Chapter-II

REVIEW OF LITERATURE

INTRODUCTION:

The literature pertaining to the production and marketing of shrimps in

Orissa indicates that extensive study has been made on production costs, growth

trends in area, production and productivity, marketing trends, cost of processing,

agencies involved, cost of marketing and price spread and impact of government

policy in India and abroad. But its study has been sporadic in the state of Orissa.

Available literature also indicates that coastal aquaculture is relatively of

two and half decades old in India as well as in Orissa. The traditional system of

brackish water shrimp culture in West Bengal and Kerala is now obsolete. The

scientific shrimp culture in brackish water areas of the costal states has been

gaining momentum gradually. During this short period a lot of research work has

been carried out in all the coastal states of India. The costal shrimp culture has

been developed in the state of Orissa. An attempt has been made to review

some of the literature on “Production and Marketing of shrimps” to find out

guidelines for our study in Orissa.

PRODUCTION OF SHRIMPS:
Panikkar (1937) has reported that traditional culture was practised in

about 8,000 hectares of brackish water area in central Kerala.(1}

Mitra (1942) has stressed that the two most notable events, which gave a

tremendous boost to aquaculture activities in the country, were the symposia on

“Utilisation of sewage for shrimp culture” and “factors influencing the spawning of

carps” organised by the National Institute of Sciences in 1944 and 1945

respectively. (2)

19
 Menon (1954) in his study of traditional coastal aquaculture in some

parts of Kerala has indicated that earlier practice was to hold prawns in the

enclosed fields completely for 2-3 months after initial stocking and harvest the

crop at a single time. The system later seems to have given a way to the present

day practice of periodic stocking and harvesting.

He has reported that average yield of shrimp in 1951-52 season (Nov to

April) was 972 Ibs/acre (or 1089 Kg/hectare) and the species composition was a

dominant component of M.dobsoni ranging from 74.6 percent to 86.8 percent and

the rest constituted by M.nunocoros, P.indicus, P.rudis and Lstyliferus. It may be

of interest to note that practically the entire production of shrimp from 11,000

acres (or 4,452 hectare) of these fields in Kerala was sun-dried and exported to

Rangoon, Singapore and Hong-Kong and 3852 tons of dried-shrimp valued

approximately at Rs.85 lakhs were exported in 1952. (3>

Chacko and Mahadevan (1956) have reported that during sixties prawn

farming in Kerala was not given adequate economic importance. {4)

Menon et.al. (1959) have studied that in 1942 Madras Fisheries

Department took up a rural pisciculture scheme under which salt-water fishes

were acclimatised and cultured in fresh water ponds. (S>

Rajyalakshmi(1972) has stated that prawn feed resources in various

estuaries was composed of multiple spices including P. monodon and P.

indicus.(6)

Muthu et.al., (1976) have stated that during Seventies new strides in the

development of technologies for culture of many marine and brackish water

species were developed. Moreover, traditional studies on ecology and biology of

organisms resulted in techniques new for production of culture and hatchery

production of prawn. (7)

Silash and Muthu (1977) have indicated that in mid-seventies, Indian

scientists started working on problems of rearing larvae of penaeid prawns. The

20
early success was achieved at Narakkal laboratory of UNFRI under ad-hoc

scheme “Prawn Culture Propagation” in 1974, which was the starting point for

development of small-scale prawn hatchery technology in India. (8>

Chattopadhya et.ai, (1980) have observed that during seventies work on

coastal aquaculture was carried out on physico-chemical characteristics of

brackishwater soil and fertilisation. (9>

Rao along with CMFRI (1980) conducted a survey and reported that

shrimp farming of different species in different coastal states through different

research centres of Kakdwip (West Bengal), Keshpur (Orissa), Kakinada (Andhra

Pradesh), Adayar, Marakaman and Vytilla (Kerala) and Panaji (Goa) and

indicated that P. monodon was cultured in all coastal states except Gujurat and

P.indicus in all coastal states except Maharastra.(10)

Muthan and Laxminarayan (1981) have developed the techniques of

inducted maturation of P.indicus and P.monodon and better water quality

maintenance. (11)

Shetty (1981) has reported that the government of India initiated a

scheme of pilot project centres to act as demonstration cum training centres in all

maritime states during 1974 to 1979. However, achievement of these centres was

not satisfactory. Therefore, a number of private sector companies and

entrepreneurs ventured into shrimp farming in TamilNadu but all of them

experienced technical and logistic problems leading to closure of most of these

farms.(12)

Nandakumaran (1982) has observed from his experiment that P.monodon

at Mandapam (Madras) grew at 121 mm/11.5 gm /158 days with survival rate of

44.05 percent. This could yield 231.53 Kg/hectare within a period of 5 months.(13>

Ali and Sivdas (1983) have observed that pelleted feed with a crude

potential content of 36.8 percent has been successfully used for rearing P.indicus

post-larval from PL-5 to PL-20 with a survival rate of 90.30 percent. <14)

21
 Dwivedi etal., (1983) have discussed the then state of art on prawn

hatchery technology in India and provided the design and system for small

hatchery as developed at Cl FE. (16)

Karim etal., (1985) have observed that the eighties witnessed a

tremendous amount of interest in brackish water aquaculture. During the 6th plan

period (1980-85), Government of India implemented the area development

scheme aimed at a target of 1500 hectares for development of brackish water fish

fanning. For this 8 maritime states and 3 inland states were selected where

underground saline water was available. The Food and Agriculture Organisation

(United Nations) carried out an experimental pilot project on development of small

scale fisheries for pen culture of shrimps in brackish water of Killai (TamilNadu)

during May, 1982 to January, 1984. This project was named as Bay of Bengal

programme.

He has further stated that in 7th plan period (1985-90), Government of

India introduced the scheme of integrated brackish water fish farm development

in both Government and Private Sectors. The scheme includes an UNDP

assisted FAO-executed project on development of coastal aquaculture for the

establishment of 5 pilot farms. The FFDA concept of fresh water aquaculture was

extended to brackish water by establishing BFDA in Puri and Balasore districts of

Orissa in 1983-84. Further, realising that the private sector has to play its role, the
government of India have issued guidelines to the states to formulate appropriate

policy for classification, use and lease of brackish water lands keeping in view the

financial and technical capabilities of prospective users. During 1978-79, MPEDA

established regional centres for organising training and extension support and

subsidies for the establishment of farms, hatcheries and seed banks. <16>

Lias and Smith (1983) evaluated the economic potentiality of small-scale

farming and concluded that marketing was not a solitary problem but loan

availability and high cost of seed stocks were the major problems confronting
development of shrimp industry. (17)

22
 Mohapatra and Pattanaik (1984) have predicted that prawn seed potential

of Orissa coast would be around 935.7 million for both the varieties of prawn

(P.monodon and P.indicus). The prawn seed potential at 10 selected centres in

Andhra Pradesh has been estimated at 9.623 million for (P.monodon) and 20.76

million for (P.indicus). These estimates could best be considered as the

magnitude of resources available. <18)

Motha etal., (1988) have reported that P. indcus variety of prawn has

yielded an annual production rate of 2.434 tons/hectare/year in TamilNadu. (19)

Ahmed et.al., (1985) have indicated that two linear programming models

were formulated to represent traditional and improved technology situations. It

reveals that shrimp as an enterprise absorbs the largest proportion of total labour

and capital, occupies the largest proportion of farmland and generates highest

proportion of net revenue. Even though total demand for farm labour in improved

technology plan, labour demand per acre of farm holding were higher as

compared to the existing (traditional) technology plan.(20>

Anon (1985) has pointed out in his study in Kakinada (Andhra Pradesh)

that most of the shrimp farmers of the state have used pond-reared prawns for

brood stock development rather than opting for wild seeds. (21)

Anon (1985) has illustrated that All India Coordinated Research Project

(AICRP) was undertaken for the development of technologies of brackish water

fishes and prawn of different agro climatic zones. The project was implemented in

six centres, namely Kakdwip (West Bengal), Keshpur (Orissa), Kakinada (Andhra

Pradesh), Madras (Tamil Nadu), Vytilla (Kerala) and Ela Dangi (Goa) during 1973

to 1985. The project highlighted research findings to develop semi-intensive

technology for monoculture of prawns. The project also investigated seed

resources, production results, stocking density and environmental parameters.

However, the project yielded extremely valuable scientific data on a nationwide

23
basis and led specific recommendations on development of brackish water

aquaculture in concerned states. (22)

Karim and Bose (1985) have obtained an yield potential of 435

Kg/hectare/100 days for P.monodon and P.indicus variety shrimps whilst the

highest previous result was 736 Kg/hectare/90 days. However, fish shrimp grown

together in the pens have shown the highest overall yield of 1184

Kg/hectare/crop but average yield was 657 Kg/hectare/crop. (23)

Kunjavankij et.al., (1985) have studied that shrimp farming has

contributed around 5 percent (1.7 million metric tons) of total shrimp production in

the world. Out of this, cultured shrimp was around 84 percent that comes from

seven leading Asian countries including India. And due to increase in demand for

cultured shrimps, an additional 2 million metric tons was needed in world over by

the end of 1990.

Saha et.al., (1985) have estimated that per acre cost of pond pisciculture

was Taka 3,415.96 with a net income of Taka 9,964.04 on variable cost basis

and a net income of Taka 6,728.76 on total cost basis from a study conducted in
Bangladesh. (26)

Silas et.at' (1985) have presented that comprehensive information on

hatchery technology for P.indicus developed at Narakkal (Andhra Pradesh)

laboratory and also indicated the economics of small scale hatchery production of

brood stock for shrimps. (26)

Chakraborthy et.al., (1986) have reported that a monthly average growth

rate of 39.6 to 41 mm, recovery rate of 25.2 percent to 33 percent, harvest size of

21.6 to 28.1 gm and yield rate of 250 to 329.30 Kg/hectare of prawn were

measured in three different research centres from 105 days deviation of culture.
(27)

Jansson et.al., (1986) have reported that an average production rate of

249 Kg/hectare/crop with P.monodon and P.indicus varieties of prawn at

Palekurru (in Andhra Pradesh) research farm. (28)

24
 Marichemy and Motta (1986) have found that P. indicus variety of prawn

had a survival rate of 73.2 percent to 95.40 percent, which yielded 1604
Kg/hectare within 224 days. (29)

Sadeh et.al., (1986) have demonstrated that interrelation existed between

two species of shrimp in a Mari-culture situation. The magnitude of coefficients

determined that higher revenue could be derived both in poly-culture and

monoculture. To increase net revenue in a poly-culture situation, practical

knowledge would help research studies for higher output of prawn in limited

area. (30)

Anon (1987) has reported that productivity of P.monodon variety of prawn

was 355 kg during 5 to 6 months of growth in Kakdwip (West Bengal) research

station. It was 204.30 kg for 2 months of growth period at Keshpur (Orissa), 315

kg for 4 months period at Kakinada (Andhra Pradesh), 514 kg for a growth period

of 2.5 to 4 months in Madras, 189.6 kg for a growth period of 4 months and 15

days at Goa, 147.7 kg in 3 months at Vatila (Kerala). (31)

Ghosh ef.a/., (1987) have observed that yield rate of cultured shrimp

would reach 1193.30 Kg/hectare in 90 days period in an experimental prawn farm

at Kakdwip (West Bengal) because of good farm management. (32)

Ghosh et.al., (1987) have found that prawn fed at 5 percent body weight

initially was reduced to 2 percent for last 2 months without any adverse effect.

The researchers adopted a simple device of aeration of ponds at the rate of 2 to

4 hours per day for lifting the pond waterwith the use of 5HP diesel pump. (33)

Gopalkrishnan and Raju (1987) have experienced that prawn attended an

average size of 108mm of length and 10.5gms of weight with a survival rate of

41.48 percent and recorded an yield rate of 135.47 kg per hectares at a firm of

Central Marine Fisheries Research Institute (CMFRI), Cochin. (34)

Mohanty and Mitra (1987) have reviewed the schemes of BFDA, ERRP

and IRDP that a measure problem confronted by prawn farmers in Orissa was

25
‘feed’. They have concluded that although some farms were producing feed in the

state, but the qualify of feed was below standard. Hence, due attention is

required to increase the quality of prawn feed in the state. (36)

Pillai et.al.( (1987) have reported that poly-culture of P.monodon has

been successfully done with other species at 196.0 mm / 60gm / 4 months with a

survival rate of 34.4 percent. But extension of another 4 months in culture period
would result an increase of only 11.1 gm in the average weight of shrimp. <36)

Baticados (1988) has studied that with vast resources of brackish water

areas, India might aim at semi-intensive culture as a general practice with a

productivity of up to 5 ton/hectare/year depending on the species, ecological

situations and culture practices. And intensive culture may be encouraged in

selected locations with due consideration to all ecological parameters. (37)

Camacho and Macalincag (1988) have experienced that aquaculture has

shown the highest growth rate of 12.5 percent per year as compared to 3.7

percent in total fisheries sector during 1977 to 1986. They have further stated that

monoculture of P. monodon has gained importance since 1985 and productivity

was 500 Kg /hectare/year in extensive culture, 3 to 8 tons/hectare/year in semi-

intensive culture and 18 to 30 tons/hectare/year in intensive culture. <38)

Felix and Sukumaran (1988) have reported that 75.2 percent survival with

a stocking density of 5/ m2 yielded at a rate of 478.70 Kg/hectare in 105 days with

an average weight of 12.7 gm/yr. In an another experiment at Pulicat

(TamilNadu), prawn yielded 832 kg /ha in 97 days at an average weight of 14.10

gm at a survival rate of 92.10 percent with an initial stocking density of 5.4/ m2.
(39)

Gorden (1988) has pointed out that semi-intensive culture requires

supplementary feed in addition to natural productivity of ponds. It should aim at

improving productivity through proper pond preparation and fertilisation

procedure to build up an appropriate complex to form feed base of cultured

26
species. Supplementary feed need not be high-energy feed compared to

complete feeding system in intensive culture, which was cost effective. (40)

Liong et.al., (1988) have expressed that among different varieties of

prawns, P. monodon variety was mostly cultured along with P. merguiensis in

Phillipines. As observed, the rate of production of shrimp was 0.3 to 0.5

tons/hectare/crop/2 months in extensive, 1.0 to 2.5 tons/hectare/crop/3 to 4

months in semi intensive and 3.0 to 6.0 tons / ha/crop/ 3 to 4 months in intensive

cultures. (41>

Liu (1988) has mentioned that poly-culture of shrimp farming was

practised in China, Taiwan, Indonesia and Phiilipines before 1950. P.orientahis, a

Chinese variety of shrimp was artificially bred for the first time in 1960 but

hatchery grow out techniques were developed in 1978. During 1978 to 1987, the

area under shrimp culture increased from 1300 hectares to 1,26,000 hectares

with an average productivity from 33.7 Kg/hectare to 1200 Kg/hectare.

P.orientahis contributed 80 percent of total production of shrimps in China and

the rest 20 percent was contributed by the varieties like P.penicillatus,

P.monodon, M.engis, P.Japoricus and P.semisulcutus. (42>

Mito and Fukuhara (1988) have found that aquaculture would develop

through diversification of species, improvement in taste and texture of culture

products, non-poilutant aquaculture system and application of biotechnology such

as cell fusion and chromosome technology to improve seed quality. (43)

Mohanty (1988) has indicated that P.monodon was cultured in most

brackish water ponds in Orissa adopting different culture practices. The simplest

of the systems has been developed in the fringes of lake Chilika in Orissa since

1983. These were sky-fed (rain-fed) ponds, where rainwater during southwest

monsoon, on mixing with saline soil, turns brackish supporting two crops of

P.manodon in a year. The stocking density was about 25000 / hectare. The

average production was around 600 Kg/hectare/year; the highest recorded yield

27
being 1611 Kg/hector/year. The prawns attain a size of 28-30 gm in about 90-100

days. At the other end of productivity spectrum, one of the private companies has

achieved a production of 9.3 ton/hectare/year (2 crops) in West Bengal adopting

modem practices of high density stocking (15-20 / m2), good water quality

management and balanced pelleted feed (small particles). (44>

As regards, the status of brackish water aquaculture in coastal Orissa

Mahapatra (1988) stated that in Balasore and Cuttack districts the traditional

practices of trapping and holding have been in vogue for a long time and also in

the low laying areas and paddy fields within the tidal range of Panchapata Budha-

Balanga estuarine zone and in Jumboo-Paradeep (Rajnagar) area. Nearly 900 ha

of such area were used for traditional brackish water culture of prawns and

fishes. The average yield in the fields was 633.29 Kg/hectare/year, of which 19.4

percent contributed from P.monodon.

He has further reported that paddy-cum-prawn culture was practised in

about 2,500 ha of Khar lands of Karnataka, which were low-lying areas and

inundated during high tides. Dykes (trench) with sluice gates, saltwater were

prevented from entering the fields to enable crop production. During southwest

monsoon paddy was cultivated from December to April, salt water was allowed to

enter into the fields for prawn culture. The practice was similar to that of Kerala.

The yield was 400 Kg/hectare/year of which prawn was about 85 percent and

fishes the rest. Similar practices were also existed in khazan lands of Goa. In

permanent fields, wild stocking of fish and shrimp were done almost throughout

the year. The average production from traditional culture was about 350 Kg/

hectare/year in this area.

Similar practices were also taken up in the districts of Srikakulam,

Visakhapatnam and East Godavari in Andhra Pradesh. The central Marine

Fisheries Institute (CMFRI) took up experimental work in marine fish farming in

Mandapam in Tamil Nadu in 1956 and first results came up around 1958-59

28
giving an yield rate of 210 to 455 Kg/hectare/year. During 1956, the Department

of Fisheries also established brackish water fish farms at Adyar and Santhome in

Madras. Following this, number of brackish water farms came up at different

centres in Tamil Nadu.

The Seventies saw, the world over, an upsurge of aquaculture activity. It

was realised that aquaculture has great potential to step in for increasing

production. India too planned to lay greater emphasis on brackish water

aquaculture. The ICAR established an all India coordinated research project

(AICRP) on brackish water fish farming in 1973. The private sector started

showing interests in shrimp culture, which was materialised during the

Eighties. (4S)

Nash et.al., (1988) have stressed that Indonesia contributed second

largest aquaculture production of 2,39,000 tons/year during 1983 only next to

Philippines. In semi-intensive culture of P.monodon, the production rate was 3.6

tons to 6.0 tons/hectare/crop/4 months and in those tanks having an ideal water

exchange and a good drainage system, the production could range from 7 tons to

10 tons/hectare/crop/4 months. <46)

Rajyalaxmi et.al., (1988) have conducted a study on culture shrimps of

Orissa and found that with 21.7 percent to 24.2 percent protein level, culture
shrimp gave a feed conversion ratio (FCR) of 2.4 to 3.8 and 38 percent. (47)

Rabnal (1988) has surveyed that Asian region accounts for about 84

percent of the global aquaculture production. Asia leads in crustacean culture

and contributes about 75 percent of the world total farmed crustaceans. The

Asian region thus enjoys a pre-eminent position in aquaculture. The Southeast

Asia comprising Brunei, Indonesia, Kampuchea, Laos, Malaysia and Philippines,

Singapore, Thailand and Vietnam produced a total of 8,85,000 tons in 1983,

accounting for about 90 percent of the total world aquaculture production, ranging

from 150 tons in Brunei to 4,40,000 tons in Philippines. (48)

29
 Sirikul et.al., (1988) have stated that Thailand produced 1,45,000 tons of
aquaculture in 1983 and has projected an annual average growth rate of 13

percent by 1991. The species cultured in earthen ponds were with a production

rate of 2.5 tons/hectare/6 months as also in cages with 21.8 Kg/m2/year. The

average yields of P. monodon were 3,750 Kg./ hectare /year. (49)

Visetbhakti (1988) has reviewed the marine shrimp culture in terms of

size and number of Thailand shrimp farms in 1980s.

The characteristics of five major cultured species found in Thailand were outlined

as follows - conversion of mangrove forests for purposes of shrimp farming, major

requirements in terms of size elevation, tidal fluctuations, soil conditions, water

quality and accessibility. The three systems of culture were namely extensive

grow-out, semi-intensive and intensive. The conclusion of the study indicates that

the prospects were bright and potential was unlimited. (60)

Algarswami (1989) has observed that prawn seed requirements for

brackish water shrimp culture have been variously estimated depending on area

likely to be brought under culture and also the state of intensity of stocking. The

feed requirements for an additional 10,000 ha area under semi-intensive culture

system at an average stocking density of 1,50,000 seed/ hectare/crop have been

estimated at 3 billion/year and it has been suggested that, to meet 75 percent of

the above requirements (the balance 25 percent being from wild seed), the

country would need 12 large hatcheries with 25 million seed capacity, 140

medium-hatcheries with 10 million seed capacity and 110 small hatcheries with 5
million capacity. (61)

Anon (1989) has asserted that Taiwan has emerged as leader of shrimp

aquaculture in Asia. Shrimp was cultured with milkfish extremely similar to the

system practised in Philippines and Indonesia. The technique for artificial

propagation of P. monodon was developed for the first time in 1986 and

formulated pelleted shrimp food was developed 10 years later. Shrimp production

30
increased from less than 1000 M.T. in 1976 to 30,000 M.T. in 1985 in Taiwan. In

1988, the production was 50,000 M.T., which was only 50 percent of the

expected production. Although the national average production rate in 1985 was

7.75 ton/hectare, well-managed farms were reported to have given yields up to

20 ton/hectare.(S2)

Anon (1989) has experienced that commercial prawn farms in general

were getting production rates in the range of 1.0 to 2.5 tons/hectare/year in India.

But prawn farms in Andhra Pradesh experience a stocking rate of 14/m2 that

gives production at the rate of 1.4 ton/ hectare/crop. (83)

Juan (1989) has incorporated in his study to explore economic feasibility

of various hypothetical production scenarios. As per his findings, stocking density

of approximately 85,000/hectare, 96,000/hectare, 1,13,000/hectare and

1,95,000/hectare give significant differences in growth rates, survival rates on

food conservation ratio for P.vanamei in 0.9/hectare ponds. The study reveals

that harvest biomass increases with stocking density but decreases average

shrimp weight. Both investment and operational costs were analysed during the

process of analysis. (64)

Saclanso (1989) has pointed out that about 55 percent of Philippines

mangrove forests have been converted into brackish water fishponds. The total

destruction has been to the extent of 3,00,154 hectare (2,06,525 hectare for

aquaculture and 1,15,629 hectare for other activities) or 73.45 percent of the

country’s total mangrove forests. The author has clarified that sugar lands and

paddy fields have also been converted for intensive culture of P.monodon. (6S)

Chang (1990) has noted during his Bangladesh expedition that strategic

shrimp farming can exist without doing any harm to the environment. He

suggested that more and more production of culture shrimp would hamper the

basic culture of shrimp farming. Hence, it should be traditional and extensive

culture rather than intensive culture.(66)

31
 Datta etal., (1989) have assessed that net return of non-mechanised

units were higher than mechanised units in relation to capital investment as well

as operating costs. Even though the number of fishing days and fishing

experience were most important factors for determining gross returns, there was

no guarantee for realising higher return due to uncertainty in capture fishery.

From social point of view, if objective is to create employment with lower

investment, the non-mechanised units are more suitable for augmenting fishery

production but mechanisation is preferred. <S7)

Fast et.al., (1990) have stated that intensive-shrimp culture farms in

Taiwan were typically small (less than 3.9 hectares), family operated and

profitable. They were also energy intensive, primarily for artificial aeration and

water exchange. Average Feed Conversion Ratio (FCR) was 1.7, seed and feed

cost accounted for 64 percent of the operating costs. Simulated transfer of such

farms to Hawaii resulted in losses for earthen ponds, concrete walls, high labour

and energy costs as compared to Taiwan. (68)

Gangopadhyay and Giri (1990) have reported on the relative importance

of resource use in pisciculture and crop productivity. In the study of 853

cultivators in four villages of Barakpore (West Bengal), they have found that fish

production was more remunerative than crop production but more capital
intensive. (69)

Hochman et.al., (1990) have applied a stochastic model for evaluating the

potential of round-pond technology practised at Hawaii. The models provide

optional stocking and harvesting schedule for a shrimp pond using a set of intra

and inter seasonal decision rules. The model stimulates optional scheduling

using a set of 1986 shrimp prices for the case of random prices. The study

reveals that net profits were approximately doubled compared to conventional

fixed scheduling schemes. The model also evaluates the economics of controlling
environment. (60)

32
 Juan et.al., (1990) have identified that technology available at the time of

this analysis, direct stocking in grown out ponds with post-larval in producing one

crop per year was more profitable than stocking 1 gm juvenile and producing two

crops per year in the Texas coast. (61)

Leung et.al., (1990) have worked out a model in determining shrimp

production and harvesting schedules. It provides simple decision rules expressed

as cut off revenue when both price and weight were assumed, as cut off price or

cut off weight when either price or weight was assumed random. Application of

the model to a hypothetical shrimp farm in Hawai with 240.2 ha round pond

indicates that net revenue can be increased three times by applying derived

optimal policies as compared to conventional fixed scheduling schemes. (62)

Mollah et.al., (1990) have conducted a study on input-output relationship

in fish production and found that under various pond sizes in Jangliya

(Bangladesh), the quantities of input were higher in small ponds in relation to big

ponds. (63)

Rosenberry (1990) has stated that shrimp farmers throughout the world

have increasing production rapidly and have lowered prices of shrimps. Shrimp

farmers now produce 25 percent of shrimp placed in the world market and the

rest 75 percent by catching. Indonesia and Thailand have massive shrimp

farming industries. Shrimp farming in Western Hemi-sphere accounts for

approximately 16 percent of the world production. Most Latin-American

governments have focused on interventionists, perfectionists and economic

policies that obtained the development of Shrimp farming. <64)

Wilson et.al., (1990) have expressed about development of an alternative

shrimp culture in USA. The new approach was raising shrimp in tidal ponds,

which was sustainable, profitable and environmentally compatible with technology

for shrimp Mari culture. (65)

33
 Primavera (1991) gives an account of intensive prawn farming. A

comparative economic analysis of three prawn farming systems in Phillipines

showed that, compared to intensive and extensive culture, semi-intensive culture

gave the best performance by using undiscounted (payback period and Return

on Investment) and discounted (NPV and IRR) economic indicators. With a 20

percent fluctuation in input or selling price, intensive-farm will no longer be

profitable because of high variable cost. (66>

Singh and Prasad (1991) have studied fish production and marketing in

Bihar, which observed that majority of farmers had only one pond and more than

95 percent of the ponds were leased out by the Government. Annual average

rent of pond ranges from Rs.70/- to Rs.95/- per hectare and leased period varied

from 5 to 10 years. Farmers have used cow dung cakes, urea and phosphoric

fertilizers in the ponds. The study reveals that the yield rate in fish production

would range between 0.5 tons to 1.0 tons per hectare. (67)

Suresh et.al., (1991) have indicated that on a composite pisciculture in

Tamil Nadu, stocking and harvesting accounted for a major share followed by

feeding and fertilisation. The variable cost accounted for 80 percent of total cost

and average cost of production per Kg. of fish and was sufficiently higher than

market price. (68)

Dalai and Das (1992) have experienced, from their study on extensive

aquaculture in Ganjam district of Orissa, that there was a significant correlation

between cost of fertilizer and manure in fish production. And also the cost of food

and labour were correlated significantly production of fish. (69)

Gopinathan and Vimal (1995) have observed that in Tuticorin (Tamil

Nadu) the production of shrimp varied from 300 Kg/hectare /crop to 500 Kg

during 1980’s and later on from 700 Kg to 1,000 Kg. But with the application of

foreign technology and expertise, the production from same farms has increased
to 7.0 to 9.0 tons/hectare/ crop.(70)

34
 Krishnamurthy and Rao (1995) have pointed out that in semi-intensive

system of shrimp farming, feed should contain 38 to 40 percent of protein, 8 to 10

. percent of lipid, 18 to 20 percent of carbohydrates. In the tied-fed ponds, water

was exchanged in 3 to 7 days; in extensive-culture exchange was @ 5 percent to

10 percent / day and in semi intensive culture @ 10 to 30 percent per day and in
intensive-culture @ 30 to 50 percent / day. (71)

Lakshmanan (1995) has emphasised that a good correlation exists

between stocking density and yield rate. It was advisable to restrict stocking

density to a level of 25 to 30 fingerlings / per sq. meter. It was also recommended

that production capacities to be designated to obtain yields at levels of 4 to 5

tons/hectare/crop. g2)

Venkatramanyam etal., (1995) have given a comprehensive account of

their research on the way and means of improving the transfer of technology of

shrimp farming. They have classified shrimp culture in five categories such as

traditional, extensive, semi-intensive, intensive and super-intensive. They have

also found out that in case of intensive culture the yield may vary from 15 to 20

tons/hectare crop as practised in USA and French Polynesia. Thailand having

lesser watershed area (WSA) of 60,000 hectares ranks first with a yield rate of

2600 Kg/hectare as against 750 Kg/hectare in India. Hence, there was an urgent

need to capitalise the international market technology in order to earn precious

foreign exchange. O'3)

Yadav (1995) has suggested that in India at least 2.25 lakh/hectares of

brackish water area should be brought under shrimp farming and observed the

following problems of the shrimp farmers:

a) Delay in allotment of land by state government.

b) Non-acceptance of leased land as mortgage or collateral system.

c) High quality energy feed

d) Inadequate of trained manpower. <74)

35
 Clay (1996) has provided that extensive system of aquaculture that

requires minimal management and low capital input. However, it provides lowest

yield among other shrimp farming methods with an production average of 0.5

tons/hectare/crop. According to Clay, extensive shrimp aquaculture has been

practised in Asia for about hundreds of years. (76)

Folke et.al., (1996) have reported that semi-intensive method of shrimp

culture uses chemicals, antibiotics, feed and diesel water pumping. Stocking

densities of young prawns range from 35,000 to 2,00,000 nos./hectare And

according to him, the natural feed in the pond if augmented with shrimp feed,
antibiotic and yields range from 0.5 to 5.0 tons/hectare/crop. (76)

Rosenberry (1998) has noted that more than 50 countries currently export

farmed shrimps in the world and the number has been growing. In 1998, the total

number of hatcheries in the worldwide shrimp production was 8,64,350. Thailand

being the world’s largest producer with over 70,000 hectares of Thai-shrimp-

aquaculture ponds has produced over 2,10,000 M.T. of shrimps. (77)

Kurian and Sebastian (2002) have provided that traditional shrimp culture

in India refers to age old farming practices in low-lying areas, which comes under

the influence of tides. Ponds were auto-stocked with shrimps and fishes present

in water. They were allowed to grow for short periods making use of natural food

available in the ponds. Periodic harvesting was carried out. As the ponds were

tidally fed and there was no control over the salinity, species selection, quality

and predators, which resulted in unpredictably, low production rate of 200 to 700

Kg/hectare/crop. (78)

Toukwinas et.at' (2004) have reported that production from shrimp

aquaculture in Thailand increased from 1.2 million tons in 1986 to 3.2 million tons

by 2003. The industry involves 80 percent small-scale farmers and 20 percent

intensive scale farmers. Shrimp has become a major export commodity and its

production, processing arid marketing were major sources of income of people in

the country. (79)

36
MARKETING OF SHRIMPS:

Adams et.ai, (1987) have estimated the market price of shrimps by taking

into account the monthly and quarterly prices. Casual relationships were

assessed using Haugh-Pieru, Sims and Granger methods. Price models at the

retail, wholesale, and ex-vessel prices were estimated. The economic factors

analysed were income, prices of competing products, landings and importers of

raw-headless shrimps, total supply, beginning stocks and market costs. Monthly

prices generally existed unidirectional and quarterly prices were determined

independently at market levels. (80)

Huston and Neito (1988) have explained that supply and income

variables were significant in explaining ex-vessel shrimp prices in regional

markets. Results indicate that shrimp prices were significantly influenced by real

disposable income. The effect of regional landings on shrimp prices was

significant only in the highest producing regions. Inputs have a significant but

negative effect on the price of Gulf and in south Atlantic. As per the estimate, a

0.48 percent decrease in prices results in 1 percent increase in inputs. (81)

Hisashi (1987) has identified that between 1962 and 1982, the volume of

prawns exported by India increased twenty-fold. Thus, growth was made possible

by the increased use of mechanical fishing methods but supplies were threatened
as exports increase and sea-stock dwindle. (82)

Lea (1989) has attempted to workout a dynamic econometric model of the

US shrimp market. This model was a simultaneous econometric model in which

Vector-Autoregressive (VAR) model of the US estimates shrimp market as part of

the effort to obtain information for re-specification of the model. The analysis

indicated that shrimp imports lead domestic process in the short term but lag

domestic prices over a three-year period. (83)

37
 Yoshimori (1989) has stated that increasing Japanese demand for

shrimps has encouraged Japanese farms to move into production and packaging

process. Traditional fishing methods were being suspended with new methods to

improve production as well as marketing. (84)

Lea (1989) has indicated on application of Simultaneous Economic Model

(SEM) testing and re-specification process by demonstration, including a test of

system-wide specification of an exiting SEM that has been estimated with three

least squares techniques. The re-specification was a modification of the test

suggested by Hausman. And a vector Autoregressive model (VAR) of US shrimp

market was estimated as part of the effort to obtain information for re­

specification of SEM. The analysis indicates that shrimp exports lead domestic

process in short-term but by domestic prices over a three-year period. (8S)

Harrison (1990) has expressed that despite being at a comprehensive

disadvantage, improved technology has enabled US shrimp farmers to gain a

larger share of world market from 2 percent in 1981 to 26 percent in 1989. The

lure of export earnings was the important reason for the rapid development of

shrimp farming in China, Ecuador, Indonesia and Taiwan: Shrimp farmers were

also considered more reliable suppliers to export markets because they were not

dependent on fluctuating availabilities of shrimp. {06)

Harvey (1992) has revealed that improvements in techniques for

producing farm raised shrimp in 1980s greatly increased total supplies, which

caused real prices for both domestic landings and imports to fall. With real import

prices declining 25 percent between 1986 and 1990, USA importers increased

dramatically, especially from countries with expanding farm-raised shrimp

production. (87)

House (1992) has rightly pointed out on world demand for shrimp

exported during the last two decades. Between 1970 and 1990, consumption

tripled in Japan and USA. Numerous countries benefited from boom, and sizable

38
shrimp farming industries emerged in Asia and central South-America. The USA

did not experience expansion in the same way. While USA’s appetite for shrimp

has grown rapidly, suppliers have to come from abroad. In 1991, the USA

imported around 18,600 million pounds of shrimp. w

Josupeit (1993) has emphasised that the demand for convenience foods

in European countries was increasing. Readily prepared fish products from

shrimp could benefit from this growing demand, as they were nutrious and easily

processed. In addition, developing countries could benefit from this by producing

value-added products rather than simply exporting raw products. (89>

George (1993) has expressed that frozen shrimp was a major export item

of India’s marine products. Out of the important quality deterioration of exported

frozen shrimps, the development of block discolouration was important. Ascorbic-

citric acid mixtures in frozen blocks were very effective in keeping shrimps in

good condition without blackening for a long period. (90)

Pillay (1995) has suggested that export markets for Indian shrimps have

often proved volatile and if an enterprise does not have appropriate technology

for producing shrimp at an affordable cost for the domestic market, the enterprise

was likely to meet major financial problems when the export market become

unattractive or inaccessible. (91)

Bhunjanga Rao (1995) has emphasised that on a strategic planning the

government of India as well as state governments would develop proper layouts,

drainage systems and other infrastructure facilities for proper development of

shrimp aquaculture in their respective areas to boost marketing as well. (92>

PROCESSING AND CHANNELS OF DISTRIBUTION:

Ryan and Grows (1943) have pointed out about the change agents the

agency and target client group(s) for shrimp markets in India. These

intermediaries interpret and transmit the message of change, which was

39
 I

responsible for proposed changes, obstacles, difficulties and identify important

opinion leaders within the client system in the market. (93)

Me Vey (1960) has pointed out that in developing countries middlemen

were disliked and are treated as parasites. He argued that it was the producer

who buys the sweat of his labour. He told that, “you can do away with the

middlemen but you can not do away with their functions”. Intermediaries can only

be justified if they can perform these functions more efficiently and effectively

than actual or potential market participants. He has further stated that middleman

was not a hired link in an independent market but acts as the focus of a large

group of customers for whom he buys. (94)

Bowersox et.al., (1968) have provided an interesting perspective on the

relationship between marketing strategy and physical distribution practices. The

study reveals that the changes in physical distribution practices required a

change in marketing strategy in order to be effective and vice versa. An

organisation which was able to supply a wide variety of products speedily at

specified time helps reduce the inventory holding costs of the intermediaries

being served. Thus, the level of interest in the way of physical distribution was

managed and explained by its potential as a powerful marketing instrument, the

opportunity to realise significant savings in marketing costs was the importance of

physical distribution to customer service levels. (95)

Lee (1974) has pointed out that the lack of uniform measurement system

also hampers the development of marketing. Effective standardisation and

grading were basic to an efficient pricing process. Grading typically occurs at the

assembly stage or when a product moves into stage. (96)

Rossen (1974) was of the views that with a distribution channel there was

usually balance, of power, and the characteristics of the channel were shaped by

the manner in which power was exercised. However, there was always the

potential for conflict between channel members, which can arise for following

40
reasons: in compatibility of goals; confusion over roles and rights; differences in

perception and degree of inter dependence. (97)

Slater (1979) has stated that the problem of optimising performance of

transport function in terms of load planning was a method to match existing

customer orders with vehicles and available manpower by the different routes or

schedules for vehicles. The efficiency of these routes or schedules determines

the operating cost for transport fleet. If transport cost can be managed efficiently

this would have a dramatic effect upon total marketing costs and effectiveness of

farm’s marketing system. (98)

Reid (1981) has mentioned that personal selling components include both

advertising and sales promotion. It was the process of analysing the potential

customers’ need and wants and assisting them in discovering how such needs

and wants can best be satisfied by purchase of a specific product, service or

idea. Sales agents have at least seven key tasks- prospecting, communicating,

selling, servicing, information gathering, complementing, advertising and

allocating. <99)

Gaedeke and Tootelian (1983) have identified three reasons why

producers commonly employed middlemen -

a) Intermediaries provide rider market exposure;

b) Few producers have sufficient capital to direct market;

c) Producers can usually earn a higher return on investment

by employing available capital in activities other than those

of direct marketing.(100)

Gaedeke and Tootelian (1983) have advocated about physical distribution

of all activities involve planning, implementation and controlling the physical flow

of raw materials, in-process inventory and finished goods from point-of-origin to

point-of-consumption. The main activities include customer service, inventory

control, material handling, transportation, warehousing and storage. Thus, it was

41
suggested that physical distribution has two components: materials management

and marketing logistics. Materials management was involved with physical supply

operations such as procurement, storage and movement of raw materials through

processing into a finished product. Marketing logistics deals with transfer of

finished goods to intermediaries, final buyers and end-users. (101)

Naik and Bose (1985) have reported that middlemen play an important

role in moving fresh fish within hours from production points to customers,

meeting their specific tests and performance. They observed that a long chain of

agencies operate in the marketing channels. The relative role of agencies

depends on specific situation prevailing in both primary and wholesale

markets/102’

Naik (1985) has indicated that fishery and misery go together as the

share of producer gets reduced in the price obtained. He feels that there was

absence of cooperation among the fishermen. Out of ignorance, Nolias are not

getting a fair and reasonable share in the customer’s price. When demand

exceeds, price doesn’t increased proportionately, which indicates the failure of

law of demand and supply. Consequently, merchants become wealthier and

Nolias become poorer day by day. (103)

Bennett (1988) has noted that importance of channel decisions has not

always been recognised. For long-time, marketers gave thought to appropriate

channels of distribution after the product has been developed. However, the

author claims that in today’s competitive and increasingly global market place,

managers plan for product distribution as they plan for their products. Modem

distribution systems are based on strategic planning, adhere to the marketing

concept, focus on target markets, and are consistent and flexible. Channels are

interlocking, highly independent, and often complex. Effective distribution was not

a patchwork of randomly selected channel members; rather it requires a carefully

planned network whose members have clearly assigned functions. The flood of

42
products from manufacturer to wholesaler to retailer to the final buyer depends on

systematic, strategic planning and management. <104)

Dixie (1989) has emphasised that any grading standard for domestic

markets must originate from the industry itself as and when it becomes apparent

that the consumer is willing to pay an average price for the sorted product. He

has further pointed out that although national standards can probably be justified

for export, when compulsory minimum standards were introduced for home

market it would put the prices to the consumer and this would lower consumption

and reduce the size of the local market. (105)

Kotler (1989) has emphasised that distribution channel was the set of

farms and individuals that take little, or assist in transferring title, to a goods or

services as it moves from the producer to the final consumer or industrial

user. (106)

Kohls and Uhl (1990) have stressed on processing function of agricultural

produce. This was sometimes not included in a list of marketing functions

because it was essentially a form of changing activity. He also emphasised how

the form of produce to be changed and methods to be used in bringing about

such changes in marketing decisions. (107)

Naik and Mallick (1990) have presented that when there were two

intermediaries in the channel, the share of fishermen varied from 37.50 percent to

63.50 percent, where as, in case of three middlemen, the share varied from 47.44

to 76 percent. The marketing margins received by the middlemen also found to

be unduly high. In case of four middlemen, the share of fishermen varied from

45,3 percent to 63.27 percent respectively. (108)

Coles and Baharrell (1992) have identified from their research on

packaging and distribution channel that the package must be capable of

performing under all the temperature and humidify conditions that were likely to

43
be encountered as it passes through the channels of distribution and its

environmental conditions must be thoroughly described and understood. (109>

Beechner et.al., (1994) have emphasised on utilisation of space in the

distribution system. In international trade, there is a widespread adoption of a

standard pallet-size of 100 cm X120 cm. Any exporter who requires this standard

would probably incur additional costs due to standard size. Ships, lorries, rail-

freight; cars, aircraft and warehouses can be designed to handle the standard

pallet size and achieve maximum utilisation of space. <110>

Rout and Naik (1994) have indicated that the wholesale price of marine

fish rises by 8.50 percent between 1984 and 1994. The seasonal indices of

wholesale price index were less than the average during January to June and

more in remaining months. Such marketing scenario causes constraint to the

poor fishermen in adopting better technology as well as using modem vessels.

(ni)

Srivastava and Randhir (1995) have observed that fish producers of

Andhra Pradesh have met 85 percent of the demand for fish. The producer’s

share in consumer’s rupee was highest for local producers and lowest for non­

local producers. The largest component of price spread and net margin were

attributed to retailers followed by wholesalers and commission agents. The net

income of non-local producers-cum-wholesalers was found to be the highest

because they handle large quantity of fish. There exists a scope of earnings

super-normal-profit by intermediaries because market was not perfectly

competitive. It is recommended that government should formulate suitable aqua-

price-policy for eliminating imperfect competition from the market. (112)

PRICING OF SHRIMPS:
Gaber (1969) has suggested that in the absence of other information,

consumers often assume price to indicate quality level of the product or service.

44
Low price can, in certain circumstances, prove as much a barrier to sales as

prices, which were too high. If the product was perceived to be too cheap then

consumers began to question whether it can be of adequate quality. {113)

Gaedeke and Tootelian (1983) have stated that the objective of stabilising

prices was met in the same way as that of removing price as the basis of

competition. That was the company, which would seek to maintain its own prices

at or around those of competitors. However, the main aim was not to narrow the

range of price differentials and fluctuations. (114)

Irwin Gross (2002) has conceptualised on the meaning of price to

consumers and marketers. His view was that the basic price and premium price

are two components of price for understanding both buyer and seller behaviour.

The basic price is assumed to be the price, buyer is willing to pay for the core­

product and its associated benefits. The premium price differential represents the
additional amount, which the buyer is willing to pay for augmented price. (11B)

Lynch and Tasch (2002) have pointed out that with FOB (free on board)

pricing, all customers pay the same ex-factory price and the goods are placed

free on board a carrier, at which the responsibility pass to the consumer, who

pays the freight from that point Onward. In case of “FOB factory”, purchasers pay

all transportation costs beyond the factory gates whilst in case of “FOB

destination”; the supplier meets all the costs incurred up to the point where the

goods are delivered to the customer. (116)

Da Silva elal., (2003) have indicated that the marketer’s interest in

demand elasticity is already understood. If demand for his/her product is inelastic

then, total revenue will fall as price is reduced and total revenue will increase as

price is raised. Conversely, when demand is elastic, total revenue goes up as

price is reduced and total revenue falls when price is increased. Clearly these

patterns of demand, in response to price movements, are of fundamental

importance to pricing decisions made by marketing personnel. (117)

45
 Benett (2003) has expressed that the challenge for marketers was the

convenience of potential buyer if he pays the premium price and he will be more

than compensated by the additional value, which the product represents. It is the

basic price component, which is the constraint of the laws of supply and
demand.(118)

Stoetzel (2004) has indicated that consumers do not set out to make a

purchase with a particular price in mind, which they consider to be acceptable.

Rather, the consumer has a price band with an upper and lower limit. The

consumer’s lower price limit marks the psychological boundary below which it’s

considered that the product was too cheap to carry on acceptable level of quality.

The main findings were that in setting product prices, marketers need first to

determine the price band within which consumers are relatively insensitive to

price movements. It may well be said that existing prices can be moved upward,

within the price and, with little or no effect on demand, but with a very positive

effect on the marketing margin. (119)

Colman and Young (2005) have expressed that four particular factors

greatly influence the price elasticity of demand. These are: the availability of

substitutes: the number of uses to which a commodity can be put: the proportion

of income spent on a particular product and: the degree of commodity

aggregation. (120)

CONCLUSION:

To sum up, the available literature indicates that real transformation on

shrimp research, in India, has been made since 1980s. Most of the studies and
publications on the subject have been made by the fishery scientists and scholars
from outside India. Hence, the Government of India as well as concerned state
governments should take effective policies to encourage further research on
shrimp production and marketing

46
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(2) Mitra G.N., “A new method of transport of fish fingeriings”, Proc. Indian

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47
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48
(17) Lias D.S. and smith T.I.J., “Economic analysis of small scale prawn

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(19) Motha H., and Marichamy R„ “Population Assessment of Penalid prawn

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49
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50
 and an indigenously developed aeration device”, J. Inland fish Sec. India,

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September 1987: pp. 46-47.

(35) Mohanty S.K., and Mitra H.K., “Case studies on the monoculture of tiger

prawn, P.monodan fabricius in confined brackish water ponds in Puri and

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223-239.

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