Value Chain Analysis of Fishery in Puri and Ganjam District of Orissa

Draft Report on “Fishery Supply Chain”
Confidential
Executive Summary
NiMble system has completed the research on ““Value Chain analysis of Fishery in Puri and
Ganjam District of Orissa”. The study was taken up with the objective of identification of local and
regional market potential for each main species of fish commonly found in the catch of artisanal
fisherfolk in Ganjam and Puri district and to provide information on the price of each of these fish
species in local and regional markets.
The study methodology included both desk research and primary research in Puri and Ganjam
district and also in various regional markets. Various tools and technique of research including
structured questionnaire, personal interviews, group discussion, etc. were employed during the
primary study. A sample of 212 respondents from different sections of the fishery trade was
covered in the study. The study has employed two framework viz. BCG matrix and VRIO analysis
for interpretation and understanding of the supply chain. Statistical analysis of the data generated
from the field study was undertaken.
A policy review of the central and state government pertaining to fishery has been taken up to
understand the ‘legislative or governing factors’ or the ‘rules of trade’. The implication and impact
of the legislative policies on the trade and the various stakeholders has been analyzed.
The study has developed market and product segmentation of the fishery product lines to induce
business understanding of the entire gamut of available products. It has listed down the
characteristic of the different markets and the specific requirement of the fish species in these
markets. The study has come out with the profitability index of the various species found in the
catch of Puri and Ganjam artisanal fisher folk and also for the various players of the trade. The
above two information’s, when collated together, will help to determine the business planning and
strategize it as per the intervention design.
The study identifies the different value chains present in the trade and map it for the various
market and product segment. It also gives a detail description of the various players involved, their
roles and responsibilities, the cost of operation and the barriers to entry, mobility and exit at
various points of the value chain.
The research undertakes a business analysis to understand the “production –distribution –
consumption” complex in the new business environment of the ‘new economy’. It looks into the
intricacies of “Primary Phase- Secondary Phase Articulation” i.e. the existing production and
industrial phase linkages. It further delves upon the dynamics of the current trade issues of socio
– cultural, political and economic importance. The gender concern in the trade has also been
researched in light of the existing trade scenario.
An indicative cost of operation of the various operators based on the primary study has been
developed which can act as a ready reckoner for intervention design. The study has undertaken a
“cause effect” analysis (Fish Bone Analysis) to determine the causes of poor livelihood of the
fisher folk of Puri and Ganjam districts. Further more “VRIO” trade analysis framework has been
employed to develop a broader picture in terms of present supply chain.
The important finding of the research indicates that the fishery value chain is dominated by few big
players viz. the export houses and big traders. Moreover, they define and determine the “rules of
the trade” in Puri and Ganjam district. The number of intermediaries is high and hence adds up to
the cost of product without adding much value to the value chain. On an average 20-25% of the
value of the final product goes back to the fishermen. The research points out the presence of
‘patron-client relationship’ throughout the supply chain which is prevalent in both the districts.
Credit is another impeding factor which has led to the development of this relationship, thus down
sizing the importance and control of the fisher folk on the trade. The infrastructure to support the
trade is a limiting factor in development of fishery trade.
Submitted by -: NiMble System Pvt. Ltd.
Submitted to -: OXFAM (India) Trust 3