Sustainable Development of the Marine Economy in : An Assessment

Ramachandra Bhatta Ph. D President, Snehakunja Trust, Honnavar (www.snehakunja.org) and Independent Researcher [email protected] Marine Fisheries One of the richest resources

• India is the world’s second biggest producer of fish (11 million tons/annum), and second most populous country

• The total marine fish landings was 3.56 MMT with an estimated gross value of Rs. 60,881 crore (USD 8.65 billion) and retail value of Rs 92,356 crore (USD 13.1 billion)

• The total extractions, was double the reported marine fish production (Hornby et al 2015) (IUU/discards/by-catch/small scale landings of BLCs were excluded)

• Aiming to increase fish production by around 9% per year High poverty level

• The poverty increased from 61% to 67 % (AP=97%) during 2010-2016 (CMFRI) compared to 30% for national population

• Per capita monthly average income of marine fisher $ 67.00

• The per capita annual fishing income in constant prices (2004- 5) has stagnated around 4.00 lakhs during 2005-2016

• The total fishing population represent around 2% of the total national population in 2016, with only 13% marine fishers (NFDB, 2020). Poverty and Unsustainable Investment in Marine Resources • The estimated landing of low value by-catch (LVB) in trawl fisheries, increased from 14 % in 2008 to 25 % in 2011 and now 35-40% • The landing centre price for LVB showed an increasing trend due to increased demand for trash fish for the production of fish meal/oil/surimi • Declining trend in the edible portion of the trawl landing. • Non edible catch consisted 237 species / groups of marine fauna with juveniles of commercially important fishes

• The share of fish exports in production have increased: – Value:2004- 15% 2018 -60% – Quantity: 2004:5% 2018: 35% – indicating less availability of fish for local communities Components of Sustainable/Unsustainable Investments

• Blue Economy initiatives undermining sustainable marine fisheries

• Shifts in the Utilization

• Increasing marine fish prices with declining share of high value fishes

• Trade offs of Export Promotion with domestic consumption

• Marine pollution and shrinking coastal space for livelihoods The 'Blue Economy' and 'Blue Growth' initiatives Market based Billion INR Share in • Fisheries % • tourism, Provisioning services 381 26 • maritime transport • offshore renewable energy Regulating services (1.7 655 (561 – 44 • aquaculture times of the 756) • seabed extractive activities Provisioning services ) • marine biotechnology and bio- Coastal recreational 453 30 prospecting Services Non market based Total 1.5 trillion • carbon sequestration • coastal protection 1. The estimated mean total coastal and marine • waste disposal ecosystem service value for India (Rs. 1.5 trillion) • biodiversity is approximately 3.1 percent of the Net National Product 2. The value of remaining regulating and support services needs to be valued Shifts in Utilization

• Fishmeal and fish oil industry diverts around 30% (1,1 M. mt) of its officially reported marine catches to feed domestic or foreign aquaculture systems.

• The requirements for surimi exports (11%) and poultry feed would bring the total utilization of marine fish for non-direct consumption to over 50%.

• These sectors supports a multi-billion (USD 3.6 billion) dollar export market as well as large numbers of jobs in the FMFO chain, from trawler to shrimp export Increasing Price mean increasing income? (marine fish price index in India (2004=100) Declining oil sardine as a percentage of total catch Promoting Un-sustainability with Subsidies

• Fuel Subsidy: : 288 crores (USD 22 million) 60% of the fisheries budget: Environmental and social inequity

• Blue Revolution schemes (PMSSY) (Central-State-Beneficiaries 20,000 crores during 2020-25)

• Infrastructure, Research and Development

• Income support: Relief payments and savings schemes

• Improving fisheries management, Marine Ecological Carrying capacity Assessment and reduction of vulnerability No funds

• ICZM, ENCORE, and other international funding agencies Harmful subsidy • Trawl fisheries sector account more than 60% of the marine fisheries production of India. • Out of 60% of the subsidized marine fish 35-40% is being utilized for fish meal/fish oil used for export oriented shrimp aquaculture and surimi etc. • Subsidized marine fish being largely used for either export/ feed reduction used for 75% farmed shrimp also being exported • Carps like rohu and catla – which are less nutritious have become the major species used for domestic consumption • India exports around 96,000 tons of Surimi per year, and it requires 4kg of raw fresh fish to produce 1kg of Surimi. • Subsidizing rich European consumers at the cost of domestic consumers consuming low value marine and freshwater fish which is marginally subsidized. WTO- Harmful Subsidies to be prohibited

• Inverse relationship between fuel and income support. Karnataka spent 188 crores on fuel subsidy but only 4.80 crores on income support. Whereas, Kerala spent 41 crores on fuel and 128 crores on income support in 2019-20

• Fuel subsidies are regressive. Commercial fishing vessels received 25% of their fuel cost as subsidy and only 14% in the case of small scale fishing

• Fuel subsidy per ton was highest in Karnataka (Rs. 3600/ton) compared to Kerala (Rs750/ton) Social Inequality in Returns

Horsepower classification Particulars > 130 hp 91-130 hp 71-90 hp < 70 hp (n=135) (n=86) (n=18) (n=31) Average expenditure in a season for the purchase of 3350902 2125362 1419400 910493 diesel in Rupees (%fuel (24%) (28%) (25%) (15%) subsidy) Average catch per effort in 2055 4066 1338 615 Kg (mean) Average gross return per 37222 38900 6189 5652 effort in Rupees (mean) Total fish harvest in Kg 46310 28059 10000 9836 (mean value) Average return per effort in 18 10 5 9 Rs Proportion of boats reporting fish catches

Horsepower classification Total Varieties > 130 hp 91-130 hp 71-90 hp < 70 hp (n=321) Cuttle fish 48 35 6 8 97 Shrimps 9 11 6 8 34 Squilla 12 5 5 5 27 Mackerel 53 37 3 8 100 Sardine 29 26 1 6 62 Soles 4 6 4 3 17 Scianieds 2 4 2 1 9 Others 78 72 15 24 189 Goal 2-Zero Hunger: Percentage of fish stocks in Karnataka

Source: K Sunil Mohamed 2015. Central Marine Fisheries Research Institute Kochi Migration towards the Coast (1 km from HTL)

Total Population % Growth Rate Population Density Area in District Villages Sq.km 1991- 2001- 1991 2001 2011 1991 2001 2011 2001 2011

211 11 324143 477980 569584 47.46 19.16 1536 2265 2699 DAKSHINA

307 39 196249 206363 222302 5.15 7.72 639 672 724 UDUPI

UTTARA 391 57 174167 283307 324750 62.66 14.63 445 724 830 KANNADA

(Author’s calculation based on National Census data) Goal 3:Good Health and Wellbeing

Per capita fish consumption of coastal districts is19 kg/annum national average 9 kg/annum

Goal No. 5. Gender Equality

Migrant workers SDG 12. Sustainable Production and Consumption

1. Fishing the raw materials (wild fish) that are used for feed; 2. By processing these into fishmeal and fish oil (FMFO); 3. Export-oriented aquaculture production.

Effluent outlets from aquaculture (Gangoli Mangroves, Kundapur) Goal 13 - Climate change -No Insurance

• The minimum temperature may rise by 2c - 4.5c and the maximum temperature is likely to rise by 1 c–3 c.

• Increase in the projected number of cyclonic disturbances with more intensity

• The sea level along the Indian coast has been rising at the rate of about 1.3mm/year on an average

• Climate change risks – vulnerability- social stability – sustainable investment Coastal Vulnerability NO INSURANCE

India has lost 3,829 km, or 45 per cent of the coastline, in just 17 years till 2016 (Central Water Commission 2018) Privatize the coast?? for mega coastal tourism projects BLUE FLAG CERTIFICATION AT PADUBIDRI BEACH

8 beaches of five states and two UTs awarded the “BLUE FLAG” Certification by an International Jury comprising of eminent members viz UNEP, WTO & IUCN PADUBIDRI BEACH BEFORE BLUE FLAG

Fish breeding areas Mangroves

White sandy beach with transparent water quality Grabbing of coastal wetlands by State

Year Extent Land profit( From To Purpose of land Value/ac Rs (acres) re (Rs. /acre In lakhs) 1993-95 986.52 2.62 -- Farmers KIADB Nagarjuna/Jesco) (private company for public purpose??) 2008-09 78 5.625 3.00 KIADB MSEZ Ltd For rehabilitation colony (Public purpose??) 2018-20 3.57 (out 100-115 95.00 KIADB Track construction of 12.5 Railway (Zero acres incremental demand) expenditure) The price of land increased by almost 50 times (200%) 1995-20 2016-17 960 60.00 - Farmers KIADB MRPL-IV phase (public purpose??)

NO-PROFIT NO-LOSS BASIS (Ref: KIADB, Bangalore 2020. Enabling Ease of doing Business in Karnataka Coastal Wetlands for Industrial Expansion Year land area (acres) Utilised for hazardous red category industries 1988 2,024 Land acquired by KIADB for MRPL 1992 400 MRPL sold land to HPCL 2003 1592 Net land available with MRPL 2007 251 Additional 251 acres of MRPL Phase 3 (de-notified from MSEZ)Totalling 1,843 acres 2017 1050 Additional 1050 acres for Phase IV of MRPL 2018 2893 Total land with MRPL for producing 18 MMTA refined petroleum products 2007 1920 KIADB acquired for MSEZ including 324 acres of green belt area 2018 4813 Total area under refineries and related downstream products 2002 986 Land acquired for JESCO company now vests with KIADB 2020 11662 Total land with industries and infrastructure in taluk (excluding urban and rural habitats) Goal 15 - Life on Land

Total mangrove area in 2014 - 152.3 Hectare Total mangrove area in 2004 – 175.0 Hectares Goal 9 - Industry, Innovation & Infrastructure

• The government has identified about 550 projects worth Rs 8 lakh crore to be implemented by 2035.

• Setting up 14 coastal economic zones (CEZs), each housing industrial clusters, ranging from petrochemical, cement, leather to power, electronics and food processing.

• Coastal and port connectivity roads, stretching 2,000 km, under the Bharatmala project of road and national highways are also being planned.

• Improvement of basic infrastructure such as supply of potable water for drinking, fresh water for hand washing and cleaning of auction halls, ETP and Drainages Regulation of Overfishing, Illegal, Unreported And Unregulated Fishing

• India incurs a loss of 150-200 million USD per year due to illegal and unreported fishing (University of British Columbia 2010)

• Foreign vessels illegally fishing in Indian waters.

• Many foreign fishing vessels have duel registration which is illegal under Section 435 of the Merchant Shipping Act 1958. Impacts • Ecologically: Indiscriminate ‘biomass fishing’, converting by- catch into target catch is highly unsustainable in the medium- long run

• Socially: In terms of equity and social justice, viability of small-scale fishers and local fish traders, who are largely outcompeted both at sea (by trawlers) and on land (agents)

• Food security, the industry essentially converts relatively cheap small fish that would have been affordable to poor people, into higher priced fish and shrimp, mainly for rich consumers in export markets. Circular Economy and Marine Carrying Capacity

• In many developing countries globalization impose demands on already stressed resources in order to support high levels of consumption in developed world.

• Countries that are highly dependent on trade are potentially more at risk from resource insecurity of land, water and energy.

• Greater demand for Indian marine products impose stress on marine biodiversity and coastal wetlands.

• During 2015, 62% of untreated sewage and 390 million tons of industrial effluents was released into the aquatic system. • 70% of the total sea transport is ferried through the Indian coastal waters. • Oil pollution in Indian coastline as two main oil tanker routes pass through the Arabian Sea. Some of the policy instruments in the context of coastalTHE WORLDecosystems IS YOUR OYSTER

• Payment for Ecosystem Services (Market for tourism)

• Access and Benefit sharing (Biological Diversity Act))

• Carbon tax (regulatory)

• CDM

• Certification of organic products (MSC/Eco-labeling)

• Green Natural Accounting

• Protected Area entry fee (Wild Life Protection Act)

• REDD and REDD+ THANK YOU