DEVELOPMENT OF DOMESTIC FISH MARKETING IN INDIA: CHALLANGES AND PROSPECTS

D. Srinivas * and Vallathan. M**

1.0 Introduction:

Fish and fisheries have been playing an important role in addressing nutritional

and livelihood security of the poor in developing countries in general and in India

particular. Besides providing livelihood security to over 14 million people in India , the

sector has been one of the major foreign exchange earners, with revenue reaching nearly

Rs. 8000 Crores in 2008-09 accounting for about 14% of the agricultural export. The

contribution of Fisheries sector is estimated at 1.07% to the GDP and about 5.5 % to the

agricultural GDP. In many developing countries like India, fish is still the cheapest

available animal protein to the poor. Fish is a rich source of protein, essentially fatty

acids, vitamins and minerals. The fatty acids in fish, particularly Omega 3 fatty acids are

highly beneficial for human health. The growing gap between supply and demand will

impact the health and nutrition of low income families in the developing countries, unless

efforts are made to increase the availability of the fish in hygienic form at reasonable

prices. However, overexploitation of the resources, post harvest losses, weak public

support, unorganized marketing network, lack of modern storing and packaging

technologies, lack of diversification in value addition of fishery products and lack of

investment are the major threatening factors of fish supplies and fishers livelihoods.

In addition to contributing to the nutritional security, this sector has been

providing livelihood to nearly 2 million people in India who are particularly involved in

fish processing, marketing and trade, more precisely domestic fish marketing in India.

With post- harvest losses in fish as high as 15%, it is necessary to provide post harvest

preservation, necessary infrastructure and transport facilities. If this sector is neglected,

both nutritional security and livelihoods of the poor may be affected. It is in this context,

the following issues needs to be addressed on priority basis.

* D. Srinivas is Fisheries Development Officer, Dept of Fisheries, Govt. of Andhra

Pradesh, srinivasnfdb@gmail.com ** M. Vallathan is with Pondicherry

University, Pudicherry, vallathan06@yahoo.co.in

2.0 Challenges for Development of Domestic Fish marketing:

2.1 Popularizing fish and fishery products as the rich and cheap animal protein to

the poorer communities: Fish and fish products need to be popularized on large

scale owing to its good nutritive value. In many underdeveloped countries fish is still

a rich and cheap animal protein for poorer communities. In India, Fish as a protein

pack needs to be popularized on a large scale through print and electronic media.

Consumption of fish has to be popularized as an ideal meat in these days of modern

work life style of the people. National Fisheries Development Board (NFDB) takes

the lead in this area and is popularizing the fish as a nutrient commodity by

organizing fish festivals and providing financial assistance to the state governments to

organize such events and to undertake publicity and awareness campaign. However,

these efforts are to be taken forward on a massive scale to reach the nook and corner

of the country. Establishment of a committee on the lines of National Egg

Coordination Committee (NECC) may yield better development of marketing

network and consumer awareness. NFDB provides 100% financial assistance to the

government agencies to take up such publicity and awareness campaigns.

2.2 Sustainable development of traditional fish markets: Fish Markets in India is often

cited as example for “Disorderliness”. This is really an unfortunate precedent and needs

to be changed through infrastructural interventions. Traditional fish markets are generally

established in the common property resources. There is an urgent need to develop these

markets by providing infrastructure for fish processing and hygienic marketing.

Traditional fish markets are not only the places for developing marketing network and

but also for improving socio- economic relations among the fisher folk. This network if

properly established and trained with modern innovative technologies, this can

revolutionize the fish marketing in India. The main focus should be on transition from

traditional, unhygienic and temporary markets to Modernized, hygienic and permanent

markets. NFDB is making its earnest efforts by providing financial assistance to the state

governments and quasi governmental agencies for modernizing and construction of fish

markets.

2.3 Reduction of post harvest losses: About 25 – 39 % of the fish produced in the

country is lost through Post harvest losses at different stages. If these post harvest losses

are checked from the catch point to consumption point to retain the freshness, it will fetch

a higher price. For this, on vessel preservation facilities for marine fisheries,

improvement of infrastructure at Fishing landing centers, development of small scale cod

chains for inland Fisheries, training on hygienic handling of fish for the fishers,

establishment of fish dressing centers and value addition for the low value fish are the

areas of priority. NFDB is extending subsidy and soft loan assistance to entrepreneurs for

cold chain development and value addition of fish.

2.4 Price monitoring system: Being a highly perishable commodity fish is traded

without proper marketing mechanism leading to severe loss to the fishers and producers.

Borrowing the models from the European countries. Electronic auctioning procedures

need to be introduced under the aegis of an independent marketing agency, which could

be done on the lines of Agriculture Costs and Price Commission (ACPC) or similar to

NECC. Further, prices of major commercially important variety of fishes needs to be

made available in websites.

2.5 Public -Private Partnerships (PPP): Fisheries and aquaculture was developed

successfully by prospective entrepreneurs from the times immemorial. Governmental

agencies only focused more in regulation, welfare and monitoring of this sector, with

limited focus on management and development. However, in these days of liberalization

and globalization, economically viable PPP models have to be developed in this sector

with emphasis on domestic fish markets with hygienic retail outlets and quality assurance

measures.

2.6 Development of Fish Retail outlets: Most of the existing fish retail outlets in many

parts of the country are unorganized, seasonal or part-time and unhygienic. This is due to

mismatch of supply and demand, region specific preference of fish species for

consumption, lack of institutional finance support. Unlike other livestock trade, fish

marketing pass through several intermediaries in the marketing channel, leading to lesser

share of the consumer’s rupees to the producers. Retailing ids the order of day in metros

and major towns. Hence establishment of hygienic retail outlets with proper storage

facilities would help the retailers to store wide varieties of fish for continuous supply as

per the consumer’s preference. For this purpose state of art retail outlets with proper

hygienic storage facilities and modern infrastructure is need of the hour. NFDB with a

vision to develop hygienic retail outlets in all major cities and towns. It supports such

chain of hygienic retail fish outlets, with 25% subsidy for establishment of retail fish

outlets for entrepreneurs and 40% subsidy to fisher women.

2.7 Introduction of modern storage, processing and packaging technologies:

To reduce, post harvest losses, cold chain infrastructure has to be established at

various levels of transport and trading. Presenting fishery products in an attractive

packing is not popular to attract the consumers, when compared to the various other food

products. In this regard, NFDB has a scheme on cold chain development and processing

of value added products wherein 40% soft loan or equity participation is available

2.8 Species diversification and diversified supply: The consumer preferences in the

fisheries sector is region specific and to cater the needs, species diversification became

inevitable. In South East Asian countries variety of fish species were cultured, where as

less emphasis has been given to diversification in the country. Bringing such developed

technologies to the country and disseminating to the farmers would lead to additional

production and long term sustenance of the sector. NFDB is making efforts to introduce

new fish species for culture in freshwater and coastal aquaculture.

2.9 Awareness –HRD and training: Trained manpower is always an added advantage in

the marketing. The hawkers who are selling the fish, the retailers in the unorganized

sector and fish farmers are to be sensitized on recent technologies to improve

production, processing and hygienic handling of fish including packaging

technologies. Updating the skills of the stakeholders involved in fisheries sector with

latest technologies shall be on continuous basis for its assured benefits.

3.0 The Outlook: Excellent opportunities exist for the development of Domestic fish

marketing in the years to come with improved hygiene and quality when planned and

implemented well. The protocols of domestic markets maintenance needs to be

standardized. There can be uniform fish retail outlet models for the every State /

Union territory in the country for faster development of retail outlet network. Small

scale customized cold chains needs to be developed on PPP mode. This development

can also contribute to nutritional and livelihood security. The area where much

progress has not been made in India due to high investment costs, lack of systematic

efforts and technologies needed, with the financial assistance from NFDB schemes

not only the Government Organization but also private entrepreneurs can also

contribute to these developments.

REFERENCES:

1. Ayyappan, S and J.K. Jena, Emerging trends in Indian Fisheries, Souvenir, M.S.

Swaminathan Award 2009

2. Modadugu V Gupta, Challenges to be addressed for aquaculture to meet the

growing global demand, Brain storming Meet on Aquaculture 2025, CIFA,

Bhubaneswar, June’2008.

3. National Fisheries Development Board, Dept. of Animal Husbandry, Dairying,

and Fisheries, Ministry of Agriculture, Govt. of India, Guidelines.