Ot > 25091

1. Objective of the Study. The tsunami, which struck the Tamil Nadu coast on 26th January 2004, had the greatest impact on the lives of the fishing community living in the coastal districts. It was quite evident that the marine fisher folk had been affected more than any other community, having suffered losses of life as well as the means to their livelihood. It was only natural that the relief efforts were mostly targeted towards bringing some sort of restoration to the lives of this community. However there were communities whose livelihood hinged on marine fishing activities, which were equally affected in terms of loss of earnings. The inland fishing community was one of them. It was not as though the livelihood of the inland fishing community was destroyed by the Tsunami alone. There were a number of factors, which led to a steady decline in the daily earnings and the Tsunami brought things to a head. Although new to the area, LEAD was quick to recognize this state of affairs. Work started with the distribution of relief. The realization soon came that the community would need much more than relief to get back to its earlier state. The marine fishermen started their operations once boats and nets were given to them. However the inland fishing community was still left behind. It was then that LEAD decided move forward from relief operations to organizing the community around their traditional occupation – fishing. Cuddalore district has a large number of estuaries, lakes and backwaters in which inland fishing is done. The initial idea was to form a collective institution - which could either be a cooperative or a producer company- so as to provide the community with the much-needed economies of scale in order to market their produce. Towards this end, a supply chain and value chain analysis was necessary so as to spot the opportunities in marketing the fish. 2. Background for the Study Before the study began, a one weeklong fieldwork was done to acquaint myself with the inland fishing villages. This also helped me in familiarizing myself with the language for the more crucial studies, which would follow. Fish landing sites and markets were also visited so as to have a first hand glimpse of the way business was done. 1

It was thought wise to draw in on the experience of Mr.Vivekanandan who had more than 20 years experience with him in organizing marine fishermen cooperatives. The discussion with him in the NCRC( NGO Coordination and Resource Center) in Nagapattinam resulted in the checklist for collecting data(exhibit ). The major issues to be covered are (i)

Spatial mapping of inland fishing sites , species, seasonality, technology

(ii)

Patterns in division of labour and share of produce,

(iii)

Changes over time.

(iv)

Community and sociological details and inter generational perceptions

(v)

Access to technology, markets and potential for increasing value

(vi)

Public systems / infrastructure and Government schemes

3. Systems Framework The nature of the commodity under study is similar to many agri-business commodities, as far as the questions of perishability of the commodity and the sustainable use of resources for production are concerned. One major point of difference could be in the political economy of the trade. Mr.Anantanarayana Sharma of the Centre for Action Research and Training(CART, Madurai), an alumnus of IRMA, suggested that it would be apt to apply the systems perspective to the study. Using a systems perspective, the inland fishing political economy can be depicted in the following Venn diagram. CONTEXT OF PHYSICAL ECOLOGY OF CORAMANDEL COAST + BEHAVIOUR OF INLAND FISHING COMMUNITIES + OTHER COMMODITY SUBSYSTEMS (Marine, aquaculture, poultry, etc)

Production Sub- ProductionExchange and System manufacturing Sub-System

Consumption Sub-Systems

Feedback

Consumer demand, price movements, related market movements 2

The “universe” would be the physical ecology, and the sociological/ community context, in which the agri business system would be embedded – as also the price and market movements, which would be determined by other sub systems Using the above systems framework the checklist was reclassified into four main sections I) Contextual ii) Production systems iii) Exchange and Manufacturing iv) Consumption The study was also phased into four parts in tandem with the sections mentioned above 4. PHASING THE STUDY Using the above “systems framework”, we can phase the study as under – Phase one – Inventory of all inland fishing households in Cuddalore, (possibility of adding Pondicherry and Karaikal also) Phase two - Focus group discussions to elicit community and sociological details of contextual importance and in understanding division of labour, and sharing of produce in the production sub system. Phase three – Study of landing spots, fish markets, to get an understanding of market exchange mechanisms and get leads about the other commodity sub systems to which inland fish markets are linked. Phase four – Study of the consumption units – subsistence level households, wholesalers, value adding manufacturing units (for feed, bonemeal, oil, pickling, etc) and get some idea of retail export markets (Kerala towns like Ernakulam ,

Bangalore,

Chennai, Pondicherry, etc).

3

5. Methodology Adopted 5.1 Identification of fishing villages – The identification of inland fishing villages in Cuddalore District was done with the help of Mrs.Malathi , a gender activist and writer. She belongs to the inland fishing community known as the Parvatharajakulam 5.2 A questionnaire survey was administered in every inland fishing village identified to get an inventory of the total number of households engaged in inland fishing. (exhibit 1). Village animators would administer the survey. Boys and girls, who were willing to go from door to door to administer the survey, were appointed as animators for the survey. They would also be paid a small amount per format to build in responsibility for the data collected. The data was crosschecked for veracity as well as for accuracy in capturing the details before the payment was made. This was done by selecting randomly 5% of the formats or 5 formats (whichever was greater) from each village and crosschecking it in the presence of the animator who had done the survey. The survey was administered in 20 villages including 5 in Pondicherry. In 5 of these villages data was found to be not upto the mark. It was again administered in some villages, whereas in others, the response towards a second survey was not encouraging. Finally we ended up with 15 villages for which data was verified and found to be good. The data entry of these 15 villages formed the next step. 5.3 The next step involved a simple analysis of the data collected. This formed the basis for which Focus Group Discussions (FGDs) were held. The criterion for choosing a village in which the FGD was to be conducted was i)

The village was representative of a group of villages with access to a particular water body.

ii)

The markets for this group of villages were a separate one.

iii)

The village selected had the most number of people who were dependent on inland fishing, either as fishermen or as women selling fish. 4

Five FGDs were conducted including one in Pondicherry. The discussions were held with groups of 5-6 people. FGDs were held separately with men and women. (Exhibit 2 – FGD in Parangipettai) 5.4 A study of the markets and landing spots in and around Cuddalore town was done. The earlier step gave clear indications that the study could be confined to the local markets alone. The table given in the next page shows the data collected from the fishing villages.

5

Sl Sl No no 12 113 14 15 2

Village Village

Area Area

No of Fish Type of craft used No of Fish Type of Fishermen Vendors Fishermen vendors used Villianur Pondicherry 17 39 C B Puranankuppam 18 Agaram Pudupettai Pondicherry Parangipettai11 47 31 0 0 Veerampattinam Pondicherry 42 24 Sivanarpuram Pondicherry 20 19 9 0 0 Ariyanattu East Parangipettai 88 66 9 9

Waterbody inwhich craft Waterbody in which fishing is done fishing is done Sangarabarani T Sunnambaru 27 Vellar estuary and Uppanaru the sea Mallatar 31 Vellar estuary and

3

Street Sivananpadavar

Parangipettai

41

39

1

0

20

the sea Vellar

4

Street, agaram Shanmuga

Parangipettai

47

0

16

0

22

Vellar and Sea

5

Nagar(Irulas) Kullanchavady

Kurinjipadi

35

41

33

0

0

Perumal eri,Uppanaar Veeranam, Vazhudalampetti eri Vellarikulam Pooraiyarkuttai Ambalavanampetti

6

Pethanayakankuppa

Kurinjipadi

10

23

4

0

0

m

kuttai Perunal eri Paratai Eri Minari

42

9

13

5

1

Paravanaru Uppanaru

Cuddalore

35

39

23

0

0

Thenpennaiyaru

Kuppankulam north

Municipality Cuddalore

40

61

25

0

0

Gadilam and sea

Kinjampettai

Municipality Cuddalore

84

53

73

0

3

Paravanaaru

Chinnaveerampattin

O.T. Pondicherry

52

46

37

0

0

Sunnamparu

7

Vellalar

8

Nochikadu(Irulas) Kundu Uppalavadi

9 10 11

Nagar, Thyagavalli

am

6

Villages in which FGDs were conducted 1) Kinjampettai – Cuddalore OT 2) Kullanchavady – Kurinjipadi 3) Aryanattu East Street - Parangipettai 4) Kundu Uppalavadi – Cuddalore Municipality 5) Chinnaveerampattinam - Pondicherry 6. Nature of the Market i) Geographical spread - The market for inland fish seems to be a very local one as can be seen from the rudimentary supply chains in place This is mostly due to the limited quantity of fish available for sale. The fish catch has been dwindling over the years due to many reasons including a sharp drop in the water level in the estuaries and lakes. Pollution from the SIPCOT industrial estate is another major factor. The tsunami compounded the situation as the mouth of the estuaries was closed, affecting the migratory patterns of fish as well as the water level in the estuaries. ii) Competition – Competition from marine fish is a major factor affecting the prices, markets being the same for both. As opposed to places in Kerala where there is a separate demand for inland fish, inland fisheries in Cuddalore enjoy no such advantage. When marine fish is available in plenty the price of inland fish comes down. iii) Fluctuations in Demand and Supply – Supply of inland fish is fairly constant in terms of quantity even though there are wide fluctuations in terms of the species caught. Even in the rough season (from Oct to Dec) the inland fishing activity is not disturbed. At best the disruption may be for a period of 10 days in a year. However the demand shows a lot of variation. On Sundays, Saturdays and Wednesdays, the demand picks up. It falls to its lowest on Fridays when many people desist from eating fish due to religious

7

reasons. During the months of Purattasi, Aadi, Margazhi, Karthika (period from Sept to December) the demand falls further. This is also related to religious reasons. 7. Supply Chain for Inland Fish Species There are many species of brackish water fish found in the estuaries and rivers of Cuddalore. Many species have a wide range of tolerance to temperature and salinity. They ascend brackish waters, channels and estuaries where they grow rapidly. For spawning purposes most of the species have to go back to the sea. Hence seasonality plays a major factor in the inland fish capture with many species being available only during certain months in the year. From the focus group discussions in the villages as well as visual observation in the markets, it emerged that many of the species were insignificant in terms of the quantity captured. They are available only during certain months in the year. All this made the supply chain for the fish a very short one, with the consumption being in the local markets alone. Processing and value addition was either totally absent or done on a very small scale. 7.1 Supply Chain for Local Markets i) Producer

Auctioning Agent

Retailer

Consumer

a) The producer in most cases would be a fisherman whose wife is not in the fish retailing business. Either the fisherman or his wife takes his catch to the market and sells it to an auctioning agent who auctions the fish for him. After taking her cut, the agent gives him the money for his catch. The market for this type of transaction exists mainly in the Cuddaalore O.T(Old Town)market and in Manjakuppam. The auctioning agents in the Cuddalore O.T. market were found to be mostly women, underlining the dominance of women in the inland fish marketing business. The retailers include those women from the inland fishing community whose husbands may not have managed to net a good catch.

Some women sell the fish in the main markets

(Manjakupppam and Cuddalore O.T.) themselves. These women belong to the villages near Cuddalore O.T. Others coming from relatively far-off places in Cuddalore

8

Municipality and Kurinjipadi block take the fish to their villages and sell them in the local markets. An interesting deviation can be seen in places like Parangipettai where the producer himself plays the role of the auctioning agent. The fishermen who go fishing in Kannanthonis auction the catch and divide the proceeds amongst themselves. This might result in situations where the wife has to buy her husband’s catch in the auction, since the proceeds have to be shared between the two persons who have netted the catch. ii) Producer

Retailer

Consumer

This is the simplest chain that exists. Production and marketing functions remain within the household itself. The wife sells the fish caught by the husband. This results in greater margins, as there are no costs involved in procuring fish. As far as the fish varieties available in smaller quantities are concerned these are the only market chains that could be viewed. The concept of a wholesale merchant or a commission agent does not exist at present, as the volumes are insufficient to achieve the economies of scale that attracts such players to the market. Another reason is that the landing sites for inland fish are spread over a very large area. This makes the operations that much more complex. In contrast, there is one landing site for marine fish from where the supply chain can start functioning immediately after the fish is landed 7.2 Supply chain for Eral (Prawn) Smaller varieties of prawns have the same supply chain as has been described above. However once the count (the number of prawns in a kilogram) increases, the entire supply chain changes. i) Producer

Commission agent

Processing company

Sold in retail

in other cities ii) Producer agency

Commission Agent

Processing company

Exporting

Consumers in foreign countries

9

The commission agent buys Erals, which have a count of 50 or lesser, from the producers at Rs170 per kg. The processing company cleans the prawn and removes the head. One kg of whole eral reduces to 750gms once the head is removed. This is then sold at Rs250 per kg to the export companies, which are situated in Tuticorin and Chennai. Since the weight has come down, the effective increase in price after processing Considering 25 % loss in weight, to get 1kg of headless prawn, one needs to start with 4/3 kg of the whole prawn. This would cost Rs170*4/3 = Rs227. Hence the profit that the processing companies make per kg of prawn after paying the agent’s fees would be about Rs15-20 per kg. The local offices of the export companies make all arrangements for transport of the fish 8. Value Chain of Eral Prawn The value chain of prawn, as given below would apply only if the count is 50 or lesser than that. For having a count of 50 each prawn will have to weigh 20grams. Anything below that and the value chain ends right at the domestic market customer

Rs237

Rs 227 Producer Rs250

Commission agent

Processing Company

Export Company The prices for the above value chain has been adjusted so as to make comparisons across the chain for 1 kg of headless prawn

9. Why the supply chain ends in the local markets. The FGDs conducted in the villages as well as the market study provided clear indicators that beyond home consumption and retail sale, the other options of realizing greater value for the fish through imparting time and place utility was not very promising. There was not enough quantity of fish being captured to make transporting them to urban markets feasible. The factors, which led to this conclusion, were 10

i)

The women from the inland fishing community who were in the fish retailing business said that sixty percent of their basket of fish is marine fish. It is quite evident that the greatest margins lie when they sell inland fish as they sell the fish caught by their husbands. In this case all the money flows into the family. They said that only reason which forces them to have 60% of their basket filled with marine fish is simply the non-availability of inland fish

ii)

A visual inspection of the estuaries in Cuddalore was enough to reveal the alarmingly low levels of water in them. With water becoming scarce, fish was also hard to come by.

iii)

Even in those places where the quantity remained the same through the years, the pressure of the increased population placed greater demands for consumption within the community itself. There was little fish left to sell in the markets.

iv)

Visits to the Cuddalore O.T. Market over the last two months revealed that amount of trade in inland fish as compared

to that in marine fish was

negligible iv)

The fact that no private trader was interested in sending the inland fish to urban

markets like Bangalore or Cochin said that the economies of scale

were not there. The madavai(mullets) fish used to be sent to Bangalore when it was available in plenty. 5-6 boxes of the fish were sent, along with other marine fish. On its own the quantities were not sufficient 10. Incorporating Marine fish into the Picture The patterns of fish marketing revealed that marine fish had become an integral part of the livelihoods of the inland fishing community. Women bring in Rs50 – Rs100 per day from the sales of fish. Out of this more than 60% of the sales comprised that of marine fish. This was one of the main reasons why the inland fishing community was equally hard hit by the tsunami. The marine fishing operations came to a standstill, affecting them as well. Hence any form of collective –either a producer company or a cooperative- wishing to create greater value for its patrons has to include marine fish within its purview .

11

Towards this end a small study of the marine fish market with a view to understanding the position of inland fisherwomen in the chain was done. 11. Supply chain for marine fish in the context of its sale by inland fisherwomen i) Producer

Commission Agent

SHGs

Consumer

The producer here would mean the owner of the launches, which bring in their catch from the sea. The landing spot is at the Sonankuppam Landing site in Cuddalore O.T. The commission agent takes the fish from the launch owner. He acts as an agent for the wholesale trader who might already have paid an advance to the boat owner for the catch. The fish is either auctioned at the site or sold on kilogram basis. The smaller fish are usually auctioned, the bigger ones being sold on a rate per kilogram basis. Fisherwomen from places in and around Cuddalore take part in the auction. This is the mode of purchase of marine fish by the inland fisherwomen from villages near the landing site. Since the trade takes place very early in the morning (5:00 am), those women from the far-off villages do not take part in the auctions. The women from interior fishing villages also procure fish in the same away except for the fact that the fish is auctioned at the Cuddalore O.T. market and not at the landing site. 12. Possible Alternatives for enhancing the livelihoods of Inland Fisherwomen The present predicament of the inland fishing community can be traced to the dwindling quantity of inland fish in the brackish water bodies in Cuddalore. The FGD in Kullanchavady village revealed that from this year onwards the fishermen in the village had started migrating to Veeranam tank, paying a license fee to the government. In addition they had to rent a catamaran in Veeranam and pay for living expenses there as well. This was a strong indicator of the pressure that the increasing population of the community had placed on a resource whose production was at best static. The strategy for tackling the issues could include

12

i)

Helping the fisherwomen to get credit which is convenient and at reasonable rates, for their business

ii)

Achieving economies of scale in procuring marine fish

iii)

Adding value to the fish caught

iv)

Increasing the production of fish

12.1 Need for credit systems A timeline study revealed that out of a 10 kg basket of fish bought each day, almost the entire lot used to consist of inland fish, around 10 years back. At present 6-7 kgs is marine fish with the rest being inland fish. This shift in the trade from selling the fish caught by their husbands to selling fish caught by marine fishermen has led to the need for credit. The salient features of the existing systems are •

The women buy fish for about Rs500-Rs700 per day on an average

•

This can go down to Rs200-Rs300 on Fridays and other days when it is difficult to sell off the fish

•

For women from villages near the Cuddalore harbour, interest is easier and cheaper at the rate of one rupee per Rs100 per day. This was a popular system of credit. Women would take credit and pay it back the next day with interest. The debt burden would not remain beyond the day.

•

Credit is also extended to the women by the traders at the OT Market who take Rs5 as interest for every Rs100. The money usually has to be returned the very next day along with the interest

•

Other forms of credit include giving the fish auctioned to the women on credit after taking away a little part of it. This serves as the interest for the trader.

12.2 Providing Credit for Fish Trade From the FGDs it merged that the best deal that they could in terms of interest on the loan taken was Rs1 per Rs100 per day. This works out to 30% per day. This was a popular form of credit among women because it is available on demand and the credit burden would get over the next day. Traders in the market were also extending credit 13

at the rate of Rs5 for every Rs100 per day. Although quite popular these credit systems have the drawback that it prevents the women from buying more expensive varities of fish. It is common knowledge that these varieties fetch a higher margin. However the risk involved is also higher, especially during the rainy season. If the women were to buy more expensive varieties and selling it off was not possible, the loss would be total. The cloudy sky does not allow the fish to be dried and sold as Karuvadu. They would not be able to pay back the loan the next day. The credit system does not allow them enough leeway to take sensible risks of buying higher value fish. The need would be to extend loans to the women when they need it the most. The SHGs could undertake to extend loans to the women on Saturday evenings so that they can make use of the opportunity on Sundays. The women should not be deterred from buying quality fish due to the fear of ending up with unsold fish and a quick piling debt burden. Assessment of the Credit Requirement Total no of women selling fish (15 villages)- 452 Assuming 80% go for vending on a particular day total number – 361 Credit required ranges from Rs200 to Rs500 This would be required only on Saturdays, Sundays and Wednesdays(sales are good) Upper range of credit required per day = 361 * 500 = Rs180500 Lower range of credit required per day = 361 * 200 = Rs 72200 Assuming that the SHG collects the loan amount within a one week period Revolving amount required (upper side) = 180500 *3 = Rs 541500 Revolving amount required (lower side) = 72200 * 3 = Rs 216600 12.3Pooling money for procuring fish The practice of pooling money together to get a better bargain from the auctioneer is not a new concept for the women. Four or five women get together and buy fish for around Rs2000. This allows them to drive a better bargain with the trader. The collective of fisherwomen could pool money together and enjoy higher economies of scale. This can 14

be done through the SHGs that already exist. The problems that could arise in this sort of a pooling is that if the demand calculations go wrong the SHG could find itself stuck with a lot of unsold fish. Here the concepts of a simple supply chain can be brought in 12.3 Strategy for the Supply Chain The supply chain would be as under Producer

Auctioning Agent(

purchase by SHG

Sonankuppam

Sonankuppam

Consumer (Cuddalore O.T,

manjakuppam ,Panruti The commodity under study, inland fish, has a low demand uncertainty. This is because the days on which people refrain from eating fish as well as the months in which fish consumption drops are already well known. Since aggregate forecasts (in this case aggregation of demand takes place because the demand is calculated for a 20 women group) more accurate, the uncertainty in demand is further reduced. The strategy that can be employed for this sort of a supply chain would be a simple push strategy. The commodity is characterized by low demand uncertainty and important economies of scale. The demand calculation can be taken care of by women who have been in the fish retailing business for a long time. The economies of scale, in procurement as well as in distribution, can be achieved by pooling of purchase and using hired transport for the members of the self help group.

A simple model for the supply chain model could be as below.

Function

Location

Equipment +

Inventory

Transport

Facilities 15

Procurement

Hired

3

of

wheeler

to

Raw

carry

the

Materials

women

and

Process

Landing Sites

None

to Cuddalore

O.T, Ice

None

to

add

Manjakuppam,

purchased

value(transpo

Panruti,

Cuddalore

rtation

to Villages Cuddalore district

markets) Distribution

Fish

markets

end House

customers

in carrying 10kgs = wheeler 100kgs

in O.T

retail

to

their baskets be 10 women each Hired 3

to

(private) + None

to

drop

the

women

and

their baskets at None

house

vending

retail markets Public transport return home

This supply chain model assumes that no fish remains unsold before the end of the day The advantage of this over the traditional individual model is i)

Reaching the auction site at the time of landing of the launches( 5:00 a.m), thereby getting fresh fish at lower prices

ii)

Pooling of purchase can ensure better bargaining power.

iii)

Savings on time, effort and transport costs through hiring of 3 wheeler.

For cost economics to be worked out the following data has to be collected i)

Hiring charges for three wheeler

ii)

Differences between purchase prices at landing spots and wholesale market (Cuddalore O.T.) where it is presently purchased

This supply chain can be made more value adding by providing for a community solar drying facility (a 60kg solar dryer taking 5 hrs costs Rs150,000). This facility can be used by a few SHGs, who are pooling their purchase. Fish which remains unsold by 5 pm (12 hrs after purchase) can be dropped at the solar drying center. An icebox for say 100kgs would be needed to keep fish from going stale. These would be dried the next day by a couple of members of the SHG themselves. This is a safety 16

to

net to prevent losses in pooled purchases. The technology exists – a model unit of the dryer is in operation near the Cuddalore District Fisheries Office. Similarly for the cost economics the following data need to be collected i)

Cost of electricity for a drying cycle

ii)

Cost of salary for an operator (for simple maintenance and watch and ward)

iii)

Markets and retail price for dried fish.

iv)

The cost of manual drying (which takes four days) as against the solar dryer.

12.4 Value addition to the Existing Product At the moment the post harvest processing done on inland fisheries is confined to the drying of fish. This can also be termed as value addition since it converts fish, which would have gone stale and worthless into palatable products. This is resorted to only when the fish cannot be sold off fresh as dried fish fetches a price much below that of fresh fish. In the absence of electric dryers, this operation is severely affected during the rainy seasons when the sky remains overcast with clouds. The main advantages of going in for making products like pickles is that i)

The know-how can be easily imparted to the women

ii)

The initial investment required is within their reach

iii)

The post-harvest losses can be reduced to a large extent

iv)

Brings time, form and place utility to a highly perishable commodity

Profile of an SHG making processed fish products in an inland fishing village in Cuddalore The Sri Nagamma SHG in Gundu Uppalavadi started operations in January 2005. The group has 20 members. They were trained in the technology by the fiasheries department.

17

Products i) Fish Pickles – From Madavai, Keluthi, Palakendai, Odankanni and Ora 50 gm packet is sold for Rs10. The pickle has a shelf life of six months. The major advantage of pickling is that low value fishes like Palakendai which are obtained in large numbers during the season can be pickled, thus increasing their value. One kg of fish yields about 1 kg of pickle. Even Silepi fish, which fetches lesser price because of its characteristic odour can be converted into a value added product if the outer skin is removed and pickling done as per the required procedure. The major ingredient for pickling is oil, of which 600gms is required for the manufacture of 1kg of pickle. The other ingredients include red chili powder, ginger, garlic, vinegar, cummin seed, green chilly, turmeric powder, fennel seed, coriander powder, mustard, asafoetida, and preserving agents ii) Eral Pickles (By far the most in demand product) – These are made from 2 types of prawns i) Velutheral – Rs15 for 50gms and ii) Vellaral – Rs20 for 15gms iii) Crab Soup Powder- 2 spoonfuls of powder are sold for Rs3. One spoon makes one tumbler of soup. As per the estimate provided by the members Rs 100 invested in crab soup powder making can fetch Rs150 iv) Sennanguni( a type of eral) idli powder – 1 spoon is sold for Re1. v) Cutlets mostly made from madavai and keluthi are sold for Rs3 per unit. This has a shelf life of 2-3 days. vi) Omappodi vii) Murukku viii) Fish Biscuit ix) Fish Pakoda x) Fish Baji - Mathi Kavala and Palakendai are best suited for fish baji.

18

Operations At present the operations are not very streamlined. When the fish is available in plenty, it is converted into these products. The group has started off with inland fish products being the major part. This can be diversified to take advantage of the price fluctuations for the marine species as well. Equipment The equipments required include i)

grinding utensils

ii)

cooking and frying vessels

iii)

large containers for storing work in process and finished products

iv)

Sealing machine for polythene packs (Rs1400)

v)

Weighing machine

At present the group does not have a weighing machine.

Markets The markets for the products are confined to Gundu Uppalavadi and its neighbouring villages. Pickles are sold in small quantities, 50 gm being the largest pack. The concept of selling it in satchets works, says the women, as the people find it easier to pick a small satchet costing less than Rs5 to complement their meals. For the women, this results in a short operating cycle, as the money invested can be got back in a time frame of 2-3 days. Issues in scaling up •

If the venture were to be scaled up, involving the sale of products made by many such groups, identification of the market would be the first requirement. Cuddalore town may not be able to offer the kind of prices that would prompt the women to spent time and effort in converting fish into processed foods. The major market for pickles in South India is Kochi, Bangalore and Mangalore. Cuddalore already sends a large part of its marine fish to these cities through an efficient network run by the private traders. 19

•

Breaking into the urban market in other states requires the products made to be standardized in terms of its weight and quality. Parameters like shelf life will have to be assessed scientifically and clearly mentioned on the packets.

•

Technology from institutions like the Central Food Technological Research Institute (CFTRI) in Mysore can be used to improve the shelf life of the items made.

•

A shorter operating cycle should be at the heart of such community driven enterprises. If women fail to get the money, which they have invested within a short time frame, they would have to resort to selling fresh fish only. The producer company or the cooperative should ideally pay the women for their fish products at the time of procurement itself.

•

Recycling of waste from fish and shrimp processing for production of low-cost protein-rich by-products (one such by-product is used in preparing aquaculture feeds). The coastal regions in Tamil Nadu being one of the biggest producers of shrimps in India, there would be a ready market for such products.

•

Recycling of waste from fish and shrimp processing for production of low-cost protein-rich by-products for chicken feed factories in Namakkal. The poultry industry in Namakkal is one of the biggest in South India.(Exhibit 2- A profile of a chicken feed farm in Namakkal)

•

The big players in the poultry and aquaculture industry require fishmeal in very large quantities. This remains the constraint for exercising the earlier two optionswhether the quantities generated would be sufficient to be recognized as a supplier to these industries?

•

The pickling units could go in for backward integration by pooling money for procuring the fish.

•

The Anna Teresa SHG in Tuticorin can be studied to work out the cost economics of such units. The SHG uses the advanced food processing equipment of the Tuticorin Fisheries College. 12.5 Increasing the Production of Fish

20

Tamil Nadu is one of the leaders in the country in coastal aquaculture. The Coromandel Coast is lined with a number of aquaculture farms, which grow tiger prawn. This variety is known as aquatic gold as 1 kilogram of tiger prawn with a count of 40 can yield upwards of Rs300. Although very profitable, the industry has also left problems in its wake, such as the seeping of salinity into agricultural lands. The regulations governing aquaculture are much more stringent nowadays. Fresh water farming on the other hand is being promoted. Although the returns are not as high as in shrimp culture, fresh water farming can be promoted in farm ponds will have no adverse effect on the farmland. During the course of the study, the inland fishing community in Kullanchavadi related their experience in fish culture in Perumal Yeri done around 10 years back. Although a technical success it was an economic failure due to unforeseen social problems like poaching on the catch – (exhibit 4 fish culture in the Perumal yeri). Instances of some members of the inland fishing community practicing inland fish culture successfully also came to light through the course of the FGDs. The greatest affirmation for the technical feasibility of inland fish culture in this part of Tamil Nadu was the Veeranam and Wellington reservoirs both under the control of the fisheries department. Composite fish culture undertaken in the tanks gave good yields, attracting fishermen from even faraway villages to migrate to Veeranam for catching the fish. Cuddalore district has 106 medium to large lakes and ponds, under the fisheries department. 46 of these are leased out annually to people who practice fish culture. The possibilities of increasing fish production through fish culture seemed to be an idea, which could be worked out. It also seemed logical that the inland fishing community should be the ones to get into fresh water fish culture. Prof M.S.Srinivasan of the Center for Advanced Studies in Marine Biology in Parangipettai said that one of his students, Mr Anandharaj, who had finished his MSc in Coastal Aquaculture from Parangipettai had successfully cultivated fresh water fishes in a leased out pond. The details are as given below 21

Study of a Fish Culture Experiment done by Mr.Anandaraj in Pennadam Village in

Cuddalore District

Mr Anandharaj, an Msc in coastal aquaculture from the Center for Advanced Studies in Marine Biology , Parangipettai attempted fish culture in a leased out pond. He did this immediately after finishing his studies. These are the results of his experiment. A. Farming Details i) Water area of the farm - 5 acres ii) Size of ponds - one of 4 acres and the other of 1 acre. iii) Period of Culture – 7 months iv) Rate of stocking a) Viral 10000 seeds b) Rohu, Katla, Mrigal and Common carp(R,K,M,CC) 55000 seeds v) Survival rate – 80% for the R,K,M,CC and 10% for the viral vi) Average weight of fish at harvest – katla and mrigal –2.5kg rohu and common carp – 1.5kg viral –1kg vii) Yield - 7.5 tonnes from the four acre pond and 1 tonne from the 1 acre pond viii) No of crops per year – 1 ix) Water supply – rainwater Initial investment No initial investments were required as he had taken the pond on lease and not constructed them Operational Costs i)

Cost of taking the pond on lease for a year –

Rs5000

ii)

Cost of pond preparation (weeding) –

Rs2500 22

iii) Cost of manuring(cow dung,chicken manure (reportedly better than cowdung but not available in sufficient quantities) at the rate of 2 tonnes for every hectare –

Rs2500

(For 5 tonnes @ Rs500 per tonne) iv) Transportation costs (3 loads at rs1500 per load)

Rs4500

v) Cost of Seeds a) R,K,M,CC (55000seeds)

Rs47000

b)Viral(1000seeds)

Rs20000

vi) Additional feed(Rice bran and Groundnut oil Cake)

Rs5000

vii) Cost of disease prevention

Rs3000

viii)Cost of harvesting the fish

Rs5000

ix) Petrol costs (for conveyance) TOTAL

Rs5000 97500

C. Fixed Costs i) Salary for employee (for 7 months @ Rs1000 per month) Rs7000 ii) Rent for shed (for 7 months @150 per month

Rs1050

iii) Nets

Rs2500

23

TOTAL

Rs10550

D. Income i) 7.5 tonnes of R,K,M,CC @ Rs30per Kg ii) 1 tonne of viral @ Rs80 per kg -

Rs2,25,000 Rs 80,000

iii) Gross income -

Rs 3,05,000

iv) Total costs

Rs108050

v) Net Profit

Rs196950

Remarks 1) Seed quality decides the survival rate to a large extent, hence it is of great importance 2) Rohu, Mrigal, Katla, Common Carp are resistant to diseases and tolerant to a wide range of temperature, Ph and salinity. However care has to be taken in the culture of Viral 3) Composite fish culture is adopted in the case of Rohu, Katla, Mrigal and CC, but Viral has to be cultivated alone. 4) Viral fish caught the skin erotic disease, which was treated with potassium permanganate (5kgs for 1 acre) 5) The rice bran has to be mixed with groundnut oil cake and made into balls, which are then kept in thattus and fed to the fish. Spraying of the feed results in wastage. 6) Weeding has to be done regularly or otherwise the pond is depleted of its oxygen content. This can affect the growth of the fish

24

Opportunity in fresh water fish culture The opportunity in fresh water fish culture lies in the fact that the fish which is sold at the rate of Rs80 per kilogram of viral and Rs30 per kilogram of R,K,M,CC is sold at Rs130-150 per kg and Rs50 per kg respectively in the retail market. The cost of transportation for viral fish is higher since they have to be transported to the market and sold in live condition. Even after all this, the profits from fish culture would be higher for the community as they would own the entire process from culture to harvesting to retailing of the fish. The profits from Mr.Anandharaj’s venture were staggeringly high because he hit upon the right combination of soil quality, water availability and scientific culture practices. It might still be possible to replicate his success although to a lower extent. The issue of private leasing of a common property resource can lead to problems ranging from voiced opposition to poaching of the catch. Hence watch and ward is an important aspect. Even this problem can be avoided if culture were to be done on ponds dug out on leased out or own land. This would increase the initial investment in terms of construction of the pond and installation of bore wells for water supply. In this case it might take one or two years for breakeven but beyond that the promise of returns year after year seems to be assured. Initial Investment for fish culture on own pond (from the fisheries department

training manual)

1) Construction Pond –4000 m3

= 105000

2) Leet(??)

= 24400

3) Bund construction –4000 m3

= 20400

4) Channels for water to come in and go out

=30000

5)10HP diesel pumpset

=30000

6) Cost of storage shed construction

=15000

7) Equipments for fish culture

= 5000

TOTAL

=224800

25

13.

Conclusion •

The supply chain for inland fish is confined only to the local markets

•

The fish is sold either fresh or in the dried form. Adding value by processing was almost non-existant as there was not much fish left after direct consumption

•

Any initiative to enhance the livelihood of inland fisherwomen should take into account marine fish as well. This was because marine fish formed a major part of the basket sold by the fisherwomen

•

Extending credit to the women could help them buy more expensive fish which yields greater margins

•

The practice of pooling money by women belonging to SHGs can help them fetch better bargains at the auction sites.

•

Simple value addition through pickling and other such methods can convert even low value fish into higher value products.

•

The inland fishing community could take up the production of fish by fresh water fish culture.

26

Annexure Exhibit 1 FORMAT

FOR

HOUSEHOLD

INVENTORY

OF

INLAND

FISHING

HOUSEHOLDS Block

Village

1.Name of village

Household

2. Name of community

Name

Age

Sex

3.Date

Educational Status If adult, kind work done(*)

Sl No

(*)1. Inland fishing

2.Fish Vending

3.Agriculture

4.Labourer

of

Status of children(18 years) out of school/college

5.Others

II Fishing Gear 1. Type of boat

Catamaran

Boat

2.Nets

Thoni

3.Others such as hooks, traps

Others

Present Before Tsunami

III Traditional Fishing Spots Signature of data collector Exhibit 2

Signature of Supervisor

Focus Group Discussion in Salangaikkara Street, Parangipettai

27

Mens’ Group Participants – Bhaktavachalam, Kanakasabha, Nagaraj,Vinayakamurthy, Pitchai,Pakkiri, Kannan I)Production systems 1) Fishing Technology Nets used while fishing in Thonis Name Eral valai

Type Gill net

Selanga or ada Valai(3 nets together) Nandu Valai Meen Valai Eral valai Eral valai Eral valai Eral Valai

Gill Net Gill Net Veesu Valai Veesu Valai Veesu Valai Veesu Valai Veesu Valai

Point Thickness(No) 2sides 30 no Center 10no 50 22 20 18 12

18 10 10 10 10

i)

Thoondi (Size 8 and 9nos)

ii)

Pun - A long string to which smaller strings are attached. These smaller strings have hooks attached to them .The length of the strings ranges from 1.5mts for those used in the sea to 75cms for those used in the river.

iii)

Fishing Craft

a) Kannanthonis •

15 hands long, 2.5hands inner width. Nowadays the boats come coated with fibre

•

A new boat costs Rs 22000

•

Each boat is manned by a two man crew. 28

•

The boats are sourced from Malabar in Kerala

•

Maintenance cost comes toRs100 per boat per year.

•

At present there are 33 kannathonis in the village

b) Catamarans Single man catamarans •

Made of Vathikuchi(matchstick wood) and Aasini and Maamaram

•

Sourced from Malabar in Kerala. The agency is at Killai.

•

Mostly Second hand boats are bought from Samiyarpettai seashore

•

Life of a new catamaran is 10 years whereas that for a secondhand one would b from 2-3 years.

•

New catamaran costs Rs10000 whereas a second hand one would be available from Rs3000 – Rs 5000 depending on the quality of the wood

2) Fish Species Caught Name

of Season

Species Eral(3

Qty in Season(Per Qty in Offseason(per Price ( per kg)

Oct to Dec

day) 80-90

Day) 10-20

Rs 80-90

inches) Eral (Big Oct to Dec

30 kg

-

Rs 150

100kg

Rs

Size) Madavai

All throughout the 100kg year

Small

Size June,July,August

size) Rs 20 small For 100gm

June July August

Crab Keluthi

crabs- Rs60 Oct to Dec

Koduva Big Size crab

40(Big

Oct Nov Dec

100kg

-

Rs10

15 kgs

Rs100-120

15-20 kgs

Rs300 29

3) Nature of Fishing Operations i) Distance of operation •

With Kannanthonis they venture upto 2 kms into the sea.

•

In the river they venture out as far as Bhuvanagiri which is 10 kms away from Parangipettai.

•

During the rainy season(Oct-Dec) they venture towards Bhuvanagiri as there is enough water in the rivers.

•

At other times ,the inland fishing operations take place half a kilometer from the sea.

ii) Nets employed at different times •

During the rainy season, Eral valai, Kenda valai and Nandu valai are employed

•

Vesu valai is employed in daytime

•

At night viduvalai(gill nets) are used.

4) Nature of Ownership and sharing •

The Catamarans as well as the Kannanthonis are mostly single person owned

•

The person owning the Kannanthoni usually calls his acquaintances from the same village and goes for fishing. The catch is shared equally between the owner and his acquaintance.

5) Rules relating to Fish Capture •

For fishing in the Uppanaar, they have to get a license from the Fisheries Dept. The license costs rs4 per month for the veesuavalai and Rs10 per month for the Viduvalai

30

•

From the railway bridge to Bhuvanagiri, there is a lease arrangement. Currently the lease has been bought by the villages of Agaram Pudupetai, Sivananpadavar Street and Ariyanadu Kizhakku Therivu.

II) CONTEXTUAL i) Changes in Species •

Sooda Fish has become very rare

•

Madavai catch has dropped to one quarter of the catch obtained around 15 years back.

•

Paranda fish and Sethakenda fish which were obtained in good numbers 15 years back have become very rare( they are not available even for specimen study by the CAS college Parangipettai, say thwe fishermen)

•

The Mathi fish numbers have increased as more of the fish make its way into the river waters.

ii) Migration Around 10 people migrate to Cuddalore and Pondicherry( for 10-15 days) in a year mostly during the months of karthikai and margazhi. They work as wage labourers in the marine fishing boats. iii) Credit and saving systems •

Cash is handled mostly by the women of the house. It is difficult for men to get loans if not endorsed by the signature of their wives.

•

One source of loan for the men is the fish export companies near the Parangipettai harbour. They avail of loans from these companies and repat the loan with the money earned from the catch. The men said that the companies which gave them the loans bought the fish at market rates( reasonable rates they said) from them in order to collect the loan amount back with interest.

iii) Age of Entry into Fishing 31

The age of entry into fishing is 15 years. The young boys help their fathers in fishing during the early morning hours after which they left for school. Discussion with Women’s Group Participants – Santhanavalli, Anjalakshi, Santara, Selvakanthi and Amruthavalli

i) Role of Women i)

Taking care of expenses for their children’s education and other household expenses

ii)

Marketing of the fish – The fish is bought from the Annankoil market. They take the fish caught by their husbands and also buy fish from the other markets

iii)

The fish caught by their husbands is also bought, in case their husbands have gone fishing in a sharing arrangement wherein the proceeds from the sale of catch is divided between partners.

iv)

The main areas in which the fish is sold are Railadi, Arikishty, Mandapam, Kuthapalayam

v)

On an average they buy fish woth Rs900 on a day. For women together may also buy fish for Rs2000. They earn Rs50- Rs100 per day after all expenses.

ii)

Credit and Saving Systems

Types of Credits 1) On personal trust 2) Pledging Jewellery a) Interest and Recovery •

For a loan amount of Rs1000, they get only Rs880 in hand the rest being interest deducted at source. The rest can be paid in a period of 100 days @ Rs10 per day.

32

•

Effective rate of interest – Since the loan amount of Rs1000 carries an interest of Rs120 for a period of three months this works out to 4% interest per month.

•

The system of Thandal wherein the women borrow money from the lender in the morning and return it in the evening is non-existent in Parangipettai

Exhibit 3 Study of a Chicken Farm in Namakkal Chellam Poultry farm is located on the Trichy Road in Namakkal. It has 200000 chickens. Ingredients of the Chicken Feed 1) Maize, 2) Jowar, 3) Broken Rice, 4) Wheat 5) Ragi 6)DORB Tavidu, 7) S.F. Sunflower, 8) G.V. Oilseed cake 9) Soya, 10) Karal 43.26, 11) R. Seed 12) L.S.P. 13)S.G., 14)F. M. Fish Meal, 15)B. rm Broken Rice, 16)DCP. Out of the 16 ingredients, two are made from fish, karal and fish meal. The main criterion for a fish to qualify for inclusion in the chicken feed is that its protein content should be 33

more than 46 per cent. Any fish which has protein content above this can be used for the purpose, according to the employees at the farm. Form in which fish is procured. Only dried fish is taken by the chicken farm, for conversion into fish meal powder. The fish has to be dried well. If sun dried thoroughly for 4 days, even low-value fish9provided it meets the protein content criterion) can fetch Rs8 per kg. Species of fish procured. At present only sea fish is procured by the chicken feed factories. The main species procured include Karal and Mathi( from Kerala @9.5 per kg), Prespodi(name to be confirmed which is essentially powdered fish bones) and oil mathi(@9.5per kg from many places including Cuddalore. The composition may change according to the season. Fish which is caught in very large numbers during the season and cannot be sold off is converted into the dried from and sold to these farms. Terms under which the fish shall be taken 1) Protein content above 46%( which is verified in testing labs) 2) The price should be at the max Rs9.5 per kg , the price at which dried sea fish is available 3) The fish should be supplied in sufficient quantities. 1000 hens require half a sack of feed per day, which weighs 37.5kg. For the Chellam farm, they would require 200000/1000*37.5 = 7500 kgs per day. However the percentage of fish meal in a sack of chicken feed was not available, hence the exact quantity required has to be worked out. Number of Farms In Namakkal, there are 10 big farms( farms housing more than 1 lakh hens) besides many other small farms. Thus the chicken feed industry in Namakkal is an important destination for dried fish Exhibit 4 Results of a fish culture experiment in Perumal Lake in Cuddalore District I) Expenses Fixed Costs

34

2 TVS 50 Mopeds 10 cycles Battery Lite Nets Kazhi( for catamarans) Catamarans

22,000.00 15,000.00 1,500.00 125,000.00 25,000.00 15,000.00

Total Fixed Costs

203,500.00

Recurring Costs Rohu , Katla and Mrigal(Bought on 18-7-94) Silver, Kendai and Pulkendai(Bought on 18-7-94) Medicines Salary for 12 months Salary for Accountant Salary for Supervisor Pinnakku(fish food) Wages Diesel Expenses Lease for Perumal Lake Expenses for catching fish

125,000.00 184,781.00 5200 120,000.00 48,000.00 48,000.00 18,000.00 30,000.00 50,000.00 12,000.00 34,373.00

Total recurring costs

675,354.00

II ) Returns From selling the fish caught

825,589.00

Contribution towards fixed costs

150,235.00

Remarks Interest expenses not included Area of lake actually fenced out for the fish culture not known

References 1) How relevant is the concept of supply chains in rural areas – and what can community based organizations do with such a concept – Paper presented by

Mr.S.Ananthanarayana Sharma in

workshop on supply chains for community based organizations 2) Simchi-Levi, David , Kaminsky,Philip and Simchi-Levi, Edith 35

( Ed 2004)Designing and Managing the Supply Chain. New Delhi: Tata McGraw-HillPublishing Company Ltd 3) www.cftri.org 4) www.tifac.org.in

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