Dr. Prashanta Chandra Panda , Dr. Rasananda Panda and Mr. Robin Infant Raj

India has emerged as the second largest fish producer through aquaculture since 2012 followed by China, according to a report of Food and Agriculture Organization of the United Nations (FAO). In 2012, Indian Ocean {Indian Ocean (Western), Indian Ocean (Eastern), and Indian Ocean (Antarctic)} produced around 11.92 million tonnes of fish by capture in marine fishing areas alone.

“We are seeking a more cooperative and integrated future for the region through overall development of the ocean or blue economy. This would promote increased cooperation in trade, tourism and investment, infrastructure development, marine science and technology, sustainable fisheries and protection of marine environment.” Union Minister of External Affairs Smt. Sushma Swaraj reflected this in the proceedings of the International Conference on “India & the Indian Ocean: Renewing the Maritime Trade & Civilisational Linkages.

Leading Countries in Terms of Fish Capture and Production

India’s fishing industry has witnessed a remarkable growth of late. Among the leading countries China, India and Indonesia show 42%, 50% and 61%  rise in production and capture over a decade from 2002-11.India has about 8118 kilometers of coastal areas. Stretching from Gujarat in the West to West Bengal in the East, it has. Around 17% of our population lives in these 73 coastal districts. The area is important for production and capture of inland fish as well as from sea. It is contributing to the local economy and to the nutritional requirement of the country.

India contributes 5.32 percent of total capture of the world in the category of fish, crustaceans, molluscs, etc. Its contribution to GDP has increased from Rs. 27,152 crores (in 2004) to Rs. 41,222 crores (in 2012). The money value of aquaculture production of fish during the year 2012 is nearly 9.24 billion USD. We have nearly 4.8 million tonnes of capture production at present. Fish production in 2013-14 (provisional) is 9.58 million tones of which inland fishing contributes 6.14 million tones. GDP from fisheries is Rs. 78053 crores. We earned Rs. 30213.26 crores (2012-13 at current prices) by exporting 983760 tonnes. Fishing operations provide more than 30 lakh direct and indirect employment. Around 20 lakh direct and indirect jobs  were created in fishing.

It is time for more Inland Fish Production  

We see an interesting change in the scenario as we compare marine fish production with inland fish production. During the fifty year period from 1950-1999, marine fish production was higher as compared to inland fish (brackish water and fresh water) production. In 1950-51 marine fish production was 0.53 million tonnes and inland fish production, which was only 0.21 million tonnes. In 2012-13, we find inland fish production is 5.7 million tonnes which is significantly higher than marine fish production of 3.3 million tonnes.

Looking at the contribution of major Indian states to fish capture and productions we find Andhra Pradesh is way ahead of other states in productions followed closely by West Bengal. The fish capture and production scenario during 2001 to 2013 is shared below.

 We find that during 2001 to 2014 total production has gone up by 242% to 2018420 tonnes. Gujarat, Kerala, Odisha and UP have shown more than 100% rise in the catch and production. There is 115% rise at the all India level. Odisha produced 413790 tonnes of fish in 2013-14. Looking at the marine fish scenario at the all India level rise has been almost 22% against 70% for the inland fish. Andhra Pradesh (140%) and Karnataka at 74% are leading players. Gujarat (6955800 tonnes), Kerala (522310 tonnes), Maharashtra (467460 tonnes) and Tamilnadu (432270 tonnes) are the leading states in productions. Odisha has been producing near 120000 tonnes for the last few years.

Marine Fishing holds its ground

Andhra Pradesh, Gujarat, Maharastra , Karnataka and Tamilnadu show a rise in the marine fish capture and production in the time period 2001-to 2013-14. Other leading states continue with old level of productions.

Inland Fish Production is marching ahead  

We see an interesting change in the scenario as we compare marine fish production with inland fish production. During the fifty year period from 1950-1999, marine fish production was higher as compared to inland fish (brackish water and fresh water) production. In 1950-51 marine fish production was 0.53 million tonnes and inland fish production, which was only 0.21 million tonnes. If we analyse the scenario in 2012-13, we find inland fish production is 5.7 million tonnes which is significantly higher than marine fish production of 3.3 million tonnes. Overall, fish production in the coastal region of India has shown positive growth contributing to the nation’s economic prosperity.  

Relative Prices seem to be Supportive  

Analyzing wholesale prices of marine fish, inland fish alongwith food articles and over all commodities we find that relative rise in the prices inland and marine fish is higher. The producers appear relatively better off on price front. For the overall position we need to know total catch which they are able to sell.

No Seasonal Constraints and Assured Demand

Demand for fish in the next decade is expected to increase due to the awareness about the nutritive value of fish. The existing per capita availability of fish is 6.5 kg and is expected to reach 9.0 kg by 2030. Fishing occupation has no seasonal constraint and is economically more beneficial in comparison. In inland fish production Punjab and Haryana have a maximum yield of 48,000 kg/ha/yr.  Farmers have started preferring adopted pisciculture. Indian Government is also providing good support to the farmers for aquaculture.

Betting on Fishing Industry

Looking at 2012-13 (provisional data), we find that the percentage growth of GDP for fishing industry was 7.1 per cent which was significantly higher than GDP for agriculture which was only 0.9 per cent. Per capita consumption of fish in rural areas between 1993-94 and  2011-12 has increased from 0.18 kg to 0.27 kg per month.  In urban areas per capita consumption of fish has increased from 0.20 kg to 0.25 kg per month. Rural India still relishes more on fish than chicken (0.18 kg). The rise in the domestic demand is a good indication for promoting conservation and investment in this sector. But you get a dismal picture as one finds Budget Estimates (BE) on disaggregated expenditure in fisheries sector for the year 2013-14 and 2014-15 are Rs. 317 crores and Rs. 422.56 crores respectively.

Harnessing Through Coastal Tourism

Another way for harnessing the potential of blue economy is through coastal tourism. Coastal tourism is a fast growing recreational activity earnings reaching up to 10.6 billion USD (Down To Earth, 2014). As per India Tourism Statistics, in 2013, the number of foreign tourist arrivals (FTAs) is 6.97 million at an annual growth rate of 5.9 per cent. Whereas, number of domestic tourist visits is 1145 million at an annual growth rate of 9.6 per cent.

For the year 2013, India’s foreign exchange earnings from tourism are Rs. 107671 crores at an annual growth rate of 14 per cent. Share of 6 coastal states in number of domestic tourist visits is 55 per cent, Tamil Nadu leading with 21.3 per cent of total share. Likewise, in number of foreign tourist arrivals, the share of 6 coastal states is 57 per cent, Maharashtra leading with 20.8 per cent of total share. For instance, in 2014, Kerala amounted to Rs. 6398.93 crores as foreign exchange earnings, and total income produced from tourism (of both direct and indirect activities) amounts to Rs. 24885.44 crores. Notably, coastal districts of Kerala received 81.5 per cent of overall tourists (both domestic and foreign) in 2014, which means to say that there is a tremendous potential and opportunity for blue economy to flourish with right measures (Kerala Tourism, 2013).

Providing Coastal Structures to safeguard it

For the improvement of economic development, and to avoid dangers from natural hazards such as tsunami and earthquake, and sea level rise from global warming, human settlements near the coastal areas are provided with coastal structures such as seawalls, revetment, groyne, breakwater, piers, jetties and trestles, bridges and elevated roads, and marine outfalls and pipelines.

Co-operative and Competitive Federalism with States

The Union Budget 2015-16 emphasized on the liberalization of foreign direct investment (FDI), especially in infrastructure projects. Apart from this, the proposed approach towards cooperative as well as competitive federalism will enable the states to identify and execute development projects that are prioritized as per the local demands and need. From FY16, States’ resources availability will be considerably higher with the proposal of gross tax revenue to states being increased from 32 per cent to 42 per cent. In order to facilitate the trade and improve on the sustained growth of blue economy investment opportunities are to be opened up in the fishery sector through specific ports pertaining to marine products.  At present, the basic custom duty for fish is 30 per cent and there is no bound duty that means a WTO member can increase the customs duty on its unbound tariffs to any level.

Challenges:  

Indian Ocean and other wide spread fishing areas of our country confronts certain difficulties in doing usual business. For instance, over fishing/unsustainable fishing practices could lead to depletion of resources thereby removing livelihood opportunities for communities of such specific sites.

Likewise, the challenges that a blue economy would and at the moment facing, are pollution, loss of habitat and bio-diversity, pirates, crime and climate change- apart from the broad geo-political issues. According to IPCC’s (Intergovernmental Panel on Climate Change) report on climate change, “India is the 13^th most vulnerable country to climate change” (Down To Earth, 2015). Dakshina Kannada and Udupi districts of Karnataka have reported 28 per cent of their coasts eroded due to sea level rise. In another instance, Andhra Pradesh coastal areas have seen reduction of fish catch. Additional sea level rise of 1 metre, which is a likely impact of climate change, would displace 7.1 million people in India, which is a critical issue that needs to be given attention in order to have a sustainable economic growth and development in the fisheries sector.

Sewage pollution continues to be a major issue for India, especially in coastal areas, generating 4067 million litres of domestic sewage a day; 80 per cent being carried in to the sea (Down To Earth, 2014) and thereby killing the fish and other marine products and thus reducing the market potential. The issues pertaining to fishermen in the international waterlines especially with our neighboring countries are also acting as a dis-incentive towards the fishing sector.

Conclusion:

Central Marine Fisheries Research Institute (CMFRI) estimates has shown that, in India, for the year 2014, total marine landings is 3.59 million tonnes, which is a 5 per cent decline when compared to 3.78 million tonnes for the year 2013 (Nambudiri, 2015). To conclude, there is a plenty of scope for improvement in the Indian fishery sector such as technological innovations, infrastructure projects, opening up opportunities for research & development by collaboration with established academic institutions, effective governance in tackling issues such as pollution, illegal trade and sea-bed mining, etc.

It is being further emphasized to re-establishing lost linkages between academics, think tanks, government functionaries to facilitate international trade and maritime activities in the Indian Ocean region. Being one of the largest and prominent producers of fish by capture and aquaculture in the world, India, should take steps to strengthen its ties with other countries in international trade and strive for surpassing China, and become the eminent contributor in blue economy.

[Dr. Prashanta Ch. Panda and Dr. Rasananda Panda are faculty in economics, and Mr. Robin Infant Raj is Research Associate at MICA, Ahmedabad.

References:. Down To Earth , https://www.keralatourism.org, http://indiabudget.nic.in,  Yearbook of Fishery Statistics. (2015), http://epaperbeta.timesofindia.com/Article.aspx?eid=31805&articlexml=Fish-catch-across-India-drops-by-5-fewer-03052015008055