FARM 10 1.56 1.45
  58. 58. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries where NR is the net profit, Ci is the capital investment and R is the rate of intereston capital investment. (R. SATHIADHAS1, T. M. NAJMUDEEN The break-even sales was calculated using the formula BP = TFC x Total revenue Where, BP is the break-even production and TFC is the total fixed cost. ( M. NAJMUDEEN and SANGEETHA PRATHAP, 2009 Figure: According to Fig. 8, the break even sales are varied in between Rs. 42082 to Rs. 338428 with highest break even sales was having high risk and their profitability will depends on the period by which they will attain the BEP. If takes long time then that will affect the sustainability of the farm in long run. But in case of Farm 10 short run, which influence the long term sustainability. Higher capital investment causes higher depreciation which in turn increases the fixed cost and also the BEP sales. 3.3.3.3.6666 Average Rate of Return of The average annual return of an investment is measured by algebraically computing the ratio of the average annual profits expected after depreciation divided by the project’s initial investment, (Shang Yung C., 1981) Where, R= average annual rate of return E= average annual profit expected after C= initial investment FARM 1 FARM 2 B.E.S. 33842 17508 0 50000 100000 150000 200000 250000 300000 350000 400000 Sales Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil where NR is the net profit, Ci is the capital investment and R is the rate of intereston capital . SATHIADHAS1, T. M. NAJMUDEEN and SANGEETHA PRATHAP, 2009 was calculated using the formula- BP = TFC x Total revenue////( Total revenue - Average variable cost per unit) even production and TFC is the total fixed cost. (R NAJMUDEEN and SANGEETHA PRATHAP, 2009) Figure: 8. Break even sales of different farms break even sales are varied in between Rs. 42082 to Rs. 338428 with highest break even sales was having high risk and their profitability will depends on the period by which they will attain the BEP. If takes long time then that will affect the sustainability of the farm in long run. But in case of Farm 10 break even sales was 42,000/- which can attain very easily in short run, which influence the long term sustainability. Higher capital investment causes higher depreciation which in turn increases the fixed cost and also the BEP sales. Return of Brackish water Farms The average annual return of an investment is measured by algebraically computing the ratio of the average annual profits expected after depreciation divided by the project’s initial investment, R= (E/C) average annual rate of return ected after depreciation FARM FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 17508 17450 15904 78523 26524 77509 90513 Break Even Sales Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 54 where NR is the net profit, Ci is the capital investment and R is the rate of intereston capital and SANGEETHA PRATHAP, 2009) Average variable cost per unit) R. SATHIADHAS1, T. break even sales are varied in between Rs. 42082 to Rs. 338428. Farm 1 with highest break even sales was having high risk and their profitability will depends on the period by which they will attain the BEP. If takes long time then that will affect the sustainability of the which can attain very easily in short run, which influence the long term sustainability. Higher capital investment causes higher The average annual return of an investment is measured by algebraically computing the ratio of the average annual profits expected after depreciation divided by the project’s initial investment, FARM FARM 9 FARM 10 61160 42083
  59. 59. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries Figure: According to Fig.9, Average during the study. In above figure the average rate of return is high in Farm 2 and lower in Farm 6. Due to comparatively higher net profit and moderate difference in capital invest between farm and Farm 2 , average rate of return is higher in the later one. FARM 1 FARM 2 FARM 3 A.R.R. 62.73 68.32 64.65 0 10 20 30 40 50 60 70 80 Average Ratre Of Return Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 9. Average Rate of Return of different farms Average rate of return varies between 40 % to 68% in 10 farm surveyed during the study. In above figure the average rate of return is high in Farm 2 and lower in Farm 6. Due to comparatively higher net profit and moderate difference in capital invest between farm and Farm 2 , average rate of return is higher in the later one. FARM 3 FARM 4 FARM 5 FARM 6 FARM 7 FARM 8 64.65 57.35 43.38 40.51 42.03 50.24 Average Ratre Of Return Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil 55 rate of return varies between 40 % to 68% in 10 farm surveyed during the study. In above figure the average rate of return is high in Farm 2 and lower in Farm 6. Due to comparatively higher net profit and moderate difference in capital invest between farm 1 FARM 9 FARM 10 49.84 54.43
  60. 60. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 56 CCCC HHHH AAAA PPPP TTTT EEEE RRRR 4 CONCLUSION AND RECOMMENDATION
  61. 61. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 57 4.14.14.14.1 Conclution Aquaculture is considered as a profession in different states of india. Kerala is one of the most important contributors with respect to aquaculture economy. Among several districts of Kerala, Ernakulam district is popular for applying different types of aquaculture practices. Within the Ernakulam District Cherai area is very much well known for the brackish water shrimp culture and with very few numbers of fresh water aquaculture. In case of my field study in the cherai area on the topic of Cost and Earnings of brackish water farm in that area I have done a vast level of Farms survey with making a relevant questionnaire which include several issues that the farmers are facing in general basis. As per the cost and earnings on brackish water aquaculture my findings are that it is a profitable business. The farmers are carrying out it is a semi intensive manner. The questionnaire include several cost related and socio status question which include social status, yearly income, size of their culture area, style & pattern of ownership, details of the labours, culture practices, stocking density, pond details, initial investment, capital investment, seed cost, feed cost, annual wages of the labour, and some problem regarding question. Now according my survey maximum number of farm are traditional. They are mainly doing rotational paddy cum prawn-fish culture in a semi intensive process. The maximum culture species is Tiger prawn. And also doing tilapia,mud crab, pearl spot etc. Major problems faced by brackish water aquaculture farmers are unhealthy brood, disease outbreak in brood stock , disease outbreak in prawn seed. Getting finance from any financial institution is big problem for the farmers because the process of getting the finance is someway very complex and lengthy for any farmer. In some cases the financial institution are charging high interest rate which is affecting the cost and earning of the farm. Farmers are not getting a proper skilled training from the research institutions so they are not getting the advantage of latest technology in the sector. Disease is a big problem for the farmers because it damages the complete production of the farm. 4.24.24.24.2 Recomendation Availability of seed issue can be solved by interacting the local and other district level farms to get the steady supply of seed. Farmers must aware of the banking financial schemes before taking the loan.
  62. 62. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 58 Research institute must provide possible and skilled training to the farmers. Maintainance of seed should be done carefully to avoid any disease outbreak in the farm
  63. 63. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 59 CCCC HHHH AAAA PPPP TTTT EEEE RRRR 5 REFERENCES
  64. 64. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 60 Anyanwu, Gabriel, Akinrotimi, Bekibele and Onunkwo: Brackish water aquaculture: a veritable tool for the empowerment of Niger Delta communities Boonchuwong P. (2007) AQUACULTURE ECONOMICS: Review and Analysis Methods at Farm Level, Advanced Freshwater Aquaculture: Aquaculture Economics, Fisheries Economic Division, Fisheries Technology Extension and Development Bureau, Department of Fisheries. C.V. Kurian, V.O. Sebastian(2002), Prawn and Prawn fisheries of India, Hindustan publishing Corporation, New Delhi, India Chuck Adams and Andy Lazur , A Preliminary Assessment of the Costs and Earnings ofCommercial, Small-Scale, Outdoor Pond Culture of Tilapia in Florida Cramer, G.L. and Jensen, C.W. (1988) agricultural economics agribusiness, 4th ed., john wiley and sons, new York, 461 p Dr M.C. Nandeesha is Head of the Department of Aquaculture, College of Fisheries, Central Agricultural University , Aqua asia, vol ix 3 july-sep 2004 FAO,2009 G.Harikumar & G.Rajendran (2007) An Over View of Kerala Fisheries - With Particular Emphasis on Aquaculture, Rice-Fish Culture, Cochin, Kerala, India Kareem, R. O1, Dipeolu, Aromolaran and Akegbejo-Samson: Analysis of technical, allocative and economic efficiency of different pond systems in Ogun state, Nigeria Kathryn White, Brendan O’Neill, and Zdravka Tzankova. : A SeaWeb Aquaculture Clearinghouse report Poulomi Bhattacharya, and K N Ninan , Social cost-benefit analysis of scientific versus traditional shrimp farming: a case study from india, INDIA R. SATHIADHAS, T. M. NAJMUDEEN1 and PRATHAP S.(2009) Break-even Analysis and Profitability of Aquaculture Practices in India, , Central Marine Fisheries Research Institute, Cochin, Kerala, India. S. M. Pillai, Traditional and Improved Traditional Shrimp Farming in the Pokkali Fields of Kerala, Narakkal Research Centre, Central Institute of Brackishwater Aquaculture, Kerala, India Shang, Y.C. (2009) Aquaculture Economics: An Introduction, World Aquaculture societ, 16E. Fraternity Lane, Louisiana State University, Baton Rouge, page-153 Singh RKP., Economics of aquaculture, Daya publishing house,delhi, india. P.143 THE STATE OF WORLD FISHERIES AND AQUACULTURE 2010 Thomson, KT and Berks, F.(2006) “the role of public private cooperation in the management of estuaries in south india” technical report submitted to shastri indo Canadian institute, New Delhi, India
  65. 65. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 61 Varshney R.L. and Maheshwari K.L., managerial economics- texts and problem, sultan chand and sons, new delhi, india SOFIA, 2010
  66. 66. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 62 AAAA nnnn nnnn eeee xxxx uuuu rrrr eeee A QUESTIONNAIRE Used For Survey
  67. 67. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 63 QUESTIONNAIRE USED FOR SURVEY As a part of my dissertation work of M.Sc. IInd semester, i m conducting this survey. This questionnaire is intended to collect data for the research and will be used only for official purpose. Name: Address: Email: Ph. No: (A). Farmer Details: Sex <Male/ Female> Age group Family member Educational qualification Are you the main earner Yearly income Do you have children 25-35( ) 36-45( ) 46-55( ) 56-65( ) 66-75( ) Less than 5( ) 6-8( ) 8-10( ) 10-12( ) >12( ) -less than 10( ) -up to PDC( ) -up to degree( ) -up to PG( ) -professional( ) Y / N Y / N If any other earner is there, then his/her details, Sex <Male/ Female> Age group Educational qualification Yearly income u have children 25-35( ) 36-45( ) 46-55( ) 56-65( ) 66-75( ) -less than 10( ) -up to PDC( ) -up to degree( ) -up to PG( ) -professional( ) Y / N 1. Area :................................ 2. Ownership style : Owned( ) Leased( ) friends & relatives ( ) 3. Ownership pattern: Single ownership( ) Partnership( ) Cooperatives( ) 4. If partnership is there, then no. Of the partner: 1 2-4 5-8 8-10 >10
  68. 68. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 64 5. How long leasing(years): 6. Specify the category u belong: 7. Establish of the farm: ............................ 8. Some details about farm: Related to any fisheries background type of profession Time duration in farming (year) Plot of farming in the same house Yes ( ) No ( ) Full ( ) Part ( ) >1 ( ) 1-5( ) 5- 10( ) More ( )-……… Yes ( ) No ( ) if NO, then distance- >10 k.m. ( ) <10 k.m. ( ) 9. Labours details : Age grp male female <30 30-50 >50 10. Level of management: Extensive ( ) semi-intensive ( ) intensive ( ) 11. Types of pond: FRESH ( ) Brakishwater ( ) Marine ( ) 12. Types of culture: Polyculture ( ) monoculture ( ) pokkali culture ( ) • If in the case of POKKALI practice: Name of FISH/ PRAWN sp.s you culture: >2 years 2-4 years 4-6 years 6-8 years 8-10years <10 years Only farmer Only owner Farmer + Owner Both
  69. 69. Cost and Earnings of Brackish Water farm in Pallipuram Panchayat of Cherai Poyil School of Industrial Fisheries 65 13. Stocking density: <Quantity> Fin fish Shell fish 14. Source of seed: Own( ) Market( ) Nature( ) Other ( ) 15. POND’s DETAILS: Total no. Size Depth type 16. Initial ivestment (Lakhs): >2 2-4 4-6 6-8 8-10 10-12 12-14 14-16 16-18 <20 Types of CAPITAL INVESTMENT: a. Cost of land(Rs.) b. Cost of electricity(Rs.) c. Cost of net sieves .etc.(Rs.) d. Pump costs(Rs.) e. Rent(Rs.) f. Formation of pond dyke, screnning g. Taxation h. Other cost(Rs.) 18. Cost of transportation (Rs.) :...................... 19. Cost of seed (Rs.): Finfish Shell fish 18. Types of feed used and Cost of the feed (Rs.): Natural feed Artificial feed

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