FISH

FARMING
A. PROJECT PROFILE (FINANCIAL)

PARAMETERS VALUES

1. Spacies Catla, Rohu, Mrigal

2. Unit size (in ha.) 2

3. Product Fish

4. Cost of the project 518,250

5. Bank loan 388,688

6. Margin money 129,562

7. Financial Indicators

BCR at 15% DF 1.75:1

NPW 15% DF(Rs.) 705,085

IRR (%) 75.00

DSCR 3.2

8. Interest rate (% per annum) 12

9. Repayment period 5 years

 PROJECT DESCRIPTION

Introduction

Fish farming involves raising fish commercially in tanks or enclosures, usually for food.

The major freshwater farming environments in India are pond, cage, pen, rice field, sewage feed and air breathing. Polyculture
is the dominant culture system practiced. The major species are carp, freshwater prawn and catfish.
Basically India's aquaculture is carp-oriented and the contribution of other species is marginal. Fish culture in India can be
classified as extensive, semi-intensive or intensive and stocking rate is high at 18,408 fish/ha. Both the central and state
governments have come up with schemes to help the cause of the farmers.

India is a large producer of inland fish, ranking next only to Japan. Out of the total inland fish production of over 3.6 million
metric tons, more than 60% is contributed by fish culture in ponds and reservoirs. Fish farming is adopted by farmers on
commercial scale.

Production Technology:

I. Preparing the Pond

The optimum size of the pond is rectangular with size varying from 0.1 to 2.0 hectares with a depth ranging from 2.0 -
3.0 metres.

A. Soil and water

The soil type in the pond and its fertility status vary much in our country. However the best soil for the fish pond for the fresh
water fishes especially the carps is alluvial soil with neutral pH ranging between 6.5 to 7.5. Though the soil type cannot be
changed except in the long range plans, the pH has to be brought to neutral if the pond soil and water are saline, alkaline, sodic or
acidic.

B. Aquatic weeds

Most of the aquatic weeds in the fish pond are undesirable. They not only take away the nutrients but also upset the oxygen
balance in the water by releasing carbon dioxide into the pond during the night. Aquatic weeds also obstruct the movement of
fishes as well as the netting operations. The aquatic weeds may be free floating surface weeds, submerged weeds, rooted
emergent weeds, marginal shallow water weeds and algae. All these weeds have to be eradicated

C. Unwanted fishes

The unwanted fishes in the ponds may be predatory or weed fishes. They compete with cultured fish for feed, nutrients and
space. These predatory and weed fishes can be eliminated through repeated netting of the pond. Another method of
eradicating the above mentioned unwanted fishes is to drain out the whole water from the pond and eliminating all of them
manually and refill the pond with water. In big fisheries the only effective method of eradicating the unwanted fishes is the
use of fish toxicants.

II. Fertilizer Application in the Pond

Maximum fish production is achieved by the efficient soil and water management in the fish pond especially by maintaining
the natural productivity of the pond. The natural productivity is maintained by the regular manuring and fertilizer application
in the pond so that all essential nutrients for the growth of aquatic micro and small organisms (both plant and animal types) are
supplied which directly or indirectly serve as feed for the fishes. Liming and manuring are the two main types of fertilization
of the fish pond.
III. Selection and Stocking of Carps

About 15-20 days after the initial manuring selected species of the carps are introduced into the pond. When several species of
fishes are reared together in the same pond in an intensive way it is called composite fish culture.
Depending on the number of species the ratio of the species will vary. Generally six carp species are reared together. They are:
Catla, Rohu, Mrigal, Silver Carp, Grass Carp and Common Carp.

1. Stocking size

The survival of the fingerlings introduced into a particular pond depends very much on their size: bigger the size greater
will be the survival rate and vice versa. The fingerlings stocked should have a size of 10 to 15 cm.

2. Time of stocking

If any toxicant material for the eradication of the unwanted fish has been used then stocking /of the fish should be done only after
the toxicant effect is completely over. Generally by two to three weeks the toxicant effect will be over. From the temperature
point of view the best time to stock the pond will be- when the water in the pond is within the optimum range of 20 to
30ocentigrade. Obviously temperatures below 18o C and above 30°C will affect the growth of the fish. Hence stocking is
avoided in winter and summer months.

IV. Feeding of Carps

Feeds for the carps may be of two types: natural feeds and artificial feeds. The natural growth of flora and fauna in the pond can
be increased by regular manuring. commmercial fish rearing cannot be successful if one depends only on the natural feed
generation. Hence supplementary feeding should be provided to the carps. The feeding of carps also is easier as they can be fed
on most of the by-products like rice polish, wheat bran, oil cakes, vegetable wastes and other farm wastes.

V. Water Management

In the water management first of all proper depth of the water should be maintained always in the pond. An average depth of 6.5
to 10ft depth should be maintained in the case of six species composite fish culture. Care should be taken to avoid
decomposition of large amount of organic matter at the bottom of the pond. In intensive fish culture such accumulation of
organic matter is inevitable. It can be removed every year after draining out the water, from the pond.

VI. Harvesting and marketing

Harvesting can be done either by partially draining water out of the pond through an outlet point, or by repeat netting. It is
preferable when the fish attain an average weight of 750 grams, though common species can attain weight in excess of a few
kilos. Farmers sell their catch in local markets. Fish is a perishable commodity and cannot be kept for a long period of time
without proper arrangements of preserving them. Big farmers sell their catch to wholesalers, who pass it on to local suppliers
from whom the retailers buy.
 MARKET

POTENTIAL

Inland fish production provides significant contribution to animal protein supplies in rural areas. Most of the inland production is
consumed locally and marketed domestically. Consumers generally prefer fresh fish. Inland fish market is quite informal in the
country. Marketing channels are generally short.

The annual per capita availability of fish in the world is 12.1 kg. In context of India, it is 3.2 kg. The annual per capita
consumption of fish is increasing every year. This is mainly because of increase in purchasing power, increase in non vegetarian
eating population and preference for fish as low cost protein (compared to meat).

While the demand for fish is throughout the year, the supply is fluctuating in nature. Supply pattern do not match with demand
pattern. Over the years, there has been a rise in demand for fresh water fishes. This has led to thrust on enhancing production
through scientific cultivation practices.

The fisheries industry is growing at 5%. With an abundance of freshwater resources, India has still not been able to tap even 30%
of the potential area for inland fish production. This sector has a potential to create huge market, provided fish cultivation is
done on a scientific basis.
 EXTENSION

ACTIVITIES

1. Starting a business of inland fish farming requires planning and preparation. Before starting fish farming the entrepreneurs/
farmers are generally advised to undergo training. I will provide them technical training on scientific harvesting, handling of
fish, icing and smoking, and orientation and training on management skills like planning, enterprise management, negotiation
and market facilitation skill.

2. For the farmers of nearby locality, visits will be arranged on my fish farm & they will be educated on scientific lines
regarding various aspects of production practices. It will help them to improve their knowledge and skill regarding scientific
production practices so as to enable them to adopt the same.

3. For farmers who have decided to avail bank loan for fish farming, assistance will be provided to prepare their bankable
project report.

4. For the marketing of fishes, farmers will be provided necessary support & guidance.

5. Nowadays internet has become important tool to get latest information. There are various websites available on fish
production, which provides useful content. This information will be shared to farmers.

6. Educational tours of farmers will be arranged to progressive farmers & research stations which will motivate them to adapt
good production practices.
 SWOT

ANALYSIS

Strengths:

•It provides livelihood options to large proportion poor families in India.

•The Government is providing strong support through various policies and schemes.

Opportunities:

•With an abundance of freshwater resources, India has still not been able to tap even 30% of the potential area for inland fish
production.

Weakness

•The major constraints that stand in the way of introducing modern technology in inland fisheries to augment fish
production are lack of capital and ignorance of improved technology amongst the fish farmers.

•Poor handling of fish during harvest.

•As consumer prefers fresh fish and it fetches higher price, currently there is limited for value addition through
preservation.

Threats

•Frequent occurrence of drought affect fish production negatively.

•Disease outbreak.

•Exploitation by middlemen in the market chain.

 ECONOMICS OF THE

PROJECT

A. BASIS & PRESUMPTIONS

I. Techno-economic parameters

1. Species combination (ratio) Catla (40%), Rohu 30%), Mrigal (30%)

2. Harvesting is done fishes attain average weight of 800 gm to 1.25 kg. end of 1st year

3. Organic manuring may be done in monthly instalments.

4. Inorganic fertilisation may be done at monthly intervals alternating with organic manuring.

5. The recommended feeding rate is 5 - 6 % of the body weight upto 500gm size of fish and then reduce to 3.5% of body
weight from 500- 1000gm size.

6. Fishes can be fed with a mixture of rice bran and oilcakes in the ratio 4:1.

7. Fish fingerlings of 50- 100 gm size (approx) should be used for stocking @ 5000 nos. per hectare.

8. The present model envisages stocking of advanced fingerlings and rearing for 10-12 months.

9. Rate of interst for bank loan(%)12

B. TOTAL COST OF PROJECT

PARTICULARS UNIT UNIT RATE QUANTITY AMOUNT

Rs. Rs.

I. Capital Costs

1. Land Own

2. Site development Ls. 10,000

3. Construction of pond including digging, bund

Rs./ha. 70,000 2 140,000
construction and compaction and consolidation

4. Store room Sq.ft. 150 100 15,000

5. Diesel pump set(3HP) Ls. 30,000

6. Inlet/Outlet sluices Ls. 10,000

7. Nets and other implements Ls. 10,000

8. Contengencies % 5 10,750

TOTAL(A) 225,750

II. Working Capital (One Production Cycle)

1. Fish seed (catla ,rohu and mrigal) Fingerlings 5 14,000 70,000

2. Fish feed Kg. 12 12,000 144,000

3. Lime Kg. 5 1,000 5,000

4. Single super phosphate Kg. 5 500 2,500

5. Urea Kg. 5 1,000 5,000

6. Raw cow dung Tons 500 20 10,000

7. Harvesting charges Kg. 5 8,000 40,000

8. Drying, desilting and plouging Ls. 6,000

9. Security of pond Ls. 10,000

TOTAL(B) 292,500
TOTAL COST OF PROJECT TOTAL(A+B) 518,250
C. MEANS OF FINANCE

PARTICULARS UNIT UNIT RATE AMOUNT Rs.

1. Term loan % 75 388,688

2. Own contribution % 25 129,562

TOTAL 518,250

3. Subsidy entitlement @36% from NABARD under AC & ABC Scheme 186,570
D. PROJECTED
PROFITABILITY

(Value in Rs.)

PARTICULARS UNIT UNIT RATE QUANTITY IYEAR IIYEAR IIIYEAR IVYEAR VYEAR

I. Income

Fish Kg. 50 10,000 400,000 500,000 500,000 500,000 500,000

3. Interest on subsidy @ 6% 11,194 11,194 11,194 11,194 -

4. Subsidy - - - - 186,570

TOTAL (A) 411,194 511,194 511,194 511,194 686,570

II. Expenditure

1. Fish seed (catla ,rohu and mrigal) Fingerlings 5 14,000 70,000 70,000 70,000 70,000 70,000

2. Fish feed Kg. 12 12,000 144,000 144,000 144,000 144,000 144,000

3. Lime Kg. 5 1,000 5,000 5,000 5,000 5,000 5,000

4. Single super phosphate Kg. 5 500 2,500 2,500 2,500 2,500 2,500

5. Urea Kg. 5 1,000 5,000 5,000 5,000 5,000 5,000

6. Row cow dung Tons 500 20 10,000 10,000 10,000 10,000 10,000

7. Harvesting charges Kg. 5 8,000 40,000 40,000 40,000 40,000 40,000

8. Drying, desilting and plouging Ls. 6,000 6,000 6,000 6,000 6,000

9. Security of pond Ls. 10,000 10,000 10,000 10,000 10,000

TOTAL (B) 222,500 222,500 222,500 222,500 222,500

III. NET INCOME TOTAL(A-B) 188,694 288,694 288,694 288,694 464,070

E. FINANCIAL ANALYSIS

(Value in Rs.)

PARTICULARS I YEAR II YEAR III IV YEAR V YEAR TOTAL

YEAR
Capital costs 225,750

Recurring costs 222,500 222,500 222,500 222,500 222,500

TOTAL COST 448,250 222,500 222,500 222,500 222,500

Benefit 400,000 500,000 500,000 500,000 500,000

Depreciated value of building, fencing,

borewell etc @10% 90,753

Depreciated value of machinery &

21,425
equipments @15%

TOTAL BENEFIT 400,000 500,000 500,000 500,000 612,177

NET BENEFIT -48,250 277,500 277,500 277,500 389,677

Discounting factor @15% 0.87 0.76 0.66 0.57 0.5

NPV cost at 15% DF 389,978 169,100 146,850 126,825 111,250 944,003

NPV benefits at 15% DF 348,000 380,000 330,000 285,000 306,089 1,649,08

8
NPW at 15% DF 705,085

BCR at 15% DF 1.75:1

IRR% 75.00
G. TERM LOAN
REPAYMENT

Rate of interst - % per annum : 12

Opening balance of term loan : 388,688

(Value in Rs.)

Loan Total
Year Net Income Principal Interest Net Surplus DSCR
Outstanding Repayment
1 388,688 188,694 77,737 46,643 124,380 64,314 1.5

2 310,951 288,694 77,737 37,314 115,051 173,643 2.5

3 233,214 288,694 77,737 27,986 105,723 182,971 2.7

4 155,477 288,694 77,737 18,657 96,394 192,300 3.0

5 77,740 464,070 77,737 9,329 87,066 377,004 5.3

Average DSCR 3.2