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

Draft Report on “Fishery Supply Chain”
Confidential
They don’t have any cost of operation in terms of fixed or variable cost. The auctioneers charge
Re. 1 / kg in return of this service from the fishermen. Another supplementary role in this category,
which is observed specifically in the landing centers in Puri district is the auctioneers’ assistants
who support the auctioneer in discharge of his function and is paid on daily basis by the
auctioneer. The payment received by the assistant ranges between Rs. 40-60 per day.
Commission/Collection agents
As the name suggests, they act as agents of either the large export houses or external traders for
defined fish species. Their role is confined to participating in the auctions, procuring fish and
handing it over to the traders.
They don’t have any cost of operation in terms of fixed or variable cost. They receive a
commission in return, which is similar to that of the agents i.e. Re. 1/ kg from the external buyers
and in some cases a nominal consolidated amount, which may range from Rs. 5,000 to Rs.
20,000 per annum. The operations costs and accessories like cell phones etc are borne by the
principal.
During specific season for particular fish species, these agents are authorized by principals to hire boats
and buy fish directly from crafts at sea, thus making short-circuiting the established mechanism.
Godown owner
They are the dominant players in the chain. They provide backward and forward linkages,
undertake sorting, packing and transportation and financial support to boat owners and creating
linkages for hiring of crew. They have the ability to take risk and have better market access and
information. The informal linkages, both backward and forward, in the value chain are very strong.
They have fisherman tied up with them because of the credit flow and the wholesaler / exporter
are tied up for supply informally to make sale for their purchase
The number of players is limited and hence makes the venture profitable. They generally govern
the prices at the landing centers through their agents and the auctioneers.
The capital investment by them in the business is low ranging from Rs. 1, 00,000 to Rs. 2, 50,000
in terms of infrastructure and other fixed investment. But the capital required to meet the
operational cost like purchases of the fish, transportation and storage, credit supply to the
fisherman (capital employed in the business) is high with an average daily requirement of Rs.
50,000 to Rs. 2, 00,000 depending on the size of operation and the quantum of business
undertaken by them. .
Wholesaler
They are normally located in the bigger markets and regional markets. In fact the term wholesaler
is a misnomer as many of them perform the role of commission agents. They take up the
responsibility of arranging for the products i.e. create backward linkages to the landing center via
the middleman / Gaddiwala to meet the requirement of the buyers of the market -the forward
linkages. The chain allows a limited number of players in this segment as the profitability is
severely impeded if the number increases. They are linked to the various landing centers across
the districts and the state and cater to a large number of smaller markets.
The wholesaler also frequently acts like an agent to the middleman in this trade. In this capacity
he serves as an auctioneer and provides service of auctioning the product sent by the middleman.
The wholesaler in this potential normally charges 5-7 % of the sale value from the middleman after
deducting all the operational / variable expenses occurred on his part.
The capital investments by them are in the form of purchase of the “gaddi / aadhat” in the regional
markets. However, it was difficult to ascertain the cost of gadi as these are generally family
businesses and are in operation for over many years. The capital employed is negligible as
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Submitted to -: OXFAM (India) Trust 47