Fl: SF/IND 55 TECHNICAL REPOIU 5

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REPORT PRIEP.ARIED FOR THIE GOVERNMENT OF INDl.A BY THIE FOOD AND AGRICULTURE ORGANIZATION OF THIE UNITED NATIONS ACTING AS EXECUTING AGENCY FOR THIE UNITED NATIONS IDIEVIEll.OPMIENT PROGRAMME

UNITED NATIONS DEVELOPMENT PROGRAMME FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS R.OME, 1970 PREFACE

The Pre-Investment Survey of Fishing Harbours is being conducted by the Food and Agriculture Organization of the United Nations in cooperation 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 Development 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 sub~ sequent 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 Organiza­ tion of the United Nations concerning the legal or constitutional status of any country, territory or sea area, or concerning the delimitation of frontiers, TABLE OF CONTENTS

Chapter 1 INTRODUCTION 1

Chapter 2 MARINE FISHERIES OF RATNAGIRI DISTRICT 3

2.1 Traditional Fishing 3 2 .1.1 Effort 3 2.1.2 Yield and Value 3

2.2 Mechanized Fishing 3 2.2.1 Effort 3 2.2.2 Yield and Value 4 2.2.3 Processing of Fish Landings 4 2.2.4 Disposition of Landings 5

MARINE FISHERY OPERATIONS BASE!L,Q1L§AYS_~:@1I2. 7 RIVER MOUTHS AT OR ADJACENT TO RATNAGIRI

3.1 Introduction 7 3.2 Traditional Fishing 7 3.3 Mechanized Fishing 7 3.3.1 Effort 7 3.3.2 Yield 8 3.3.3 Value 8 3. 3. 4 Earnings 9 3,3,5 Landing Centres 9

3.4 Disposition of Landings 10 3.5 Fish Industries at Ratnagiri Tovm 10 3,5,1 Deep Freezing Facilities 10 3,5.2 Canning Facilities 11 3,5,3 Ice Plants 11 3,5.4 Storage Facilities 12 3,5,5 Fish Meal 12 3,5,6 Curing 12

Chapter 4 kffiRKETS FOR MAR:J:NE_l'R~~Q}2\J.QED AT 13 RATNAGIRI

4~1 Crustaceans 13 4,2 Fish 13

Chapter 5 MARINE FISHERY RESOURCES IN WATERS OFF 15 RATNAGIRI DISTRICT -~-~----

5,1 Exploitable Potential and Present 15 Production 5,2 Trawling Inside the 54 Metre Depth 15 Contour Line on One Day Trips from Ratnagiri 5,3 Trawling Inside the 54 Metre Depth 16 Contour Line Off Ratnagiri on Trips of Several Days Duration 5,4 Stocks of Pelagic Species out to the 17 54 Metre Depth Contour Line 5, 5 Demersal Fish Stocks Outside the 54 Metre 17 Depth Contour Line 5. 6 Pelagic Fish Stocks from the 54 to the 18 180 Metre Depth Contour Line

PROPOSED HARBOUR PROJECT FOR RATNAGIRI 19

6.1 Type and Capacity of Proposed Harbour 19 Facilities for the Mechanized Fishing Fleet 6.1.1 Introduction 19 6.1.2 Type of Fishing Vessels Likely to 19 Fish from Ratnagiri 6 .1. 3 Size of Fleet 20 6.1.4 Shore-based Facilities for Fishing 21 Vessels at Ratnagiri 6.1.5 Effects of Access to Harbour Facilities 22 on the Results of the Mechanized Fishing Fleet

6.2 Organization 24 6.2.1 Harbour 24 6.2.2 Mechanized vessels 24 6.2.3 Fish industries 24 6.2.4 Road transport 24 6,2,5 Fish boxes 25

6. 3 Finance 25

.EVALUATION , 27 7.1 Introduction 27 7. 2 Assumptions of General Nature 27 7. 3 Benefits of the Proposed Harbour at Ratnagiri 28 7.4 Costs of the Proposed Harbour Facilities 28 at Ratna,giri 7.4.1 Capital 28 7.4.2 Land 28 7. 4. 3 Labour 28 7. 4. 4 Marketing costs 29 7,4,5 Other recurring expenses 29 7.4.6 Taxes~ Tariffs and Excise Duty 29 7,4,7 Special cost situations 30

7,5 Profitability of the harbour scheme - 30 Sensitivity Analysis 7,5,1 Introduction 30 7,5,2 Basic factors 30 7,5,3 Sensitivity Analyses (Changes to 31 "Basic Comparison")

7,6 Conclusions 33 Fleet Size, Fishermen Employed and Catch per Vessel Class, 1970 - 1983

Annual Costs and Earnings of Fishing Vessels

,!ependix 3 Allocation of Fish Catch and Value of Fish Sales (Retail), 1970 - 1983

Allocation of Prmm Catch and Value of Sales (F.O.B, or Retail),' 1970 - 1983

Required Capacities for Shore Installations and Road Transport, 1970 - 1983

~endix 6 Port Authority ·- Annual Income and Expenditure, 1974 - 1983

!P_rndix 7 Consolidated Sta.tement of Operating Costs for Production, Distribution and Sales of Fish and Prmm Products, 1970 - 1983

~_:e_~ndix 8 Consolidated Statement of Income and Operating Costs for Production, Distribution and Sales of Fish and Prai,m Products, 1972 - 1983

Schedule of Investment and Depreciation for Harbour Works, Fishing Vessels, Shore Installations and Transport, 1972 - 1983

§?;pendix 10 Cumulative Investment and Capital Flow

If Harbour Facilities not Provided - Fleet Size, Landings and Disposal of Fish and Prmm Catch, 1974 - 1983

If Harbour Facilities are not Provided - Consolidated Statement of Income and Operating Costs for Production, Distribution and Sales of Fish and Prmm Products, 1974 - 1983

Assumptions Used in Calculations for the Economic Evaluations of the Ratnagiri Proposal INTRODUCTION

The coastline of Maharashtra State is approxima,tely 500 Km, on a base-line system of measurement, The District of Ratnagiri accorn1ts for about half of this coastline, and the tmm of Ratnagiri, the District Headquarters, is on the coast in the middle of the District and about 220 Km, south of Bombay.

Ratnagiri is the main fishing centre between Bombay and Goa, In fact, in terms of the number of mechanized fishing vessels it is the largest centre from Bombay to Malpe, in Southern Mysore, No other fishing centre in the District has quite the significance of Ratnagiri and this applies both to mechanized fishing and fish processing activities.

Ratnagiri is also the centre of local government and most other activities in the District. The town is the only really significant centre of population in the region.

From the engineering point of view, the District1s coastline offers more opportunities for all-weather harbour development than most other parts of the Indian coastline. However, because of sparse industrial development, re lati vely low popuJ.ation density, poor connnunications, only Ratnagiri could at present supply the basic infrastructure ru1d skills required to make a success of an all-· weather fishing port of any significance,

Ratnagiri is being developed as a commercial port for overseas vessels. In the long run, this development will assist the fishing industry.

The proposal for Ratnagiri, namely s,n a.11·-weather port with a, compre­ hensive range of modern facilities, Hill provide a base for a large, modern fleet at a point about midway between the two (expected) large harbours at Bombay and Goa/Karwar. If fishing in the Ratnagiri region develops substantially, particularly purse-seining, it may later be an economic proposition to increase the harbour facilities.

The natural advantages of Ratnagiri as a h·arbour site and how best certain of these advantages may be incorporated in a harbour proposal are described in the accompanying Engineering Report (Technical Report 6).

The Ratnagiri harbour proposal has been designed to accommodate probable fishing development during the period 1974 -- 1983 and to cater to vessels up to LOA 15 metres. However, the harbour basin and the approach to it ha.s a depth ( LLW) of 3. 9 metrefJ and can therefore accommodate boats of the 27 metre c1e,ss. By 1981 it is expected that the fleet will comprise about 190 vessels.

Investment required during the period 1972 - 1983 is as follows:- 2

New Re12lacements (Rs-:-) ~.[RS.T~-~

Harbour Works 1,50,000 Fishing Vessels 12 Metres l,20,00,000 Fishing Vessels 15 II 1,30,00)000 Ice Plant, Ice and Cold Store 12,28,000 4,32,000 Freezing Plant ana. Storage 3,00,000 Canning Plant 5,60,000 3,00,000

Road 'I'ransport _}O ,_90 ~00 -~·~2S! '000 3,43,78,ooo 1,52,72,000 Operating Capital ~ 54 i!-8 '000 Total 3,97,96,ooo

Total investments 3,97,96,ooo + 1,52,72,000 = 5,50,68,ooo,

By 198l~the fleet of 150 x 12 metre and 40 x 15 metre vessels is expected to land 28, 250 tonnes of fish and prawns for a final product value of Rs. 5,26,02,000. These tota~ls do not include landings and value of traditional fishing in the area.

Though under exceptional circumstances, as outlined in Chapter 7, the project may not become viable, it is believed that such circum~ stances will not arise and mechanized fishing will develop as described in Chapter 6 of th:i.s :report (this development called nBasic comparison 11 is evaluated in Chapter 7), It is therefore recommended. that harbour facilities be provided at Ratnagiri. 3

MARINE FISHERIES OF RATNAGIRI DISTRICT

2.1 TRADITIONAL FISHING

2 .1.1 Effort

The 14,000 marine fishermen of Ratnagiri District, with their families numbering about 56,000, live in 145 fishing villages spread out along the coast of the District.

There are about 2 ,000 sail·-boats and a1Jout 2 ,200 tonnies (small catamaran-canoe) in the District. Cast nets, gill nets (bottom and surface) and stake nets are operated from these boats, Formerly the. sail-boats . were used for fishing with long lines. This method is now going out of use.

Shore-seines are used in the southern parts of the District and there are about 110 units in operation,

2,1.2 Yield and Value

Precise information is not available to indicate what part of the fish landings in the District are realized by fishing with traditional methods and what part is realized by trawling from mechanized boats. Estimates of total landings in the District also vary considerably from source to source. Estimates given for average yearly catch rates of sail.-boats and tom1ies used by the fishermen employing traditional methods and for the shore-seines units operating in the State, lead to the conclusion that the traditional methods may contribute anything from 25 % to 70 % of yearly marine fish landings. An average of a.bout 10 Kgs, per person per day is probably somewhere near the truth in this matter. Such a. catch-rate means that the mechanized boats and the fishermen using traditional methods each contribute about half of the marine fish landings in the District.

The major part of traditional fishing effort is concentrated on pelagic fish species. The beaGh-·seines are prixnarily used to catch mackerels. Eels pomfrets, ribbon fish and cat-fish are caught by bottom-set gill-nets,seer are caught by surface gill-nets,

The season for prmms used to occur im_mediately following the monsoon period. Pravms were caught either by beach-seines or by towing bag-nets after sailing boats.

The average value of the marine fish landings in the District is estimated to be about Rs. 600 per tonne.

2.2 MECHANIZED FISHING

2.2.l Effort

The discovery, in early 1960, of rich pravm beds off the coast of Ratnagiri District, encouraged local fishermen to start trawling for prmms from mechanized boa.ts in 1961, At the beginning of 1970, about 350 boats were fishing from various bays and creeks in the District. However, the fleet was concentrated mainly in the middle section of the District and about half of the fleet operated from landing centres within a few kilometres of Ratnagiri town. With regard to the rest of the District only Dabhol, Deoga,d and Ma,hmn served as loading and unloading points for more than 10 boats during the later part of 1969. The remaining boats worked from a number of small, isolated landing centres.

Most of the boa.ts in the fleet have an overall length of 12 metres and a marine diesel engine varying from 45 to 60 B ,}LP. Usually this boat has a crew of seven. The boat design is different from the Pablo~type design used for boats fishing along the coast of Mysore. The 11 Ratnagiri--boat 11 is proportionately wider and lies lower in the water, According to people connected with the fishing industry at Ratnagiri there are already boats in the District with an overall length of about ll1. metres and owners of pravm freezing establishments have plans to construct more 14 metre boats.

The mechanized fleet engages principally in trawling. The 12 metre boats use a 14 to 16 metre cotton traw1. When the pravm catches are smaJ.1 ~ which frequently occms at the ·beginning and towards the end of the season, some of the boats work as gill-netters. Up until the beginning of 1970, no purse~seining for comn1ercial purposes had been done by any of the vessels in the mechanized fleet.

Reflecting the location of the mechanized fleet, most of the trawling is done in the waters extending up to 35 km distant from Ratnagiri tovm, Trawling is usually done at a depth varying from ltJ. to 36 metres.

Information relating to the effort of mechanized boats, that is the number of hours fishing per day and the nwnber of fishing da.ys per season, is only available for boats which use f\a;'cnagiri as a base (see Chapter 3).

2.2.2 Yield and Value

Complete information is not available about the performance of mechanized boats of the District. Officials of the Fisheries Depart~ ment of the State Government stated that on the average a mechanized boat lands about 70 tonnes of fish and pramrn per season, The present rate per tonne for landings at f\atnagiri is about 626 rupees. It is probable that the average rate per tonne at landing centres not adjacent to Ratnagiri town would be below this average to compensate for transport costs. Therefore, it is very likely that the performance of the few vessels located at small isolA,ted landing centres along the coast will be below that recorded for th~ fleet at Hatnagiri. This is probably caused by higher running (fuel) and maintenance (waiting) costs in combination with lower average boat-side price for prmm landings. It is not knmm to what extent, if any) these disadvantages are offset by higher catch rates.

2.2,3

Up 1mtil the late 1960' s most of the prmms and lolisters caught by the mechanized fishing fleet operating in the waters off the Ratnagiri Di~trict were sent by trucks to Hatnagiri Town, The prmms, etc, were 5

then sent north to Thana and Bombay for freezing and export. At the beginning of 1970 a lot of the pravm landings were still being sent north for processing, The freezing unit, operating at Ratnagiri during the 1969-70 season had a capacity of a,bout 10 tonnes of frozen products per day. It was installed sometime during 1967-·68. 'I'here are plans to increase freezing capacity at Ratna,giri to about 25 tonnes of frozen products per day, There do not seem to be any plans to erect freezing plants at other landing centres in the District. Most of the prmms landed south of Ratnagiri will continue to be sent to Ratnagiri for processing.

The industry for canning of marine products also has its centre at Ratnagiri town, Of the five factories in operation in the District, four are located at Ratnagiri and the fifth a,t Mahran. vn1ile canning factories in Ratnagiri use prawns as raw material the plant at Mahrw1 mainly cans mackerels. The economics of the canning plants at Ratnagiri benefit from the fact that in addition to pra;wns substantial q_uantities of fruits are also ca.nned. There.fore, overheads are not such a heavy burden on canned prawns at Ratnagiri as they are in factories which are exclusively used for the seasonal production of canned pra1ms,

Whilst the freezing unit and the canning factories in Ratnagiri are privately mmed, the canning factory in Mahran is mmed and run by the State Department of Fisheries.

The total capacity of ice-plants in the District amount to about 50 tonnes per day, of this about 35 tonnes are installed in privately nm ice-p1ants located within a few kilometres of Ratnagiri tmm, The State Department runs 2 ice-factories; one at Ratnagiri and the other at Mahran. The combined capacity is below 10 %of the District total, There are plans for expansion of the existing Government facilities at Mahran as well as at Ratnagiri. One Government plant is under construction at Vengurla. Harnai and Deogad have been suggested by the State Government as suitable spots for Government rm1 ice-plants, If present plans for the expansion of facilities at Ratnagiri tmm are realized, the installed capacity will double within a few years. To date, most of the ice is used to preserve pravm::; during land transport to and from Ratnagiri,

With the exception of mackerels, canned at Mahran, most fish are subject to curing and drying. 'I'he State Fisheries Department encourages curing of fish by providing fish curing yards where salt is supp.lied at concessional rates, Sill1·-drying is the only method of drying employed in the District.

2.2.4 Disposition of Landine;s

The official estimate for the disposition of average seasonal landings of marine fish from the Ratnagiri District is as follows;-

Frozen and Canned 8 % Conswned in Fresh Form 50 % Dried and Cured 35 % Converted into Manure 7 % 6

Most of the fish and prmms included under the heading 11 Dried and Cured11 are cured, Most of the prmm and lobster landings are in~ 11 eluded under the heading "Frozen and Canned • Some prmms are sold fresh at Bombay. Small~sized prawns and pravms of inferior q_ua,li ty are dried. Landing centres along the District's northern coastline are often isolated during the monsoon because of inferior roads. Hence prawns are usually dried during this period. Often, when prawns are sent to Bombay, quality fish is also included in the consignment. However, this is not a regular daily or weekly practice. 7

Chapter 3

MARINE FISHERY OPERATIONS BASED ON BAYS AND RIVER MOUTHS AT OR ADJACENT TO RATNAGIRI

3.1 INTRODUCTION

The town of Ratnagiri is situated on the coast about 200 km. south of Bombay. The population is about 40,000. The town is the administra­ tive headquarters for the District and is the only town of any size on the coast from Bombay to Goa.

The hills and the plateau adjacent to this stretch of coastline are particularly barren and arid. Therefore, except for the tmms and large villages along the coast, most of the District is sparsely populated and this applies particularly to the areas adjacent to Ratnagiri.

Most of the agriculture is dry-farming and substantial quantities of fruit are produced. Apart from agriculture, trade and commerce, and Government services and utilities, a significant part of work opportunities in the town are provided by the fishing industry.

Coastal passenger and cargo vessels call at Ratnagiri.

The town is connected by road to Bombay and also to Kolhapur. The latter is the nearest rail-head and, by road, is about 135 km. from Ratnagiri.

3.2 TRADITIONAL FISHING

Fishing by traditional methods is rather unimportant in the Jaigad­ Ratnagiri area, both measured in terms of landings and in terms of fishermen employed. State Government information implied that traditional fishing methods are much less important on this stretch of the coast than that to the north and south.

3.3 MECHANIZED FISHING

3.3.1 Effort

At the beginning of 1970 there were about 160 mechanized boats fishing from bays and river-mouths in the vicinity of Ratnagiri, Boats were loading and unloading at a number of places. About 60 were using Mirkerwada Bay as a landing centre. In this report, Mirkerwada Bay is suggested at the site for a future fishing harbour. Most of the remaining boats were landing south of the Ratnagiri headland. Some boats were mooring in Mirya Bay, north of Mirkerwada Bay. All these landing centres are within a few kilometres of the town.

Few of the fishing vessels at Ratnagiri - only four or five - are owned by companies that freeze or can prmms for export. Most of the boats are the property of groups of fishermen, the majority of whom obtained boat finance from the State Government through cooperative societies. 8

The boats normally trawl in waters with a depth of between 15 and 36 metres. On day--trips they fish about 20 km. distant from their landing centre,

As neither the skippers nor the State Government maintain records of the daily operations of the mechanized fishing fleet, no precise information is available about effort or catch, The general practice of the boat-mmers in this area is not to fish. during the monsoon period. Taking this into account, it is likely that the fishing season per boat may range from 140 to 200 days with most vessels working near the lower limit of the range.

The 12 metre boats spend about 10 hours away from port per day of fishing. They leave between 0500 and 0600 and return between 1500 and 1600. Time spent on the grounds is probably of' the order of eight hours per day allowing for two hours spent steaming to and from the grounds.

3.3.2 Yield

Only incidental information is available about past catch rates for vessels that have been fishing from Ratnagiri.

11 Varsha11 is a 40-foot vessel with a 60 H.P. engine. It is used by the Marine Biological Research Station located at Ratnagiri. When the boat is not on research investigations, it operates as a commer­ cial vessel. The performance of this State-owned vessel is documented as far back as 1967-68. During the season 1967-68, 1968-69 and 1969-70 (up to and including January 1970) the average catch of fish and prmms per day-trip came to 326 l<;,g. During these three seasons the boat made 355 trips. Prawns were about 27 %of the landings, quality fish constituted about 13 % and the remaining 60 % was non-quality fish. During the 1967-68 season "Varsha" spent 187 days at sea; in 1968~69 it only operated on 118 days.

Twelve trawlers, fishing from landing centres at Ratnagiri during the last three months of 1963 and the first three months of 196lf, caught on the average about 9,5 tonnes of fish and pravms per vessel per month. Assuming that the average number of days each month spent at sea was 24, the daily landings per trawler were about 400 kg,

A Fisheries Research Officer stationed at Ratnagiri has suggested that the average daily catch rate is about 500 kg. and that the species composition of the catch is similar to that of "Varsha": prawns 30 %, quality fish 16 %, lesser quality fish and trash fish 54 % (of which Sciaenids account for 20 %) •

3.3.3 Value

In 1961-62, when trawling from mechanized vessels was introduced at Ratnagiri, the price of' prawns was as low as 15 paise per kg. The price rose to 30 paise per kg. when the canneries started to buy prawns for canning and subsequent export. By 1966, the price had increased to 60 paise per kg. due, partly, to increasing competition among the wholesale buyers of prawns. They bought prawns to be sent to Bombay for freezing. During the 1968 .. 69 season, the price for the medimn-sized prawns was Rs. 1.l+o (140 paise) per kg, 9

In February 1970, ruling boat-side rates per kg. of prawns, bought through contract between boat-01-mers and freezers or sold through the cooperative societies, were:

Grade

White prawns 3.00 - 3,50 Medium-sized prawns 1. 50 - 1. 60 Small-sized prawns 0.30 - 0.60

It seems likely that the rates paid for prawns at boat-side are well below what processors could afford to pay; for example, the price structure for prmms is considerably below tha,t in force in Mysore. Therefore, as more buyers of prawns enter the market, the average prices for prawns should rise at Ratnagiri.

Mechanized boat-mmers, and Government officials connected with the fishing industry at Ratnagiri, have stated that the average boat­ side price for fish caught by the boats trawling for prawns is about Rs. 250 per tonne. The range of prices for the various species caught is rather wide. Pomfrets can fetch more than Rs. 1.50 per kg. while species such as "Squilla" and "Sole-fish" only fetch about '7 paise per kg.

It is a widespread opinion in Ratnagiri that an owner of a mechanized boat makes a handsome profit over the year. Unfortunately, as adequate records have not been maintained covering sales proceeds and expenditures of mechanized vessels, there is no way to back up this general statement by referring to detailed profit and loss accounts. However, the argument that the average boat makes a good profit is supported by the rapid expansion of the fleet in recent years.

One proforma balance sheet reflecting trawling by a mechanized boat based at Ratnagiri during one season suggests an overall rate of return of about 15 % on the capital invested in the boat and its gear, The rate of return on owner,.s capital, of course, can be higher than 15 % depending upon the share of owner,.. s capital in the total investment in bos,t and gear and upon the rate of interest paid on borrowed money ~sually about 9 %per annum).

3,3,5

At the beginning of 1970, the two main landing centres at Ratnagiri town did not have any boat building yards, mechanical workshops or slipways to facilitate vessel maintenance.

The approach to the inner-·most part of the Mirkerwada Bay is safe, Some 60 or more mechanized boats use this little bay as their loading and unloading area. However, loading and unloading is difficult as the area is mostly shallow and rocky and the bos,ts cannot come within 10

a few metres of the shore-line. As a result, unloading and loading of catch and other supplies is done by way of small dug-out canoes.

There is a sloping concrete jetty in a part of the Mirkerwada Bay where the mechanized boats are mooring and unloading. The jetty was built to facilitate the landing of traffic from passenger boats anchored well offshore.

3.4 DISPOSITION OF LANDINGS

It is lmown roughly what usually happens to the fish and prawns that are landed at places adjacent to Ratnagiri to'.m, That is, it is known that prmms are mostly frozen or canned, sometimes d;cieQ. and at other times sold fresh in Bombay. However, it is not known accurately what quantities are canned or what quantities are frozen, Even less is known about the disposal of fish landings; for example, how much fish is dried and sent inland, how much fish is sold fresh locally and in the nearby surrounding areas.

While lobsters and large and medium- sized prmms are processed for foreign markets, in canned or frozen form, a large part of the smaller prmms are dried for sale in interior Districts of the Maharashtra State. During the 1968-69 season it is estimated that prawns corresponding to about 750 tonnes of finished product were either frozen in Ratnagiri or sent to Bombay and Thana for the same purpose, The production of canned pravms during the same season amounted to at least 260,000 cans, and this production must have absorbed about 175 tonnes of prawns (landed weight).

During the 1968-69 season quality fish landings by mechanized boats amounted to about l, 300 tonnes, Part of this catch ( pomfrets, etc) was sent to Bombay. Elasmobrachs and cat-fish were probably dried and sold in interior Districts or sent to Kerala. From 50 to 60 percent of the trawl-landings may be classified as non-quality fish. What is not sold locally is dried and sold outside the local markets, Non-quality fish landings, during the 1968-69 season, would have totalled at least 4,500 tonnes.

FISH INDUSTRIES AT RATNAGIRI TOWN """""" ~~t~,-----~·-·'"""'"~-~·,.,.- ~·~-='-"-"'•~~~·?~"""'"="~<~·-· --~.

Deep Freezing Facilities

At the beginning of 1970, the only deep-freezing unit in operation in the Ratnagiri District was installed in a plant at Ratnagiri; capacity being 10 tonnes of frozen products per day. It commenced operating during the 1967-68 season.

The industry is expanding rapidly. In February 1970, other entrepreneurs who had been sending prawns to Bombay or Thana, were erecting freezing facilities at Ratnagiri, It is likely, by the end of 1970, that the installed capacity of freezers will be about 25 tonnes of frozen products per day. This capacity will be divided between three different plants. If machinery with a capacity of 25 tonnes per day had been available during the 1968-69 season, its utilization may have been of the order of about l+O %. This assu1nes that all prawns landed at Ratnagiri and suitable for freezing were 11

frozen there (here full capacity is defined as 150 days operation at 50 % of installed capacity). There are plans to increase the capacity of freezing facilities even further. However, considering the qyanti ties of prawns that can be expected to be landed in the District in the near future, it will not be necessary to have more than 25 tonnes capacity in the area.

Canning Facilities

At Ratnagiri, canning factories were established before the freezing unit and therefore were the first means to the introduction of modern processing methods. During the 1968-69 season, prawns were canned in four privately-owned factories. The plants have machinery with an installed capacity of somewhere between eight and twelve thousand cans during an eight-hour shift, An official estimate of the number of cans produced in these factories indicates that about 30 % of the installed capacity was used during the 1968~69 season (installed capacity is defined as 150 days production at 50 %of the eight-hours capacity). From September 1969 to February 1970, the production of these same factories totalled more than that of the previous season.

The main canning season for prmms occurs from October to May. However, canning is not done constinuously due to irregular supply of raw material. Fruits such as mango and pineapple are canned after the prawn season. One of the existing plants in Ratnagiri town has recently been bought by one of the large Indian food-manufacturing companies.

The existing canning plants are not lmmm to have any plans to increase their installed capacity. However, one of the companies, freezing prawns at Ratnagiri, has been considering setting up a canning plant of its mm. They have been using rented capacity in one of the existing plants to can the prmms received from contracted suppliers. At present, the nature of the agreement between the processors and the boat-mmers is such that the processors at all times must be prepared to accept the whole prawn-catch of a boat.

Ice Plants

In February 1970, the three privately mmed ice-factories at Ratnagiri had machinery capable of producing about 30 tonnes of ice per day, 'I'he Government factory, with a capacity of producing 2 tonnes of ice per day had not been used for some time, There are plans to increase the capacity of this plant to 10 tonnes per day. The extent to which the capacities of local ice-plants are used is not known.

The ice-plants in. the private sector are owned by the same firms that freeze prawns for export, The plants are erected adjacent to the freezing facilities. Most of the ice is used in the processing of prawns and during their transport to Bomba,y, Only one of the three companies envisages that it will increase its installed capacity within the next few years. Whether this increase will be req_uired or not depends on the extent to which the company will be able to procure its own fleet of boats aboard which, ice will be used to preserve the catch. 12

Storage Facilities

In the beginning of 1970, companies freezing pravms had storage space at Ratnagiri for about 200 tonnes of frozen products. Before the end of 1970, a third company is expected to have completed installation of machinery for storage of an additional 150 tonnes of frozen products. Most fish processing pla,nts have storage space for ice and for fresh fish and prawns. At the beginning of 1970, ice storage was said to amount to about 110 tonnes and chilled storage for fresh products to about 90 tonnes. There are plans to increase the chilled storage by about 200 tonnes in the near future.

Precise information is not available about utilization of storage capacity. It is interesting to note, that women engaged in the local fresh fish trade started, sometime during 1968~69, to store over­ night fish in chilled storage space rented from one of the prawn processing companies. The company in g_uestion thought that on several occasions as much as five tonnes had been stored at a time,

Fish Meal

There are no fish meal plants in Ratnagiri town or elsewhere in the District.

Curing of fish is encouraged by the Maharashtra Fisheries Department. Curing yards and salt at concessional prices are made available by the Government. 13

Chapter 4

MARKETS FOR MARINE PRODUCTS PRODUCED AT RATNAGIRI

4.1 CRUSTACEANS

The main markets for canned and frozen crustaceans are outside India. Only very small pravms, and those of inferior quality, must be disposed of within India. In this report, it is assumed that foreign markets are capable of absorbing all prawns, suitable for freezing or canning, which will be landed in Ratnagiri during the decade ending in 1983.

4.2 FISH

Abundant supplies of fish are available to consrnners at Ratnagiri and nearby areas. Lower fish prices are not likely very much to increase local demand.. The areas surrounding Ratnagiri town are poor and sparsely populated. Fish not consumed in the town or its immediate surroundings must be sold to neigbouring Districts. There­ fore, fish, or fish products, must be transported at least 150 km.

Fish, which is landed at Ratnagiri, and is to be sold outside the District in fresh form, will have to be transported in ice, As the cost of transportation and ice does not vary with the quality of the fish, it seems likely that only quality fish can bear such costs. Fresh quality fish may be sold in the major cities and towns of Maharashtra State. The larger tmms in Northern Mysore are lil~ely to be supplied from IIonavar and Karwar.

It seems unlikely, that the 53 % of trawl landings which are classified as low quality fish could be transported out of the District in ice and still have a retail price acceptable to the conswners likely to buy this type of fish. Therefore, most of this fish will be dried or cured and sold in the Districts of Satara (1.43 million inhabitants), Sangli (1.23 million inhabitants) and Kolhapur ( l. 60 million inhabitants).

In the late 1950"s it was estimated that fish consumption in Poona was about 3 kg. per person per year. If this level of consumption were true for the 4.3 millions people living in the Districts of Satara, Sangli and Kolhapur, adjacent to the District of Ratnagiri, total fish consumption would be about 13,000 tonnes per season (landed weight).

It would be difficult to reach all the potential consumers in the three Districts. If it were possible to reach 50 %of the people, that is those Jiving in the major urban areas and large villages, and that half of them would be potential consumers of fish, increased fish supplies would spread over about one million people, If their average consumption of fish at present is only of the order of 3 kg. per year per person, an increase of 1 kg. per person per year is equal to an increase of no Jess than 33 %. This.increase in consump~ tion would only take care of about one thousand tonnes of fish per season. As the supply of fish to inland markets is assumed to increase rapidly (see Appendix 3) it is evident that the "additionalu fish landings at Ratnagiri in a cured and dried form will have to be widely marketed possibly also outside the State of Maharashtra.

Probably any quality fish landed in Ratnagiri will find markets in Bombay or other ma,jor towns in the State. While it is expected that quality fish landed in Ratnagiri will amolmt to about 840 tonnes in 1970, it seems likely that this mnount will have increased to about 2, 200 tonnes by the beginning of the 1980"' s,

The marketing of "lesser-quality fish" may present problems, if fishing activity at Ratnagiri expands rapidly. There is a definite need for the Government to direct effort towards making fish a more popular source of protein.as well as towards providing facili­ ties for wholesale and retail fish markets in major urban areas. 15

Chapter 5

MARINE FISHERY RESOURCES IN WATERS OFF RATNAGIRI DISTRICT

EXPLOITABLE POTENTIAL AND PRESENT PRODUCTION

Fish stocks in the waters inside the 54 metre depth contour line off the Ratnagiri District should be able to yield a harvest of about 65,000 tonnes per season (Dr. R.M. Ranade, Research Officer, Marine Biological Reses,rch Station, Ratnagiri, Maharashtra, India). At the end of the 1960~s only a little more than one half of this potential was exploited, Outside the 54 metre depth contour line there was no exploitation of stocks.

Depth Kind of Present Possible Total Exploitable Zone Fishing Production Increase Potential tonne/year tonne/year tonne/year

0 to 54 Pelagic 9,400 15 ,600. 25,000 metres Demers al 20,000 20,000 40,000

54 to 180 Pelagic 0 ? ? metres Demers al 0 50,000 50,000

Total 29,400 85,600 + ? 115 ,ooo + ?

Source: "Development of Fisheries in Ratnagiri District. A Basis for Future Planning" - Dr. R.M. Ranade, Research Officer, Marine Biological Research Station, Ratnagiri District.

Considering the effort launched from fishing centres north and south of Ratnagiri District, what part of potential stocks would it be economic to exploit from a fishing harbour in Ratnagiri? What part of these stocks are likely to be exploited from Ratnagiri if the necessary harbour facilities are provided? These q_uestions are answered in the following paragraphs.

5.2 ~I\~!7~-~}IQ__ ~~~S~~.I:J~.-!J:T~~d-~~ ME_~B~!:.'.-!'H CONTOUR LINE ON ONE-DAY '.t11I:PlLJ:.R011.Bh.1'JiAQIBI. Boats that only make day--trips cannot fish far from port. The 12-metre boats, fish at the most about 25 km. from their landing centre. Conseq_uently, only one fifth of the Ratnagiri District coast­ line could be covered by boats making one-day trips from any parti­ cular centre. These boats trawl mainly in depths varying from 15 metres to 40 metres. They do not fish outside the 54 metre depth contour line. 16

One fifth of the potential seasonal increase in the harvest from stocks available inside the 54 metre depth contour line amounts to about 4,000 tonnes. However, as the waters off Ratnagiri town are the most heavily exploited for demersal species in the District, it seems unlikely that it would be possible to increase landings by 4,000 tonnes. In the following analysis it is assumed that landings will increase by about 3 ,500 tonnes.

5.3 ~~A\i~I_}IJQ __~!Tl3~I)~ _T_HE - :z_if_ M];'.l'_E\~ _p_EJ:'.111! __ QQ_Ii!_:rQ!!B ...~!l~! .. -2!':!'.' _1'\i\'J:Ji!~Q:!~l ON TRIPS OF SEVERAL DAYS DURATION

It would be possble to increase fish landings in the District by about 16,000 tonnes of demersal fish by trawling areas not trawled from Ratnagiri inside the 54 metre depth contour line, A part of this increase will be harvested by small mechanized boats trawling from creeks and river-mouths along the coast of the District. The number of boats fishing under these conditions will in all probability increase.

However, it is unlikely that smaller craft will fish outside the 30 metre depth contour line. Therefore, the stocks from the 30 metre depth contour line to the 54 metre depth contour line will be available to larger boats, making trips of more than one-·day,... s duration from any of the larger fishing harbours on the coast. The waters in the southern and northern parts of the District will probably be exploited respectively from Goa and Bombay.

In this report, it is assumed that waters off 180 km. of the District,... s coastline centred on Ratnagiri tmm, will be suitable for exploitation from Ratnagiri harbour. It is assumed furthermore that of fish stocks inside the 54 metre depth contour line about 50 %are found outside the 30 metre depth contour line. Of the 180 km. stretch of coast, the waters off a sector of about 50 km. will be fished on one-day trips by 12-metre boats operating from centres adjacent to the Ratnagiri tmm area. The area off the remaining 130 km. will be suitable for exploitation on trips lasting more than one day at a time. Assuming that the stocks are evenly distributed in the area, the potential harvest for these boats could be (16,000 x 0.5 x (180 - 50)+180) = 6,ooo tonnes,

However, when this development is compared with the likely development from fishing grounds which have been located by the exploratory fishing conducted by the Maharashtra State Government 11 11 ( Fishery Survey Map - Konkan Region , Maharashtra, November, 1962 - March, 1967), it appears that 6,000 tonnes per season may be too optimistic a forecast. Most of the grounds suitable for trawling between the 30 and 54 metre depth contour line are closer to Bombay or Goa than they are to Ratnagiri. According to the survey, prawn grounds are almost absent in this depth zone. However, the indicated absence of prmms in certain areas, is not something which is established once and for all. A few prawn grounds have been found off Dabhol, in the northern part of the District. It is likely that the catch from this depth zone will have less prawns 17

per kg. than from more shallow waters, The overall catch will be substantially lower than 6,000 tonnes; 3,000 tonnes appears to be a more acceptable estimate of seasonal catch.

5.4

Commercial purse-seining has not yet been undertaken in the District. It would be very difficult to exploit pelagic stocks particularly off Vengurla and Mahran by purse-~seining from the smaller boats based at Ratnagiri. The 12-metre boats are not equipped to preserve and ca,rry back to Ratnagiri the large quantities of fish needed to make this fishing profitable.

Some of the smaller mechanized boats at Ratnagiri engage in gill­ netting at the beginning and end of the seasons. This is only done when trawling is not remunerative. The economics of gill­ netting operations is not known. However, the pattern of fishing indicates that it is not as remunerative as trawling. It seems unlikely that large vessels will be used exclusively for gill­ netting in the waters off Ratnagiri town. Such a development would only take place if the demand increases substantially for one or more of the pelagic species.

It is not expected that the mechanized fleet will be fishing for pelagic species off the Ratnagiri coast during the decade of the 1970,... s and the first few years of the 1980 ... s.

5,5 }:YEMEI}_SAL. !I_SJi . sr_rogI(~_g_lJ~§~12~~ TH_~___ ?-1±_~TR:rG__ J:)_J!?'r_1_I __~Q_J'!'r_Q_1=1_~_~1_i!}!; _ _QE~- RATNAGIRI DISTRICT

Dr. Ranade, Research Officer, Marine Biological Research Station, Ratnagiri, estimates that the harvest potential of demersal species in waters between 54 and 180 metres depth contour line off the Rat­ nagiri District is about 50,000 tonnes per year. This estimate is based on data from trawl-fishing in similar depth zones in other oceans as no exploratory survey information is available from waters off Ratnagiri.

It seems likely that the northernmost waters off the coast of the District are more suitable to be exploited by boats based at Bombay than by boats based at Ratnagiri. The same observation is valid for the southernmost grounds. Boats will incur less travelling time when operating from Goa than when operating from Ratnagiri.

In this report, it is assumed that 60 %of the water area contiguous to the Ratnagiri District, between 5l+ and the 180 metre depth contour line, can be successfully exploited by vessels using Ratnagiri as a loading and unloading point. The yearly catches from these waters could at the most amount to about 30,000 tonnes.

Since almost no fishing has been conducted in these waters it is difficult to make any prediction of the species composition of the catch. However) it seems fairly certain that the percentage of prawns, in the trawl catches, will be considerably less than the percentB,ge recorded for inshore waters. Also, it is believed that, in general, the percentage of quality fish in these waters will be less than that obtained in shallower waters, 18

5.6 P__E_LAQI_C_ FISH STQCKS ]I\911 THE 54 TQ JifE.__J,_8Q_}1~Tl'\E:__QE:J?.'l'J! CONTOUR LINE IN WATERS OFF RATNAGIRI DISTRICT ~=·----~ ~·~·- =-.--~-- ···-·---·-~---~-----~·-·-----~-. , -~--~------~-- -~------~-- Virtually nothing is knovm about species or quantity of fish available in these waters. Before any predictions of exploitation are made, it must be known, whether the species are or will be in demand and whether the stocks are available in exploitable con­ centrations. In this report, prediction of future fishing effort from Ratnagiri has not been based on the pelagic species in this depth zone. This approach may be unduly pessimistic as it is believed that the area south of Ratnagiri is one of intense upwelling· and the area may contain extensive resources of pelagic fish yet to be exploited. Tuna and Seer are expected to be found in these waters. 19

Chapter 6

PROPOSED HARBOUR PROJECT FOR RATNAGIRI

6.1 TYPE AND CAPACITY OF PROPOSED HARBOUR FACILITIES FOR THE ·- -··------~ ------~----··· --·--·---·------~--~ ------~-~----·- . ._~---.=.--- ·------· MECHANIZED FISHING FLEET

6.1.l Introduction

In order to determine the capacity and type of harbour facilities rec1uired for mechanized boats at Ratnagiri, it is necessary to take into account lil(ely increases in both fishing effort and landings. Fishing effort cannot expand beyond the limits imposed by fishery resources and markets for fish products. Both resources and markets have definite spatial and time limitations, and these limitations are determined by considerations of an economic nature,

'I'he cost of final fish products are conditioned by

(a) the distru1ce the fish must be transported from the grounds to the consumer; and

(b) the period elapsing between the times of catch and final retail saie,

The location and size of harbour facilities should be influenced by transportation costs. The transportation costs involved are those from catching point to landing centre and those from landing centre to place of consumption.

If costs were incurred only due to transportation, then these costs would be at their lowest when fishing boats could load and unload at any point along the coa_st, The gre,ater the number of harbours on the coast the lower would be the transportation costs. However, as the number of harbours increases the q_uantity of landings per season would fall in each harbour. Conseq_uently, the capital cost per unit of fish landed would increase. Therefore, an indicator of the type and capacity, and location, of suitable harbour facilities ca.n be found by assessing transportation costs (in their wider sense) and capital costs incurred for boats, harbour and ancillary facilities.

In this report, it is assumed that harbour facilities, to accommodate vessels with a draft up to about three metres, will be available at Bombay and Goa (or Karwar). Vessels operating from these centres may share fishery resources of the Ratnagiri District with vessels which will be working out of Ratnagiri harbour. The number and type of fishing vessels that can fish from any of these three ports will depend on boat-side prices for fish and prawns and the nature ru1d extent of fishing resources available and accessible to them.

6.1.2

Various factors will make it more or less attractive for mechanized boat mmers to have their boats at Ratnagiri. The factors identified 20

in this report all have conseQuences for the profitability of vessels. They either decrease the· cost of operatings and/or increase the revenue from sales of fish and prawns landed by the boats.

Technical Report 6, describing the engineering aspects of the Ratnagiri proposal, gives details of the depth of the harbour basin. The basin hs,s been designed to give a depth of 3 ,9 m at LLW. This depth will allow vessels of up to about 21 m to enter the harbour.

The characteristics of Ratnagiri fishing vessels in the future wi 11 depend on

(a) the success or otherwise of existing designs

(b) technological advances in boat and engine designs; fishing gear and fishing aids

(c) skills of crews

(d) availability of harbour and ancillary facilities; snd

(e) profit considerations.

It is not possible to predict exactly all the characteristics of vessels which will use Ratnagiri as a base. Having regard to likely resource potential and generally the availability of investment capital, at the best all that can be done at this stage is to suggest a likely trend in the size characteristics of the vessels.

It seems more than likely that trawling will continue to be the major aspect of fishing activities, and trawling for prawns will continue to be the main contribution to earnings. It is also likely, having regard to location of grounds that

(a) the existing type of 12 m vessels will continue to operate grounds nearby to Ratnagiri; but

(b) a second class of vessel, about 15 m (or possibly even slightly larger) will develop to exploit resources which are generally too far away for the one-day trip of the 12 m vessel.

Whilst the Ratnagiri harbour basin could acco1mnodate vessels to, say, 21 metres, it is unlikely that vessels larger than 15 to 16 metres will fish from Ratnagiri during the coming decade, ConseQUently, for the purposes of this report, only two classes of vessels are considered; namely vessels of about 12 and 15 metres in length,

6 .1.3 Size of Fleet

The size of the Ratnagiri fleet, at any point in time, will be conditioned by an interaction of available resources, fishing effort and prices at boat-·side. Exploitation of resources close to Ratnagiri will be determined by transportation costs in combination with prices for fish at boat-side at alternative harbours, 21

With the availability of a harbour at Ratnagiri, it is assumed that it will be profitable for the 12 metre boats to fish part of the monsoon season. Also, the protection offered by the harbour may mean that mechanized vessels from nearby centres, where there are no har­ bour facilities, will .go to'Ratnagiri during the monsoon for shelter, repair, and probably some fishing. This may well lead to congestion in the harbour and hence berthing and mooring will need to be controlled by the port authority.

At the beginning of 1970, there were about 160 boats fishing from Ratnagiri. The fleet is expanding rapidly and it seems that the fleet will number at least 200 by the end of 1973 (by which date the harbour may be completed). If assumptions about demersal stocks are correct, by this time the 12 metre vessels will note a decline in catch rates per hour of trawling. The decline will be accelerated if the boats, as a result of the harbour, take advantage of the possibilities of longer fishing hours and extra days during the monsoon period. Under these circumstances the a,verage catch per season for each 12 metre vessel could well be only 75 tonnes and at this level, and with ruling prices, the boats would incur a loss.

When seasonal catches by 12 metre vessels have reached 75 tonnes, it will be more profitable to use 15 metre vessels (or vessels of about this size). These vessels could operate on two or three day trips and hence take advantage of.resources not accessible to the 12 metre vessels. From about 1975, the fleet of 15 metre vessels J.s expected to expand and by 1981 there is likely to be about 40 boats of this size fishing from Ratnagiri.

As a result of declining catches for the 12 metre vessels, it is expected from 1974, that the size of this fleet will decline. Most probably old vessels will not be replaced and, also, there will be not enough inducement to boat-owners to carry out expensive repairs when these become necessary. By 1980, it is expected that the fleet size of the 12 metre vessels will be about 150 and this will have a good effect on catches to the extent that the average landing per vessel per year will rise to about 95 tonnes.

The composition of the fleet, total annual la~dings, etc, are explained in Appendix 1. Details of annual costs and earnings of fishing vessels are shown in Appendix 2. With regard to "costs and earnings" of the 12 metre vessels, Appendix 2 shows the situation without ru1d with harbour facilities. As indicated in previous paragraphs, an expansion of the 12 metre fleet to about 200 vessels will lead to lower landings per vessel per year. During the years 1974-75 the catch per vessel is estimated at 75 tonnes per year; during 1976-78 about 85 tonnes per year; and from the end of 1979 when the fleet size stabilizes at 150 the catch rate will be about 95 tonnes. The effects of changes in annual average catches on costs and earnings are plotted in Appendix 2 under the heading "With Harbour Facilities - 12 metre".

Catch rates, and costs and earnings, for each 15 metre vessel are assumed to be constant during the period 1974-1983, Details of these items are indicated in the last column of Appendix 2.

6.1.4 Shore-based Facilities for Fishing Vessels at Ratnagiri

In previous paragraphs of this Chapter it has been implied that the 22

harbour facilities, constituting the harbour project for Ratnagiri, will affect the profitability of fishing operations. It has been implied that this is true for the private boat-owners and for the profitability of fishing activit,ies when considered from the point of view of society as·a whole. In this subsection, these propositions are explained in some detail.

The improvements in profitability of fishing operations will come about when boat-owners take advantage of the new technical circum­ stances created for fishing activities by the introduction of harbour facilities. The civil works, constituting the harbour basin, may be characterized by (a) the depth in the harbour and its approach; ( b) the sheltered area of the harbour basin; and ( c) the length of the sides of quays and jetties. The depth of the harbour (3,9 mat LLW) makes it possible for boats to a length of about 27 metres to use this landing centre at a reasonable cost for extended periods 6f time.

Access to certain section of the quays and jetties classified as "unloading areastt and "general service points" will significantly reduce time now spent on unloading catches and storing provisions aboard boats. Technical Report 6 gives an explanation of the considera­ tions leading to a decision on the length of the landing quays, etc.

Sheltered moorings for fishing vessels will make it possible for owners of mechanized boats to take advantage of good spells of weather during the monsoon period and thus contribute towards a longer fishing season for the fishing fleet, From the point of view of the society as a whole, and from the point of the individual entrepreneurs, the use of existing stocks of capital goods (or the wealth of the society) is significantly improved.

The slipway and adjacent maintenance facilities for hulls and engines are needed in order to cut dmm. the time spent on maintenance and to prolong the fishing season and the working life of the average vesseL

The auction hall will make it possible to improve the quality of fish products. Time spent on auctioning will be reduced; fish will be less exposed to wind and sun while in the landing area and better preservation facilities will be available.

It is implied that the improvements, listed above a.nd said to be caused by the provision of the harbour facilities, are worthwhile for the boat-owners. Of course, this is only true to the extent that the benefits obtained justify the costs incurred in attaining them. In this connection it should be pointed out that it is difficult to put a "price-tag" on all improvements that are likely to occur. For ex8Jilple, how is the life of a fisherman to be eva.luated in the analysis? How many boats may be saved each year due to improved shelter for the fleet? These and similar considerations have not been included in the analysis. 23

6.1.5 Effects of Access to Harbour Facilities on The Results of The Mechanlzed Fishi~~ Fleet

In 1970, the average mechanized boat trawling for prawns off Ratnagiri, earned a return of about 15 % on the money origina,lly invested in the boat and its gear. This estimate is made by a person closely connected with the fishing industry at Ratnagiri.

By 1973-74 the provision of the harbour facilities should make it possible for the average 12 metre boat to increase its fishing effort from about 1,200 hours fishing to about 2,000 hours fishing. Profit~ ability of operations should improve considerably, especially as it is assumed that the average price for both fish and prawns will rise (relative to the general price level). However, by 1973-74 it is also likely tha,t the fleet of boats will have expanded and fishing grolmds will be heavily fished. As a result average catch per hour of trawling will commence to decrease substantially and total catch per hour will only average about 35 to l+o kg. over a 12-month period. Seasonal catch per boat will be of the order of about 75 tonnes per boa,t in spite of the large increase in number of hours spent on fishing

grounds. At this catch-0 rate and with a prawn price of Rs. 2 ,000 per tonne and a fish price of Rs. 275 per tonne, the average boat will incur a loss. Nevertheless, the cash inflow will be larger than the cash outlay; only if the major part of the boat is financed through loans will the owner, who does not keep proper books, become aware of the low return on the capital invested in boat and gear.

As the concentration on the 12 metre vessel class tapers off in favour of the 15 ·metre ty-pe trawlers (see Sub-section 6 .1. 3 in this Chapter)) the catch rate of the 12 metre boats will improve, This will occur if the 15 metre vessels do not commonly fish the grounds trawled by the 12 metre boats.

When there are about 170 twelve metre boats regularly fishing on these grounds, it is estimated that the catch per season will have improved to about 85 tonnes. The return on the capital invested by the boat···owners will then improve. By 1976-77 the return will be of the order of 6 %. However, as the return on the capital invested in the 15 metre boats is significantly above 6 %, the effort by the fleet of 12 metre boats will decrea,se further and the rate of return on invested capital will improve. By 1979-80 the return will be of the order of 15 %per year.

However, it is assumed that the 15 metre boats in Ratnagiri, will earn a minimum of 21 % on the money invested in the boat and gear. If the 15 metre vessels fish inshore waters, it is likely that they will have a rate of return above 21 % en capital invested.

The q_uestion could be asked; do the harbour facilities improve the situation for owners of 12 metre boats? After facilities are provided the mmer of a 12 metre boat is likely to lose money whilst prior to the construction of harbour facilities, the same man obtained a reasonable return on invested capital, The harvest of demersal species through trawling within 40 to 50 km. of Ratnagiri town and inside the 54 metre depth contour line is limited. In this report the maximum sustainable harvest has been estimated at 14,000 tonnes per season. Therefore, the number of fishing vessels which can exploit 24

these stocks is limited. At existing catch rates, the maximum harvest would be landed by about 250 twelve metre boats. In view of the present rate of increase in the fleet size, it can be expected that, if facilities were not provided at Ratnagiri, the fleet of 12 metre vessels would soon reach 250 boats. In this Report, this is expected to occur about 1976-77. From about 200 boats onwards, the catch rates of the 12 metre boats would start to diminish. Thus, by providing harl1our facilities, the difficulties of the mechanized boats are advanced by a few seasons. The recession may be more severe than it would be in the case where no provision is ma,de for harbour facilities. But after a few years, the economy as a whole will achieve substantial savings as the size of the 12 metre mechanized fleet is tailored to fit the improved conditions for mechanized fishing.

6.2 ORGANIZATION

6.2.1 Harbour

It is assmned that the Government will be responsible for: -

(a) the control of' fishing vessels using the harbour to ensure max1.mum benefit from space available

(b) operation and maintenance of the slipway

( c) operation of the fish auction hall

( d) maintenance of all roads and general service m1i ts provided within the harbour complex

(e) the cleanliness of the dock area, the loading and unloading areas, auction hall, and general service units

(f') renting of' land for industrial purposes; and

(g) generally, the overall supervision of' use of all services provided by the Government.

6.2.2 Mechanized Vessels

It is generally envisaged that these will be mmed and run by fishermen, companies or co-operative organizations.

6.2.3 Fish Industries

Existing processing plants, factories, etc. at Ratnagiri already have substantial capacities to handle fish and prawn landings, It is assumed that the extra facilities required during the decade 1974 ~ 1983 will be owned by pri va,te enterprise.

6.2.4 Road Transport

It is assun1ed that the transport required to carry raw material from the harbour to processing establishments will be owned by the companies or co-operatives running the processing plants. The vehicles req_uired to transport products to inland markets 25

will be provided either by transport companies or firms or persons engaged in the wholesale and retail trade in fish products.

6.2.5 Fish Boxes

Insulated fish boxes were being manufactured at Ratnagiri at the beginning of 1970. There does not appear to be any need for Govern­ ment intervention in this matter. Processing and canning establish­ ments will probably continue to arrange their own source of supply of boxes and containers.

6.3 FINANCE

'rhe development proposal described in this Chapter will need an investment in fixed assets of about Rs 5 crores during the :period 1972 - 1983. Operating capital req_uirements during the decade 1974 - 1983 will be about Rs. 50 lakhs. Appendices 8 and 9 show in detail investment req_uirements for operating capital and fixed assets,

The investment in harbour works, port office, slipway, auction hall and internal transport, will amount to Rs. 185 laJ\:hs, This investment is expected to occur during the period 1972 - 197Lf.

Investment in fishing vessels will account for 50 %of the total fixed asset investment in the development scheme. The cost of 12 metre vessels during the period 197l+ - 1983 will be Rs. 120 lakhs. All of this investment is for replacement purposes. The 15 metre vessels will cost Rs. 130 laJ\:hs spread over the years 1973 ~ 1980.

Investment in transport during the period 1974 - 1983 will total Rs. 32.8 lakhs. Of this figure, Rs. 10.9 lakhs is for additional vehicles and Rs. 21.9 lakhs for replacements,

Investment in shore·-based facilities such as freezers, storages, canneries, etc. will absorb Rs. 28.2 lakhs during the period 1973 - 1983. Of this total, about Rs, 10.3 lakhs is replacement cost.

Investments vary per year from Rs. 25 lakhs to Rs. 132 lakhs. Investment is at its highest during the years 1972 ., 1974 when the harbour is being built.

If funds accrnnulating from depreciation are re-invested in the scheme, then the additional capital req_uirements are not excessive, these are shown in Appendix 10. These req_uirements reach a maximum when Rs. 131 la,khs are needed_ during the second year of the scheme. During the nine year period, 1975 to 1983, investment req_uirements are almost met by generation of funds within the various enterprises of the scheme. During this period, there is a surplus of funds amounting to Rs. 19 lakhs. From 1971+, the fixed capital assets of the scheme represent a net investment of about Rs. 200 - 260 lakhs.

Funds to cover operating expenses for boats, harbour, fish industry and transport are estimated to amount to about 10 % of the final value of fish and pra;1ms. 'l'hus, in 1974, about Rs. 34 lakhs are required, but by 1979, operating capital needs will have increased 26

to about Rs. 49 lakhs. Short--terrn loans for operating purposes are expected to be provided by banks and other financial insti­ tutions.

It is assumed that the capital for the construction of the harbour and the facilities run by the Harbour Authority will come from Central and State Government funds. Investments in shore-based fish industries and road transport are phased more evenly over the period under review than is the investment in the harbour. It is assumed that private enterprise and co--operatives will provide the required funds from their own savings and/or through long·­ term loans on normal conditions, from commercial 1)anks and Government financed corporations.

It seems unlikely that private industry or fishermen can provide sufficient capital for all the investment required to build and operate fishing vessels. This applies particularly to the larger class, namely the 15 metre vessel, If the Government decides to construct a harbour at Ratnagiri, it must ensure that capital is provided on suitable terms for the acquisition of fishing vessels, If the Government wishes to maintain a p0licy of mmership of fishing vessels, independent of the shore-based industries, it will need to finru1ce the fishermen-boatmmers directly or guarantee their loans.

Since the start of mechanization of fishing craft in the State of Maharashtra, the State Government has been pur·suing such a policy by providing the future boat-owners with hulls and engines at subsidized prices. In this connection it should be noted that the investment costs for vessels shmm in Appendix 2 do not take into account direct or indirect subsidies, At present, in Maharashtra, the Government provides a grant of 25 %on the hull and 50 %on the engine. 27

EVALUATION

7.1 INTRODUCTION

Except for isolated cs,ses, harbours are constructed and financed by pul)lic agencies. These public agencies are not the princi1;al beneficiaries of the harbour facilities. In the final ans,lysis the beneficiary will be the economy of the region, state or country concerned,

Consequently, when a decision is taken as to whether a harbour is to be built or not (and where, when and how it is to be built), the evaluation of the relevant benefits and costs must be made from the point of view of the community concerned. By means of a cost/benefit analysis, it is possible to evaluate OV<~r a long period of time, the repercussions of a fishing harbour on the fishing industry as vell as on the economy in general. This long­ term evaluation is desirable in order to establish the relative merits of an investment such as a fishing harbour as against other possible community development investments.

The construction of a fishing harbour will provide the local fishing indust)7 with one of the facilities necessary for its industrial expansion. Development and growth will only take place if fishermen and other entreprenuers take advantage of economic opportunities as they arise. Therefore, it is necessary that these persons find it is to their economic benefit to utilise fully the harbour facilities.

7.2 ASSUMPTIONS OF A GENERAL NNrURE

:Prices, ruling in 1960-70 have been used to calculate the operating results of vessels and industries over the period 1974 to 1983.

For the purpose of this a,nalysis, the problem of ownership is not a critical one. In Chapter 6 of this report, certain observations have been made about mmership. Firm recommendations in these matters are outside the scope of this report. 'I'herefore, only a workable framework of ownership has been suggested. However, for the purpose of the cost/benefit analysis, it is essential that the nature and extent of the required conunitments of resources in the harbour and ancillary facilities should be clearly indicated. The magnitude of these cormni tments is set down in Appendices 5 and 9.

An examination of existing operations of shore-based· enterprises in Ratnagiri District indica,tes that these activities have been carried on at a reasonable profit. There is no reason to believe that they will not be also profitable in the future. The continuation of existing profitability serves as an assmnption for the development of report proposals. 28

A period of 10 years has been chosen to evaluate the costs and benefits of the harbour and its associated industries. This period is a reasonable choice having regard to the type of development which is at present taking place, Of course, both the harbour structures and industrial plants have a much longer life than 10 years and, consequently, these facilities will still be available to the fishing industry after the year 1983.

7.3 BENEFITS OF THE PROPOSED HARBOUR AT RATNAGIRI

Benefits are understood to be the creation of value as judged by the consumer. In other words, the rrnyer puts a value on the product when he purchases it in the market. In this particular instance, the gross benefit of the har1)our scheme is the value of the 11 fish" when it is bought by an Indian consumer or exported to an overseas market. Net benefits are the gross benefits minus the value of the resources used in obtaining the gross benefits. Gross benefits are calculated from values and quantities given in Appendices 3, 4 and 13.

The harbour is one of the facilities required to make a success of the Ratnagiri Fishing Project, -vlhen benefits are enumerated and quantified in this Report, it does not imply that the benefits are not the consequence of a spirited entrepreneurship by both public and private enterprise. The benefits are made possible through the establishment of a harbour in Ratnagiri, and they will be only realised if a harbour is constructed.

The landings of fish and prmms at Ratnagiri have been allocated to various markets for the period 1974 - 1983 (see Appendices 3 and 4). The allocations do not include the catches made by traditional fishing methods.

7,4 COSTS OF THE PROPOSED HARBOUR FACILITIES AT RATNAGIRI

7.4.1

Considering the mobility of capital, it seems reasonable to assume that there are alternate uses for the capital which will be used in the realization of development objectives at Ratnagiri. The profit­ ability of alternative investment opportunities determines the cost of the ca.pi tal. It is not within the scope of the Pre-·Investment Survey of Fishing Harbours Project to judge the profitability of alternate schemes.

Land

The land which will be occupied by the harbour and its associated industries has no real significance for agricultural development. No costs are assessed for land in the evaluation, There are few, if any, other possible ways to exploit the proposed port area.

Labour

Labour costs for the private and public enterprises of the harbour project are included in the various appendices which deal with opera.ting costs, However, the wager:; included in investments or 29

operating costs need not be a true indication of the cost of labour to the economy. In the present analysis, the real cost of the labour engaged in the harbour scheme eq_uals the value of production lost due to transfer of labour from one kind. of occupa,tion or another to the Ratna,giri harbour ·scheme. Such a loss will probably occur due to movement of skilled personnel who are likely to hold a job prior to being employed at Ratnagiri. This loss will diminish in the long run as people are trained to fill job opportunities created at Ratnagiri.

No nsocial0 evaluation of' labour cost has been done for the cost/ benefit analysis. If this had been done, it would undoubtedly have indicated a lower total labour cost than that used. in the analysis, 7,4.4

The marl<;:eting costs for the various products sold in inland markets are assumed to average 29 %of the retail value of the products. These costs do not inc1ude those of ice and tra11sporta­ tion.

Other Recurring Expenses

The processing establishments, ice making p1ant, canneries, fishing boats, etc. will use inputs other than fish and Jabour. These additional inputs include such items as electricity, water, cans, labels, spices, chemicals, packing materials and so on. These in1JUts must be purchased from other manufacturers or producers. Throughout this report, the cost of these items has been tal<;:en at rates ruling in 1969-70.

However, these services and products have another cost connotation, nmnely the cost to the economy as a whole. If the acq_uisi tion of these services and products leads to an increase in their production, then their unit cost will be less than the cash outlay from the point of view of the economy as a whole. It will be zero, if the increase in the value of production of these same goods and services is equal to the cost when purchased from the manufacturer or producer, However, if the fisheries enterprises at Ratnagiri attract services and goods away from some other sector of the economy, then there is a cost.

Having regard to the types of services and goods req_uired by the fishing industry, it is unlikely that the further deve1opment of the industry at Ratnagiri wi11 ,ieopardise or substantia11y reduce produc~­ tion in any other sector of the economy. Rea1ising how difficult it is to assess the cost of these items to the economy as a who1e, it has been assw11ed that their cost in this sense is equal to cost when purchased. This approach has undoubtedly 1ed to inflation of most of the cost items invo1ved under this heading in the cost/benefit eva1uation.

Taxes, Tariffs and Excise Du-st:.

Except for the duty on diese1 oil ( on1y 15 metre vessels), no deductions have been made from costs for taxes, duties and levies imposed by Local, State and Central Governments. The inclusion of taxes, duties and levies inflates the costs in the cost/benefit analysis. 30

§_£ecial Cost Situations

Part of the ice produced at Ratnagiri will be used by owners of fishing vessels. Therefore, the cost of ice used aboard vessels appears twice; firstly as a producer-" s cost and, secondly, as a cost to boat-owner. The effect of dourJle costing has been eliminated by deducting the value of ice sales to boats from aggregate costs of the entire harbour scheme (Appendix 8),

Much the same situation exists in relation to cost of services provided by the Port Authority. In the cost/benefit analysis, these costs are included as operating costs of the Port. The revenue which accrues to the Port Authority from the sale of these services is also shmm as cost i tern to the boat-mmers. For example, the Port Authority will collect harbour fees, slipway charges, etc. These charges are also a debit against the operating account of the fishing boat concerned, The effect of this double costing has been removed by deducting the revenue received -by the Port Authority for its services from total operating costs for the entire harbour scheme (Appendix 8).

7,5 PROFITABILITY OF THE HARBOUR SCHEME ·~ SENSITIVITY ANALYSIS ~----·--, -~.,-~,,----~-~-~~-,;·-~--~~-~--· ,-~-/7~--. <.-o->c~""<~· --~·--~-~~.,~·-·------·" - ·- - ·-

Introduction

Harbour facilities at Ratna.giri will cause changes to occur in day-· to-day operations of fishing vessels as well as in handling and distribution of fish and prawns once they are landed. These changes and the harbour facilities are described in Chapter 6 of this report. There it is implied that such changes would mal~e it worthwhile to provide the harbour facilities. This proposition will now be considered in more detail (the assumptions used in this analysis and those on which Appendices 1 to 12 are based are described in Appendix 13) •

Basic Factors

In this report, it is assumed that the following basic changes to the value of basic factors in the existing pattern of fishing at Ratnagiri can be expected if the mechanized fleet has access to the proposed harbour facilities:-

(a) Fishing will be conducted from boats with a length of about 15 metres; they will fish on grounds off Ratnagiri, and the fleet will number forty vessels in 1981.

(b) 'l'he average number of fishing days for the 12 metre vessels will increase from 150 days to 200 per season; during a season the 15 metre vessel will normally fish for about 184 days on trips of more than one day'°'s duration.

( c) The average nwnber of fishing hours per day for the 12 metre vessel will increase from 8 to 10 hours. 31

(d) Over the decade, and with harbour facilities the catch rate per season of the 12 metre vessels wi11 increase from 75 to 95 tonnes. If no harbour facilities are available the catch rates are expected to decline from 70 tonnes in 1970-71 to 60 tonnes in 1976...:77 and again reach 70 tonnes by 1981.

(e) With a harbour, the percentage of prawn landings processed for export (in froz.en or canned form) will rise from 60 % to 70 %; no subsequent increase in the average price of prawns has been taken into account.

Apart from the changes indicated in sub--paras (a) to ( e) all other aspects of fishing activities at Ratnagi;i (including prices and quantities) are expected to function and/or change as if harbour facilities had not been provided.

In this report, the changes have been evaluated over a period of 10 years. The evalua,tion is made by comparing the situation when harbour facilities are provided with the situation arising if facilities are not provided. The comparison of these two situations is called the 11 Basic Comparison" in subsequent paragraphs of this report (see Appendices 8 and 12; the "Basic Comparison 11 is achieved by comparing the cash balances in these two Appendices.

The "Basic Comparison", given the changes in the values of "Basic Factors" described in (a) to (e), indicates that it is a sound idea to use public flmds to provide harbour facilities at Ratnagiri if the rate of return for the necessary funds need not be higher than 33 %.

How important are the various assumptions (a) to (e) for the outcome of the analysis? Will the investment proposal be economically unsound if one of the basic predictions (a) to (e) does not materialize? An attempt to answer these questions has been made in the following paragraphs.

Sensi ti v.i.ty Analysis (Changes t_o ''Basic Comparison")

In the sensitivity analysis an 11 alternative 11 situation is created by changing the value of one or more of the "Basic Factors I! (a) to (e) as given in the 11 Basic Comparison". These changes are summarized in the table below and are shmm as alternatives I to III. For example, the entry 11 1: 40 11 under the colwnn 11 Alternati ves - Without Harbour 11 for "Basic Factor" (a) means that in Alternative No. 1 :i.t has been assumed that 40 vesse1s of the 15 metre type w:i.11 ·fish from Ratnagiri (in 1981) notwithstanding the a,bsence of harbour facil:i. ties, The value of the other "Basic Factors" (b), (c)) (d) and (e) remain as indicated in the "Basic Comparison". 32

"Basic Factors" "Basic Comparison 11 "Alternatives 11

Without With Without With Harbour Harbour Harbour Harbour 0 I 0 I

(a) Number of 15 m vessels fishing from Ratnagiri (in 1981) 0 40 I:40 II:O

(b) Number of fishing days 200x per boat and season ·15ox 184.xx

(c) Number of fishing hours lOX per day/trip 8x 9.5xx

(d) Catch rate/season 7ox 75x (tonnes) to to 60 95 350xx

( e) Per cent of prmm landings processed for export 60 70 III :60 ·- x 12 metre boats xx 15 metre boats

Alternative No. I: In this alternative, it is assumed that the 15-metre vessels will fish from Ratnagiri although harbour facilities are not provided. The number of 15 metre boats fishing in any parti­ cular year is the same as described in Appendix 1, Consequently, in this alternative, the situation at Ratnagiri, with no harbour facilities, is modified to include 15 metre fishing vessels, It is assumed that the average 15 metre vessel will land 240 tonnes of fish and prawns from 138 days fishing. The species composition is the same as if harbour facilities were being used. The yearly operating costs for a 15 metre vessel (excluding interest, taxes and depreciation) are assessed at Rs. 86,200.

Alternative No. II: In this alternative, it is assumed that boats of the 15 metre class will not fish from Ratnagiri even with the construction of a harbour. The benefits and costs for fishing vessels, processing and marketing, have been reduced accordingly, Investments in 15-metre vessels have been eliminated. In this alternative, the situation at Ratnagiri, with harbour facilities, is modified by the deletion of the 15-metre vessels,

The analysis of alternatives I and II indicates that the fishing effort of 15-metre vessels (the size of which is given in Appendix 1) is a very important contribution to the usefulness of harbour facili­ ties. It is doubtful whether the fishing effort of the fleet of 12 metre vessels alone (Alternative II) i·:ill develop sufficiently to justify investment in the harbour. The rate of return on money in- 33

vested under Alternative II would yield a return of just under 20 %.

Alternative No. III: ~n this alternative, it is assumed that only 60 %of prawn landings will be processed for export although boats have access to harbour facilities. The quantity of prmm landings are assumed to be the same as described in Appendix 1.

The analysis shows that the profitability of the harbour scheme decreases markedly if there is no improvement in the use of prawn landings (see following table) •

Alternative Benefit/Cost Ratio Approx. Internal Ratio of Interest Rate of - Return 10 15 20 25

I 2.32 1.80 1.43 1.17 29 - 30 II 1.54 1.20 0.97 0.79 19 - 20 III 2.30 l. 71 1.30 1.01 25 - 26

Basic Comparison 3.03 2.28 l. 76 1.39 33

The "Basic Factors" (a), (b), (c), and (d) are inter-related; paragraph 6.1.3 in this Report illustrates this.

During the first few years of the scheme, an increase in the value of either of the 11 Basi c Factors 11 (b) and ( c) will not lead to any increase in "Basic Factor" (d). This is due to the expected pressure on demersal stocks that are within reach of the 12 metre boats.

As a result, even if the "Basic Factors 11 (b) and ( c) did not change in value due to the use of harbour facilities as envisaged in the situation "with harbour" in the "Basic Comparison" the changes to the overall profitability of the scheme will be only small, Capital cost (of vessels) per landed tonne of fish and prawns would be slightly higher than as envisaged under the "Basic Comparison",

If the 15 metre fleet does not fish from Ratnagiri and the part of the prmm catch processed for export does not increase, the internal -rate of return on the investment will be well below 15 % and the investment highly doubtful. It is extremely unlikely that this situation will arise.

7,6 CONCLUSIONS

When considering the results of this analysis, the following must be kept in mind:- (a) The period over which the analysis is made is of fundamental importance for the benefit/cost ratios and the internal rate of return. A period of 10 years (1974 to 1983) is used in this Report. In the Ratnagiri harbour scheme, the outlays are heaviest in the beginning of the period; later the benefits are larger than costs. Therefore, any year added to the period of analysis will increase the benefit/ cost ratio and the internal rate of return; but such increase will be relatively small.

(b) "Indirect effects" (costs or benefits) have not been taken into account in the analysis. "Indirect effects 11 are understood as those costs or benefits incurred by, or accruing to, individuals or organizations not included in the previous analysis. Provi­ sion of employment to unemployed would constitute a benefit. Increased utilization of local roads would be a cost. It is considered very likely that the benefits flowing from "Indirect effects", caused by the provision of harbour facilities at Rat­ nagiri, will be much in excess of the costs stermning from "In­ 11 direct effects •

Taking into account the information presented in previous Chapters, it is believed that fishing activities at Ratnagiri are likely to develop as described in the main text of the Report (see also Appen­ dices 1 to 4). Consequently, it is recommended that harbour facilities be provided at Ratnagiri. A full description of harbour works is contained in Technical Report 6. The foregoing recommendation is reinforced by the importance of fishing activities to the economy of Ratnagiri town and District. The sooner the harbour facilities are provided the better. With proposed facilities at its disposal, it will be possible for the Ratnagiri fishing industry to maintain the worthwhile development achieved in the 1960"s. APPENDIX 1

FLEET SIZE, FISHERMEN EMPLOYED~ CATCH PER VESSEL CLASS AND TOTAL FLEET LANDINGS FOR PERIOD 1970 - 1983

Year I Fleet Size Fishermen Catch per season per 12 M Catch per season per 15 M j Catch per season employed vessel class - tonne vessel class - tonne all vessels - tonne j 12 M p 15 M I Prawn Fish Total Prawn Fish Total Prawn Fish Total I I I I 1970 l 160 -- I 1120 2880 8320 11200 -- I -- -- I 2280 8320 11200 I 12600 I 1974 I 200 5 1440 3800 11200 15000 350 1400 1750 4150 I 16750 1975 190 10 1410 3610 l 10640 l 14250 700 2800 3500 4310 13440 17750 l I 1976 170 15 1310 3570 10880 14450 1050 4200 5250 4620 15080 19700 1977 165 20 1315 3465 10560 14025 1400 5600 7000 4865 16160 21025 i I 1978 I 160 25 1320 3360 10240 I 13600 1750 7000 8750 5110 17240 22350 1979 155 30 1325 3720 11005 I 14725 2100 8400 10500 5820 19405 25225 I I I 11980 I 150 35 1330 3600 10650 I 14250 2450 9800 12250 6050 I 20450 26500 l i 1981 I 150 40 1370 3600 10650 I 14250 2800 11200 14000 6400 21850 28250 ! I I I i 1982 I 150 40 l.370 l 3600 10650 I 14250 2800 11200 I 14000 6400 1. 21850 28250 l 11983 150 40 1370 3600 10650 ! 14250 2800 11200 14000 6400 21850 28250 I ! ' I I ,APl_ IX

ANNUAL COSTS AND EARNINGS OF FISHING VESSELS (Rupees)

I I Item Without Harbour Facilities I With Harbour Facilities I' r I 12 Metre 12 Metre I 12 Metre 12 Metre 12 Metre 12 Metre 15 Metre I I ! I Cost of vessel (Rupees) 75,000 75,000 ) 75,000 75,000 75,000 75,000 300 ,000 I Cost of gear ( VI ) 5,000 5,000 5,000 5,000 5,000 5,000 25,000 I I I I I Operating capital ( !! ) 3,500 3,500 3,500 I 4,600 4,600 4,700 11,500 I l Engine B. H.P. 60 60 I 60 I 60 60 I 60 160 I Days absent from port 150 150 150 200 200 I 200 184 I Trips per year 150 150 150 200 200 I 200 -92 I Average annual catch (tonne) Prawn l 18 16 15 19 21 I 24 I 70 Fish 52 49 45 56 64 ! 71 280 Total 70 65 60 75 85 95 350

1 Crew number 6-7 6-7 6-7 6-7 6-7 6-7 8 'I I ..Q:eerating Costs Fuel and lubes 12,217 12,217 12,217 19,548 19,548 19,548 28,176 I Ice 2,450 2,275 2,100 2,625 2,975 3,325 12,250 Maintenance and gear 5,600 5,600 5,600 5 ,600 5,600 5,600 22,750 Insurance 1,750 l,750 l,750 l,750 l,750 1,750 7,000 Labour and food 12,000 12,000 12,000 12,000 12,000 12,000 27,544 Commission and port dues -- I -- I -- 3,270 3,580 3,975 12,050 Sundries l,000 1,000 ! l,000 1,000 l,000 1,000 5,000 ' I ) Total operating costs 35 ,orr 34,842 34,667 45,793 46,453 I 47,198 114,770 j Depreciation 7,500 7,500 7,500 7,500 7,500 I 7,500 30,000 j Total operating costs incl. depreciation 42,517 42,342 42,167 I 53,293 53,953 I 54,698 l44n10 ) \ Annual proceeds from catches 50 ,300 45,500 42,400 53,400 217,000 I I l 59,600 I 67,500 i f I Annual net earningG after,. depreciation 7,783 I 3,158 I 233 106 l 5,647 I 12,802 72,230 I Net earnings as percentage of capital _ l I I" employed 9.3 % I 3.8 % 0.3 % 0.2 % 6.6 % 15.l 21.4 I I % % l I I' I I APPEl"VDIX 3

ALLOCATION OF FISH CATCH AND VALUE OF FISH SALES (RETAIL) 1970 - 1983

1 ' I ! j Item i Unit 11970 I 1974 1975 I 1976 ! 1977 i 1978 1979 1980 1981 1982 f 1983 ' I I I 1! LOCAL SALES - FRESH i I ) I I' I I I I l Quantity raw material tonne 600 I 760 790 822 1 I 890 926 1000 I 703 730 I 855 963 Product value Rs 1000 420 I 492 I 511 532 I 623 648 674 I 553 I 575 599 700 I I l I INL.Alrn SALES - FRESH I I Quantity raw material tonne 840 1260 1344 1508 1616 1724 I 1940 I 2045 2185 2185 2185 l I Product weight I tonne 756 1134 I 1210 1357 1454 I 1552 1746 I 18ln 1967 1967 1967 i I Product value I Rs 1 000 1663 2495 I 2662 2985 3199 3414 3841 I 4050 4327 4327 4327 CURED-DRIED - LOCAL [ Quantity raw material tonne 300 352 365 ! 380 395 411 I 427 445 463 481 500 I i I Product weight tonne 150 176 182 190 i 197 205 I 213 222 231 240 250 Product value Rs'OOO 182 I 222 240 150 176 I 190 197 205 213 231 250 I1 CURED-DRIED - INLAND ! I I Quantity raw material I 11001 I I 18221 I tonne I 6580 10285 I 12432 ] 13359 14283 16183 l 17070 18276 18165 I I Product weight I tonne 3290 511;2 I 5500 I 6216 l 6679 7141 I 8091 I 8535 9138 9110 9082 Product value I Rs '000 6580 10284 11000 I' 12432 113358 14282 I 16182 17070 18276 18220 18164 TOTALS I I r I I Quantity raw material tonne 8320 12600 13440 l 15080 16160 j 11240 19405 120450 21850 21850 21850 Product value Rs '000 8813 13447 14355 I 16139 117307 118476 20835 I 21965 I 23482 23461 23441 ' I I APPENDIX 4

ALLOCATION OF PRAWN CATCH .AND VALUE OF SALES (F.O.B. OR RETAIL) 1970 - 1983

I ! I I I I I U "t I Item l Ill !1970 1975 !1976 ll977 11979 I \ I ! I ! ! I FREEZING I 1, lll I Quantity raw material tonne I 1296 2075 2155 I 2310 2437 I 2555 I 2910 3025 I 3200 I 3200 3200 I Product weight tonne I 648 1037 1077 ' 1155 1218 I 1277 ! 1455 I 1512 I 1600 l 1600 1600 1 ' ! I Product value - F.O.B. Rs oool 12444 12924 13860 14616 l 15324 I 18144 19200 19200 I I 17460 I I I 19200 I I I Cfu.TIJNING I II I I I ! I Quantity raw material tonne I 432 830 862 924 .. 973 l 1022 l 1164 I 1210 1280 ! 1280 1280 ' ·1 I l Product weight tonne I 151 290 302 I 323 341 l 358 I 407 423 448 448 I 448 Product value - F.O.B. 2567 4930 5134 5491 I 5797 I 6086 I 6919 7191 7616 7616 7616 . Rs '000 I I I CURED-DRIED - INLAND l I I I I Quantity raw material tonne 1152 1293 1386 1455 i 1746 1815 l 1920 1 I 1533 l I 1920 I 1920 I I l I I ' Product weight I tonne 1 194 208 218 I 262 272 288 288 I 288 . I 173 I 230 I I Product value - retail 1384 1552 1744 I 1840 I 2096 2176 ·2304 2304 j 2304 IRs'OOO I I 1664 l TOTALS I 1 I' I Quantity raw material tonne I 2880 4310 4620 4865 5110 5820 6050 6400 6400 6400 ·1! I I i 4150 I ! Product value 18870 19610 I 21015 22157 23250 26475 29120 29120 29120 I Rs '000 l 11727 I I 27511 i I I APPENDIX 5

REQUIRED CAPACITIES FOR SHQRE INpT.A!;LATIONS AND ROAD TRANSPORT 1970 ~ 198~

i I Year l Cold Ice Ice Freezing Frozen Canning Road Transport i I I I l Store I•\ Production Store capacity Storage f capacity l 1 Insulated 5,...tonne l 2-tonne (tonne) i per day (tonne) per day (tonne) l per day I I f ! I I 5-·tonne truck 1 truck ! (tonne) (tonne) I (Kg.) I I I i ! I truck ! I !{ ~ I i I I i I I i I 20 45 90 6.5 130 1510 4 2 11970 I 1 t ) l ! i \ -...-1074. ! 31 67 135 10.4 210 2900 I 1 11 3 I i ! I I ., \ 1975 l 32 71 140 10,8 215 3020 1 12 l 3 I I i l I \ 1976 \ 35 19 160 11.6 230 3230 8 14 3 i i I ! I 1977 I 37 I 84 170 12.2 245 3410 8 15 3 i I I I ! 1978 I 39 I 90 180 12.8 255 3580 9 16 4 i ! 1 I I 43 101 200 14.6 290 4070 10 18 4 11979 l I I l I l I l I I 1980 I 45 I 106 210 15.1 300 4230 10 18 4 1981 48 113 230 16.o 320 4480 11 20 4 I I lI I I I 48 113 I 230 16.o 320 4480 I 11 20 4 1982 I I I ! 1983 i 48 I 113 ! 230 16.o 320 4480 11 20 4 ! d l l I " ~ I I PORT AUTHORITY ANNUAL INCOME Ai.~D EXPENDITURE l974 - l983 (Rs 1 000)

I I Item l974 ! l975 l976 l977 i978 l979 l98l 1982 1983 l i l l l980 ' I I I r I I I I I I I EXPENDITtJRE I I/, I I I ' i I I 'I I 'I I I 68 I I I Staff & labour - Administration 54 I 54 60 I 68 I 71 71 ! 71 71 71 I I I I I I - Traffi~, Auction Hall, I ' I !I Security & Transport 153 l55 l65 186 I 189 207 !I 220 222 222 222 I ! I I I j Ii ~ ' I - Slipway & Port maintenance 38 39 41 42 i 44 I 44 44 I 44 I 44 44 I I l j I I I i I I i I 'I I I i I ! Sub-total I 245 I 248 1 266 296 I 301 ! 322 I 335 I l I I 337 33T 33T I j I 1 I I I I I I ' I I Electricity & Water 65 I 65 65 TO TO TO I I T5 i T5 T5 ! T5 I I I Office, Port, Vehicle expenses & supplies 40 I 4l 42 43 I 44 I 45 45 45 45 ! 45 l I I l I l' I ! I: ~ I I ' Maintenance -- lOO I 1 50 200 24 5 I 24 5 24 5 24 5 ' 24 5 24 5 ' I i I I ' Total 350 I 454 523 I 609 660 682 TOO T02 T02 702 I I I I I I I I I I l I I I ! I i I INCOME I' I ~ I I l I I I I I I ' Port dues - 12 metre vessels I 120 I 114 102 I 99 96 93 I 90 90 90 ' 90 I I ! I ' I ' I I I lT 11 ! 6 12 I 18 l 24 I 30 36 42 48 48 I 48 - 15 I I I I I I IT IT 214 I I I I Landing charges- 12 203 203 l9T 191 I 209 203 203 203 203 I I I i I t! !! 22 I t I I I - 15 43 65 8T 109 130 152 1T4 I l74 I 1T4 I I I I I !7 ff I l I \ Slipway charges- l2 I 39 33 I 32 I 31 30 I 29 29 29 29 ' 3T I Ii. I I I i ' !T lf I 2 4 8 I I ll i - 15 I 5 I I 9 13 ! 15 15 15 I I I I I I I Auction Hall Commission 468 493 541 5T5 609 I 690 T2T I 768 768 I 768 I I I Rent I I I 25 25 25 25 25 I 25 25 25 25 25 l I i I I I I I I I I I ! I I I Total 896 931 992 104T I llOO 1224 l28l I l352 I 1352 i 1352 I ! I I I i I I I Surplus income over expenditure 546 I 477 1>69 438 440 542 58l I 650 I 650 I 650 I I I I Depreciation 458 569 569 I 569 I 569 569 I 569 l 569 569 569 I I i I I I I I I I Surplus or deficit after depreciation +88 I -92 i -lOO -131 -129 -27 I +12 +81 I +81 +81 I -- l l l .\ ~ l I APPENDIX 7

CONSOLIDATED STATEMENT OF OPERATING COSTS FOR PRODUCTION, DISTRIBUTION AND SALES

OF FISH Alm PRAWN PRQpUC_~s - l970 - l983 (Rs. I 000)

l I 1 I Item l970 I l974 l975 I l976 j l977 ! l978 I l979 f l980 I l98l Il982 l l983 I I I I l I I' I J Fishing vessels - l2 metre I 5603 9l59 870l I 7897 7665 7432 7316 7080 7080 I 7080 7080 I I I I I I I " 11 H I I ll48 I I - 15 -- 574 I l722 2295 I 2869 ! 3443 40l7 4591 459l 459l I ! I I I I . I ! .1 1 Fish - cured and dried - local l5 18 I l8 I 19 20 21 2l 22 23 24 25 I I I I I 11 1l f? l I I I I 1! - - inland 329 514 550 622 I 668 714 I 809 I 8524 914 911 908 l I I I i I I 11 IT IT I I l Prawn - - inland 58 62 65 69 73 77 l 87 91 I 96 96 96 I " .! I I I I I Fresh fish - inla.nd 46 69 I 74 83 89 95 I 107 II 113 ! 121 I 12l 12l ! I I I 1 I I -H'reezing - prawns- 405 648 I 673 I 722 798 909 945 I 1000 lOOO 1000 I I ! Storage - frozen prawns 25 88 88 88 88 88 88 88 88 88 88 I I I I I l Canning - prawns 492 I 945 981 1052 1108 1164 1325 1378 I 1457 1457 I 1457 I i I Ice production & ice and fish storage 317 476 504 559 596 l 633 715 750 I 800 I 800 800 i I I l ! i ! Road transport 447 696 I 737 833 880 I 959 I l073 ll05 ! ll93 ll93 ll93 \ Marketing expenses N.E.I. I I I I Fresh fish sales - local 112 l3l 137 l42 148 l54 I 160 l66 I l73 l80 I l87 i ! I I I 11 !l I I 11 482 866 l l I. - inla.."'ld 724 772 928 990 lll-4 1175 l 1255 l255 1255 ! I I I I I ! ' Fish - cured and dried - local 28 33 34 36 37 I 38 I 40 42 43 45 47 ! !! n TT !1 I I I - - inland 1908 2982 3190 3605 3874 I 4l42 I 4693 4950 5300 5284 5268 I fl !! !! I Prawn - - inland I 40l 434 450 483 506 534 608 631 668 668 668 l ' I I I I l! Port Office ! 454 609 660 682 700 702 ! -- 350 523 'I 702 702 I I I I I I I I I I l 1 Total 10668 17903 18576 19321 I 20346 2l368 l23190 I 24107 125504 25495 25486 I I I I I l I l I APPENDIX 8

CONSOLIDATED STATEMENT OF INCOME AND OPERATING COSTS FOR PRODUCTION, D=STRIBUTION AND SALES OF FISH AND PRAWN PRODUCTS - 1972 - 1983 (Rs. !000)

i I I1972 1973 I 1974 I 1975 1976 ! 1977 ! 1978 1979 i 1980 ! 1981 1982 l i I I i I I I i I I I I I I I I I Operating costs as per Appr:mdix 7 -- -- 17903 I 18576 19321 I 20346 . ' 21368 23190 24107 I 25504 25495 I ~ . I I I I .! I ! D~du~t value of ice sales to I I ! I ,I I I I I ! I fishing vessels I -- -- 586 i 621 I 689 ' 736 782 883 928 ! 989 989 i I I l i ' I i I I Deduct cost of port dues, I land~ng & Slipway charges, I auction hall com.'11.ission & I 1100 1224 1281 I rent 896 931 992 1047 I I I : I I j I Total operating costs 16421 1702h 17640 I 18563 19486 21083 21898 231~.5 ! I l l: I I Income - fish products 13447 I 14355 1 16139 117307 18476 20835 I 21965 23441 ' I 1: ! - prmm products 18870 I 19610 21015 I 22157 I 23250 I 26475 t 27511 29120 j i ' 1 l I Income total 32317 33965 " 37154 I 39464 I 41726 47310 52602 52581 I ! I

~ lJ I I Income after deducting opera- I l' l I ting costs but not depreciation I l I or interest I 15896 ! 16941 I 19514 20901 22240 I 26221 27578 29439 29427 29416 I l ! Investment - fixed assets 5400 13221 5150 2347 3145 3005 3460 ! 3565 2585 2482 2570 2730 I l I 1l - operating capital I 3361 166 l1 317 236 I 233 I 576 219 323 -7 -6 I I I I I r- I ! I I i I I I Cash Balance l-5400 1-13221 7385 ' 14428 \ 16052 l 17660 118547 I 22086 I 24774 26G34 26864 26692 ! APPENDIX Y

SCHEDULE OF INVESTMENT AND DEPR~CIATION FOR HARBOUR WORKS, FISHING VESSELS, SHORE INSTALLATIONS

1 A.L\JD TRAl~SPORT - 1972 - 1983 (Rs. 000)

1· I I'-i:;em 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1 r I I l" ! INVESTMENT I ' I Harbour 5400 10800 2300 150 ' I Fishing vessels - 12 metre 800 1200 1200 1200 1200 800 800 2400 2400 ! . . I Fishing vessels - 15 TT 1625 1625 1625 1625 1625 1625 1625 1625 ! I Ice plant :I 480 480 460 I I l Ice storage ,78 l I 36 72 Cold storage I 54 I I1· ! Freezing plant 200 I I' I ! 100 I Frozen storage I l Cannery 280 280 300 ' ! l ! Transport 425 170 320 180 355 590 160 490 I 170 330 I Total 5400 ! 13221 5150 2347 3145 3005 3460 3565 2585 2482 2570 2730 l iI DEPRECIATION I Harbour 153 458 569 569 569 569 569 569 569 569 569 !I Il I Fishing vessels - 12 metre 1500 1425 1275 1238 1200 1163 1125 1125 1125 1125 I I Fishing vessels - 15 11 150 300 450 600 750 900 1050 I 1200 1200 1200 Ice plant 83 83 115 115 115 115 115 115 126 126 I I Ice storage ll 11 16 16 16 16 16 I 16 17 17 l '7 I Cold storage 7 7 7 I 7 7 7 7 7 7 1-rj> ( 1-rj l M I Freezing plant 88 88 88 88 88 88 88 88 88 88 !2': I t:J I H Frozen storage 49 49 49 49 49 49 49 I 49 49 49 ?< I Cannery 62 62 62 62 62 81 81 r 81 81 81 I I "° I 406 l Tra...YJ.sport 264 273 309 317 348 376 372 l 400 394 l I I Total 153 2672 2867 2940 3061 32ol+ 3364 3472 3656 3662 3656 CUMULATIVE INVESTMENT AND CAPITAL FLOW Rs, 1 000

~---~ ------~-~~-~~~----~------~--~-~--- Year Cumulative Cumulative Cumulative Capital total total Residual flow Investment Depreciation Investment

-~--~ 1972 5,400 5,400 5 ,4oo 1973 185621 153 18,468 13 ,068 19711 27 ,132 2,825 24 ,307 5,839 1975 29,645 5,692 23,953 -354 1976 33,107 8,632 24,475 522 1977 36,348 11,693 24,655 180 1978 40,041 14,897 25,144 489 1979 44,182 18,261 25,921 777 1980 46,986 21,733 25,253 -668 1981 49,791 25,389 24,402 -851 1982 52,354 29,051 23 ,303 -1,099 1983 55,078 32,707 22,371 -932 APPENDIX 11

IF HARBOUR FACILITIES NOT PROVIDED - FLEE':£_SI~:E!_, ~GS_ AND DISPOSAL OF FISH AND PRAWN CATCH - 1974 - 1983

I I Year I Number ' Landings Disposition of Landings (tonne landed weight) I of 12 M (tonne landed weight) Prawn Fish Vessels Fish Prawn Total Dried Fresh Fish Dried Fish I Freezing Canning Inland Local Inland Local I Inland I I I I 1974 200 I 10400 3600 14000 1620 540 1440 703 1040 352 I 8'305 1975 220 10780 3520 14300 1584 528 1408 730_. 1078 365 8607 1976 240 10800 3600 l44oo 1620 540 1440 760 1080 380 8580 1977 240 10800 3600 l44oo 1620 I' 540 1440 790 1080: 395 I 8535 I 1978 220 10780 3520 14300 1584 528 1408 822 1078 411 8469 1979 210 10290 3360 13650 1512 504 1344 255 1029 427 7979 i i980 200 9800 3200 13000 1440 I 480 1280 890 980 445 7485 1981 190 9380 3420 13300 1539 513 1368 926 988 463 T503 • 1982 180 9360 3240 12600 1458 486 1296 963 936 l+Rl 6980 1983 180 9360 3240 12600 1458. 486 1296 1000 936 500 6924

...J : APPENDIX 12

IF HARBOUR FACILITIES NOT PROVIDED - CONSOLIDATED STATEMENT OF INCOME AND OPERATING COSTS FOR PRODUCTION, DISTRIBUTION AND SALES OF FISH AND PRAWN PRODUCTS - 1974 - 1983 (Rs. 1 000)

- I I Item 1974 1975 I 1976 19T; 1978 : 1979 j 1980 1981 i 1982 l 1983 I . . I ! I I Processing, ice, transport and marketing I l I I I i ! costs as per Apnendix 13 6521 I 6647 6688 6681 6621 6307 I 5990 6130 I 5790 I 5761: ! I -" ' I ' I . • I j Vessel operating costs excluding depreciation I 7003 1 7665 8320 8320 7665 7317 6968 6653 6303 6303 i I I I ! I . ! l . I Total operating costs 13524 I 14312 15008 I 15001 14286 113624 I 12958 12783 I 12093 12064 l ! I i I I I I I I Income - fish products I 11053 11456 11462 111445 I 11405 J 10849 10290 10358 I 9766 9746 I Income - prawn products 14661 14336 14661 114661 14336 I 13684 13032 13928 I 13195 13195 I I I I I I I Income Total 25714 I 25792 I 26123 I 26106 25741 I 24533 23322 24286 I 22961 22941 I I I I l I I I I I ~ncome after deduc~in~ operating costs but not I interest or depreciation 12190 11480 11115 11105 11455 10909 10364 11503 10868 10877 I I ! Investment - fixed assets 3700 3930 1760 0 800 1360 720 0 2790 2400 I Investment - operating capital 2571 1 33 -2 -36 -121 -121 96 -132 -2 I Cash Balance 5919 7549 I 9322 11107 10691 9670 9765 11403 8210 8479 I I ' I ' APPENDIX 13

ASSUMPTIONS USED IN CALCULATIONS FOR THE ECONOMIC EVALUATION OF THE RATNAGIRI PROPOSAL

These assumption are the basis for the preparation of the 'contents of App'=mdices 1 - 12.

·Para No.

APPENDIX 1 FLEET SIZE, FISHERMEN EMPLOYED, CATCH PER VESSEL CLASS AND TOTAL FLEET LANDINGS 1 Vessel Landings Crew 2

APPENDIX 2 ANNUAL COSTS AND EARNINGS OF FISHING VESSELS

Fishing operations 3 Fuel costs 4 Ice 5 Maintenance and gear 6 Insurance 7 Labour and food 8 Commission and port dues 9 Sundries 10 Depreciation 11 Annual proceeds from catches 12

APPENDICES 3 AND 4 ALLOCATION OF FISH CATCH AND VALUE OF FISH SALES (RETAIL) and ALLOCATION OF PRAWN CATCH AND VALUE OF SALES (F.O.B. or RETAIL)

Price information and recovery factors 13 Allocations to various markets 14

APPENDIX 5 CAPACITIES FOR SHORE INSTALLATIONS AND ROAD TRANSPORT Cold storage 15 Ice production 16 Ice storage 17 Freezing capacity 18 Frozen storage 19 Canning capacity 20 Road transport 21

APPENDIX 6 PORT AUTHORITY - ANNUAL INCOME AND EXPENDITURE

Staff and labour 22 Electricity and water 23 Miscellaneous expenses 24 Maintenance 25 Port dues 26 Landing charges 27 Slipway charges 28 Auction hall comnuss1on 29 Depreciation 30 Para No.

APPENDIX 'T CONSOLIDATED STATEMENT OF OPERATING COSTS

Fishing vessels · 31 Processing costs - fish - cured and dried - local 32 " " - fish - cured and dried - inland 32 " " - prawn cured and dried - inland 32 Fresh fish - inland 33 Freezing - pravms 34 Storage - frozen prawns 35 Canning - prawns 36 Ice production and ice and fish storage 37 Road transport 38 Marketing expenses N.E.I. - Fresh fish - local 39 11 11 11 - Fish - cured and dried - local 39 11 11 11 - Fresh fish - inland 40 11 11 " - Cured and dried fish - inland 40 11 11 " - Cured and dried prawn - inland 40 Port office 41

APPENDIX 8 CONSOLIDATED STATEMENT OF INCOME AND OPERATING COSTS

Operating costs 42 Deduction of ice sales to fishing vessels 43 " port dues, landing and slipway charges 44 " Auction Hall co:m:tnlssion 45 " Rent 46 Income - fish products 47 11 - prawn products 48 Investment - fixed assets 49 Total operating capital 50 Operating capital - fishing vessels 51 11 11 - local fresh fish sales 52 11 " - inland fresh fish 53 11 " - production - local fish - cured and dried 54 " " - production - inland fish - cured and dried 54 " " - production - inland prawn - cured and dried 54 " " - wholesalers - inland fish - cured and dried 55 ti " - wholesalers - inland prawn- 55 cured and dried 55 " " - prawn - freezing 56 " " - prawn - canning 57 " " - transport 58 " " - ice plant - ice storage - fish and prawn storage 59 Para No.

APPENDIX 9 SCHEDULE OF INVESTMENT AND DEPRECIATION

Harbour 60 Fishing vessels - 12 metre 61 Fishing vessels - 15 metre 62 Ice plant and ice storage 63 Cold storage, freezing plant, frozen storage 64 Cannery 65 Road transport 66 Depreciation 67 APPENDIX 11 IF HARBOUR FACILITIES NOT PROVIDED - FLEET SIZE, LANDINGS AND DISPOSAL OF FISH AND PRAWN CATCH

Resources and fishing days 68 Average boat landings per season 69 Disposition of landings 70 APPENDIX 12 IF HARBOUR FACILITIES NOT PROVIDED - CONSOLIDATED STATEMENT OF INCOME AND OPERATING COSTS Processing, ice, transport and marketing costs 71 Vessel operating costs 72 Price information and recovery factors 73 Investment - fixed assets 74 11 - operating capital 75 ASSUMPTIONS USED IN CALCULATIONS FOR THE ECONOMIC --"-·~·------EVALUATION OF THE RATNAGIRI PROPOSAL

APPENDIX 1

(1) Vessel Landings

The average annual landings (tonnes) per vessel during the period 1970 - 1983 with a harbour are: Vessel------Year Pravm Fish Total 12 Metre 1970 18 52 70 " 1974-75 19 56 75 " 1976-78 21 64 85 " 1978-83 24 71 95 15 Metre 1974-83 70 280 350

(2) Crew

The 12 met~e vessel is assumed to have a crew of Tandel, mechanic, and 4/5 deckhands; the 15 metre vessel a crew of skipper, engine driver, second hand, and 5 deckhands.

APPENDIX 2

(3) Fishing operations

Vessel operating costs and incomes are based on the following schedule:

12 Metre

The vessels are expected to operate on a daily basis, leaving port at about 0'.'.)00 hours and returning about 1700, With two hours to cover steaming to and from grounds, actual fishing time would be of the order of about 10 hours per daily trip, Without a harbour, the vessels would return about 1500 which would give a daily fishing time of about 8 hours. With a harbour, the number of fishing days per year i::: expected to average 200 and without a harbour 150 days per year. The total fishing hours per year are therefore~

With a harbour 200 x 10 = 2,000 hours Without a harbour 150 x 8 = 1,200 hours 15------Metre The vessels are expected to operate only when a harbour is built. They are assumed to work on a two day trip basis with 92 trips per year. The vessels would leave about 0500 on the first day and return at 1800 on the second day. Time absent from port would be spent as follows: Fishing time 19 hours Steaming time 10 hours Rest during night time 8 hours

(4) Fuel Costs

Item 12 Metre 15 Metre No With With harbour harbour harbour

Engine H.P. 60 60 160 Travelling and trawling hours per year 1,500 2,400 2,935 Fuel consumption per H.P./ hour (kg.) .15 ,15 .15 Fuel consurnption per boat/ hour (Kg.) 9.0 9,0 24,o Fuel consumption per boat/ year (tonne) 13,500 21~600 70 !>440 Cost of fuel and lubes (Rs./tonne) 905 905 4oox) Fuel cost per year (Rs.) 12,217 19,548 28,176

x) Larger vessels are assumed to be eligible for duty-free fuel,

( 5) Ice

Ice has been provided on the basis of one tonne of ice for each two tonnes of catch. The cost of ice has been assumed to be Rs. 70.00 per tonne.

(6) Maintenance and gear

The cost of vessel maintenance and repairs and replacement of gear has been assumed at 7 %of the original capital cost of both vessel and its gear.

(7) Insurance

The yearly premium has been assumed at Rs. 1,750 for the 12 metre vessel and Rs, 7,000 for the 15 metre vessel. This represents an average rate of about 2.5 %. (8) Labour and Food

~~;e~::~ 12 Metre vessel Tandel 2,400 per year Mechanic 2,400 tl " Deckhands ( 5) 1,440 " " 15 Metre vessel Skipper 7,200 11 " Engineer 4,200 " " II Hand 4,200 " ti Deckhands ( 5) 1,800 " " A food allowance has not been provided for crew on day trips (12 metre vessels). For 15 metre vessels, the food allowance is Rs. 2,00 per man per day = 8 men x 184 days x Rs, 2,00 = Rs 2,944,oo.

(9) Commission and Port Dues

These charges have been assumed as follows:

12 Metre

When catch = 75 tonne (Value Rs. 53,400)

~~E~~~ Landing charge of 2 % 1,068 Marketing charge of 3 % 1,602 Port dues per annum 600 Total 3,270

When catch = 85 tonne (Value Rs, 59,600)

~~E~~~ Landing charge of 2 % 1,192 Marketing charge of 3 % 1,788 Port dues per annum 600 Total 3,580

When catch = 95 tonne (Value Rs. 67,500)

~~!'.::~~ Landing charge of 2 % 1,350 Marketing charge of 3 % 2,025 Port dues per annum 600 Total 3,975

15------Metre Catch = 350 tonne (Value Rs. 217,000)

~~E~~~ Landing charge of 2 % 4 ,340 Marketing charge of 3 % 6,510 Port dues per annum 1,200

Total 12,050 It should be noted that not all of the marketing charge accrues to the operator of the Auction Hall. Paragraph (29) indicates the Auction Hall revenue. The revenue not accruing to the Auction Hall will be dispersed to processors and/or agents who will bypass the Auction Hall.

(10) Sundries

These include slipway charges: 12 Metre 15 Metre -~--!""""------Slipping charge: (Rupees) (Rupees) Rate per metre boat-length 10 15 Total charge 120 225 Daily rate on slip 15 25 No. of days on slip 5 6 Slipway charge 75 150 Total annual cost 195 ,375

(11) Depreciation ·

The 12 and 15 metre boats are depreciated over 10 years. No allowance has been made for residual value after 10 years, The finishing gear investment is not depreciated; maintenance costs include an allowance for gear repair and replacement.

(12) Annual Proceeds from Catches

The average price for fish has been assumed at Rs. 275,00 for fish and Rs. 2,000 ,00 for prawns. These prices have been applied to landings of both 12 and 15 metre vessels. With regard to 12 metre vessels, the same prices have been applied irrespective of whether a harbour is built or not.

APPENDICES 3 and 4

(13) Price Information and Recovery Factors

Product Group Retail or FOB Recovery price for factor :product weight % (Rs./tonne)

--FISH Fresh - local 700 100 Fresh - inland 2,200 90 Cured, dried - local 1,000 50 Cured, dried - inland 2,000 50

---PRAWNS Frozen - export 12,000 50 Canned - export 17,000 35 Cured, dried - inland 8,000 15 (14) Allocation of Fish and Pravm Catches to Various Markets

Fresh local: In 1970, the market is estimated to take about 600 tonnes (landed weight), The demand increase has been estimated to be 4 %annually during the period 1970 - 1983. In 1970, the local market will absorb about 7 %of total fish landings and in 1983 about 5 %

Fresh inland: In this market, the annual demand for fish from Ratnagiri is estimated at 10 %of total landings over the period 1970-1983.

Cured and dried - local: In 1970, this market is assumed to absorb about 300 tonnes. The market growth during the period 1970 - 1983 has been assumed to be 4 %. These allocations mean that in 1970 about 4 %of total landings are used and in 1983 about 2 %.

Cured and dried - inland: The balance of the fish not absorbed by the three foregoing markets is assumed to be cured ad dried for sale in inland markets. In 1970, about 79 % of total landings are used and in 1983 about 84 %.

~::~~-!'.:'.~~~::~~ Throughout the period 1970 - 1983, it is assumed that these will be: Frozen 50 % Of total landings Canned 20 % " " " Cured and dried 30 %" " "

APPENDIX 5

(15 ), Cold storage Requirements are indicated in Figure 2, (16) Ice ;eroduct:ion " " " " " 3, (17) Ice storage " " " " " 3. (18) Freezing capacity " " " " " 4. (19) Frozen storage " " " " " 4. (20) Canning ca;eacity " " " " " 5, (21) Road transport 5-tonne insulated van " " " " II 6. 5-tonne truck: " " " " " 7, Total fleet: " " " " " 8. FIGURE 4

FREEZING AND FROZEN STORAGE REQUIREMENTS

I Item l970 l974 l975 l976 1977 1978 1979 l980 1981 i I Prawns available for freezing (tonne) l296 2075 2155 23l0 I 2437 2555 2910 3025 3200 I Product weight (tonne) 648 1037 l077 ll55 l218 l277 1455 1512 1600

Peak month - 20 %of product (tonne) 130 207 2l5 23l 244 255 29l 302 320

Peak daily - peak month ~ 30 + 50 % (tonne) 6.5 l0.4 l0.8 11.6 l2.2 l l2.8 14.6 15.l l6.o

Frozen storage reg_uired - Peak month · production rounded to 5 tonne l30 2l0 2l5 230 245 255 290 300 320 I FIGURE 5

CANNING CAPACI·ry

Item 1970 1974 1975 1976 1977 1978 1979 1980 1981

Prawns available for canning (tonne) 432 830 862 924 I 973 1022 1164 1210 1280

Product weight (tonne) 151 290 302 323 341 358 407 423 448

Peak month - 20 %of product (Kg.) 30200 58000 60400 64600 68200 11600 81400 84600 89600

Peak daily - peak month 7 30 + 50 % (Kg.) 1510 2900 3020 3230 3410 3580 4070 4230 4480 FIGURE 6

RQJIJJ TRANSPORT REQUIREMENTS (5 TONNE INSULATED VAN) FOR DISPOSAL OF FRESH FISH - INLAND

I Item 1970 1974 1975 1976 1977 1978 I 1979 1980 1981 I r Load - product + ice (tonne) 1058 1588 1694 1900 2036 2173 2444 2577 2754 I Peak month - 20 %of yearly load (tonne) 212 318 339 380 407 435 489 515 551 Number of trips per peak month (5 T truck) 43 64 68 76 82 87 98 103 111 Number of trucks re~uired for peak month 4 7 7 8 8 9 10 10 11

Number of trips per year basis average I 4 tonne load 275 397 424 475 I 509 544 611 645 688 Kl11.. = trips per year x 600 165000 238200 254400 285000 305400 326400 366600 387000 412800 I FIGURE 7

ROAD TRANSPORT REQUIREMENTS (5 T TRUCK) FOR DISPOSAL OF CURED AND DRIED FISH AND PR.AWNS - INLAND

Item 1970 1974 1975 1976 1977 1978 1979 1980 1981

Load - product + 5 %packing - tonne (rounded) 3640 5600 5980 6750 7240 7740 8770 9250 I 9900 Peak month - 15 %of yearly load (tonne) 546 840 897 1013 1086 1161 1316 1388 1485

No. of trucks to cater for peak month I (75 tonne per truck per month) 7 11 12 14 15 16 18 18 20

No. of trips per year (5 tonne truck) 728 1120 1196 1350 1448 1548 1754 1850 1980

Km. = trips x 500 364000 560000 598000 675000 I 124000 774000 877000 925000 990000 I I I i FIGURE 8

KILOMETRES COVERED BY TRANSPORT FLEET IN DELIVERING FISH AND PRAWNS TO INLAND MARKETS AND LOCAL PROCESSING ESTABLISHMENTS

I Item 1970 1974 1975 1976 1977 1978 1979 1980 1981 Fresh fish - inland ~ I Distance covered 1000 Km. i 165 238 254_ 285 305 326 367 387 413 5 tonne insulated vans 4 7 7 8 8 9 10 10 11

Cured-dried £roducts - inland

Distance covered 1 000 Km. 364 560 598 675 724 774 877 925 990 5 tonne trucks - 7 11 12 14 15 16 18 J-8 20

Local trans:12ort - :12ort to factories.etc.

Distance covered '000 Km. 7 12 13 14 14 15 17 18 19 2 tonne trucks 2 3 3 3 3 4 4 4 4

Total Km. 1 000 536 810 865 974 1043 1115 1261 1330 1422 APPENDIX 6

(22) Staff and Labour

Expenditure under this heading has been rounded to nearest '000 rupees, Details of· each line of expenditure are shown in Figure 9.

(23) Electricity and Water

The total costs have been assmned on unit costs of: Electricity Rs, 0.20 per unit Water Rs. 5.00 " 1,000 gallons Year Item 2~::~~R!~~:: Cost------(Rs,) 1974-1976 Electricity 1 lakh units 20,000 Water 90 " gallons 45,000 1977-1979 Electricity 1.1 lakh units 22,000 Water 96 " gallons 48,ooo 1980-1983 Electricity 1.2 lakh units 24,ooo Water 102 " gallons 51,000 (24) Misc. expenses

'.t'hese expenses cover vehicle expenses (2 vehicles), telephone and telegraph charges, office and auction hall stationery and supplies~ etc,

(25) Maintenance

From the year 1978, it is assumed that annual maintenance costs will have reached the long-term rate of Rs. 245,000 per annum, This cost is made up as follows:

Item Initial cost Annual Maintenance Annual cost (Rs. '000) Rate % (Rs, '000)

Reclamation etc. 1,666 1 16,657 Breakwaters and bunds 3,973 1 39,734 Quays and jetties 5,740 1 57,404 Slipway 2,425 1-3 37,125 Roads and pavement 446 2 8,910 Water and drainage 1,052 2 21,038 Lighting and power 644 3 19,305 Buildings 1,869 1 18,686 Fuel station 62 3 1,857 Navigation lights 74 3 2,226 Sub-Total 222 ,9l+2 Supervision & Contingencies (together 10 %) 22,294 Total 245,236 FIGURE 9

PORT AUTHORITY - EXPENDITURE ON STAFF AND LABOUR

,,. Item Number 1974 1975 1976 1977 1978 1979 1980 1981

ADMINISTRATION Port Officer 1 13000 13000 13000 13000 13000 13000 13000 13000 I Administrative Officer 1 7500 7500 7500 7500 7500 7500 7500 7500 Accountant 1 6000 6000 6000 6000 6000 6000 6000 6000 l Personnel Officer 1 5000 5000 5000 5000 5000 5000 5000 5000 Clerks, Steno and Typists 6-11 18700 18700 24700 31400 31400 34400 34400 34400 I Peons 2-3 3600 3600 3600 5400 5400 5400 5400 5400 ' Sub-Total 53800 5J800 59800 68300 68300 71300 71300 71300

TRAFFIC, AUCTION HALL, SECURITY AND TRANSPORT General Manager 1 10800 10800 10800 10800 10800 10800 10800 10800 Superintendents 3-4 18000 18000 18000 18000 18000 24000 24000 24000 Administrative Officer 1 7500 7500 7500 7500 7500 7500 7500 7500 Accountant 1 6000 6000 6000 6000 6000 6000 6000 6000 Auctioneers 3-5 12000 12000 12000 16000 16000 16000 20000 20000 Cashiers 3-5 12000 12000 12000 16000 16000 16000 20000 20000 Clerks, Steno and Typists 6-11 18700 18700 24700 31400 31400 34400 34400 34400 Security Officer 1 I 3500 3500 3500 3500 3500 3500 3500 3500 Foreman and Drivers I 5 I 12600 12600 12600 12600 12600 12600 12600 12600 Skilled labo:lr 4-6 9600 9600 9600 12000 12000 14400 14400 14400 j Peons 2-3 3600 3600 3600 5400 5400 5400 5400 5400 Unskilled labour 16-28 27000 30000 33000 40500 42000 25500 31500 37500 I I Temporary unskilled labour - 12750 13500 15000 15750 16500 18750 20250 21000 I ~ . I Sub-Total 152550 154800 165300 186450 188700 206850 219350 221600 I SLIPWAY AND MAINTENANCE I ' Assistant Engineer 1 7500 7500 7500 7500 7500 7500 7500 7500 Foremen 3 9000 9000 9000 9000 9000 9000 9000 9000 Skilled labour 6 12000 12000 12000 12000 12000 12000 I 12000 12000 Unskilled labour - incl. temp. - 9000 f 10500 r 12000 13500 15000 15000 15000 15000 I I Sub-Total 37500 1 39000 40500 I 42000 43500 43500 43500 I 43500 f Total 243850 247600 265600 296750 300500 1321650 334150 336400 J ! ~ ( 26) Port Dues

These are assumed at Rs. 600.00 and Rs. 1,200,00 for 12 and 15 metre vessels.

( 27) Landing Charges

These are assumed at 2 % of the boatside value of fish and prawns. Please see paragraph (9) for details of costs for 12 and 15 metre vessels.

( 28) Slipway Char~

Please see paragraph (10) for the costs for a vessel in each vessel class.

(29) Auction Hall Commission

Figure 10 indicates method of assessment of this revenue.

(30) Depreciation

See paragraph ( 67) for details of cumposi-cion of annual depreciation charge.

APPENDIX 1

Explanations concerning the basis for caleulation of operating costs for production, distribution and sales of fish and prawn products are. given under each sub-heading of element of cost.

(31) Fishing Vessels

The total costs shown are the product of Rultiplying the total operating costs shovm in Appendix 2 by the number Gf vessels operating each year. The number of vessels per cl2,ss per year are shown in Appendix 1.

( 32) Fish - cured and dried - local Fish II II II - inland Pravm " n " inland

The processing costs of producing these products have been assessed at Rs. 50.00 per tonne landed weight. This amount covers labour, baskets, salt and other minor items. The total annual costs shown in Appendix 1 are the product of multiplying the relevant quantities of raw materials shmm in Appendices 3 and 4 by Rs. 50 .00. For example, in 1970, 6580 tonnes of fish are cu.red and/or dried for sale in inland markets. The processing costs are the.refore 6580 tonnes x Rs. 50,00 = Rs. 329,000.00

(33) Fresh Fish - inland

The preparation and des:patch of this commodity will involve expenditure on labour and boxes. An allowance of Rs, 25 ,00 per tonne landed weight has been made to cover fish cleaning, gilling and gutting etc. It has been assumed that each fish box will carry 25 Kg. of fish plus 10 Kg. of ice and that the service life of a FIGURE 10

AUCTION HALL REVENUE

Through ! rItem Auction Hall I Unit I 1974 1975 1976 1977 1978 1979 1980 1981 :982 1983 ,-- I I Fresh fish - local 50 % tonne l 352 365 380 395 411 427 445 463 481 500 Fresh fish - inland 90 % ton"1e I 1134 1210 1357 1454 1552 - 1746 1984 1967 1967 1967 Fish - cured/dried - local 50 % tonne! 2.76 182 190 197 205 213 222 231 240 250 Fish - cured/dried - inland 60 % tonne 6171 6601 7459 8015 8570 9710 10242 10966 10933 10899 Total tonne 7833 8358 9386 10061 10738 12096 12893 13627 13621 13616 Value Rs. 300 Rs. per tonne 1 000 2350 2507 2816 3018 3221 3629 3868 4088 4086 4085

Prawns - frozen 80 % tonne 1660 1724 1848 1950 2044 2328 2420 2560 2560 2560 Prawns - canned 100 % tonne ! 830 862 924 973 1022 1164 1210 1280 1280 1280 Prawns - cured/dried 60 % tonne 747 776 832 873 920 1048 1089 1152 1152 1152 Total t tonne 3237 3362 3604 3796 3986 4540 4719 4992 4992 4992 Value Rs. 2400 Rs per tonne '000 7769 8069 8650 9110 9566 10896 11326 11981 11981 11981

Total value - Fish & Prawns Rs 1 000 15602 16427 18036 19171 20304 22992 24219 25608 25602 25597 - Auction Hall charge 3 % of value Rs 1 000 468 493 541 575 609 690 727 768 768 768 box is ten trips. During the service life, a box will carry 250 Kg. of fish (25 Kg. x 10 trips), The cost of a box is estimated at Rs. 7.50. Hence the cost of bcxing a tonne of fish is Rs. 30.00. The labour cost of loading and unloading fish vans has been estimated at Rs. 10.00 per trip. The quantities of fish to be cleaned, etc. and the weight of product to be transported for each year are shown in Appendix 3. Details of the number of trips involved in disposing of this prod~ct are shovm in Figur~ 6 of this Appendix, In 1974, for example, the costs of processing and distribution are estimated to be:

Item Rate Quantity Cost (tonne) · (Rs'.') Cleaning, etc. Rs. 25.00 per tonne landed weight 1,260 31,500 Boxes Tonne of product weight by Rs. 30,00 1,134 34,020 Labour Trips by Rs. 10.00 397 3,970

Total 69,490

( 34) Freezing - Prawns

The costs shovm are based on the following estimates:

~~::!_!~-!~~!~:'.l Basket charge Rs. 7,50 per tonne landed weight Labour - load and unload Rs. 5 ,00 per tonne landed weight Ice and storage Cost included in line "ice production and ice and fish storage" Transport Cost included in line. "road transport"

!~::!~~ Cost of production per tonne product weight: Labour Rs. 210.00 per tonne Electricity Rs. 40.00 11 11 Materials Rs. 320.00 11 11 Maintenance Rs, 10.00 11 11 Overheads Rs. 20.00 11 11 Total Rs. 600.00 11 11

( 35) Storage - Frozen Prawns

Cost of this item is based on the following formulae :

8 months at full capacity; 350 tonne x Rs. 25.00 per tonne x 8 months = Rs. 70,000 4 months at half capacity: 175 tonne x Rs. 25.00 per tonne x 4 months= Rs. 17,500 (36) Canning - Prmms

The costs shown are based on the following estimates:

~~::!_!~-~~:::'.:El Basket charge Rs. 7,50 per tonne landed weight Labour - load and unload Rs, 5,00 ti II II II Ice and storage Cost included in line "ice production and ice and fish storage" Transport Cost included in line "road transport"

~~::::El Cost of production per tonne product weight: Labour Rs. 400.00 )..ler tonne Electricity Rs. 250.00 " " Materials Rs. 2,500.00 II It Maintenance Rs. 20.00 " II Overheads Rs. 50.00 II " Total Rs. 3,220.00 II " (37) Ice Production and Ice and Fish Storage

The cost of product:i_on of ice and ice storage has been estimated at Rs. 45.00 per tonne, This cost does not include depreciation or interest. The cost of running the fish storage rooms has been estimated at peak capacity tonnes multiplied by Rs, 750.00.

( 38). Road Transport

The costs of operating the transport vehicl~s required to move fish and prmms, products, etc. are based on the following assumptions:

Fuel consumption 25 Kg. per 100 Km. Fuel cost Rs, 1.00 per Kg. Oil consumption 5 %of Kg. fuel needs Oil cost Rs. 2,50 per Kg. Drivers 2 per vehicle Driver ... s wage Rs. 2,400 each driver Attendants 1 per vehicle Attendant-"s wage Rs. 1,440 each person Tyres 1 set per 25,000 Km. Tyres cost Rs. 4,500 per set Maintenance Rs. 5,000 per vehicle each year Insurance Average annual premium of 2 % Sundries incl. permits Rs. 2,500 per year

Figures 6, 7 and 8 explaining Appendix 5 indicate the size of the transport fJ.eet and the way it is assumed it will be operated in order to service processing plants and market areas. Based on the unit costs indicated above, Figure 11 shows the cost of running tre fleet on an annual basis, These costs do not include depreciation or interest. FIGURE 11

COSTS OF RUNNING TRANSPORT FLEET (Rupees)

! I Item : 1970 1974 1975 l 1976 1977 1978 1979 1980 1981 i I I 6 - J Fuel 134000 202500 I 21 250 243500 260750 278750 315250 332500 355500 l I Oil 16650 25213 26931 30338 I 32494 34743 39306 41463 44338

Labour 81120 131040 137280 156000 162240 180960 199680 199680 218400

H i Tyres 96480 145800 I 155700 175320 187740 200700 226980 239400 255960 ' I Main tena..>J.ce 65000 I 105000 110000 125000 l 130000 145000 160000 160000 175000 I Insurance 20750 33875 35375 I 40375 I 41875 46500 51500 51500 56500 Sundries 32500 52500 55000 I 62500 65000 72500 80000 80000 87500 I I Total 446500 I 695928 736536 - l 833033 880099 959153 1072716 1104543 1193198 (39) Marketing Expenses N.E,I. - Fresh Fish - local Fish - cured and dried - local

With regard to the disposal of one tonne of product, it is estimated that this would involve 15 bicycle venders ( 15 x 40 Kg. = 600 Kg. ) and 20 women venders ( 20 x 20 Kg. = 400 Kg, ) , Cos ts involved: ~!:-R~~~ Labour 15 x Rs. 5.00 75,00 20 x Rs. 3.00 60.00 Baskets and bicycle repairs 52.00 Per tonne 187.00 ·~~~~~~~~~~~~

(40) Marketing Expenses N.E.I. - Fresh Fish - inland Cured and dried fish - inland Cured and dried pravm - inland

An amount of 29 % of the retail value of the fish and pra\m products (vide relevant parts of Appendices 3 and 4) has been taken to cover marketing expenses not elsewhere included. The production costs of these products (excluding cost of raw mate~ial) are shmm in paras. ( 31) to ( 33) . The costs of ice and storage are included in the provisions of para. ( 37). Road transport costs are s-hmm in para. ( 38) and Fig. 11. Hence, the 29 % covers the additional expenses incurred by the wh9lesale retailer excluding such costs as ice, transport etc.

( 41) Port Office

These expenses are fully explained in notes to Appendix 6, namely paras. (22) to (25),

APPENDIX 8

Comments on each sub-heading are as follows:

(42) Operating Costs

These are set out in detail in Appendix 7,

( 43) Deduction of Ice Sales im Fishing Vessels

11 11 In Appendix 2, under the line ice , both 12 and 15 metre vessels are charged for ice at the rate of Rs. 70.00 per tonne. In Appendix 7, the cost of ice production is shown under the heading "ice produc­ tion, and ice and fish storage". To avoid counting twice, the costs of ice in the consolidated costs for the Ratnagiri harbour proposal, it is necessary that vessel ice costs be deducted. An example of the calculations involved to assess the deduction for a year is shown hereunder. 1974 Rupees------200 12 metre vessels x 37,5 tonne ice x Rs, 70,00 525,000 II II 5 15 x 175.0 " i! x Rs. 70.00 61-1.90 Total 586.250 ( 44) Deduction of Port Dues> Landing and Slipway Charges

The argument indicated in para. (43) also applies to these dues and charges. The composition of the deduction for each year is shovm in Appendix 6. For example, in the year 1974, an amount of Rs. 403,000 is involved; this is made up as follows:

~:::~::::~ Port dues 12 metre yessels 120,000 II II 15 " II 6,ooo Landing charges 12 ",, " 214,ooo " II 15 II 22,000 Slipway charges 12 11 II 39,000 II " 15 " II 2,000 Total 403,000

The basis for calculating the various dues and charges is explained in paras. ( 9) , ( 10), and ( 26).

(45) Deduction of Auction Hall Commission

The amount of revenue shown in Appendix 6 is deducted in line with the principle stated in para. (43), The basis of calculation of the amounts deducted for each year are exj)lained in Figure 10,

(46) Deduction of Rent

The amount of Rs. 25, 000, shown for each year 1974 - 1983, also must be deducted following the argument indicated in para. (43). The rent is obtained from processors etc. and has been calculated on the basis of 12,500 sq.metres at an average rental of Rs, 2.00 per sq.metre per year.

(47) Income - Fish Products

These are set out in detail in Appendix 3.

( 48) Income - Pr mm Products

These are set out in detail in Appendix 4.

(49) Investment - Fixed Assets

These are set out in detail in Appendix 9.

(50) Total Operating Capital

The amounts shovm for each year represent a consolidated total for all activities. The assumptions used in assessing operating capital requirements for each activity are explained in the following paras, (51) to (59),

( 51) Operating C~ tal - Fishing Vess~ls

Requirements are based on the formulae of dividing total operating costs shovm in Appendix 2 by 100 and then multiplying by the number of vessels shovm in Appendix 1. Reference must also be made to para, (1) of this Appendix. (52) Operating Capital - Local Fresh Fish Sales

The reto..il sale of this fish would normally occur within a few hours of landing. Hence the retailers (women with head loads and bicycle venders.) would recoup the cost of the fish on the same day as the outlay is made. Each vender would require cash to cover fish purchases and other minor expenses. It is estimated that the cash required for all venders would be about Rs. 2 ,000 during the period 1974 to 1977 and thereafter Rs. 2,500.

(53) Qeerating Capital - Inland Fresh Fish

In this market, it is assumed that the wholesaler (who also may be the retailer) will recover his outlay in five days. His outlay covers cost of fish, cleaning, storage, ice, boxes, transport, and other marketing expenses involved in disposal in the inland markets. It is assumed that the operating capital requirement is 80 %of product value. Hence the formulae is 80 %of product value divided by 300 (days) multiplied by 5 (days),

(54) Operating Capital for Production - Local Fish - Cured and Dried 11 II " II - Inland Fish " i1 II 11 - Inland Prmm ,.-

The average cost of the fish and pravms for curing and drying, plus salt and other minor incidentals has been assessed at Rs. 350.00 per tonne of :raw material. It has also been assumed that fish and prmms will only be purchased for either curing or drying on 300 days each year. It has been assumed that the producer will di.spose of his product on an average 10 days after he acquired the raw material. Hence the formulae for operating capital is the tonnage of fish and pravms purchased for processing divided by 300 (days) multiplied by Rs. 350.00 multiplied by 10 (days),

( 55) Operating Cc.pi tal Requirements of Wholesalers - Inland Fish - Cured and Dried 11 11 11 11 11 11 11 " ., Inland Pravm

The time period from sale by the producer to purchase by the consumer has been assumed to average a month. It has also been assumed that the link between producer and consumer will involve an operating capital requirement of 80 % of product value. As it is assumed that the products will be available only eight months each year, the formulae for operating capital requirement is therefore 80 %of gross product value divided by eight (months) multiplied by one (month).

It is assumed that 64 %of the product value (F.O.B.) of an average day ... s output will be tied up for an average of 30 days (range 1 - 60 days) pending shipment. It is assumed that refrigerated ship space will be available each 60 days. The operating capital requirement for the pro'-'essor is therefore 8 % of total annual product value ( 6)1 % of product value divided by 8 [30 days)) •

( 57) .Q:e.erating Capital - Pr mm - Canning

It is assumed that 80 % of the product value (F .0 ,B.) of an avera,ge day" s canning output will be tied up for an average of 45 days (range 1 - 90 days) pending shipment overseas. Therefore, the operating capital req_uirement of the cannery, on the basis of a 200 days per year canning schedule, is 18 %of total annual product value (80 %of product value divided by 200 x 45),

The operating capital req_uirements have been assessed at 5 %of total annual operating costs of the transport fleet.

(59) Qeerating Ca_pital - Ice Plant - Ice Storage - Fish and Prmm Stora_ge

The operating capital req_uirements have been assessed at 5 %of total annual operating costs of these facilities.

(60) Investment - Harbour

The investment req_uired is estirr.ated at Rs. 18,000,000 spread over the period 1972 - 1974. Details of the nature and extent of the vork are contained in Technical Report 6, The components of total cost are:

~~~::~~ Dredging including reclamation 1,162,000 Borrow material for reclamation 184,ooo Breakwater and reclamation bunds 3,211,000 Quays and jetties 4 ,638 ,600 Slipway and repair facilities 2,000,000 Roads and biturnen pavement 360,000 Wa,ter supply 550,000 Drainage and sewerage 300 ,ooo Electricity sub-station 350,000 Harbour office 250,000 Auction hall 1,200,000 Fuel station 50,000 Toilets 60,000 Lighting 170,000 Navigation lights and marks --~~OOQ_ 14,545,600 Add contingencies at 10 % __!, 454) ~Q_Q_ 16,000,000 Add supervision charges at about 12.5 % ~Q_OO ,OOQ_ Total 18,000,000

The investment shown in 1974 represents 10 replacements at Rs. 80 ,000 fore ach vessel and gear. Investments in years 1976 to 1983 also represents replacement investment. Each vessel is assurned to have a, working life of 10 years and no allowance in the investment schedule has been made for residual value. These vessels are assumed to have a working life of 10 years, Consequently, all investment sho-1m during the period 1974 - 1980 represents additional vessels. The cost of each vessel is Rs. 325 ,000; this includes gear Rs, 25 ,000. The nmnber of vessels acq_uired each year during the period 1974 - 1980 may be ascertained from Appendix l,

In Chapter 3 of this Report, a description is given of existing facilities at Ratnagiri. In 1973, an additional ice plant of 30 tonne capacity (Rs. 480,000) will be required. This investment will need to be repeated in 1975. Ice storage capacity will need to be increased in 1973 to 30 tonne (Rs. 36,000) and in 1975 when 60 tonne (Rs. 72,000) extra capacity will be required. In 1981, Rs. 378,000 will be required to replace worn out plant, and, in addition, Rs. 160,000 will be required to add an extra 10 tonne capacity to existing ice plant.

( 64) Investment c. Cold Storage, Freezing Plant, Frozen Storag~.

In 1981, certain machinery, etc. installed in the late 1960,.s will need to be replaced. The investment required will be:

90 tonne cold store Rs, 54,ooo 10 " f:::eezer Rs, 200,000 100 ll frozen storage Rs. 100,000

(65) Cinvestment - Cannery

In 1973, additional cannery capacity, 1,000 Kg. product weight per 8 hour shift, will be required The investment, taking into account existing facilities, is estimated at Rs. 280,000. This investment will need to be repeated in 1978. In 1981, machinery, plant, etc, in canneries built in the late 1960~s will need to be replaced and the cost is estimated at Rs. 300,000,

5· tonne insulated vans

Additional Year ~~R~~~=~::~! -·------Fleet size =~~-~£_;[=~~ 1974 2 1 7 1975 1 7 1976 1 1 8 1977 1 8 1978 1 1 9 1979 3 1 10 1980 1 10 1981 2 1 11 1982 1 11 1983 2 11 5 tonne trucks

Year ~::12~~~~:1:~~! Additional_____ ,..,., ____ Fleet size ~::~-~f-~:~:: 1974 1 1 11 1975 1 12 1976 1 2 14 1977 1 1 15 1978 2 1 16 1979 2 2 18 1980 1 18 1981 3 2 20 1982 2 20 1983. 3 20

2 tonne trucks

Year Additional Fleet size ~::~-~f-~:~:: 1974 1 1 3 1975 1 3 1976 3 1977 3 1978 1 4 1979 2 4 1980 1 4 1981 4 1982 4 1983 1 4

The cost of vehicles:

5 tonne insulated van new Rs. 80)000 " " II replacement Rs, 70,000 5 tonne truck. new Rs. 60,000 !! " replacement Rs. 50,000 2 tonne truck new Rs, 45,000 n II replacement Rs. 40,000

The annual rates of depreciation, as a percentage of initial cost, have been assumed to be:

Harbour Buildings 3.3 % Machinery 8.3 % Structures 2.0 % Earthworks and dredging (initial) 2.0 %

Vessels 12 met;re 10.0 % 15 II 10.0 % Buildings 3,3 % Machinery 8.3 %

~~~:!:~!?~~~ All vehicles 20.0 %

APPENDIX 11

(68) Resources and F'ishi~:ig D~

The resource situation is generally that described in Chapter 5 of this Report. However, because of lack of facilities, particularly those associated with the holding and/or disposal of boat catches, it is assumed that the 12 metre vessels will continue to land their catches early in the afternoon. Therefore, the fishing day will be 10 hours instead of 12 hours as assumed when harbour facilities are available, ;uso, the number of fishing days are assumed to continue at an average of 150 per season> whereas, with a har1)our, the number of days for 12 metre vessels has be2n estimated at 200,

(69) Averag.::_13_c:i_at Landing_<:>~ Season

Year Number Fish Pra1ms Total of___ vessels,__ _... ____ (tonne) (tonne) (tonne) .__.. ~- --,_.. _.,.,..r~---- ...... -..-...-.--·-- 1970 160 52 18 70 1974 200 52 18 70 1975 220 49 16 65 1976 240 45 15 60 1977 240 45 15 60 1978 220 49 16 65 1979 210 49 16 65 1980 200 49 16 65 1981 190 52 18 70 1982 180 52 18 70 1983 180 52 18 70

( 70) D~osition of' Landings

Prmms Freezing 45 % of landed weight Canning 15 % " ft rt Drying 40 % 11 ft "

Fish Fresh local In 1970, 600 tonnes, thereafter an annual I increase of li % Fresh inland 10 %of total landings Dried local In 1970, 300 tonnes, thereafter an annual increase of 4 % Dried inl2.J.'ld Balance of fish landings APPENDIX 12

(71) _ProLessing, Ice, Transport, and Marketing Costs

The assumptions used in calculating these costs are the same as those used for the situation when a harbour is built. These assumptions are explained in detail in paras ( 31) to ( 41) of this Append.:.x.

(72) Vessel Operating_~osts

Vessel operating costs (excluding depreciation) associated with annual catches of 60, 65 and 70 tonnes, are shmm in Appendix 2. Total 12 metre fleet costs for any year are the product of multiplyini; fleet size (col. 2, Appendix 11) by the relevant costs of a vessel for the year concerned. The "relevant costs" may be established by using the information on boat landings in para, (69) and the opera­ ting costs shown in Appendix 2.

(73) Price information and R~covery Factors

See para. (13) of this Appendix.

(74) Investment - Fixed Assets ~;:12::~-~~~~~l 1974 12 metre vessels 20 additional at Rs, 80,000 1,600 20 replacement 11 Rs. 80,000 1,600 transport 3 additional " Rs. 60,000 180 ice plant 20 tonne new plant 320 Total 3,700

1975 12 metre vessels 20 additional at Rs. 80,000 1,600 20 replacement 11 Rs. 80,000 1,600 transport 1 additional " Rs. 80,000 80 5 replacement 11 Rs, 70,000 350 6 II 11 Rs. 50,000 300 Total 3 ,930

1976 12 metre vessels 20 replacement at Rs, 80,000 1,600 ice plant machincery replacement 160 Total 1,760

1978 12 metre vessels 10 replacement at Rs. 80,000 800

1979 12 metre vessels 10 replacement at Rs. 80,000 800 transport 3 11 11 Rs. 50,000 150 ice plant machinery replacement 160 freeze·r ma.chinery replacement ~~o· Total 1,360

----~------1980 transport 6 replacement at Rs. 70,000 420 fl 6 fl Rs. 50,000 300 --~ Total 720

1982 12 metre vessels 30 replacement at Rs. 80,000 2 ,1100 freezer machinery replacement ,_-12Q Total 2,790

1983 12 metre vessels 30 replacement at Rs. 80,000 2,400

~75) _Investme_12_!_- Operati~g Capital

The req_uirement has been assessed at 10 %of total value of fish and prmm products. This percentage represents approximately the relationship of operating capital requirements to total product value established for the situation when a harbour is built,