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

Draft Report on “Fishery Supply Chain”
Confidential
CHAPTER 9
Conclusion and Recommendation
Conclusion
The research on the value chain of fishery illuminated the processes and procedure that are in
vogue in the traditional value chain. It identified the various levels that exist in the present value
chain and analyzed its strength and weakness. The research helped in analyzing the roles and
responsibilities of the various players and at the same time looked in empathically into the
problems of the various players. The study also identified the various stakeholders of the fishery
business – the co-operation and conflict between their interests and the platforms where they can
synergize their actions for the sustainable and effective use of the natural resource in the best
interest of all. The study also looked into various policies and issues related to the fishery
business and analyze their implications, both positive and negative on all the players.
The research sees the entire business in the perspective of an industry but has tried to maintain
livelihood focus throughout. NiMble’s research indicates that the fishery business can be looked
into “market” and “product” terms. This inter-alia would help in identifying the individual products /
species in terms of their potential to earn profit, the demand and the supply parameters.
Key Study Findings:
Supply Chain
The control over the entire supply chain is in the hands of few large players i.e. traders and
exporters. The price of majority of species within these two districts at most of the landing center
is determined by these “select few”.
There are large numbers of “intermediaries” within the supply chain who add to the prices of the
species without adding “value” to the extent of the final price realized by end consumers. Only
about 20-25% goes to the first leg of the supply chain i.e. fishermen. Notable exception observed
being for high value products like prawns and pomfrets (where intermediaries are less in number)
where fishermen are fetched between 60- 70% of the consumer price.
The logistical infrastructure is weak except in Balugaon (being on the national highway). Efforts
are being made by the Chilka Development Authority to spruce up the logistical facilities including
marketing yard, chilling centers, weighing machines etc. However, in other centers there is much
to be desired and as comprehended by us, any significant short to middle term development is
highly unlikely. There is complete absence of insulated vehicles except those owned by the
exporters, which have an adverse effect on the keeping quality. The same is true for timely
availability of transportation vehicles though few individual traders are resorting to use of own
vehicles.
Market mechanism on the surface seems to be in line with perfect marketing practices in terms of
auctions etc for determination of prices and buyers but in-depth investigations point to the implicit
control over these mechanism by the “select few” (at least at the landing centers).
The research findings point out to the presence of patron-client relationship throughout the supply
chain. The absence of clear-cut policy on the rights over sea – from livelihood perspective and
well laid out guidelines and regulations for its enforcement - not only strengthen but also
perpetuate the patron-client relationship.
The absence of formal credit mechanism in fact propels the fishermen to get into this relationship
– as otherwise they would not have means to get on with their traditional means of livelihood
Submitted by -: NiMble System Pvt. Ltd.
Submitted to -: OXFAM (India) Trust 62