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

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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
Draft Report on “Fishery Supply Chain” Confidential There is prevalence of “Advance Mortgaging of the Catch”. The fishermen are loaned money by the traders/exporters who in turn have absolute right over the catch- in essence the fishermen lose right over their catch even before venturing into the sea. Regional Markets The regional markets are governed by the local demand and preference for fish species and to an extent by the upcountry markets they cater to. In the regional markets also auction is the most common prevailing system for determination of prices. However unlike other agriculture produce, most of the wholesalers at these regional markets function as commission agents on behalf of the suppliers from the landing centers with a few exceptions. The payment system adopted at the regional market is two fold - cash intermingled with credit. The credit is dependent on the relationship that the buyer in these regional markets enjoys with the sellers. The payments to the suppliers at the landing centers are through bank transfers or pay orders mostly on the same day. There is enough scope of for any player from the landing centre to tie up with leading wholesalers in the regional market. Regulatory Mechanism Regulatory mechanisms were found weak, reasons being manifold- from the absence of adequate infrastructural facilities like speedboats etc for control over deep-sea fishing to insufficient manpower. Hence the provision made under OMFRA to safeguard the interest of the traditional fishermen is at best not functional. There is no regulatory mechanism over trade leading to 1) loss to the state exchequer and 2) more importantly transparency and streamlining of business operations. The only notable exception has been the control over ‘ban of use of trawlers’ during the breeding season of the Ridley Turtles. At the conclave of river with sea, it is ensured that only nonmotorized boats are allowed to operate. Gender Though women play an important role – in so far as the dry fish supply chain is concerned, they have no voice in decision-making process. The market practices are not suited to their convenience and lack of education; infrastructure facilities and basic amenities make them vulnerable to exploitation in all forms. The marginalization of women increases with every step of the value chain with complete exclusion at the top end. Submitted by -: NiMble System Pvt. Ltd. Submitted to -: OXFAM (India) Trust 63
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Value Chain Analysis of Fishery in Puri and Ganjam District of Orissa

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