Fl:SF/IND 55 TECHNICAL IHPORT 8

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REPORT PREPARED FOR nn GOVERNMENT OF INDIA IY nn FOOD AND AGR.RCULTURIE ORGANIZATION OF THIE UNITED NATIONS ACTING AS EXECUTING AGENCY FOR nn UNITED NATIONS DEVELOPMENT PROGRAMME

UNITED NATIONS DEVELOPMENT PROGRAMME FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS BANGALORE 1971 PREFACE

The Pre-Investment Survey of Fishing Harbours is being conducted by the Food and Agriculture Organization of the United Nations in co-operation with the Government of India. The Food and Agriculture Organization of the United Nations, on this Project, is acting as the Executing and Participating Agency for the United Nations Develop­ ment Programme.

The Project has its Headquarters at Bangalore, India. This Technical Report constitutes one of a number of reports which will be issued during the course of the UNDP/SF Project. The contents of this Report are based on the work of professional and technical staff provided by the Government of India and the Food and Agriculture Organization of the United Nations.

The conclusions and recommendations given in the Report are those considered appropriate at the time of its preparation. They may be modified in the light of further knowledge gained at subsequent stages of the Project.

The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the United Nations or the Food and Agriculture Organization of the United Nations concerXting the legal or constitution-il status of any country, territory or sea area, or concerning the delimitation of fror:tiers. FAO. Andhra Pradesh - Development of Fishery Harbours prepared by the Pre-Investment Survey of Fishing Harbours Project, India, 43 p. 2 Maps. FI:SF/IND 55 Technical Report 8.

A B S T R A C T

Field and office work for the report was done during the second half of 1970. Investigations were aimed at obtaining a comprehensive review of the nature and extent of development of the fishery industry during the preceding decade. Special emphasis was placed on identifying limiting factors and those parts of the industry which were likely to develop during the next decade.

The investigations showed that development of mechanized fishing during the 1960's was not encouraging. Mechanized boats were dependent upon Government support, financial and other. The number of boats in operation in 1970 was small in relation to the total number built and considering the time elapsed since mechanized boats were first introduced. The eco­ nomics of boat operations were not good in spite of the fact that the boats have access to two ports, and may undertake fishing up to 200 days per season. Freezing or c&nning of fish has not develor-od in Andhra Pradesh.

The main conclusion of investigations was that the deve:i.opment of marine fisheries in Andhra Pradesh does not primarily depend upon expansion of harbour facilities. As, furthermore, the coastline of Andhra PraCiesh lacks natural advantages for constructing harbours, the Report recommends that:-

(a) the performance of thE present fleet be improved (by, for example, better boat n a.intenance, longer fiw1ing how·s, easy

access to proce:•sing and storage facilities~· etc.); and (b) pilot projects ;_n mechanized fishing be laurtched at both Narasapur and Nizampat9J11 to investie;ate the -possibilities of fishing from undisturbed river-mouths, bc:fore any funds arc invested in civil woTks for harbours. TABLE OF CONTENTS

Page No.

Chanter 1 INTRODUCTION 1

Chapter 2 FISHERIES IN ANDHRA PRADESH 2

2.1 Introduction 2 2.2 Inland Fisheries 2 2.2.1 Production 2 2.2.2 Consumption 4

2.3 Traditional Marine Fishing 4 2.4 Mechanized Marine Fishing 6 2.4.1 Introduction 6 2.4.2 Effort 7 2.4.3 Yield 8 2.4.4 Value of Landings 9 2.4.5 Performance and Profitability 9

Chapter 3 MARKETING OF FISH AND FISH PRODUCTS 10

3.1 Existing Markets and Trade Practices 10 3.1.1 Introduction 10 3.1.2 Fresh Fish and Crustaceans 11 3 .1. 2 .1 Supply 11 3.1.2.2 Consumption 11 3.1.3 Cured fish and Crustaceans 12 3 .1. 3 .1 Supply 12 3.1.3.2 Consumption 13 3 .1. 3. 3 Trade 14 3 .1. 4 Other Products 15 3.1.4.1 Frozen Products 15 3.1.4.2 Canned Products 15 3.1.4.3 Fish Meal and Oil J_5

3.2 Market Potential 16 3.2.1 Importance of possible increase 16 in Landings 3.2.2 Possibilities of Disposal 16

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4 .1 Pr··~sent Explqi tati on 19 4.2 Area of Fishing Grounds 19 4.3 Potential Exploitation 20 4.4 Implications associat.ed with Harb,:iur Development 20

Chapter 5 DEVELOPMENT OF FISHERY HARBOURS 22

5.1 Introduction 22 5. 2 'Th.:: Northern region of. the State 22 5,3 The Southern region of the State 23 Page No.

5.4 Need for Fishery Harbour 24 Development . 5.4.1 Introduction 24 5.4.2 Performance in Mechanized Fishing Operations and Ancillary Industries 25 5.4.3 The need to expand Harbour Facilities at Visakhapatnam and Kakinada 26 5.4.4 Provision of extra Harbour Basin at Kakinada 5.4.5 Need for Harbour Facilities at Landing Centres outside Visakhapatnom and Kakinada 30 5.4.6 Conditions for investment in Fish Landing Centres at Narasapur and Nizampatam 30

Chapter 6 SUMMARY AND RECOMMENDATIONS 33

6.1 Salient Features of Marine Fisheries in Andhra Pradesh 33 6.2 Observations on development of Mechanized Marine Fisheries in Andhra Pradesh 34 6.3 Recommendations 35

Appendix 1 Note on Kakinada 38

Appendix 2 Note on Narasapur 4o

AJ2.Pendix 3 Note on Nizampatam 42

Andhra Pradesh Map showing Districts and Coastline

Andhra Pradesh Map showing Coastline '.1nd extent of Cont- inental nhelf 1

Ch~ter 1

INTRODUCTION

This Report contains recommendations concerning development of fishery harbours in Andhra Pradesh and a review of the information on which these recommendations are based. The recommendations are an attempt to answer the vital q_uestions of when, where and how fishing harbour facilities ought to be provided in the State.

Previous reports issued by the Pre-Investment Survey of Fishing Harbours Project included detailed economic evaluations of proposed harbour facilities. These evaluations - based on elaborated projections of the nature of future fishing activities - were possible as at the landing centres in question, mechanized fishing ·was an important and documented activity already at the time of site investigations by the Project.

In Andhra Pradesh, more than 90% of mechanized fishing effort is centred at two ports and for the first time the Pre-Investment Survey of Fishing Harbours Project has been investigating the suitability of providing landing centres at places where mechanized fishing has been conducted only sporadically if at all. Conseq_uently, there are very few reliable pieces of information which can provide the detailed, integrated know­ ledge needed to estimate the extent and efficiency of future mechanized marine fishing at these centres.

Marine fisheries is a term which in Andhra. Pradesh covers the activities of at least a few hundred thousand individuals. The majority, the active fishermen and their famili2s, 1 ive and work along a cc :st tha.t is a thou­ sand kilometres long. Therefore, be ca.use of the vast number of uni ts in­ volved it is a time-consuming task to obtain a good understanding of the activities of these individuals. In order to make "good'' predictions it is necessary to know something about the past as well as about the pre­ sent. In the fishermen community literacy is loss common than what is normal in the coastal areas of the State. Records are seldom kept and hence it is an almost impossible task to document past and present de­ velopments.

Notwithstanding the difficulties noted in the preceding paragraphs the State Director of Fisheries has )ffered every facility to the Project_ and access , when required, have ··,een given to Departme1 .tal records .

The Project realizes that its kn )wledge of marine fis1wries in Andhra Pradesh is incomplete. Many det::t ~ls are missing. HoweV('r, it is be­ lieved that the general otservat.Lons presented in this Report are cor­ rect and useful for poJicy decisions concerning the expansion of fishing harbour facilities in Andl'ra Pradesh. 2

FISHERIES IN ANDHRA PRADESH

2.1 INTRODUCTION

Fish is an important food item in Andhra Pradesh. It is estimated that almost three-quarters (72%) of the population consume fish. Thus in 1970, the fish consumers numbered about 30 million people.

Fishing on either full-time or part-time basis provides employment for a large number of families. In the late 1960's, there were about 82,000 active marine fishermen. The fishermen community, in­ cluding members not engaged in fishing on the sea numbered about 250,000.

At one time or another during the years, the number of men engaged in inland fisheries is probably about 80,000. However, for most of them fishing is likely to be only a part-time occupation, the ma­ jority living and working in the delta areas of the Godavari and Krishna Rivers.

During the middle of the 1960's, annual marine fish landings in Andhra Pradesh were estimated to about 75,000 tonnes (G.O.I. statistics) and annual inland fish landings (during 1967/68) also about 75,000 tonnes (State Govt. statistics).

How important is fish in the diet of inhabitants of Andbra Pradesh? If 50% of the weight of uoth marine and inland fish lar:~_ings are consumed, and, if average protein content is about 16% (weight) for 8,ll fish, and, if the daily needs are about 50 grammes per inhabi­ tant, then the protein needs of about 660,000 individuals can be satisfied annually through fish, ·

2.2 INLAND FISHERIES

2.2.1 Production

Fir:hing in the brackish waters of r1 vers and backwaters as well as fii;ning in tanks, ponds, channels and reservoirs are collsidered "in­ lv.i:d fisheries". In the .: eltas of the Godavari and Krishna rivers, fi:;h has been an importa·st contribution to the local food supply for many years. In interj or Districts, "inland fisherier..; '' have not bf~<'n very important for J ocal food supply. Hm-rever, the 3cope and harvest of fresh water fish in inland areas :is now beine. increased ) through official support to local fishe:;:men,

In the Telangana area ( 9 land-locked Districts co11sti tui.ing the north­ western part of Andhra P:•3.desh) fresh water fish accounts for about Bo~; of all fish available for consumption during ::t year. A little more than a third of the fresh watPr fish supply is estimated to be harvested in the reservo.L:cs of the area. The rest mostly comes from the perennial tanks of wLich each Di.strict is estimated to hav,e about three hundred. The production of fresh water fish is thought to be roughly equal for each District. Indian major carps (from reservoirs), catfish and murrels do::r1inate catches. 3

Plans are now being considered to develop fisheries in the reservoirs of the Rayalaseema area (3 land-locked Districts south of the Telan­ gana area). The intention is to raise fish stocks in reservoirs and larger tanks which are located close to tmms and villages and to en­ sure, through a compulsory marketing scheme, that fish from these waters are supplied to the nearby tovm and villages.

In the delta areas (East and West Godavari, Guntur and Krishna Dis­ tricts) of coastal Andhra P-.cadesh production of fresh water fish from reservoirs is believed to constitute only a minor part (about 5 to 10%) of the total harvest of fresh water fish. Most of the landings come from a large number of tanks and channels, which are exploited systematicall~' throughout the year. Tanks are made perennial, and thus suitable for exploitation, through supply of water from irri­ gation channels. The tanks and ponds of the delta areas are the most productive in the State, with annual landings of about 1,500 kgs./ per hectare.Fishing in the channels is discouraged by Government Agencies. Fresh water carps, catfishes, prmms ,mullets and hilsa dominate landings.

In the northern maritime Districts, Visakhapatnam and Srikakula.m, exploitation of reservoirs contributes a major share of inland fish production as the number of perennial tanks are small and estuarine fishing does.not have the importance it has in the southern Districts.

Detailed statistics of production of "inland" fish are not readily available and the production in the varimi.s Districts is not known. However, it seems probable that the bulk of inland fish produced in Andhra Pradesh is landed in the delta areas of Krishna and God­ avari; that is in the Districts of East and West Godavari, Krishna and Gl•ntur.

The State Fisheries Depart11Jent estimates that during 1966 and 1967 the average annual prodnction of inland fish r:eached a.bout 75,000 tonnes. The estimates of annual production of inland fish is based on information about types and quantities of fresh water fish pass­ ing through about 100 markets in the various Districts of the State. This information is corn~cted for the amount of fresh vi' :~er fish that is believed not to have passed thro11gh the ruarkets ,and for the amount of marine fish that is landed in "inland waters" in order to ar:nve at total annual ·p:.~oduction of inland fish.

In !~he circumstances it is understandable that the estiw1tes are sv.l)ject to a rather largr:; margin of error. When checked 1gainst in­ fo1 ination regarding R.rea of fresh water, average yields per hectare of water-spread area, traie in fish between Audhra PradE.7h and other States, fish prices and amount of yearly 1:.werage consunlf.r expenditure, the estimates of "inland fish" production appear to be tigh.

Inland fish landings can be increased primarily through increasing the production of fref?_h._}'jlter. fish. Officials of the State Fisheries Department seem to agree that increg,sed production is only likely to come about by improving, and exp&nding fish culture in reservoirs and perennial tanks. Fingm·lings are a pre-requisite for fish culture. 4

In 1967/68, the nursery-space available for production of fingerlings was sufficient only to produce fingerlings for about 15,000 acres of the water-spread area of tanks and reservoirs. If the production of fingerlings were doubled by 1974, compared to 1967/68, the ensuing in­ crease in the harvest of fresh water fish is expected to be of the order of 7,000 tonnes.

Almost all fresh water fish is consumed in fresh form. Normally, only small barbs, minnows and chelas, which constitute only a minor part of fresh water fish landings are dried. Generally, the fish is con­ sumed in the immediate vicinity of where it is landed. Exceptions to this rule seem to be few. Where fishing effort is considerable and organized, like at Nizamsagar and Colleru Lake, fish is sent from the landing area to large cities. The reason, of course, being that qual­ ity fish fetches higher prices in the larger cities, where cost of living generally is higher than in the countryside. This is partic­ ularly true of Calcutta, where demand for inland fish traditionally has been very high. Prices in Calcutta are said to be twice as high as in Hyderabad. This observation is confirmed by the fact that be­ tween 400 and 800 kgs. of fresh water fish is sent daily to Calcutta from Rajahrnundry (population about 160,000 in 1970) while it is est­ imated that only about 500 kgs. of fresh fish are disposed of daily in the town through the three local retail markets.

In Hyderabad and Secunderabad, fresh water fish is not the food of poor people; rather it is a luxury that few individuals can afford. In the major markets of these twin cities the most popular species of fresh water fish are mucrels, carps and catfishes. Murrels were priced at about Rs. 3. 50 per kg. , carps about Rs. 2. 70 :per kg. , and catfish about Rs. 2.10 per kg. (average annual price during 1969). Together, these three species accounted for about three quarters of the amount of fish passing through the wholesale markets of Secund­ erabad and Hyderabad .

.No detaileu knowledge is available to make it possible to identify the "typical" consUli1er of fresh water fish. Murr els, c1 .tfish, carps, hilsa and prawns constitute about 60% of total inland fish landings. Price levels for this fish are high and the fish can be afforded on­ ly to the most affluent i11llabita1ts of the State. Consequently, less than half of the "inland fish" la:'.ldings are likely to have been con­ sumed by the 75 - 80% of the po111lation with lowest pee capita con­ sumer expenditure.

2.3 TRADITIONAL MARINE FISHING

Between 1965 and 1967, yearly marine fish landings in Andhra Pradesh varied between 75 ,000 and 30 ,000 tonnes (Central Gover.mnent statist­ ics). During this period landings by mechanized boats ·:rere only of the order of 5% of total landings.

In the late 1960' s about 82 ,000 men were employed in mm·ine fishing. Only a few hundred of them were worldng aboard mechani z;1:')d fishing vessels. The fishermen and their families were living :n nearly 400 villages spread out along the 1,000 km. coastline of the State. 5

The fishing effort of traditional fishing methods is concentrated mainly in the Districts north (and east) of the Krishna River Delta, that is, Srikakulam, Visakhapatnam, East Godavari and West Godavari. In these Districts, the nwnber of active fishermen per kilometre of coast is higher than in the southern Districts. However, the number of men per craft and the number of men per net are lower than in the southern Districts. Seventytwo per cent of the active fisher­ men in the State live in villages located in the northern region of the State ( Srikakulam, Visa.1'..hapatnain and East Godavari) and 84% of the boats and 86% of the units of fishing gear are also found in this northern region.

Fishing is done from stitched boats (most of which are found in the Visakhapatnamn District), navas (flat-bottomed boats, most of which are found in the East Godavari District), shoe donies, catamarans and dinghys. More than half the nmnber of fishing craft in the State are catamarans. These craft are only used for day-trips whilst navas stay at sea for several days at a time.

The most common nets are shore-seines, boat-seines, drift-nets and gill-nets. Long--lines are also used. Drift-nets and gill-nets account for more than half the number of recorded nets.

Many traditional fishermen move up and dmm the coast seeking good fishing grounds. Owners of mechanized boats often move their boats according to the pattern established for tre,ditional fishing activ­ ities.

Fishing with traditional methods is said to be conducted to a depth of 18 - 20 metres. In Guntur District, this means that boats will move out as far as 15 km. from the shore. At these depths, through fishing with gill-nets, pelagic species are the most heavily explo­ ited.

It is not known how such fish is landed by traditional fishing effort in each District. For the State as a whole, it se:oms that one man lands about a tonne of fish each year. In Guntur District, the aver­ age value, to the fisherm m, of one kilo of fish is abont one rupee. If this were true for the other Districts the average L.t:herman would earn about Rs. 1,000 per year.

MoG(·, of the ma1·ine fish j s cured. Quality fish is sometirnes sent to lar,r;er towns for consm:iption in fresh form. Large-sized prawns are sent to Madras and Kers.12. for processing and subsequent export. Con­ sumi;ition of quality fish in fresh form has become more vl:~despread du:c~ng the last five year-3. It was estimated, in 1969/'rO, that fifty per cent of all quality r:i.sh landed in Andhra Pradesh wa; consmned in fresh form. A substantial quantity of small and mediu r1-sized prawns was dried and processed.

In :r11ost marine fishing vi ilages the fishermen have access to a weekly wl:iolesale market for cured fj sh. At present, both dried ,'.nd fresh fish are sent to markets outside th2 State, such Rs, Madras, Tatan­ agar, Howrah and Raipur. 6

2. 4 MECHANIZED MARINE FISHING

2.4.1 Introduction

In Andhra Pradesh mechanization of marine fishing was introduced in the early 1960's. Twenty H.P. marine diesel engines were installed in wooden ''navas". "Nava" is the name of a local country boat, which has been used for centuries. Mechanized navas are unsuitable for trawling. Altogether, diesel engines were installed in about forty­ four "navas". These installations were done at a boatyard at Kakinada run by the State Fisheries Department of Andhra Pradesh. By the mid·- 19601 s the boatyard had ceased production of mechanized navas.

Later, in the mechanization scheme, emphasis was shifted to "Pablo" boats. This type of boat has an overall length of about nine metres and normally an engine with 26 - 30 B.H.P. 170 such boats have been built in the boatyard at Kakinada. During the last few years of the 1960's, boats with an overall length of 10 to 11 metres were also constructed in the yard. All in all, about 216 mechanized fishing boats had been built by the boatyard and distributed in the State, by the end of March, 1969. Few, if any, veBsels used in the State have been built at boatyards in other States.

At Visakhapatnam and Kakinada Government funds have been, or are being, used to provide shore-based facilities. At Visakhapatnam an ice-plant of 20 tonnes capacity per day and cold-storage of 250 tonnes has been built, freezing capacity of 4 - 6 tonne/24 hours and frozen storage of 50 tonnes have also been provided but have yet to be put into operation. At Kakin~da, the construction of a complex consisting of ice-plant (15 tonnes), ice-storage (30 tonnes) cold-storage ( 30 tonnes), ·olast freezer ( 2 tonnes) and ~·rozen storage (200 tonnes) was commenced in 1967, At the beginning of 1971, machin­ ery installation had still to be completed and no part of the complex had been used commercially. Also, at Kakinada, the Government has con­ structed a canning plant (500 kgs. per 8 hour shift) and a shark-liver oil plant (150 kgs. per 8 hour shift), 'Ihe Government boatyard at Kakinada has a capacity of about 300 tonnes (displacement) per year.

Public funds have also been invested in ice-plants, with adjacent cold-storage facilities at a number of towns and villages through­ out Andhra Pradesh (Padala? West Godavari District; Nellore, Nellore District; Nizar:rnagar, Nizm:iabad District; Hyderabad; Nagarjun:rnagar, Nalgonda District). The facilities have been erected, with th(; ex­ ception of Nellore, at landing centres for fresh water fish or in large urban areas. It seems unlikely that these facilities hav2 had any influence on the development of mechanized fishing in the State. Public funds he.ve also beE n invested in refrigerated trucks anl other transport. The refrigerated trucks have not been l.sed to their maximum capacity.

On the whole, it seems thi::,t efforts by private entrepreneurs ti) establish themselves in th3 fishing industry, and associated indust­ ries, have not been successful and at the end of 1970 private cap­ ital was invested only in boats. There are also q_uite a number of small private ice-plants in the State. However, they opErate mainly to cat.er to the needs of the soft drink trade. 7

2.4.2 Effort

In 1965/66 ninety-eight mechanized boats were fishing from landing centres in Andhra Pradesh. Four seasons later, in 1969 /70, the munber of boats had increased to 123. In 1965/66, the fleet was dominated by the 9-metre Pablo type vessels, while in 1969/70, the number of Pablo boats in operation had decreased substantially and the number of 9,75 metre boats had increased from two to forty. In 1969/70, the fleet included 18 boats of a length of 11.2 metres.

'l'he mechanized fleet is concentrated at the harbour facilities at Visakhapatnam and Kakinada. At both these places protected basins ·are available for the boats. In 1969/70, fifty-one boats were fishing from Visakhapatnam and 51~ boats from Kakinada. The remaining boats were stationed at seven other points on the coast. Mechanized fishing can thus only be said to have developed at Kakinada and at Visakhap­ atna.'11. In December, 1970, the fleet at Visakhapatnam had grown to about 55 boats, while the fleet at Kakinada had diminished further to about 40 boats. It is said that the majority of the owners of mechanized boats at Kakinada have applied for permission to use Vis­ akhapatnam as a base for operations. In December, 1970, the Port Trust at Visakhapatnam had limited the number of boats that can use the harbour to sixty.

The number and type of mechanized boats used in the State have been decided almost exclusively through the State Department of Fisheries. At Kakinada, it runs the only modern boat-building yard for fishing boats in the State. The boats constructed at the yard are allotted amongst applicants by a committee consisting of Officers of the State Depa,rtment of Fisheries, The largest number of boats have been all­ otted to fishermen, who have passed a course in mechani./,ed fishing at the training institute at Kakinada or who have a L. F. T. & ~r. cert­ ificate from the Polytechnic Institute also at Kakinada. Sixty boats have been allotted to fisherman through Cooperative Societies. Not all of the fishermen trained at the Institute have obtained boats. More than 400 fisherme11 have passed the course, but only about 140 of them have been allotted a boat. In June, 1970, the Department had cm hand applications for boats from ab0nt 100 former tra:lnees. A fisherman cannot buy a me,~hanized boat at the Government boat-build­ ing yard at Kakinarl.a. The management is not permitted to sell boats directly to private fishe:rmen.

Unfortunately, q_ui te a la:~ge number of boats allotted to fishi:rmen are not used; the reasons for this are many. Some bo

--- ·- Total number of At the disposal Lost Seized boats allotted of fishermen ~~--~--~---~ ~' -~---· Navas 27 5 13 11

Pablo (9 m boats) 132 8 74 85

Pomfret (9,75 m boats) 38 0 0 38

Sorrah (11. 3 m boats) 24 3 ? 21

- ' Total 221 16 87+? 155

r-•

In the above Table, the categories "lost" and "seized" added are not equal to the difference between "the number of boats allotted" and "number of boats at the disposal of fishermen". The reason for this discrepancy is that several boats have been seized by the State Department of Fisheries more than once. In June, 1970, the Depart­ ment had about 50 seized boats which had not been reallotted to fishermen. Of the 155 boats "at the dispo.sal of fishermen" only about 120 seem to have been operated during the second half of 1970.

At both Visakhapatnam and f~akin1.

The 11. 3 metre boats are capable of trawling out to a a.epth of about 50 metres, whilst the 9 metre boats are limited c.o about 20 metres and below. The boats exploit trawling ground:; up to 30 kilometres from port on one-day trips.

At Visakhapatnam, as well as at :1<:akinada, mechanized fj shing is conducted the whole year round. J.t both places, the boats have access to shelter and the monso,·m-weather only prevents fishing on odd days. About 200 days fish ng per season is comm:n record amongst the boats.

The rnunber of actual trawling hours per boat and day l 3 usually quite small - between thrc ~ and five.

2.4.3 Yield

Until June, 1970s it seems that few, if any, of the mec:Lanized vessels had achieved - over a full season - a catch ra~e of 200 kgs. per day or above of fish and prawns. This means that tLe seasonal catch per vessel exceeded 40 tonnes only in a few isol~ted cases. 9

However, to focus interest on total annual landings may be misleading. The s~ippers and boat-mmers probably centre their attention more to­ wards maximizing daily revenue from sales of landings at boat-side. This, in turn, is. likely to make most boat-mmers try to maximize their daily landings of praT,ms. At Visakhapatnam daily prawn landings per boat appear to have increased over the years 1967 to 1970 simult­ aneously with a decline in total weight of landings (fish and prawns). During the year some 11 metre boats caught prawns at a rate of about 30 kgs. per day. During 1969 /70, prmms seem to have occupied between 10 and 20% of trawl landings and quality fish a similar share.

2.4.4 Value of Landings

In general, prices paid by merchants for trawl landings in boat-side auctions are quite high both in Visakhapatnam and Kakinada. The price structure for prawns (for various grades) is about the same at the landing centres of Kakinada and Visakhapatnam as in major landing centres on the West Coast. However, the average price per kg. of prawns caught by trawling in Visakhapatnarn and Kakinada is higher than that ruling on the West Coast. This is caused by an economically "favour­ able" combination of pr mm species in trawl landings. At Visakhapatnam, the average price has been estimated to be as high as Rs. 5.00 per kg. while at Kakinada the average price per kg. is around Rs. 3,50,

During the last few seasons, the average price for fish (excluding prawns) at boat-side auction probably has ranged between 30 Paise and 50 Paise per kg. At boat-side quality fish such as pomfrets and seer frequently fetch Rs. 2.00 per kg. or more.

Due to the subtantial catches of "exportable" prawns, the "average" V'llue is quite high for ·;n "average" kg. of trawl landiLgs at boat­ side. During the 1969/70 season the average price was probably some­ where about Rs. 1.00 per kg., at both Visakhapatnam and Kakinada.

2. 4. 5 Performance and Profitability

Fishing from mechanized boats has not achieved the same amount of success along the coast ( •f Andhra Pradesh an along the !·[est Coast of India.

G:i J.1-netting has been conducted off both Kakinada and Visakhapatnam bt·,t has been found less profitable than trawling from tll'2 same fish­ ill,~; centres.

Trr:.wling has not developed into a commercial success, e:: ":;her at Kak­ ill:•,da or at Visakhapatnar"·· At Kakinada, some boats seem to have mr.naged to cover expenses and depreciation on fixed assEts - no more. During the 1969/70 season return on~invested capital was very low for boats managed by 1~ooperatives.

Tbe trawling operations ;-.:>:e slightly more profitable off Visakhap­ atnam than off Kakinada. A few ll.2 metre vessels, managed by a Cooperative, earned an aVfcrage of Ii to 9% on the invested capital during the 1969 /70 seaso:1.

The results of trawling have only been documented for "Cooperative" and "Government" boats. Althou;:r,h, the basis for making inferences about the IJrofitability of "private" boats is weak, it seems that these boats are not operating at a profit better than that achieved by either the Cooperatives or the State. 10

MARKETING OF FISH AND FISH PRODUCTS

3.1 EXISTING MARKETS AND TRADE PRACTICES

3.1.1 Introduction

Information about trade practices and consumption patterns for fish and fish products is vague and sometimes contradictory. Due to the scarcity of documentation of trade, it is difficult to obtain in­ formation about disposal of fish and crustaceans. On the one hand, as mentioned above ( 2. 2 .1. ) , most fresh water fish is consumed while fresh (a minimum of 80% landings), On. the other hand, it seems likely that as much as 75% of annual marine fish landings and about half the q_uantity of annual prawn landings are cured in one form or another.

At least as much as 90% of marine fish landings seem to be disposed of under conditions, from landings to retail sales, which can best be described as "traditional". The import of "modernization" is still very insignificant on the disposal of fish and crustaceans.

Trade in fish, especially in fresh fish, like the capture of it, is characterised by the large number of persons involved in relation to the q_uantity handled. The turn-over per retailer is low (both in terms of money and weight of product). Following existing practices elsewhere in India, most of the retail trnde is in the hands of women.

Prior to the Five-Year Plans trade in cured fish was more "complicated" than trade in fresh fish. Jn mos1 cases, the cured pror~nct had to be stored and then transported to tl1e centres of conswnption. The distance both in time and space, between production s,nd consumption must have been greater, in most instances, than that for fresh fish. Normally, more capital must have been needed to finance trade iii cured fish than to finance trade in fresh fish.

Planned development of the fishing industry was introdtced with the Five-Year Plans. Part of the money that ws,s made availa-ble by the State for this development was spent introducing to the industry new technologies and eq_uiprient. The conditions of dist:-:-ibution and trade particularly in fresh fisb. ~both inland and marine) were thus improved by providing ice-plants .. cold-storage facilities, and means of transport.

In Andhra Pradesh these improverr.E nts seem to have led ·co an increased supply of fresh fish in th'~ martcts of the major towns and to de­ liveries of fresh fish and crustaceans to destinations outside the borders of the State. On the consumer side, relatively wealthy ind­ ividuals in major towns have obtained benefits through these services.

Few fishermen, mostly these working aboard mechanized 11oats, hs,ve reaped benefits from the new markets for fish. As far as marine fish­ ing is concerned, the technological improvements have been ]Jrovided mainly to serve mechanizeci boats at two landing centren. 11

The number of fishermen working on mechanized boats is small in re­ lation to the total number of marine fishermen in the State. Employ­ ment opportunities created by the technological facilities themselves are small.

From limited observations of retail and wholesale markets for trade in cured fish in Andhra Pradesh, it seems likely that only few changes, if any, have taken place in trade practices over the last decade, Apart from providing the fishermen with fish curing yards and supp­ lying salt, little has been done on the part of the Government for the cured fish industry. It does not appear likely that the demand for cured fish in Andhra Pradesh has increased in recent years much be­ .yond what can be accounted for by population growth.

3.1.2 Fresh Fish and Crustaceans

3.1.2.1 ~12.br

Fishermen have always been faced with the difficulty of disposing of their catches in fresh form to the consumer.

Over a period of a year they catch more fish than they can dispose of at satisfactory prices in retail markets for fresh fish. During large parts of the year the quantity of fish landings are likely to considerably exceed the normal demand for fresh fish at any partic­ ular landing centre. The absence of means of preservation at the landing sites makes it necessary to move the fish from the landing area to interior markets if it is to be conswned in fresh form. In most instancE:s even fair weather roads are lacking between the land­ ing centres and interior towns and villages, Traditional me2,ns of transportation, oxen carts, headloads are not suited f0r movi:r:tg the fish very far in a short time. Consequently, the supply of f:t0sh marine fish to inland areas is likely to be irregular both in quant­ ity and price. In this situation, the fishermen by curing the fish assures that it will be sold to consumers at least sometime after it has been landed.

As mentioned above (Section 3.1.1.) the investments made by the State is new technologies and E 1uipment over the past decade. have increased the supply .of fresh rnaririe fish in a few selected markets - at the most. The bicycle seems to have been the most useful pi~~ce of "modern 11 technology that has been used by the traders in fresh marine fish over the past years. It has ms,ie it possible to bring fresh fish to a number of consumers who (before the introduction of the bicycle) wer '~ living just. outside the area that could be supplied with fresh fish.

3.1.2.2 Consumption

Almost all kinds of fish caught are consumed in fresh f lrm by the fisher­ men themselves. During th1j last decades fish has been offered for sale in fresh form at bog,t-sid.10 (or by the tank or reservoir), at 11rices ·whi .. ch in real terms probal)ly have been fairly constant. These prices, of course, in the long run, at each landing centre were determined by the _;_nterplay of supply and demand. Naturally, some species of fish are more appreciated by the general public than others. 12

Carps, murrels, catfish:, pomfrets, eels, seer, prawns are in high demand. These species are despatched for retail sale in larger towns. Subsequent to this development the prices of these species have risen and this fish have been in scarce supply in local markets at the land­ ing centre. The rise in prices for prawns is the extreme example of this development. The exportable varieties of prawns have been priced out of the reach of almost all consumers a,t the landing centres. Accord­ ing to records, maintained and published by the State Department of Fisheries, the average price for marine fish at landing centres has increased over the five year period 1963/68, The increase in prices of prawns and pomfrets have been significantly quicker than for marine fish in general.

The consumption pattern of fresh water fish is described in Section 2.2.2.above.

Almost nothing is known about consumer preferences for ~arine fis1!.. It is said that certain sections of the population do not eat marine fish. In Hyderabad preference is said to be given to fresh water fish by the wealthier part of the population.

3.1.3. Cured Fish and Crustaceans

Marine fish species constitute the bulk of fish subjected to curing in Andhra Pradesh. Curing takes place along the Bay of Bengal and in the delta areas. The small quantities of fresh water fish that are dried are treated immediately near to the water from which th0y are taken.

Knowledge about the quanti·t..ies cf fish cured annually in the State is vague and contradictory. Systematic observations of production, trade, and conswnption have not been undertaken and thus docwnent~tion of quantities involved is not regularly available.

Official estimates for 1969 /70 disposition of marine fish landings in Andhra Pr-a,Jesh indicate that about 50% of landed class fish ;ms pro­ cessed and/or dried (landings of class fish for curing amounted to about 5,100 tonnes per year, during the period 1964/68); 60% of elasmo­ branchs (landings for curing averaged 3,500 tonnes during 1964/68) and 80% of all other species, exclud.:,_ng crustaceans (landings for curing averaged 43,000 tonnes during 19(4/68). Thus, in total about 51,600 tonnes (live weight) of ma:tine f 1 sh landings are likel,)' to have been cured or otherwise processed dur:i.ng 1969 /70. This quantity equalled about 74% of total marine fish l: ndings (excluding pra1·r1s). It is likely, that in the same year, mor 1:! than half of the quantity of prawns la11ded were dried and/or smoked.

Normally, shoaling fish species are subject to curing. However, an im­ pressive variety of species were visible late 1970 in ·.arious retail and wholesale markets in Andhra Pradesh: seer (salted), pr2wns (dried, smoked), ribbon fish (salted and dried), Clupeids, whLe-ba.it (su.n­ dried) , lates (salted) , sharks ( sha:d~·-fins, salted) , pr)rnfrets, s1lve1 - bellies (dried), flying fi·3h, half-beaks (dried), ther1i::;>"Jn, saurida, lactarius, mackerel (salted), scolidon (small shark), c hirocentrus dorab and bombay duck. 'Ihe more common of these seem to b~: whi te-·bai t, 13

prawns, seer and ribbon: fish; which are also the more expensive varieties. However,. the cheaper products, cured silver-bellies and miscellaneous sciaenids are also frequently offered for sale in large q_uantities,

Until 1970, official assistance to individual fish curers and the industry as a whole consisted mostly in erecting fish curing yards and supplying salt at a concessional rate. 'l'oday, however, salt is available as cheaply outside as inside the fish curing yards and as a result the yards have lost a part of their attraction for local fishermen. In some coastal areas, the yards are said not to function properly due to lack of financial resources on the part of the local bodies that have administrative control over the yards.

Various malpractices and deficiencies are said to be hampering the growth of the fish curing industry. In East Godavari, warehouses in which cured fish and salt can be stored are lacking. Supply of salt is said to be below the requirements of the industry. Salt must be immediately available close to the.landing centres. Apart from the scarcity of storage facilities, various mistakes in the curing process contribute to providing a product which is not of high quality. In the long run~ a "good" product would, of course, further the interests of the industry. It was stated by one official of the State Fisheries Department that a salt of low quality is often used in the industry. A large percentage of sand and clay is found in the salt. By applying this salt the end product will naturally be heavier and, therefore, more valuable to the producer at the moment of sale. At the same time, however, the cured product will be prone to spoilage and probably only can be stored for a short period of time before becoming unfit for hrnnan consumption. It was also said that often the drying process is stopped before the moisture content of the fish has been reduced to a level that will give the p:t'Jduct a good possibili·cy of prolonged storage. 'l'his practice increases the weight of the final product but it also makes the product less resistant to spoilage.

3 .1. 3. 2 Consrnnption

'l'he genert:l knowledge about consumption of cured marim fish can be summarised:

(a)· large quantities of cured fish are consumed i:, the "agency areas" of East Godavari ~md Madhya Pradesh. Fish is supplied to these areas from the Districts of East Godavari and Vis·­ akhapatnam.

(b) Bas tar region in Madhys. Pradesh is said to be the destination of most cured fis".l sent from Andhra Pradesh tc• Maclhya PraO.esh.

( c) some cured fish a~.so is sent from VisakhapatnaJJ'l District to Orissa.

(d) only small quantities 0£' cured fish, supplied from the West Coast, are consullled in the 'l'elangana and Raya:Laseema areas of Andhra Pradesh.

(e) dried a.nd salted ribbon fish is sent south to11ards Maclr8.:o., 'l'anjore (and Ceylon) where demand fo1'.' this particular fish is high. 14

In keeping with the scarcity of detailed knowledge about the dried and cured fish industry, little is known about the conswners of dried fish. It is said often that dried fish is a "poor man's" food. How­ ever, this seems to be only part of the truth. Certain species of cured fish are being sold at high prices in the larger markets of Hyder a.bad and Secunderabad. These sales are mainly limited to the "quality products" of the cured fish industry such as bombay duck, prawns, pomfrets, salted seer and white-bait, and the purchasers are from high income group. The assertion that dried fish is poor man's food seems to be consistent with the statement that cured fish is being sent in large quantities to the "agency" or "tribal" areas of East Godavari and Madhya Pradesh.

3.1.3.3 Trade

Weekly "shandies" are held at a number of villages in the coastal Districts of Andhra Pradesh. A few of the bettern known markets are listed below:

(1) Nagayalanka, Krishna District

(2) Dowleswaram, East Godavari District

(3) Nakkapalli, Vizag District

(4) Chittivalasa, Vizag District

(5) Vijayanagaram, Vizag District

(6) Kothavalasa, Vizag District

C11red fish is transport,::d to these wholesale and retai:L markets in oxen carts and lorries. Usually the fish is packed in gunny bags, each containing about 50 kgs. Of the "shandies" listed abov~, Vij­ ayanagara.m is said to have the largest turnover during a market day. Estimates of through-put at Dmrleswaram varies betwe2n four to ten trucks per day, each truck capable of carrying about 2 tonnes of dried fish. It was said about Kothavalasa that the value of sales on a big selling day could ascenc. to 5 to 6 lakhs of rupees (th~ H would corr­ espond to not less than ~:oo tonnes). However, during a visit by Project personnel to KothavalasE•,, only about five tonnes of fi::h were observed ir. the market area late in the afternoon.

L: Hyderabad and Secunde]~abad the large retail "shops 11 for cured fish WE re said to have a daily turnover of several hundred ri<.pees. In Vis­ all napatnam and Dowleswar 3111 similar estimates for simila1:' shops ranges c.etween 30 and 50 rupeeH per day (all of which most cer cainly are on the low side). A whole-Baler in Visakhapat.ns.;n said tha.t weekly he supplied small quantities of fish to retailers on cred.i ":, to a value of about rupees thirty to each. This indicates a very slow turnover on the part of t.he retailer s.t Visakhapatnam.

Trade information of imriortance to the producer .1.s communicated through olcl Ftnd. customary channE:l s. ~~berefore, it is quite likely that the whole­ saler acts as a barrier t.o the spread of information to the producer. There' are no regular of± icial publications that contain data with part-· icular reference to production and markets. Hence, the industry's cap­ acity to make quick adj 1istmencs to changing marketing situations appears somewhat unelastic and, in most instances it is the producer who suffers from this situation. 15

3.1.4 Other Proclucts

3.1.4.1 Frozen Products

During 1970, no fish or crustaceans were frozen in Andhra Pradesh on a commercial scale. Earlier, in the middle of the 1960's, prawns were frozen for subseq_uent export at a place called Tada in Nellore District. The freezing plant which was installed there is no longer in operation.

However, substantial q_uantities of prawns landed in Andhra Pradesh are sent inter-State for freezing at plants at Madras and Cochin. During the 1969/70 season (a period of 12 months) about 600 tonnes of prawns .(live weight) were sent from Visakhapatnam by train to Madras. Some prawns were also sent from Kakinada.

Frozen fish and prawns are not produced for sale in Andhra Pradesh and consumption is consequently virtually nil.

The trade in "exportable" prawns is mostly handled by representatives of the firms that actually do the freezing, or, in other words, inter­ state buyers.

3.1.4.2 Canned Products

In Andhra Pradesh, canning of crustaceans and fish is undertaken only by the Government canning factory at Kakinada.

The factory has machinery suitable for producing 1,000 x 450 gm. cans during an eight hour shift. From the day the factory was commissioned in April, 1968, to the end of 1969, about 30,000 cans were produced. About 5,000 cans contained fish in oil and fish in curr_.r, the rest of the cans were prawns of different size-groups.

Since the end of 1969, canning operations have ceased as it has been difficult to sell the product. About 9,000 cans have been disposed of, about 12,000 discarded (damaged in cyclone) and close to 9,000 were in stock in December, 1970. Most of the sales were made to stores and·ind­ ividuals in Andhra Pradesh.

The main problems for the. canning factory seem to be the lack of adequate powers to purchase fish and particularly to handle sales.

3.1.4.3 Fish meal and Oil

Fish meal is not produced industrially in Andhra Pradesh. Oil production was limited to shark-liver oil produced at a plant located at Kakinada.

Production sta:c'ted at thiH plant about April 1966. The :·)lant is designed to produce 150 kgs. of sh["rk-liver oil per 24 hours. Th_, oil is marketed as ''Refined Shark-liver O:~l" and "Diluted Shark-liver OJ 1 11 both in bottles and capsules. Liver-meal and stearin are byproducts of this process. Until May, 1970, about 7 ,'{:JO litres of refined shark-liver o:U had been prod1_'ced. 16

About 90% of the sales of tbe products of the factory are made to Govern­ ment hospitals, etc., in Andhra Pradesh. As the products, with the ex­ ception of stearin and liver-meal, are classified as drugs, they can only be sold to licensed buyers. The factory can supply on credit to Government institutions while all other transactions must be done on a cash basis. The byproducts as well as substandard oil are sold directly to poultry farmers.

In May 1970, the factory was not encouraging fishermen to supply livers for the factory. Inventory of finished goods was large and production was kept intentionally low.

3.2 MARKET POTENTIAL

3.2.1 ~ortance of possible increase in Landi.£g.§_

When planning for the exuansion of harbour facilities, one of the main considerations is to ensure that supply of fish increases in line with demand.

If certain problems affecting the indus~ry are solved (see Chapters 5 and 6) a possible expectation for the growth of the mechanized fleet in Andhra Pradesh is an increase of about 30 mechanized boats per year. If this target can be achieved, the additional quantity of marine fish will be abou:t 1500 tonnes per year and, at the end of the ten year period, the increase will be approximately 15,000 tonnes per annum. The foregoing estimate is based on an expectation that the profitability of the existing fleet will improve substantially, and, hence, the add­ ition of extra fishing units will be justified from the point of view of financial considerations.

W:'l'.lt will be the effect 0f an increase J.n mechanized fish landings from 4,ooo tonnes to l9,000 tonnes per year? A quantity of four thousand tonnes represents a rough estimate of landings as at 1971.

According to official statistics, fish landings, botb inland and marine, in the coastal Districts already amount to about 130,000 tonnes per year (assuming 75% of "inland" fish landings of the State take place in the coastal Districts). Therefore, 15,000 tonnes of 'ish mean an in­ crease of the order of 12%. This rate of increase is bel::Yw the expected rate of population increase dul'ing the sarne period and ,~ould, therefore, be expected to ·be dispos'c'd of without much extra effort.

Ho

3.2.2

The consun~ption expencii tu.re of the average individual in Andhra Pradesh is 10w. In the beginning of the 1960's, 80% of the city-population in the State spent less than Rs. 34.00 per month per :person. In the rural areas, 89% of th;·-pop'.112.tion s 1)ent less than Rs. 34: 00 per month per 11 person. Only a small ::=<0.rt of this expenditure is on "eggs, meat and fish • During a period of thirty clays, it amounts to about one rupee. Even if as much as half: of this rupee is spent on fish, annual expend­ iture on fish per person comes to about six rupees. Considering early 1960's, when fish prices 'in retail transactions were about Rs.l.00 per kg., the resulting per capita consumption of fish is about 6 kgs. In general, actual consumption per person is likely to have been less. Thus, it appears that less than half the "eggs, meat and fish" budget is spent on fish. Hm-rever, the per capita consumption of fish is not uniform throughout Andhra Pradesh. Consmnption ranges from no fish at any time during the year for some individuals to fish almost every day for most members of the fishermen's community.

Prices have increased in Andhra Pradesh during the 1960 1 s. Food-prices have increased slightly more rapidly than prices in general. However, alread.y the average consumer devotes about 75% of bis total expenditure on food, clothing, and shelter.

Available information concerning population, agriculture, industry and transportation indicates that the coastal District and the Hyder­ abad-Secondarabad region are the most developed areas of the State. Therefore, they seem to be the areas where consumption of fish can be most easily increased. However, in the late 1960' s, consmnption of fish was already quite high in the coastal areas. Thus, even though the "best" market potential for fish in general exists in the coastal Districts of the State these areas do not constitute such good markets for marine fish in fresh form as a substantial part of this demand is supplied by local inland fish.

Sales of fresh fish are limited mainly due to

(a) no opportunity of purchase on the part of the consumer; and

(b) not "sufficient 11 purchasing-power on the part c1f the consumer when the opportunity exists.

Considering the entire population of Andhra Pradesh, it is obvious that potential consumers of fresh marine fish living outside the coastal belt, are few an

Judging from past improvem:mt in purchasing powers of tne poorer strata of the population, it does not seem likely that consum~Ytion of fresh marine fish could become fl, common feature of life for the majority -~f city-dwellers or agricultm·al workers in the land-locked Districts of Andhra Pradesh, even if fresh ma1ine fish were ma.de av

Cured marine fish seems to have a better chane'.e of pa.s:;,j ng the 11 jJUr­ ~h~~--i"ng-power hurdle" facing the ma,jo::..'i ty of the inhabi.1~antc of Andhrs, Pradesh. Cured fj sh enjoys a definite 11 cost advantage" ._:iver fresh fish even when the fish used in both prcJucts was sold for the same pr:ice at boat·-side. Man 1J.facture, storage, even transpo::.'t is chc:a.per for sa-!..tecl and dried products than for ocher fish p•'oducts. 18

'Ihe opinions about the future of the cured fish trade in Andhra Pradesh vary amongst the ofr'icials of the State Department of Fisheries. One official of the Department, who is familiar with the techniques of cured fish production is of the opinion that it is possible to increase the consumption of cured fish in Andhra Pradesh. He believes that it should be feasible, by planned action, to increase consumption in inland areas, where, after all, dried marine fish is already known and it is only a question of expanding sales. In these areas, consumer acceptance should not constitute a problem. He also believes that it should be possible to increase sales of dried fish among city-dwellers. This effort must be built upon improvements of the products and the manner in which they are presented. This has been tried. Marine fish were dried and salted under ideal conditions, then packed in polyethylene bags and sold through a super-bazaar inone of the major towns of coastal Andhra Pradesh. The products were a success.

However, in order to "push" consumption in the interior Districts, public funds may have to be spent on improving the quality of cured fish and on promoting knowledge of the nutritional value of cured fish among the poorer sections of the population.

Other processed fish(canned, frozen, fish protein extracts, fish meal, shark-liver oil) products likely to be produced in Andhra Pradesh will be sold to rather specific groups of consumers.

Canned fish will be consumed only amongst the wealthy or sold to public institutions. Almost all potential consumers are and will be found in the larger cities. In the immediate future frozen products will only be sold if they can be produced along with production for export. For many years to come it is not likely that freezing of fish or crustaceans can be borne by the purchasing-pcwer of the inhabitants of the e,tate. 19

Chapter 2±_

MARINE FISH STOCKS OFF ANDHRA PRADESH

4.1 PRESENT EXPLOITATION

Between 1965 and 1967 annual marine fish landings in Andhra Pradesh varied between 76,000 and 80,000 tonnes per year according to the Central Government statistics. Perches (and like fishes) and clupeids together contributed about 70% of the landings (about 35% each). Elasmobrachs and crustaceans each accounted for nearly 8% and cat­ .fishes about 6%. The most important groups in terms of quantities landed are "other sardines", "anchoviella", and "ribbon fish". Of the crustaceans, the penaeid prawns are the largest groups contributing on the average a little more than 6% of marine landings.

The information concerning annual marine fish landings in Andhra Pradesh published by the Central Government sources do not tally with in­ formation supplied by the State Fisheries Department of Andhra Pradesh. The Department estimates annual marine fish landings in the State to be about double that reported by the Central Government. In this Report data published by the Central Government has been used.

More than 90% of the marine fish catch in Andhra Pradesh is landed through the use of traditional fishing methods which are effective ou~ to the 15 to 20 metre depth contour lines. Outside the 20 metre depth contour line exploitation of fish stocks is virtually nil. At present, exploitation of marine fish by mechanized boats is concen­ trated in waters off Kakinada and Visakhapatnam.

However, if all mechanized boats, operating in Andhra Pradesh during the 1969/70 season, were to fish in the water area between the 18 and 36 metre depth contour line, total landings would only be of the order of about 4,000 tonnes per season. And if all the 11.3 metre boats, which are capable of exploiting the area outside the 36 metre depth contour line, had done so during 1969, they would only have landed about 1,000 tonnes. This is a very small part of what could be harvested from this ar2a.

Lf. 2 AREA OF FISHING GROUNDS

The continental shelf off Andhra Pradesh is only about 30 kms. wide (see Drawing No. G-35). On the average, the 36 metre depth curt.our line is 13 kms. distant frvm the coast. The continental shelf 'c1as its least width off the mouth~; of the rivers Krishna and Goclavari and off Nellore District in southern Andhra Pradesh.

Out to the 36 metre depth Gontour line, the coastal wat·::rs cover an area of about 13, 20C squar8 kilometres. Of these, about l+, 500 square kilometres are found between the 18 and 36 metre depth contour lines. These waters form a narrmv belt, usually only J to 5 kilometrEos wide alone: the coast. In the north this belt is found only a few kilo-· metres from the shore whilst off Guntur and Krishna the belt is abcut 12 to 17 kilometres distant. 20

The coastal waters between the 36 and 180 metre depth contour line covers an area of about 16,300 square kilometres. A little more than 80% of this area is found off the three northernmost Districts: Srikakulam, Vis&khapatnam and East Godavari. In Srikakulam and Vis­ akhapatnam this belt of water is about 30 kilometres wide; off East Godavari the width of the belt is only about 18 kilometres.

4.3 POTENTIAL EXPLOITATION

If it can be assumed that the water area inside the 36 metre depth contour line is capable of sustaining a yearly harvest of about 10 tonnes per square kilometre, then the waters in this depth region off the coast of Andhra Pradesh should be capable of yielding a yearly harvest of about 132,000 tonnes. In this depth zone the areas outside and around the river mouths of Krishna and Godavari rivers ought to be more productive than the average for the State. As all marine fishing to date has taken place almost exclusively inside the 36 metre depth contour line, it should be possible to increase land­ ings from this depth zone by about 50,000 tonnes each year (132,000 - 80,000). In this connection, it is worthwhile pointing out that if the State Government's estimates of marine fish landings in the State are correct, there is not much scope for an increase in the harvest of marine fish from the waters inside the 36 metre depth contour line and, therefore, future exploitation would have to take place from boats larger.than 11 metres.

If it can be assumed that waters between the 36 and 180 metre depth contour line can yield a harvest of 4 tonnes per annum, then potent­ ial harvest from this area comes to about 65,000 tonnes of fish per year. This stock of fish is so far almost untapped.

4, 1: IHPLICATIONS ASSOCIATED \HTH HARBOUR DEVELOPMENTS

The apparent abundance of unexploited fish stocks in the waters off Andhra Pradesh indicates that lack of fish stocks should not prevent a substantial increase in marine fishing effort. However, certain characteristics of the stocks, such as their species composition and location, impose conditions on the fishing effort. that have to be taken into account in o:n.. er that the fishing effort be )rofi table.

In most instances, the fishing grounds are relatively na.rrow. This wj :, l tend to make the average transportation costs, for· landing one topne of fish, larger th.~,n they would be for boats fish:Lng from a pnt where the fishing b: ats can fully utilize their da:~ly range in any chosen direction. In other words, the nearness of ~le 36 metre dE:j 1th contour line placec a severe limitation on vessel operations t() seaward. The narrowne: s of fishing grounds make the < :ptimal munber of boats operating on da::'-trips lower tharp what could b« possible from a port with optimal access to fishing grounQs.

Off the northern Distric.,..s, the belt of deepe:i.· wa+.ers lH wider than it is off the delta-Dist:: :i.cts and fur·ther south. Trawlir'$ in deep waters, outside the 36 mc~tre depth contour line, vill probably be done mainly off the Dist::·:.cts of S:i. ikakulam ~ Visakhapatnam and East Godavari. IIowever ~ opera·~.:Lons will depend mainly on fish sales as sale of pra1ms are unlikt,ly to cont:..·ibute much to boat revenue. 21

In the waters off the Districts south of East Godavari, the larger part of the fishing grounds are shallow, that is, they are found inside the 36 metre depth contour line. These grounds can be explo­ ited by boats of the 9 and 11 metre type and are likely to yield a fair amount of prawns and quality fish. It is possible that gill­ netting from mechanized boats will prove more profitable in these waters than what it has done in waters off Visakhapatnam and Kak­ inada.

It appears that the depth of the fishing grounds off the northern Districts will cause larger boats to be introduced at an earlier stage in the mechanization of marine fisheries in Andhra Pradesh than what has been usual on the West Coast up until 1970. In the southern parts of the State, the characteristics of available marine fish stocks seem to favour the use of existing types of boats. 22

Chapter 5.

DEVELOPMENT OF FISHERY HARBOURS

5.1 INTRODUCTION

'I'he conditions for future me..rine fishery harbour development on the coast of Andhra Pradesh will be discussed separately for the northern region and for the southern region. The northern region, in this con~ text, consists of the coast and fishing grounds north of Latitude 1 16°45 ; this line passes through the District of East Godavari. The rest of the State's coast and fishing grounds are classified as being situated in the southern region.

5.2 THE NORTHERN REGION OF THE STATE

Along the coast of this region, there are no bays, inlets, or river mouths which can be said to have topographical and hydrographical advantages such as those possessed by Kak.inada and Visakhapatnam. If it is decided to expand harbour facilities in this region, the eas­ iest way to do so is to expand the facilities at the ports of Vis­ akhapatnam and Kak.inada.

However, this proposition still leaves a part of the coast between Visakhapatnam and the Orissa border without a landing centre for small craft _which conceivably could exploit profitably resources within the 36 metre depth contour line. Of course, these resources could also be fished by large vessels operating out of ifisakhapatnam However, apart from other considerations, the comparati7e ec2nomics of small and larger boats would need to be clearly established be­ fore another small landing centre was built in this northern part of the State. Also, the effect of boats possibly working southward from Orissa would have to be taken into account.

In 1970, about 50 small mechanized ves:els were based at each of the ports Visakhapatnam and :.:akinada. Having regard to fishery resources available, it is unlikely that these fleets C!f9-. ·~xpand to much more than about 100 vessels fcir each port. T'nis proposition 11ssumes that these vessels will contir:1 1,e to work a daily schedule and fish waters within the 36 metre deptl.. contour line.

There are large grounds arailable outside the 36 metre depth •;ontour line. These grounds can b0 fished from Visakhapatnam and Kak:;_ ·~ada by boats larger than 11 metr::s. However, as mentioned above, the exploit­ ation must be ·oased upon harvesting of fish, as pravms seem to be virtually absent.

Between KakinaCia ar..d Visakhapatnam there are large areas of inshore waters (shallower than 36 metres) which cannot be exploited an one­ day trips from ei th.er Kakinada or Visakhapatnam. The grounds can only be exploited by larger vessels undertaking trips of more than or.e day's duration. Therefore, any expansion of the fishing harbours at Visa.khapatnam and Kakinada should aim at pr0viding facilities for larger boats, and not provide facilities for more than 100 smaller boats at each place. 23

Kakinada is closer to densely populated areas than Visakhapatnam. How­ ever, transportation facilities to both ports a.re good; both roads and railways are available. Communication facilities with other towns in the State are also good. Kakinada and Visakhapatnam are both cities with more than 100,000 inhabitants. They will each provide a base for marketing of fish which cannot bear the cost of processing or of being transported over long distances.

Mechanized fishing has been conducted at Visakhapatnam and Kakinada for several years. Considerably "know-how" of all aspects of marine fisheries has accumulated at these landing centres. This gives these ports a considerable added advantage for development of mechanized fishing effort when compared with alternative sites on this stretch of coast. Summarizing, most of the considerations made indicate that if harbour facilities are to be expanded in the northern region of the State, the most reasonable action to take is to expand existing facil­ ities at Visakhapatnam and Kakinada, and, possibly, to consider another harbour nort of Visakhapatnam.

5.3 THE SOUTHERN REGION OF THE STATE

. From south of Latitude 16°45 1 to the border between Tamil Nadu and Andhra Pradesh, there are no "obvious" inlets or bays where all-weather fishery harbours can be established with little effort and at small cost. The rivers entering the Bay of Bengal along this stretch of the coast provide the only possible sites for conventional sites for con­ ventional fishery harbours. In such river-harbours the quays and berth-· ing areas will normally be located some distance inside the mouth it­ self and usually only boats with a draft of less than 1.5 metres can regularly cross the sand b~rs outside the mouths of the rivers. If larger boats are to use tr.H. ., harbours it becomes necessary to stabilize and deepen the entrances into tlte rivers in question tii.cough various engineering works. These constructions are very costly c:specially if the river is large and difficult sand bar conditions prevail. Mainten­ ance costs for these types of harbours are quite high as dredging oper­ ations are necessary. Such a harbour facility could only be justified if fish landings would be of the order of, say, 40,000 - 60,000 tonnes of fish per season.

Off the southern region of the State, the water-spread area between the 36 metre and 180 metre depth contour lines is rela·~i vely small (see Drawing No. G-35) and the l~:rger part of exploitable fish stocks are expected to be found inside the 36 metre depth con-:.our line. These fish stocks, expected to include a large part of qualhy fish, can be exploited by boats of the 9 to JJ metre type. It may p2.'ove possible to exploit part of these resourcts by small mechanized boats operating from landing centres located in r·ome of the ma,jor rivez·s and th2ir branches, using the condit~ons as they are.

Observations have been mad.-o by the Project personnel of mechanized trawling operations on various parts of the Indian coar~t. At least 150 days of actual fishing per year seems to be the mir 1 imum effort needed in order that such operations be profitable. Therefore, before any commercial mechanized fishing is planned from any C;f the "river mouth-harbours" of Andhra Pradesh, a reasonable assurance should be obtained that the boats will be able to fish for at le~.st 150 days during the season. Until 1970, the experience has been that to achieve 150 days fishing in a season, the boats generally must go fishing during nine months. With supporting, shore-based facilities, mainly 24

for repair and maintenance of marine diesel engines, a good overall return on operations may, perha~s, be achieved after a season lasting only seven and a half to eight months.

5.4 NEED FOR FISHERY HARBOUR DEVELOPMENT

5.4.1 Introduction

In previous paragraphs, a general analysis has been made of the factors which will condition development of fishery harbours in Andhra Pradesh. However, two critical questions still remain unanswered;

(a) should additional harbour facilities be provided? and,

(b) if the answer to question (a) is in the affirmative, when should they be provided?

To answer these questions, it is necessary to establish the extent to which such facilities will influence development of mechanized marine fishing operations and then compare the value of these developments with those which could be obtained if the funds were spent differently but still with the aim of improving mechanized fishing operations. The base for making these evaluations, of course, must be the efficiency of the exist~ng mechanized fishing operations.

In Andhra Pradesh, practically all funds originally invested in mechan­ ized boats and shore-based facilities came from Government sources. In general terms, it has been the policy of the Government to encourage fishermen and fishermen's cooperatives to own and run mechanized boats. However, to date, many fishermen have been unable to maintain a satis­ f'J,\;tory loan repayment S'_;nedule on their mechanized boa1,s, and the Govern­ ment has suffered financial losses in respect of vessels that have been seized or abandoned. Also, major loans to private sector enterprises have not been· successful. For example, at Kakinada, in 1964/65, a private fish­ ing company was given a loan of Rs. 8.1 lakhs to est9.blish ice and cold storages, freezers, etc., 'Ihe Company was also given 8 mechanized boats on loan plus subsidy bas:i.s. In 1970, the ice plant, etc. , was still nnt functioning and the comp.Jny to all intent and purpose ilis ceased operations.

The lack of success of pt·ivate enterprise - based on pr:i.vate capital - ir.. the "modernn sector of marine fisheries stand in shm·p contrast to that of private capital in the more traditional activit:_es of marine f:i ;,heries in Andhra Pr ad:-, sh. Private capital is support:_ng traditional f:i.:;hermen as well as the distribution and marketing of fish and fish pre ,ducts. It is neither r ecessary nor feasible to assesc, the return on th .s private capital. It is widely distributed amongst i housands of units and individual activities. Perhaps,)the best asseEsment that can be made is to say that, as these operations have contim·ed for decades, the capital involved must, in an overall sense, generatE! a reasonable rate of return.

If it is a Government decision that fishing boats and an;;illary ind­ ustries should :J.ot be ow!.Wd by the Government itself but by fishermen and other entrepreneurs~ shen it is necessai·y that these fishermen and e~trepreneurs should be financially successful, each one on his own. 25

It is absolutely essentj,.al for the growth and development of the indu­ ustry, in the long term, that the owners of mechanized boats should receive· an adequate return to cover both capital and labour costs. The successful fishing boat is the base for development of a pyramid of thriving secondary industries.

5.4.2 Performance in Mechanized Fishing Operations and Ancillary Industries

In Andhra Pradesh, the operations of mechanized boats during the 1960's cannot be said to have been a profitable undertaking for the fleet as a whole. This fact is described in more detail in Section 2.4.5. It would be an encouraging sign for the development of marine fisheries in Andhra Pradesh if the present mechanized fishing operations, small as they may be, could be rated successful.

In 1970, the fleet was concentrated at Visakhapatnam and Kakinada not­ withstanding efforts to induce boats to work in other areas. Actually, from 1968/69 to 1970/71 the number of mechanized boats operating from landing centres other than Kakinada and Visakhapatnam diminished from 25 to 17 and in 1970 very few of these boats were regularly used for mechanized fishing operations. The fleet as a whole grew little during these years as the number of mechanized boats fishing from the two principal ports remained at about 100.

The trend of changes in the composition of the fleet of mechanized boats in Andhra Pradesh does not seem to be particularly advantageous to the vast number of marine fishermen in the State. The average size of a fishing boat is continually increasing. The mechanized nava has already all but disappeared from the fleet; the Pablo boat seems to be on its way out. Each new type of boat introduced to the industry during the past decade has been larger and costlier than the previous one. This trend, in the pruJuct~.0n of boats at the bo8:1, -building yard, is unfortunate to the extent that production of small boats is halted. The smaller boats will be needed to get mechanized fishiag under-way in the southern Districts of the State. If mechanized fishing is to be developed on a big scale off the deltas of Krishna and Godavari Rivers and justified on the basis of special considerations, (for example, f,~ecial assistance to one of the poorer and least developed occupational groups of the State) then such a scheme sl:'.ould certainly provide as much gainful employment as possible in the fishing villages. Operation of small boats would ensure that earnings would be more dis­ persed than would operatic:i:ts of J '3.rger boats, which in any case would be generally too expensive for the average village fisherman to acquire.

It may well be said that the lad. of harbour facili ti en is the main reason for the failure to establ:ish centres other than Visakhapatnam and Kakinada. Whilst this is a n·asonable argument, it :nust be clearly understood that the provis:i.on of a harbour its elf is not the only pre­ requisite for the industriP,l success of marine fisheries. Whilst harb­ our facilities may undoubt:!dly facilitate profitabiJ i ty for the ind­ ustry and boats, other equa.lly important inputs must be present. Even with the concentration of fishiij[; efforts and investme1,t-,s in harbour · facilities and other shore-· based services at Visakhapatnam and Kakinada and the economics of scale that may flow from this concentration~ the financial and economic results achieved to--date must be classed as disappointing and hardly an encoura[!;ernent for large-sc:::J.e investmRnt in the near future. 26

5.4.~ The need to exnand Harbour Facilities at Visakhapatnam and Kakinada 1·1

In the previous Sections,. emphasis has been placed on~

(a) acceptance that the 'fishing boat is the base for successful industrial activities; and

(b) that, over the past few seasons, in Andhra Pradesh, mechanized fishing boat operations have been a doubtful proposition.

It would be a reasonable argument to suggest that, at first, every attention should· be paid to upgrade the performance of the existing boats and then to consider expansion of this fleet and the provision of all the facilities, including harbours, which are required to cater for such an increase. It should be pointed out that there will be no substantial increase in the present fleet size if the existing rate of return on capital is not improved. This statement assumes:

(a) that the policy of private ownership of vessels will be main­ tained;

(b) that the Government will not subsidise losses incurred by privately owned boats; and

(c) that the Government will not operate vessels as a public enter­ prise.

In general terms, an economic analysis of the cost and benefit of harbour facilities is focused on the services that these facilities provide to the fishing industry. These services, to both boats and crew members, may be briefly sU11lllarized as f<1llows :-

(a) Safe entrance to harbour (in terms of depth, width of channel, wave action, etc.);

(b) Sheltered unloading points and areas for berthing and mooring;

(c) Sbvre-based services (fuel, water, ice, gear, administration);

(d) Repair and maintenance facilities for hulls, engines, fishing gear; and

(e) Facilities for trade in, preservation and proce3sing of, storing and despatch of cat.ch ( a·,wtion halls, ice-plant 3, cold-storages, curing yards).

The question can be asked, what e-idi tional services an(.; facilities should be provided at Visakhapatmm and Kakinada in order to improve the per­ formance of the existing fJ eet? In particular, would tte provision of more and improved harbour facilities and services contribute to a better performance of mechanized boats? Performance in this ccmection is re­ flected in the earnings and expenditures of the boats o .. rer a fishing season.

A fishing boat's earning ca.pacity is determined by an interrelFJ.tionship of price per unit of catch and the overall amount of fish landed. 27

Within limits, a boat-owner has a certain amount of freedom to deter­ mine the price that his fish will realise when sold at boat-side. At present, in Andhra Pradesh, if a skipper of a fishing vessel returns early to port before most of the other boats, he can be reasonably assured of a higher price for his fish than if he returns at the same time as the last few boats. This situation - declining fish price as the afternoon goes by - discourages the boat-owner or skipper to stay at sea. Only if the boat takes large quantities of exportable prawns can the skipper afford to ignore the fall in fish prices.

Capital costs constitute a sizeable part of total costs of operating a mechanized boat. 'Ihe percentage of capital cost in mechanized fishing operations is substantially larger than that involved in traditional fishing. Capital costs are normally fixed throughout the life of the boat. Therefore, they can be made less burdensome - and profitability made to increase - by increasing the an1ount of fishing hours per year. An increase in fishing hours, and a proportionate increase in landings and hence revenue, will improve the profitability of the boat provided that flexible costs such as labour, fuel, etc., do not increase at a rate greater than that of the fishing effort.

'Ihe boat-owner, individually, has very little control, if any, over the unit costs of fuel, ice, labour and gear, However, he can control the flow of his purchases. On the basis of his knowledge of unit costs, the performance of his vessel and his crew, he can quite reliably forecast his daily, monthly, and seasonal costs. However, maintenance and repair costs depend, to a large extent, on the management skill of the boat­ owner. Total costs under the heading "repairs and maintenance" depends on the reliability of his hull and engine and the amount of effort which the boat-owner spends on keeping his vessel in good working order. It should be noted that maintenance and repairs are not two separate act i vi tities but, in mos\, circumstances, are closely inter-locked. For example, if an mmer skimps on maintenance, he is likely to have sooner or later a large repair bill. However, if a boat owner is knowledgeable about maintenance and repairs, and wishes to keep these costs to a min­ imum, he cannot do so unless he has constant and. easy access to work­ shops, skilled mechanics and spare parts. At both Visakhapatnam and Kakinada, service facilities for the fleet leave much to be desired.

Generally, the range of profitability, inside which the -result of a mechanized boat of a par,~icular fishing fleet will fall!• is determined by ·'.!ondi tions which appl;r to all the boats of the fleet.·. These condi­ ti(ins, including physica:L, organizational and financial aspects, can often be modified by Pub:1 ic Authorities. Some of them fJ ow from the ne.ture, extent and organ::_ zation of fishing harbour facilities. Their irq ortance for the pl'Ofit,abili ty of boat operations at vj_sakhapatnam arf Kakinada will be dis>.rnsed in the following paragra:i;hs of this Section of this Report.

At both Visakhapatnam and Kakinada existing harbours offer safe access through the harbour entr8nce, and sheltered loading and unloading points. mowing regard to the natt•.:::e and extent of the present fleet any improve­ ment of these facilities would net bring about an~/ inc1'e .1se in profit­ abili ty of the boats concerned. In other words, on account of the exist­ ing fleet, there would appear to be no justification of any expansion to im;)rove or increase tLese facili +,ies. 28

On the other hand, at bo~h Visakhapatnam and Kakinada, more berthing place would undoubtedly make it easier for the boat to use the ports, especially at the former, .where lack of berthing space imposes a lim­ itation on the size of the fleet, In 1970, the demand for extra berth­ ing space at Visakhapatnam was founded on the fishermen's experience that fishing operations at Visakhapatnam were better than those at Kakinada. Taking the two ports together, investment in additional berthing space is likely to result in only marginal improvements, if any, in the operating results of the boats concerned.

At both Visakhapatnam and Kakinada there are cold stores, ice plants, etc. However, particularly at Kakinada, such facilities are not being used to a reasonable capacity and, in fact, some are still to be com­ pleted or brought to operational standard. At Kakinada, ice has to be brought to the harbour area from private ice-plants in Kakinada Town as the 15-tonnes ice-plant located at the harbour is not in use. The facilities for canning and freezing at Kakinada are also not used. If they were brought into operation, the effective demand would increase at boat-side auctions to the advantage to the fishermen.

Amongst the services rendered by the harbour, those which provide for repair and maintenance of hulls, engines and fishing gear could be improved to the advantage of the average boat-owner. At present, such facilities are not readily available to the boats at either the Port of Kakinada or the Port of Visakhapatnam. The number of days spent by the mechanized boats on maintenance and repairs was recorded at Visakhapatnam during eight months starting May, 1970. The details of costs of repairs and maintenance gained from the survey, although in­ complete, show that substantial savings could be made in the time spent on maintenance and repairs. The time saved could be profitably spent on fishing. During tk: period concerned, the average 11. 2 metre vessel spent as much as sev-:m da.:y s per month in the har :::our whilst engine repairs were being done; smaller boats were kept from fishing for the same reason about four and five days per month.

5.4.4 Provision of Extra Harbour Basin at Kakinada

In 1970, there was no doubt that owners of mechanized boats preferred Visakhapatnam to Kak.inada as a base for fishing operati,ms. Because of port traffic, the Visakhapatnam Port Trust limited the number of mechanized boats to 60. If this limitation had not been imposed, it is likely that the fleet at Visal('tapatnam would have been substantially larger and only a few boats woulL'. have worked out of Kakinada. The reason for the fishermen's prefe:r:> 'nce of Visakhapatnam ·.;o Kakinada is stated to be "good fishing". Will this situation continHe or is it just a short-term fluctuation adv:.mtageous to the fishe:··men but a problem to the person who is pla0·1ing harbour development from a long­ term point of view? It would appear that particular attention should be paid to this matter beceuse it is of vital importanc':! to any con­ sideration covering the de.' elopment of facilities at Kakinada.

As Visakhapa,tnam Port is a major port, work involved in developing the ·fishery harbour is outside the soope of this Project. It is known that a fishery harbour is in the planning stage and one of th1; features of this harbour will be that it will be capable of accommodatil:!g large ocean-going craft. 29

Whilst it appears to be.true that, at present, Visakhapatnam has more profitable fishing grounds than Kakinada, this does not mean that there is not ample scope for further development at Kakinada. However, the fact that resources are available, does not necessarily mean that they can be exploited profitably. As stressed previously in this Report, it is unlikely that the size of the fleet at Kakinada will increase sub­ stantially unless the average profitability and dependability of mech­ anized fishing operations improve substantially.

In general terms, there are perhaps two things that can be done at Kakinada to improve profitability. Firstly, as indicated in this Report, there is ample scope for reducting the time lost because of unsatis­ factory maintenance and repair services. Secondly, the commissioning of the ice and fish storage plants would give added benefits to the fishing fleet in so much as it would be able to stay in the fishing grounds longer and not be bound by the present restrictions of the daily after­ noon auction._

Technical Report No. 9 contains plans for expansion of the existing berthing facilities at Kakinada. This report has been prepared at the request of the State Government. However, the expansion of berthing facilities at Kakinada should not be undertaken until there is a sub­ stantial improvement in the economics of the existing fleet. As ind­ icated in this Report, an ice plant, cannery, boat-yard, and other facilities are already available at Kakinada or could be available if extra finance is provided for installation of plant and commissioning services. Apart from the question of additional berthing space, the subject of 'Technical Report No. 9, the State Government should carefully examine the need to provide adequate repair and maintenance facilities and, if necessary, the building of a modern slipway which will cater to the needs of the presen-t fleet and any expansion which might occur during the current decade. Withcut these facilities, :i_· is unlikely that any substantial improvement can be achieved in the economics of the existing fleet. Consequently, it is the Project's opinion that the servJ.ce gap with regard to maintenance and repairs should be bridged as soon as possible.

Apart fro111 the increase in benefits which are likely to accrue because of the provision of service and maintenance facilities) ther2 are other things which can be done to improve the profitability of fishing oper­ ations. Mention has been !Lade of the commissioning of "che ice and fish storage plants. In addition to this, attention should be pa,id to improv­ ing the auction and marketing s;y·stem and to make available facilities to ensure that fish qualit.y is maintained and that, when daily supplies exceed daily demands, means are _,vailable to absorb the surplus,

In Section 3.1.2 of this Report, the fish curing trade in Andhra Pradesh is described in detail. Tl: e Project was not able to explore all diff­ iculties of this particulaT trade. However, some of itf', prolilems are mentioned in the aforementioned Section. In every resper::t, any improve­ ment which can be achieved in this business will have, in t.he long-term, beneficial effects on both fish prices and earnings of mechanized boats. 'To this enq, apart fronc the main issue of product cont:t.'ol, facilities should be provided so that fish available for curine; can be procP.ssed as near to the landing point as possible. Because of t.1e unique position cured. fish has in the State's fishing industry, it seens highly desirable that every effort should be made to maintain and improye curing of fish. Any efforts which are devoted to this end should not be merely limited to the technological aspects of curing f i.sh but should encompass all aspects of the trade from the time the fish is bought at the bos.t~side to the time the fish is ultimately sold to the consumer. 30

5.4.5 Need for Harbour Facilities at Landing Centres outside Visakhapatnam and Kakinada

As indicated in this Report, mechanized fishing operations in Andhra Pradesh are concentrated at Visakh.apatnam and Kakinada with the ex­ ception that there are a few odd mechanized boats working from other centres. These centres do not contain any adequate harbour facilities. The contribution to marine fish landings made by this small number of mechanized boats has been, and is, almost negligible. The Project believes that there is a need to expand mechanized fishing in the State of Andhra Pradesh. In Chapter 4 of this Report, it is ~aid that there is scope for such an expansion. However, because of the rei~ .atively unsatisfactory results of mechanized fishing activities to-date, the question arises, how should mechanized fishing be expanded on a prof­ itable basis? As indicated earlier in this Report, the coastline of Andhra Pradesh generally offers few natural advantages for the development of fishery harbours and, in fact, the two best places, namely Visakhapatnam and Kakinada, are already being developed. Project personnel, together with Consultants, spent a considerable amount of time on preliminary re­ connaissances and on evaluating the potentiality of the large number of sites visited (see Drawing No. G-34). Taking into account available fishery resources, natural advantages or disadvantages, access to markets, etc., it was agreed that Narasapur and Nizampatam could be capable of modest development. However, after completion of detailed field studies, the Project has reservations about the magnitude of development which is possible at these two sites at a reasonable cost. The engineering difficulties at both Narasapur and Nizampatam are such that it would be a very costly proposition to provide stable and deep channels over the bars present at the river mouths. Apa·.·t from the original capital cost, ma..'..ntenance costs associated wi i.h drec'l.ging would be extraordinarily high and only a very large scale fishing effort could justify and support the heavy capital and maintenance cost in~ valved. Having regard to the present status of fisheries development in the State of Andhra Pradesh, and the fact that there is hardly any mechanized fishing south of Kakinada, it would be an academic exercise to consider any major port development ~t these sites. Details of the Project's engineering stJ'l.ies associated with these two sites plus plans for development of landing centres are contained in Technical Reports 10 and 11.

It must be stressed that, whilst the Project has undertaken fr.. tensive investigations at these t·-ro sites, and as a result of these ir, vest­ igations prepared design ;3tudies, this does not mean that the ?roject recommends their im_mediat(. development. The reasons for this l·tti tude are explained in some detr il in the next Section of this Repc·1·t.

5. 4. 6 Conditions fc:r investment in fish Landing Centres at Na:·_asapur anC!-_ Ni zam12atam

Before any investment is :i.ni tiated at either Narasapur or Nizampatam, the feasibility of underteking fishing with existing types of :mech­ anized vessels from these sites must be investigated. Such invest­ igations should be conducted by groups of boats over at least two full fishing seasons. Feasibility, as mentioned in this text, means primarily that the boats should be able to work on a profitable basis in the long-term. 31

The profitability of boat operations will depend, to a large extent, on the number of fishing days that the boats can record in any one year. Both Narasapur and Nizampatam are situated on rivers which have relatively difficult bar entrances. Very little information is avail­ able about the transit problems relating to these bars and to what extent bar conditions will affect fishing operaticns over s, long per­ iod of time, Hence, it is of prime importance, before any harbour works are initiated, that the fullest possible information be avail­ able about conditions which will affect operations.

In addition to hydrographic surveys recommended in Technical Report No. 10 for Narasapur and investigations being undertaken at Nizampatam during 1971/72, this Projcet is of the firm opinion that. the State Government would be well advised to launch two modest pre-investment pilot projects in mechanized fishing at Narasapur and Nizampatam. As explained later in this Section of the Report, the Project reconunends that the :,pilot projects ,as far as practicable, should follow the normal commercial and operational practices associated with fishing fleet act­ ivity. In particular, the objectives of the pilot projects should be:-

(a) from the point of view of vessel operations, to gain the full­ est possible experience and knowledge of local bar conditions and the limitations that these may impose upon vessel oper­ ations;

(b) to determine what would be the most suitable design for a boat for these. areas;

(c) to establish more precisely the nature and extent of shore facilities necessary to support a fairly large scale fishing activity;

(d) to test likely market opportunities; and

(e) overall, to secure, from the long-term point of view, a fairly precise picture of the economics of vessel operations and, in particular, to prove whether it is profitable for boats to or-~rate from these areas.

Because of the technical uncertainties involved at Nan,sapur and Niz­ ampatam, and having regard to the relatively unsatisfactory rate of progress in mechanized fi::.ting, :it would be an unwise JH°Oposi tion to build narbours at Narasapur and F::_zampatam and hope the economic bene­ fits of the investment :i_n the harbours to materialize Et::; a later stage. By conducting two pilot projectfJ ! with full attention l:leing paid to the above mentioned objectives, ii1e State will, in fact, be in a pos­ ition to make a fairly accurate €conomic evaluation abo1t the long­ term costs and benefits of investment at Narasapur and Nizrunpata.m. This is the cheapest way tn go about proving the fisheries worth of the areas and, if the pilo~~ projects a.re not successful, then at least the funds will be saved that would have been invested i 11 the harbours.

With regard to the orgar:ization and management of the pilot operations, the Government should provide boats, and access to fuel, water, and repair and maintenance facilities. It is a,lso necessaq: that the Govern- 32

ment ensures that experienced skippers and crews are available to carry out the pilot operations. In addition, because of the nature and extent of the objectives of the pilot schemes, the Government must provide the necessary technical and administrative personnel to manage and evaluate operations at the two sites. The pilot projects would also give an opp­ ortunity for establishing ways and means to dispose of catches and it is important that every encouragement should be given to private fish buyers to have access to boat landings from the pilot schemes.

In order to secure successful operation of the pilot projects, it may be necessary that the Government subsidise vessel operations in the initial stages. It must be stressed that one of the prime objectives of the pilot scheme would be to establish and evaluate the problems associated with fishing boats crossing the bars. Because the boats may not be entirely suitable for bar conditions and skippers may lack experience of local conditions, it may well be that in the initial stages quite a fair amount of fishing time is lost. In these situ­ ations, the Government could well consider some sort of subsidy to compensate for the reduced earnings of the skipper and crew.

It is absolutely essential that the Government clearly establishes the objectives of the pilot projects at the outset and that it ensures that all necessary inputs are available so that the project can run smoothly and efficiently. The Government's involvement in the pilot projects may tend to act against the pre-requisite that the pilot operation should be conducted on a model basis with all aspects resembling as closely as possible, those of a commercial operation. On the basis of evidence available, it is fairly clear that in the areas there are no private entrepreneurs who have either the means or the expertise to manage the project independently of the Government.

If' these projects are established, the Government should ensure that the necessary authorities are given so that the project managers or those leading operations can make on-the-spot decisions and, generally, make the best possible use of all the resources at their disposal. It is equally important that project managers should be able to control vessel operations to see that time is not wasted and that the invest­ igational objectives are fulfilled.

In order to achieve flexibility in management of operat:i_ons, it may be desirable tha,t the Government establishes a company under the pro­ vi B ions of the Companies Act. This would permit management of project ac i vi ties to be run on .~,n autonomous basis. If any private capital is a'nilable for investment· in these enterprises, the compm1y set-up would facilities its absorption and shares could be allocated ;_n accordance w:i 0 .h rate of subsc:i:'iptiot . 33

Chapter 6

SUMMARY AND RECOMMENDATIONS

6.1 SALIENT FEATURES OF MARINE FISHERIES IN ANDHRA PRADESH

Total marine fish landings has been estimated at about 80,000 tonnes by the Government of India and approximately 147,000 tonnes by the State of Andhra Pradesh. These figures related to the year 1968. In this Report the estimates of marine fish landings in Andhra Pradesh that are published by the Government of India have been used. Mechan­ ized fishing accounted for about 4,000 tonnes of this total. The re­ mainder was landed by traditional methods.

Marine fishermen using traditional methods numbered about 80,000 in the late 1960's and about 600 fishermen worked on mechanized boats. The total population of the fishermen's community, including families, is estimated at about 250,000. These people live in about 400 villages spread along the State's coastline of about 1,000 kilometres. According to State Government statistics, traditional fishing tends to be con­ centrated in the northern part of the State.

Mechanized fishing boats were introduced in the early 1960's and the first vessels to receive diesel engines were the local Navas. In 1970, the mechanized fleet consisted of 123 vessels: fiftyseven Pablo-type boats; fortysix 9,75 metre boats; eighteen 11.2 metre boats and two 15.2 metre boats; these total included Government research and training vessels.

The State Government has contributed practically all the capical invested in vessels and shore facilities. Boat-owners receive a substantial part (percentage varies according to cost of engine) of the cost of a vessel by way of grant and the balance as an interest free loan,

After about 10 years of mechanized fishing activities, the fleet size is still quite .small and, overall, the ieturns on investment can only be rated as poor and fall:rng quite short of reaso;mble expectations. Most of the mechanized boats have access to shelter in two all-weather harbours.

About 100 mechanized fishjng vessels operated during 1970 from the ports of Visakhapatnam and Kakir.a.da. These are the only two fishing port in the State which offer a safe "base for fishing operations. Both po:c ·~s are also centres for substantial co:mnercial cargo trade. There is no me :hanized fishing from south of Kaki .mda to some miles north of Madras.

At both Visakhapatnam and tCakinada, certain ancillary facilities have been provided but at both ports some plants have yet to oe completed or commissioned. At. no other landing centres in the State do boat··owners have access to ice plants~ cold stores, etc.

Due to lack of detailed and continuing fisheries resources surveys, littlE is known about the nature and magnitude of resources suitable for mechan­ ized fishing south of Kakinada. However, results of t.radi tional :rishing and evidence from comparable areas elsewhere in India, suggest tha,t there is scope for development of mechanized fishing in the southern region of the State and particularly in the waters near the delta areas. 34

In the northern part of;the State, particularly in the Visakhapatnam to Kakinada region, inshore grounds are limited and shared by mechanized and traditional fishing. Exploratory fishing in this area indicates that prawn resources are somewhat scarce in waters deeper than about 40 metres. Hence, owners of mechanized boats will have to rely on income from fish rather than prawns, when fishing in waters deeper than those commonly exploited in 1970.

Marine fish is consmned in fresh form mostly in areas adjacent to the landing centres. Some quality fish is sent to large inland centres and inter-State. However, most of the marine fish landings in Andhra Pradesh are cured; maybe as much as three quarters. Although little is known about the trade in c~red fish - the production and trade of which is undertaken by thousands of individuals - it seems likely that most of the production is consumed in the State of Andhra Pradesh.

At present, mechanized fishing depends to a large extent on the value of prawn catches. Without the revenue from prawn sales, vessel-owners would have no chance, under existing circumstances, of running their boats on a commercial basis. During 1970, about 1000 tonnes of prawns (live weight) were sent either to Tamil Nadu or Kerala for processing and thence export overseas. Part of these prawns were supplied by traditional effort.

6.2 OBSERVATIONS ON DEVELOPMENT OF MECHANIZED MARINE FISHERIES IN ANDHRA PRADESH

Notwithstanding the substantial amount of assistance given by the Govern­ ment to boat-owners, fishermen and traders of marine fish, in the form of grants and loans, equipment, and technical advice, and the fact that most of the boats have been working out of two all-weather ports, the results of mechanized fishing duriPg the late 1960 1 s were disappointing._

Unless the performance of the existing fleet of mechanized fishing boats is improved there seems to be little reason to expect the size of the fleet to grow in the next decade and there would be only limited economic reasons for the Government to lend much support to the industry.

It is only when a reasonable assurance can be given that the present fleet will prosper and that new boats may be expected t.) do the same that the time will come fo:c expansion of harbour facilities. At least, for the northern part of the State, lack of harbour facilities cannot be said to have mitigated a.gainst growth of mechanized fishing,

In the southern part of the State> there are few nature.l advantages which can be used when building bttrbours. Consequently~ the engineering and maintenance work required to '.)rovide all-weather ha".'bours, and, in particular, stable and deep chano:ols over bars, would b~ quite costly and could only be justifieC. by a very large-scale industrial activity.

The cost of constructing ar. all-weather port in the soi.:,thern part of the State could be at least 7 to 10 times the cost of :p:!:·oviding a fair­ weather port with no special engineering works to contr,)l bars. Having regard mainly to littoral drift, the difference in maintenance cost between the two types of ports could be 1: 30 as the all -':leather pnrt will require very heavy maintenance dredging, 35

As indicated, the cost of an all-weather port could be justfied if mechanized fishing could be undertaken on a very large-scale. At this stage, in the development of Andhra Pradesh marine fisheries, there would be no economic justification for incurring such high capital and maintenance expenditure.

Before such large expenditure could be incurred, it is absolutely essential to have much more information about fishery resources, the best means to exploit these resources, and the availability of capital to meet investment demands other than that involved in harbour works. With regard to the investment in boats and shore facilities, capital req_uirements would be considerably in excess of that req_uired for the ·engineering structure in port development.

Any q_uick development of mechanized fishing raises an extra ordinary demand for skilled people and eq_uipment. With regard to people, suff­ icient experienced skippers, engineers and fishermen must be at hand to man the fishing craft. On shore, trained technicians and managers must be provided to ensure efficient handling and disposal of catches. With respect to e(J..uipment~ spare parts and servicing facilities must always be available so that delays due to either repairs or mainten­ ance can be kept to a bare minimum.

Engineering surveys, investigations and design studies have been con­ ducted by this Project for Kakinada, Narasapur and Nizampatam. 'Ihe results are' presented for consideration by the Government concerned in Technical Reports 9, 10 and 11.

In the case of both Narasapur and Nizampatam, poor soil conditions will increase construction costs and hence even these modest facilities carry a "surcharge" because of the presence of a natural disadvantage.

At Kakinada, the second harbour basin will cater for unloading of about ninety 10 metre boats, fortyfive 12 metre and fifteen 15 metre boats. At the other two places, the landing q_uays and shore-based facilities are designed to cater to boats in the nine and ten metre class, about 110 vessels at Narasapur and about 60 at Nizampatam.

With regard to the Projr~ct' s proposal for second-stage ievelopment, at Kakinada, the design st·.J.dy ca,ters only for the extra b2rthing space req_uested by the State Government and no provision has been made for mr.intenance and repair facilities or for a slipway whi·~h it is assumed the Government will be providing independently of the berthing space.

The cost of the three proposals are as follows:-

Kakinada Rs.· 28,70,000

Narasapur

Nizampata.-u Rs. 44,oo,ooo

6.3 RECOMMENDATIONS

This Report recommends that:- 36

i.£.__general

(a) action be taken to improve the performance, and hence the profitability, of mechani~ed fishing so that the return on capital is sufficient to cover both a reasonable rate of interest and allow for capital accumulation for re-invest­ ment purposes;

(b) more information about the technical and economic feasibil­ ity of mechanized fishing be obtained in relation to the rivers of southern Andhra Pradesh; and

in particular, this Report recommendes that

(c) comprehensive maintenance and repair facilities be provided for mechanized vessels operating from the ports of Visakhap­ atnam and Kakinada;

(d) actions be taken to encourage boat-owners to prolong their normal fishing day and, in this connection, it is recommended that attention be paid to the limit imposed on the daily fish­ ing trip by the early afternoon auction and also to storage requirements for the fish which may be landed after daily auctions have been completed;

(e) if the results from the implementation of recommendations (c) and (d) are encouraging, to consider the usefulness of provid­ ing a second harbour basin at Kakinada in accordance with the designs contained in Project Report No. 9;

( f) in accordance with the suggestions and guidelin•._,s enumerated in Section 6.2 of' this Report, to implement two pilo0 projects in mechanized fishing, one at Narasapur and one at Nizampa.tam, with, generally, the main objective of securing, from a long­ term point of view, a fairly precise picture of the economics of vessel operations and an answer to the question whether it is profitable to operate mechanized vessels from Nizampatam and Narasapur;

(g) if the results o:i' the pilot projects are encouraging, to con­ sider implementir:g the design proposals covering harbour fac­ i~ities as contained in Technical Reports 10 aLd 11;

( h) apart from the exploratory fishing activity which sho·.i.ld flow from the pilot projects, to arrange surveys of pelag~_;'. and demersal fishery :i esources off the coast of Andhra Pr1 .. desh;

(i) if mechanized fisning based on the fair-weather harbours pro­ posed. in paragraph. (h) is successful, and when i.nformation is available from resource surveys recommended in :-;iaragraph (h), to consider whether there is any economic justification for the development of an all--weather harbour in the southern area of the State which would complement the all-·weather harbours either under construction or proposed at Visakahapatnam, Kak­ inada and Madras; and 37

(j) to consider the need for further pilot projects in the southern part of the State and the possibility of establishing fair­ weather landing facilities between Visakhapatnam and the Orissa border. 38

APPENDIX 1

NOTE ON KAKINADA

1. GENERAL

Kakinada tovm is located on the coast of Andhra Pradesh about 400 kilo­ metres east of Hyderabad and about 140 kilometres south-west of Vis­ akhapatnam (see Drawing No. G-34).

The town is situated on the flat expanse of the eastern part of the Godavari river delta quite near to the shore. Here, the shoreline is low and bare and liable to be submerged at times of high tide.

Agriculture and agro-based industries provide most employment opport­ unities in the areas around the town of Kakinada as is general in the East Godavari District. These areas are densely populated. In 1969, there were about 400 persons per square kilometre. In 1970, Kakinada town had a population of about 150,000. The town is the centre for administration and trade of the surrounding areas and house the District headquarters of East Godavari District. There are no large industrial enterprises in the town. Kakinada is served by both railway and road.

2. PORT

In the State, the second most important port for commercial cargo traffic is located at Kakinada. During 1968/69 total tonnage of exports and im­ ports passing through the port is estimated to about half a million tonnes. The port is a "lighter port". Ocean going vessels anchor east of Godavari Point, about 7 kilometrer from Kakinada and goods are sh-\.fted between boats and shore by way of lighters. Kakinada town is on a canal which flows out into Kakinada Bay. The waters of the canal serve as the water area of the commercial harbour and also provide the approach channel to the existing fisheries basin and to the extension proposed in Technical Report No. 9, Storage sheds are located along the northern bank of the canal. The southern banks are occupied by country craft under repair, the Government boat-building .:rard, the harbour basin for mechanized boats and a fishing village.

The mouth of the canal is trained by a break-water. Depth of 2.15 metres is maintenanced by dredging in the canal and through the shallow bay to the open sea.

3. FISHERIES

The extent and nature, conditions and success of mechani'~ed fishing oper­ ations off Kakinada are discussed in the m'ain text of th:_s Report.

Marine fishing with traditional craft and tackle :is undertaken from Kak­ inada. The fishermen exp1Jit the shallow and protected grounds off Kak­ inada and inside Hope Isle,nd as well as deeper waters. Ti1e fishermen community live in villages some of which are located on the outskirts of Kakinada town. One villag·e is located on the southern bank of the canal, 39

just east of the area proposed for extension of the second basin. The fishermen community number several thousands at Kakinada.

About 350 indigenous fishing craft operate from Kakinada. The fleet consists of ''Masula" (stitched) boats, "navas" and "shoe donies". They are used for fishing most of the year. At Kakinada marine fishing effort by traditional craft and tackle is believed to land somewhere between 1,000 and 2,000 tonnes of fish per year. Within a distance of about 50 kms. from Kakinada landings are believed to be of the order of 11,000 tonnes per year. Fishing is done mostly by gill-nets.

Fishermen from the delta areas to the south and south-east of Kakinada come to the town to dispose of their cured products in a weekly whole­ sale market. 40

APPENDIX 2

NOTE ON NARASAPUR

1. GENERAL

Narasapur town is located on the western banks of Vasishta Godavari river (see Drawing No, G-34) about 14 kilometres from where the river flows into the Bay of Bengal. The areas surrounding the town are dens­ ely populated.

In 1961, there were about 460 persons per square kilometre in the Taluk of Narasapur and the town had about 39,000 inhabitants.

Like the areas surrounding Kakinada, almost all employment opportunities at Narasapur are in agriculture and agro-based industries. A large part of the lands in the delta are irrigated and yield more than one crop per year.

Narasapur is serviced by railway. A branch-line connects the town with the main Madras-Howrah railway line. All-weather roads link the town with State and inter-State highways.

At present, apart from a ferry service across the river, there are no port facilities at Narasapur.

2. FISHERIES

Little fishing is undertaken with Narasapur as a base and few fishermen liYe in or adjacent to Nri,rasapur town.

Marine fishermen live in villages at the mouth of the Vasishta Godavari river and in the delta areas south-west of Narasapur town. In these areas, inland fisheries is also an important means of livelihood both in terms of fish landings and employment. Stake-nets are operated in the river and larger waterways. A considerable amount of prawns and shrimps are landed throurh these operations.

It is believed that during the late 1960's, about 5,000 :fishermen were engaged in marine fishing off the shores east and west of the mouth of the Vasishta Godavari river.

Fi:,;hing is done with shore-seines and from boats genera_~_Ly with various tyj,es of gill-nets. The boats are sail-boats, Catamaram; are also used.

The best period of the marine fishing season falls from December to June. During those months, fishermen from)other coastal ;iarts of the State come to the fishing grounds off the Godavari delte, for fishing.

Persons in Andhra Prades1'. connected with the fishing industry believe the fishing grounds off -::;he Vasishta Godavari river to b~ very product­ ive. Class-fish such as ~3eer, pomfrets are said to be abundant. Just how productive the grounds are, when fishing with traditional methods, is not known. Neither thP. amount, intensiveness or yield of the fishing effort is knmm. However~ it seems reasonable to expect landings of a few thousand tonnes of marine fish per year on the coast up to a few kilometres east and west of the Vasishta Godavari river mouth. 41

Narasapur is a centre for trade in marine and fresh water fish.

3. MECHANIZED FISHING

Mechanized boats have been fishing in the waters off the Vasishta Godavari river, unloading catches at Narasapur. A Pablo boat, managed by the Inshore Fishing Survey of the State Government of Andhra Pradesh, was trawling during 44 days in the period December, 1966 to April, 1967. Gill-netting was conducted during the same period. The results were about the same as those obtained off Kakinada with a similar vessel. On the average, jew-fish occupied more than 50% of the trawl catches; prawns occupied close to 7%. Gill-netting operations yielded fair quant­ ities of pomfrets and seer fishes.

It was also reported that mechanized boats fish in the area intermitt­ ently. No precise information has been obtained about how many mech­ anized boats come and during what periods they fish.

During the 1960~s, there were no modern facilities for either storing, preserving or processing of fish at any of the marine fishing villages by the mouth of the Vasishta Godavari river or at Narasapur town. Transport and marketing arrangements are all handled by private merch­ ants according to old, customary procedures. Some of them buy and transport quality fish, for consumption in fresh form, to major villages and towns. 42

APPENDIX 3

NOTE ON NIZAMPATAM

1. GENERAL

Nizampatam is a coastal village in Repalle Taluk, Guntur District, Andhra Pradesh. It is located on the western part of the delta formed by the river Krishna (see Drawing No. G-34), and, like most coastal villages in the area, it does not reach the seafront, but is situated a few miles inland. The village is about 20 kilometres from the town ·of Repalle, with which it is linked by a fair-weather road. Repalle is serviced by both railway and all-weather roads.

The village houses the administrative headquarters of the local panch­ ayat. It is both an agricultural and a fishing village. The fishermen have access to the sea by a waterway that used to be part of the main course of one of the branches of the river Krishna.

The panchayat is estimated to have a population of about 15,000 ind­ ividuals of which about 8,000 live in the village of Nizampatam. The other live in small hamlets located within a radius of a few kilo­ metres from the village.

In the panchayat a large part of the land area is under irrigation. Paddy, ground-nut, maize and chillies are the principal crops.

2. FISHERIES

In the village of Nizampatam, the distinction between f':ishermen on the one hand and farmers and landless farm labourers on the other seems to be quite clear. It is only during the seasons of harvest and sowing (at the most 60 days of the year) that fishermen and women from the fishermen community are employed as agricultural labourers.

About 1,200 active fishermen live in Ni'7.ampatam and a few more in the surrounding hamlets. Depen1ing upon where they fjsh, the fishermen can be classed as "inland" or "marine". The marine fishermen are in majority. During periods of the yea'!:' fishermen migrate from Nizampatam to other coastal areas between the mouth of Krishna and Kottapatnam (s0e Drawing No. G-34).

The marine fishermen use 1>each-seines, from January to l.i'ebrua.ry ~ and fish with gill-nets. There are about 150 navas at Nizampatam, the larger of which have a crew of up to eight and stay at sea for severs,1 days at a time. The navas and other craft are moored in ·the waterway mentioned above. It flows by the southern edge of the village. In 1970, there were no man-made harbour facilities at Nizampatam.

East of Nizampatam, the ml:,in branch of the Krishna river flows south towards the Bay of Bengal. The river is never closer to the village than about 20 kilorr..2tres. The western bank of the river reaches out 43

south some 20 kilometres into the sea. Thus, the land-mass west of the river constitutes the eastern shore of a bay at which Nizampatam is located at the northernmost point of the shorelines (see Drawing No. G-34). This bay is shallow and enjoys more protection against the north­ east mon~oon than other parts of the coast of Andhra Pradesh. Fishing is undertaken in the bay almost all times of the year. Fishermen take their boats and nets as far as 15 kilometres from the shore.

In the past, bad roads between Nizampatam and interior towns and vill­ ages and lack of facilities for storing, preserving or processing of fish have probably kept fish prices low at the village. Even Quality fish like pomfret and seer have been cured.

3. MECHANIZED FISHING

Fishing with mechanized boats has been undertaken from Nizampatam. In the first half of the 1960 1 s, mechanized boats were distributed, under the loan and subsidy scheme of the State Government, to fishermen in Guntur District. Both mechanized navas and Pablo-type boats were distributed. In 1965, at least five Pablo-type boats and a few mech­ anized navas had been supplied to fishermen from Nizampatam. The.boats were intended and used for gill-netting operations.

Only one of the fishermen concerned managed to fish successfully with his boat and pay off the loan on the same. Most of the remaining boats were seized by the State Department of Fisheries as the fishermen were not re-paying the loans on their boat according to schedule. The fisher­ men maintained that lack of maintenance and repair facilities for engines made it impossible to keep the boats in working order.

In the middle of 1970, thex-e were about 10 fishermen-rf'sidents of the Nizampatam village who had undergone the course at the Fisheries Train­ ing Centre at Kakinada and thus were eligible to be supplied mechanized boats. Some of them had applied for 9,75 metre boats for trawling.

Until 1970, trawling was reported to have been undertaken only by one mechanized boat not from the village. Local fishermen did not permit the boat-owner to continue his trawling operations in "their" waters.

Officials of the Fisheries Department in the Guntur District believe that the 9 and 9,75 metre hoats can be successfully used for trawling from Nizampatam.

Neither the Inshore Fishing Survey of the State Departm2nt of Fisheries, nor any research vessel sponsorec: by the Central Government have under­ taken exploratory fishing in the bay outside Nizampatam. However, the slowly sloping bottom of the bay and fish landings by local fishermen using traditional methods make it seem Quite likely that mechanized trawl­ ing operations could yield bountiful catches in these waters.