Fishpreneurship Development

Edited by
Dr. R. Santhakumar
Dr. N.V. Sujathkumar
Dr. B. Ahilan
Dr. Shahaji Phand
Dr. Sushrirekha Das
2023
Edition
Fisheries College and Research Institute, TNJFU – Thoothukudi
&
National Institute of Agricultural Extension Management
(MANAGE) Hyderabad
 Fishpreneurship Development

Programme Coordination
TNJFU – Fisheries College and Research Institute,
Thoothukudi

Jointly Published By
TNJFU – Fisheries College and Research Institute,
Thoothukudi
&
MANAGE, Hyderabad
 Fishpreneurship Development

Editors: Dr. R.Santhakumar, Dr.N.V. Sujathkumar Dr. B. Ahilan, Dr. Shahaji Phand and Dr. Sushrirekha
Das

Edition: 2023. All rights reserved.

ISBN: 978-93-91668-69-3

Citation: Santhakumar.R., Sujathkumar,N.V. Ahilan, B., Shahaji Phand and Sushrirekha Das (2023).
Fishpreneurship Development [E-book]. Hyderabad: TNJFU - Fisheries College and Research Institute,
Thoothukudi & National Institute of Agricultural Extension Management, Hyderabad, India.

Copyright © 2023 TNJFU - Fisheries College and Research Institute, Thoothukudi, Tamil Nadu &
National Institute of Agricultural Extension Management (MANAGE), Hyderabad, India.

This e-book is a compilation of resource text obtained from various subject experts in Fisheries sector on
“Fishpreneurship Development” This e-book is designed to educate extension workers, students, research
scholars, academicians related to Fisheries Science about the Fishpreneurship Development. Neither the
publisher nor the contributors, authors and editors assume any liability for any damage or injury to persons or
property from any use of methods, instructions, or ideas contained in the e-book. No part of this publication
may be reproduced or transmitted without prior permission of the publisher/editors/authors. Publisher and
editors do not give warranty for any error or omissions regarding the materials in this e-book.

---------------------------------------
Published for Dr. P. Chandra Shekara, Director General, National Institute of Agricultural Extension
Management (MANAGE), Hyderabad, India by Dr. Srinivasacharyulu Attaluri, Program Officer, MANAGE
and printed at MANAGE, Hyderabad as e-publication.
 MESSAGE
National Institute of Agricultural Extension Management (MANAGE), Hyderabad is an
autonomous organization under the Ministry of Agriculture & Farmers Welfare, Government of
India. The policies of liberalization and globalization of the economy and the level of agricultural
technology becoming more sophisticated and complex, calls for major initiatives towards
reorientation and modernization of the agricultural extension system. Effective ways of managing
the extension system needed to be evolved and extension organizations enabled to transform the
existing set up through professional guidance and training of critical manpower. MANAGE is the
response to this imperative need. Agricultural extension to be effective, demands sound
technological knowledge to the extension functionaries and therefore MANAGE has focused on
training program on technological aspect in collaboration with ICAR institutions and state
agriculture/veterinary universities, having expertise and facilities to organize technical training
program for extension functionaries of state department.
The fisheries sector plays an important role in the Indian economy. It contributes to the
national income, exports, food and nutritional security and in employment generation. This sector
is also a principal source of livelihood for a large section of the economically underprivileged
population of the country, especially in the coastal areas. India’s fisheries sector is on a trajectory
of progress. From here, it can only grow higher, generating more income, and employment for
people associated with this sector, to support India's blue economy and build a sustainable and
profitable future for the industry.
It is a pleasure to note that, TNJFU- Fisheries College and Research Institute,
Thoothukudi, Tamil Nadu and MANAGE, Hyderabad, Telangana is organizing a collaborative
training program on “Fishpreneurship Development” from 3-5 January, 2023 and coming up with
a joint publication as e-book on “Fishpreneurship Development” as immediate outcome of the
training program.

I wish the program be very purposeful and meaningful to the participants and also the e-book will
be useful for stakeholders across the country. I extend my best wishes for success of the program
and also I wish TNJFU- Fisheries College and Research Institute, Thoothukudi, Tamil Nadu
many more glorious years in service of Indian agriculture and allied sector ultimately benefitting
the farmers. I would like to compliment the efforts of Dr. Shahaji Phand, Center Head-EAAS,
MANAGE and Dr. B. Ahilan, Dean, Fisheries College and Research Institute, Thoothukudi for
this valuable publication.

Dr. P. Chandra Shekara

Director General, MANAGE
 PREFACE

This e-book is an outcome of collaborative online training program on “Fishpreneurship

Development” conducted from 3-5 January,2023. This e- book is intended is to provide insights to
all extension workers, faculties, researchers and students about the Entrepreneurship
Development in fisheries sector
Entrepreneurship in fisheries means undertaking a new business venture to make it
profitable. It comprises of activities as gathering of information, communication with chain
partners, market orientation, strategic decision making, learning etc. Entrepreneurial possibilities
in Indian fisheries and aquaculture sectors are yet to be fully exploited. The 'fisheries and
aquaculture sector' is the sunshine sector which has immense growth potential. The sector
support large number of subsidiary industries and provides livelihood millions of economically
backward populations, especially fishermen, of the country. Apart from income and employment
generation the sector contributes to food and nutrition security of the country. Entrepreneurial
possibilities exist across the value chain in fisheries and aquaculture from see production to value
addition and marketing.
This ebook delineates the concepts, issues, related reviews and relevant technologies
in the concerned field for developing entrepreneurship in fisheries. I hope this publication will be
useful for entrepreneurs, academicians, researchers, scholars, policy-makers and planners as well as
developmental experts to formulate strategy on this line. The information will help in developing
entrepreneurial skills among youth.
The editors’ heart fully record their sincere gratitude and appreciation to the resource
persons for sparing their valuable time to develop this resource material. Additional thanks to
MANAGE, Hyderabad for providing the financial assistance to conduct the training program.
The editors are very much thankful to Dr. G. Sugumar, Honorable Vice-Chancellor, TNJFU,
Nagapattinam and Dr. M. Rajakumar, Director of Extension Education, TNJFU, Nagapattinam for
the consistent support and encouragement extended for the successful conduct of this training
program and e-book creation for the participants. The editors hope that this e-book will help the
participants as well as other extension people across the country to gain valuable information on
value chain management for inclusive fisheries business.
The valuable suggestions for future improvements are always welcome.
Dr. R.Santhakumar
Dr. N.V. Sujathkumar
Dr. B. Ahilan
Dr. Shahaji Phand
Dr. Sushrirekha Das
 CONTENTS

S. No. Topics for lectures Authors Page

No.
1.
Introduction to Fishpreneurship development B. Ahilan 1-5
2. Avenues of Fishpreneurship in Fisheries
R. Santhakumar and Sushrirekha Das 6-15
Sector
3. Entrepreneurship development through value P. Pe. Jeyya Jeyanthi
16-32
addition of fish and fishery products
4.
Marine Products Business Incubation Forum P. Ganesan 33-44
5. Livelihood development through freshwater
S. Athithan 45-49
fish culture
6. Nutraceuticals from marine origin and their
P. Ganesan 50-60
importance
7. Business opportunities in preparation of
Th. M. Muruganantham 61-69
fishery by products
8.
Traits in fish Entrepreneur R. Santhakumar 70-79
9. Prospects of crab and lobster fattening for
N. Jayakumar, and R. Santhakumar 80-90
livelihood support
10.
Preparation of Bankable Projects in Fisheries T. Umamaheswari 91-95
 Chapter-1

INTRODUCTION TO FISHPRENEURSHIP DEVELOPMENT

B. Ahilan

TNJFU – Fisheries College and Research Institute, Thoothukudi-08

An entrepreneur is a person who develops a new idea and takes the risk of setting up an
enterprise to produce a product or service which satisfies customer needs in the field of fisheries.
Fishpreneurship development aim to enhance the capacity and willingness of business
people to develop, organize, and manage their business ventures in the fisheries field. Commercial
fish farming, seed production, fish and fish product development and export, ornamental fish
breeding and marketing, aquatic plants and their sale are few areas having potential and great
demand too. There are several areas in which a fishpreneurship can be started. A fishpreneur should
learn and imbibe several qualities required for him to become a successive entrepreneur from
fishermen who have some unique qualities. Consistency (though not assured of a catch, fisherman
goes for fishing regularly), meticulous utilization of assets and resources (like a fisherman repairing
and maintaining his boat and net meticulously), community-oriented activities, teamwork (fishing is
essentially a teamwork), and willingness to change are such qualities required for a good
fishpreneur.
Basically, entrepreneurship development is basically the process of improving the skill set as
well as the knowledge of the entrepreneurs. This can be done through various methods such as
classroom sessions or training programmes specially designed to increase the entrepreneurial
acumen. Before you get into training the prospective entrepreneurs, it is very important to have a
clear objective and plan in mind about what the program is going to encompass.
It is important to select the potential targets who are willing to enhance their skills and who
can be identified as the people who have some amount of business acumen. These can be further
divided into two categories- the educated target audience and the uneducated target audience.
Educated audience refers to the target people who have a decent educational background and want
to be entrepreneurs. These people have the motivation to put their education to use by starting a
venture and working for themselves.

1
 The process of entrepreneurship development program can be seen as most effective and
efficient when it is applied in the local markets and on the local entrepreneurs who know about it.
These people understand and absorb the knowledge way more quickly and can apply it in the
current scenario because of which the results of the program can be seen more quickly and
effectively.
In India unfortunately, these programs can only be launched where support institutions and
resources are available, but ideally, these programmes should be planned and launched in the areas
where most people are interested and willing to take advantages of these programmes so that this
opportunity can be used most effectively and there is no loss of resources.
The population of a country’s economy determines its spending potential. A strong, vibrant
society has more people with money to spend which increases revenue and production for
businesses in the area overall leading them having better times financially as well on average than
weak economies where there may be less earning capacity but still many unemployed individuals
struggling daily just like underdeveloped countries today that need economic help from abroad if
not already receiving such aid themselves primarily because their populations are too small making
this necessary assistance difficult or costly without significant outside investment.
Entrepreneurship opportunities in the Fisheries Sector
There are lot of entrepreneurship opportunities in the emerging Aquaculture sector, though
in initial stages. However, entrepreneurship development requires a push from the government and
other institutions and it is encouraging to see some incubation centers coming up in this sector since
the last five years. Though there is provision for technical support from the industry, we need
financial support to sustain incubation of startups and help them accelerate and grow. When it
comes to handling risks in this sector, if the business becomes sustainable, the risks get mitigated.
Unlike what happened to Shrimp Farming in the 1990s with the occurrence of diseases, leading a
setback to investments, inland aquaculture has remained sustainable over many decades.
Nevertheless, they need insurance coverage since they are prone to losses during natural calamities
like floods and cyclones.
Skilling as a catalyst for Blue Revolution
The major aim for skill development in agriculture and allied sectors is to double the
farmers’ income by doubling the production. In fisheries sector, Government of India has
implemented the Blue Revolution Scheme, a flagship programme to increase the fish production to
15 MMT by 2020., out of India’s production of 10 million metric tonnes, marine fisheries produce
around 3 to 4 million metric tonnes. It cannot be stretched much, as our potential is only 4.5 million
metric tonnes by exploiting 80% of the resources. So, doubling the production is not possible

2
through marine fisheries. It is here that Aquaculture can be potentially used to increase fish
production. We have to sustain the livelihood of the fishermen and also maintain the targeted
production. For this we need huge infrastructure and skilled workforce.
As per this year’s budget, government has provided an outlay of Rs 10,000 crores for
National Fisheries and Aquaculture Infrastructure Development Scheme mainly for developing the
infrastructure and environment for the sustainable development in this sector with multi-stakeholder
involvement. Skill development forms a crucial part of the scheme to take forward the initiatives of
increasing the fish production and improving the farmer’s income
It is a challenge to convert the mindset of the institutions and capacity building providers to
bring them to a skill-based training program. As of now, they indulge only in knowledge—based,
theoretical learning with minimum focus on skills. Most of the institutions lack quality trainers,
infrastructure and environment for long-term skill-based training. We are planning to take help from
the industry and private sector for this purpose. We are in the process of identifying potential
training partners, training the trainers, master trainers, curriculum and content development, etc. to
speed up skilling programmes in fisheries sector to meet the skilled manpower requirement.
Aquaculture is one of the fastest-growing industries. India offers great fishing chances in
both marine and interior waters, with its huge coastline zone. The country's 2.36 million hectares of
swamps and tanks, a coastline of 7,500 km, and a brackish water surface of 1,1 million have been
placed second in the global aquaculture market, providing a fish farming area. In India, fishing is a
livelihood for over 28 million people in the country. Related Projects: Biotechnology, Bio-
Technology, Industrial Biotechnology, Biotech Sector, Industry, Biotech Projects, Enzymes Papain,
Phytase, Lipase, Enzyme, Food Biotechnology, Industrial Enzymes, Vermiculture, Vermicompost,
Biofertilizer, Organic Farming, Biogas
Indian Market Overview
The Report of the Organization for Food and Agriculture (FAO) 2020 stated that Asia is
89% of the worldwide fishery production in the last 20 years.
Due to marine fishing and inland fisheries, world fish production reached the highest level
and reached 96,4 million tonnes in 2018. The top seven main producers, which account for
approximately 50% of global capture production, were China, Indonesia, Peru, India, Russia, the
US, and Vietnam.
India represents 7.58% of world production. In 2019-2020, the country's fish production
reached a total of 14,16 million metric tonnes. The sector of fisheries provides 1.24 percent to the
GVA and 7.28 percent to the GVA.

3
Blue Revolution
A seventh five-year strategy to promote the fisheries of the Blue Revolution (between 1985 and
1990) was initiated, to reach the fishing community. The Fisheries, Animal Husbandry, and Dairy
Ministry manage the Blue Revolution aims by focusing on how aquaculture and fish yield from both
inland and naval sources may be enhanced. The Ministry also promotes the use of work possibilities
in economically reversible sectors such as scheduled castes, planned tribes, and women.
GOVERNMENT INITIATIVES
1. Pradhan Mantri Matsya Sampada yojana
This scheme is aimed to fully tap the potential of India’s aqua sector. Flagged in May in 2020, the
initiative started with an investment of Rs. 20,050 crores for 5 years from 2020-2021 to 2024-2025.
This is estimated out to be the highest investment made to date in the fishery sector. It aims to
increase fish production, double-up the export earnings, smoothen the value chain, generate
employment and boost domestic fish consumption and attract investments in the fisheries sector.The
PMMSY system established a fishery vessel insurance cover, which was a first-class move within
the sector. By January 2021, proposals worth Rs. 6,567.20 (USD 907.91 million) crore (USD
319.23 million) were received, projects worth Rs. 2309.08 crore (USD 319.23 million) were
authorized.
2. Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
This scheme aims for the following benefits in the sector-
 Enhance fishing infrastructure by establishing fishing harbors, fishing landing centers, fish
seed farms, fish feed plants, etc.
 Sustainable growth in fish production of 8-9 percent and up to 20 million metric tonnes by
2022-23.
 Creating a total of 9.40 lakh jobs.
 Attract private sector investment.
 Adopt modern fishing and aftermarket technology.
 Strengthening of infrastructure in the cold chain, including ice plants, cold storage, fish
transportation, fish processing units, and fish market.
Opportunities and Road Ahead
Advances have already begun to approach new horizons in the aquaculture business. The
government aims to convert India into a hot place for production using proper legislation,
marketing, and infrastructure support. The industry is transformed by creative solutions from the
government to boost the industry. This offers investors a tremendous chance to participate in an
industry that has enormous growth potential. Given the advances in technology over the years and

4
several governments plans to develop aquaculture, and make this industry popular with even more
pro-fitness than agriculture. In the previous two decades, Indian aquaculture has risen six times.
While India is a strong player in the global aquaculture race, several infrastructure and technological
difficulties have yet to be addressed to measure the supply. The extensive coastline of India can
reinforce the economy to achieve the Blue Revolution goals.

5
 Chapter-2

AVENUES OF FISHPRENEURSHIP IN FISHERIES SECTOR

R. Santhakumar1 and Sushrirekha Das2
1
Department of Fisheries Extension, Economics and Statistics,
TNJFU – FC&RI, Thoothukudi-08
2
National Institute of Agricultural Management, MANAGE, Hyderabad

Introduction

Globally, food demand is expected to increase in the range of 59–98% by 2050. To meet this
demand, the agriculture and allied sectors will be required to produce almost 50% more food in
2050 than they did in 2012.
At the same time, climate change has been posing challenges to food and nutritional
security. At this crucial juncture, fish and aqua products could play a pivotal role in fulfilling the
food demand of the growing population, along with providing balanced protein intake across the
globe. In 2018, 156 million tons of fish were used for human consumption and non-food usage were
22 million tones. The global average of annual per capita availability of fish is 20.5 kg, which has
enhanced at a rate of 2.4% annually in the last six decades.17 Mostly live, fresh or chilled fish is
preferred for direct human consumption. Out of the total fish consumption, 44% is live and fresh,
35% is frozen, 11% is prepared and 10% is cured.18 The use of seaweed and aquatic plants is
gradually increasing for industrial purposes, especially in medicines, cosmetics, paint, paper and
biofuels. The global production of seaweed was 32,386 thousand tonnes in 2018, and it is expected
to double by 2025. Currently, China contributes around 56% of the global seaweed production.19
The increasing demand for seaweed has created opportunities for the fishing community to diversify
their livelihoods through sustainable practices. Seaweed farming has been initiated in India at a
small scale in coastal areas of Tamil Nadu and Andhra Pradesh.
Both fish and meat exports account for approximately 11% of the total food export value
each, globally.20 The total annual fish export volume was 67.1 million tonnes in 2018, which is
around 38% of the total production value of USD 164 billion.21 Asian countries – China, Vietnam,
India, Thailand – and Norway and Chile are the global leaders in fish exports.

6
A sunrise sectors
The fisheries sector is recognized as a high-potential sector in India, considering its impact
on the socioeconomic development of the country. Fish is an inexpensive and nutritious food with
high protein content. Moreover, it provides livelihoods to 28 million people in India, including a
large economically disadvantaged population.
The fisheries sector has been recognized to contribute elimination of hunger, promote health,
reduce poverty by providing food and Nutritional security to the vast majority of the population.
Fish contributes substantially to the domestic food security of India which has a per capita
consumption of more than 6.00 kg per annum. With freshwater aquaculture being a homestead
activity in several parts of the country.
Overview of the Fisheries & Aquaculture Sector of India
India is the world's second-largest aquaculture nation and the third-largest fish producer after
China. The Indian Blue Revolution has led to a major improvement the fishing and aquaculture
industries. The industries are regarded as sunrise sectors and are anticipated to have a big impact on
the Indian economy.
Indian fisheries have recently seen a paradigm shift from inland to marine-dominated
fisheries, with the latter becoming a major contributor to fish output, from 36% in the middle of the
1980s to 70% in the recent past. The transition from capture-to culture-based fishing in inland
fisheries has opened the way for a stable blue economy. At the primary level, the sector supports the
livelihoods of roughly 16 million fishers, fish farmers, and thousands of people along the value
chain. While inland fisheries and aquaculture have increased in absolute terms, their potential has
not been fully realized. The 191,024 km of rivers and canals, 1.2 million ha of floodplain lakes, 2.36
million ha of ponds and tanks, 3.54 million ha of reservoirs, and 1.24 million ha of brackish water
resources vast, underutilized resources offer excellent opportunities for increased production,
creation of livelihoods, and emergence of economic prosperity.
Current state of the Fisheries & Aquaculture Sector of India
More than 10% of the world's fish and shellfish species are found in India's rich and diverse
fisheries, including deep seas, lakes, ponds and rivers. The country's extensive coastline, exclusive
economic zone (EEZ) and sizable continental shelf region are home to marine fisheries resources.
The resources for inland fisheries include rivers, canals, floodplain lakes, ponds, tanks, brackish
water and regions that influence salty or alkaline conditions. Aquaculture in brackish or saline water
has flourished in India. Farmed shrimp production increased from 20 MT in 1970 to 7.47 lakh MT
in 2020, adding significantly to the export revenues of fisheries, which has seen tremendous
expansion over few decades.

7
 Presently, India produces 7.96% of the world's fish. The estimated total fish output for FY
2020–21 is 14.73 million metric tonnes (MMT), with contributions from the inland and marine
sectors at 11.25 MMT and 3.48 MMT, respectively. With India being one of the top seafood
exporters worldwide, the fishing industry is crucial to its economy and has historically been a
significant source of foreign exchange earnings. Despite the market uncertainties brought by the
covid-19 pandemic, exports of marine products were valued at Rs. 43,717.26 crore (US$ 5.37
billion) during FY 2020–21. The US is the largest importers of Indian seafood accounting for
41.15% imports worth US$ 24.05 billion in FY 2020–21.
India’s Fisheries Sector
Important Stats
 Fishing Sector in India, with about 7.7% of the global fish production, is the third largest
fish producing country and the second largest aquaculture fish producer in the world.
 The country is also home to more than 10% of the global fish biodiversity and is one of the
17-mega biodiversity rich countries.
 Fisheries and aquaculture witnessed manifold rise in its production during past decades,
from 5 lakh tons in 1950-51 to 142 lakh tons in FY 2019-20.
 The sector provides livelihood to about 16 million fishers and fish farmers at the primary
level and almost twice the number along the value chain, and has enough potential to
generate income, employment, growth in subsidiary industries, and earn foreign exchange
for the nation.
 The share of fisheries sector in the total GDP (at current prices) increased from 0.40% in
1950-51 to 1.07% of the total GDP in
 The sector has contributed about 1.24% to the country’s Gross Value Added (GVA) and
over 7.28% to the agricultural GVA.
 Export earnings from the Fisheries sector has been Rs.46,662.85 crores during 2019-20.
 Fisheries sector has been recognized as a ‘Sunrise Sector and has demonstrated an
outstanding double-digit average annual growth of 10.87% since 2014-15.
India Specific Key Facts
 11.25 MMT Inland Fisheries production during FY 20-21
 3.48 MMT Marine Fisheries production in FY 20-21
 $1.79 mn Export of Ornamental Fisheries in FY 2020
 Top exporting destination for Ornamental Fisheries: Thailand; UAE; Singapore; Hong
Kong; China; Jordan; Taiwan

8
  States with major breeding units for Ornamental Fisheries: Tamil Nadu; Maharashtra;
Kerala; Rajasthan; Madhya Pradesh; Himachal Pradesh; West Bengal
 1548 total fish landing centres
 671 Cold Storages with 427,713.27 MT of capacity
 44 Chilled Storages with 23,640.80 MT of capacity
 91 Dry Fish Storages with 38,401.92 MT of capacity
 Fishing Harbours Under Sagarmala - Ministry has sanctioned 17 fishing harbour projects
worth INR 1740.26 Crore under Sagarmala Programme.
India’s marine product exports record an all-time high in FY 2021-22; Grow by over 30% to $7.74
bn
Regional Distribution of Fish

Fish Production has remained uneven across the States depending on the available coastline,
infrastructure and entrepreneurship. Southern Region accounted for almost half of the fish
production, followed by Eastern Region with one fourth of the total national fish production.

9
Among the States, Andhra Pradesh (27.4%) and West Bengal (13.8%) together produce about 41%
of the country’s total fish production.
 Almost every State in India produces inland fish to a certain extent whereas top six States
account for about three fourth of the country’s total inland fish production.
 Andhra Pradesh, West Bengal and Uttar Pradesh together account for half of the fresh water
production in the country.
 Marine fish production has remained limited to nine States and four UTs with coastlines.
The West Coast produces 59% and the East Coast produces 41% of total marine fish.
 Gujarat, with 19% of the total marine fish production, is the leading marine fish producing
State followed by Andhra Pradesh (16.4%) and Tamil Nadu (13.5%).

10
Some Schemes and Programs
Blue Revolution
 Blue Revolution, the Neel Kranti Mission has the vision to achieve economic prosperity of
the country and the fishers and fish farmers as well as contribute towards food and
nutritional security through full potential utilization of water resources for fisheries
development in a sustainable manner, keeping in view the bio-security and environmental
concerns.
 The Blue Revolution scheme has the following components:
1. National Fisheries Development Board (NFDB) and its activities
2. Development of Inland Fisheries and Aquaculture
3. Development of Marine Fisheries, Infrastructure and Post-Harvest Operations
4. Strengthening of Database & Geographical Information System of the Fisheries
Sector
5. Institutional Arrangement for Fisheries Sector
6. Monitoring, Control and Surveillance (MCS) and other need-based Interventions
7. National Scheme of Welfare of Fishermen
Central Funding pattern: 50% of the project/unit cost for general States, leaving the rest to
State agencies; 80% of the project/unit cost for North-Eastern/Hilly States leaving the rest to
State agencies; 100% for Union Territories.
Deep Sea Fishing and Tuna Processing

Pradhan Mantri Matsya Sampada Yojana (PMMSY)

 Approved in 2020, it is a flagship scheme for focused and sustainable development of
fisheries sector in the country with an estimated investment of Rs. 20,050 crores for its

11
 implementation during a period of 5 years from FY 2020-21 to FY 2024-25 in all
States/Union Territories, as a part of Aatma Nirbhar Bharat Package.
 The PMMSY is an umbrella scheme with two separate Components namely (a) Central
Sector Scheme (CS) and (b) Centrally Sponsored Scheme (CSS).
 The Centrally Sponsored Scheme (CSS) Component is further segregated into non-
beneficiary oriented and beneficiary orientated subcomponents/activities under the following
three broad heads:
1. Enhancement of Production and Productivity
2. Infrastructure and Post-harvest Management
3. Fisheries Management and Regulatory Framework
Under CSS
 North Eastern & Himalayan States: 90% Central share and 10% State share.
 Other States: 60% Central share and 40% State share.
 Union Territories (with legislature and without legislature): 100% Central share.
 End Implementing Agencies (EIAs)
The PMMSY would be implemented through the following agencies:
 Central Government and its entities including National Fisheries Development Board
 State/UT Governments and their entities
 State Fisheries Development Boards
 Any other End Implementing Agencies as decided by Department of Fisheries
Objectives
 PMMSY is designed to address critical gaps in fish production and productivity, quality,
technology, post-harvest infrastructure and management, modernization and strengthening of
value chain, traceability, establishing a robust fisheries management framework and fishers’
welfare.
 While aiming to consolidate the achievements of Blue Revolution Scheme, PMMSY
envisages many new interventions such as
1. fishing vessel insurance,
2. support for new/up-gradation of fishing vessels/boats, Bio-toilets,
3. Aquaculture in saline/alkaline areas, Sagar Mitras, FFPOs/Cs,
4. Nucleus Breeding Centres,
5. Fisheries and Aquaculture start-ups,
6. Incubators,
7. Integrated Aqua parks,

12
 8. Integrated coastal fishing villages development etc
 PMMSY scheme primarily focuses on
adopting ‘Cluster or Area based approaches
and creation of Fisheries clusters through
backward and forward linkages.
 Special focus will be given for employment
generation activities such as seaweed and
ornamental fish cultivation.
 It emphasizes on interventions for quality
brood, seed and feed, special focus on
species diversification, critical infrastructure,
marketing networks etc.
Implementation of Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
 In order to address the infrastructure requirement for fisheries sector, the Department of
Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying during 2018-19
has created dedicated fund namely Fisheries and Aquaculture Infrastructure Development
Fund (FIDF) with a total funds size of Rs 7522.48 crore.
 FIDF provides concessional finance to the Eligible Entities (EEs), including State
Governments/Union Territories and State entities for development of identified fisheries
infrastructure facilities through Nodal Loaning Entities (NLEs) namely
(i) National Bank for Agriculture and Rural Development (NABARD),
(ii) National Cooperatives Development Corporation (NCDC) and
(iii) All scheduled Banks.
 Under the FIDF, the Department of Fisheries provides interest subvention up to 3% per
annum for providing the concessional finance by the NLEs at the interest rate not lower than
5% per annum.
 Loan lending period under FIDF is five years from 2018-19 to 2022-23 and maximum
repayment period of 12 years inclusive of moratorium of 2 years on repayment of principal.
Kisan Credit Card (KCC)
 Launched in 1998, Kisan Credit Card Yojana is a scheme that offers short-term, revolving
credit to farmers across India.
 The scheme was further extended for the investment credit requirement of farmers viz. allied
and non-farm activities in the year 2004. These include Animal Husbandry, Dairying &
Fisheries Sector.

13
  In this Fish Farmers receive an ATM cum credit card that can be used to withdraw cash from
ATMs.
 KCC comes with a 12 monthly repayment period, which offers adequate time to pay off any
debt.
Seaweed Park in Tamil Nadu
 This initiative would link and promote Seaweed farming and the seaweed-based industries
together to bring out full-fledged expansion of this sector. Further, One Stop Park for entire
seaweed value chain will link all the activities, farmers, processors, buyers, exporters,
importers, retailers together for arriving at an optimum output and thereby maximizing value
addition, minimizing wastage, increasing farmers income and creating employment
opportunities.
 This will be developed on a hub and spoke model for which Government would invest about
Rs 100 crores for establishing the seaweed park.
Challenges facing the Fisheries Sector in India
Technical Challenges
 The fishing business in the country is reliant on a few fish species – carps, pacu, and
pangasius – and increasing this base will boost fish production.
 Overproduction focusing on fewer species results in an overstock of specific fish species,
lowering prices and increasing volatility.
 In India, there are no additional aqua feed-consuming species or high-value fish that should
be considered when introducing new species. For example, tilapia farming has yet to take off
in the country.
 Inadequate hatchery technology for new species introduction, which could include
freshwater, brackish, and marine species.
 Diversification of species will assist to keep costs stable while also driving up demand for
formulated aquafeeds.
 Classical freshwater fish farming methods – large ponds, no water exchange, no draining,
and no bottom sediment removal – are still in use, which can lead to disease-promoting
conditions.
In fisheries sector, there are further divisions as fish harvest sector, aquaculture, post-harvest
sector and marketing sector wherein fishpreneurship development is possible.
In fish harvest sector, areas wherein fishpreneurship development is possible include; Boat
Building Yards, Net Manufacturing Units, Gear Manufacturing Units, Ice Factories, Navigational
Equipment’s, Communication Equipment’s, Craft and Gear Repairing Workshops, etc.

14
 In aquaculture sector, there are ample opportunities for fishpreneurship in Pond
Construction, Brood Stock Maintaining Units, Hatcheries and Allied Activities, Feed
Manufacturers, Input Industries for treatment of water, chemicals, medicines, pro-biotic,
Equipment’s ranging from aerators, generators, pumps of various types, etc.
In post-harvest fisheries sector, areas wherein fishpreneurship development is possible
include; Pre-processing Units, Ice Plants, peeling sheds, Processing Units, Fish meal and fish oil
manufacturers, Fish drying units, Fish curing units, Fish Canning units, Cold Storages, Quality
Assessors, etc.
In the marketing sector too, there are diverse opportunities which include; Fish
Wholesalers, Middlemen, Fish Retailers, Fish Vendors, Fish transporters, Cold Chain Related
Personnel, Buyers from various processing units, etc. Online marketing of fish is also a growing
business one can think of. Fishery based enterprises include value added products preparation,
preparation of dried fish products, fish processing unit, ready to eat fish product development, ready
to cook fish product development, ornamental fish culture enterprise, mussel culture, clam
collection, edible oyster culture, pearl culture, mud crab culture, Ferti fish unit, net building, aqua
tourism, fish vending/selling, cage farming, fish and shrimp culture, fish feed production and many
more. Fish chilling, vacuum packaging, modified atmospheric packaging (MAP), active packaging,
freezing, IQF Products manufacture, battered and breaded products manufacture, ready to serve fish
products in cans and retort able pouches, ready to eat extruded fish products, fish soup powders,
pickled products, Diversified fishing system includes Recreational fishing, fish folklore museum
covering models/prototypes on fishing, reservoir/ aquaculture based eco-tourism, Fishing
implements caretaking, Fishing gear recycling facility, Fishing bait/ feed making, data centres for
fishing boats at sea, square mesh net making unit, net assembling units, etc.
World over in the recent past, research in nutraceuticals has shown continuous growth and the
progressive approach is aimed at identifying the potential nutraceutical compounds which are
having health benefits in human beings. Awareness among the people is the prime reason for the
growing demand for nutraceuticals. Nutraceuticals are food products of natural origin from both
terrestrial and marine sources having healthcare importance. Manufacture of nutraceuticals from
marine sources include Chitin and chitosan, Glucosamine Hydrochloride, Chondroitin sulphate,
Hyaluronic acid (HA), Collagen, gelatin and collagen peptides, Fish lipids, Squalene, Minerals,
Calcium powder, functional foods like protein hydrolysates and isolates can be great sources for
fishpreneurship development. Challenges for fishpreneurship include knowledge and skill gap,
technology gap, market gap and Entrepreneurial gap.

15
 Chapter-3

ENTREPRENEURSHIP DEVELOPMENT THROUGH VALUE ADDITION OF FISH AND

FISHERY PRODUCTS - AN ECONOMIC PERSPECTIVE
Pe. Jeyya Jeyanthi

Extension, Information and Statistics Division

ICAR- Central Institute of Fisheries Technology, Cochin – 682 029, Kerala

Introduction
Fish is a highly perishable food item and cheapest animal protein known to mankind which requires
proper handling and preservation for effective maintenance of its quality and nutritional attributes.
Indian fisheries are considered as a sunrise sector, with high potential for rural development, food
and nutritional security as well as export earnings that can be treated as a rural entrepreneur-led
hybrid model for entrepreneurship. Enterprises are the entities or business according to meet out the
demand of both domestic and international markets and ultimately satisfying the consumers.
In Indian scenario, export of final consumer food products viz., Ready to Eat (RTE), Ready
to Cook (RTC) and Ready to Serve (RTS) has shown significant growth in a last decade. The export
of such products under these items had registered 10.4 per cent growth during 2011 to 2020. Since
final food products (value added products) are readily available and time saving and also the
demand for the value added under the categories of RTE, RTC and RTS has been increasing
manifold in recent years due to lifestyle changes. In developing countries, lack of infrastructure
facilities and icing lead to deterioration of fish quality and ultimately reduces the economic value.
Hence, value addition of fish or fishery products has gained scope towards economic growth and
livelihood development of entrepreneurs. Value added fish products may be i) mince or mince-
based products ii) battered and breaded or coated products and iii) surimi-based products.
Entrepreneurship Development
The word ‘entrepreneur’ is derived from French word ‘entreprendre’ which means ‘to
undertake’. Entrepreneurs are a pivotal and central part of the economy and are contributed
significantly to the employment and nation development. India has vast fisheries resources with
potential for entrepreneurship by utilising the youth in rural areas.

16
 Fig. 1. Basic questions of an entrepreneur

Entrepreneurship is the capacity for innovation, investment and expansion in new

markets, products and techniques.

Fig 2. Entrepreneurship process

Entrepreneurship development is a skill of exploring new ideas and learning new skills for
developing an enterprise. Entrepreneurship Development is defined as a process of enhancing the
skillset and knowledge of entrepreneurs. The concept of enterprise development incorporates the
ideas of investing knowledge and time, attracting investment, building linkages, employing more
people for an enterprise to compete in the national and international economy. The five stages of the
entrepreneurial process are idea development, opportunity appraisal, planning, firm
formation/launch, and growth.
Entrepreneurship skills (ES)
Some traits are needed for an entrepreneur to become a successful entrepreneur in long run.
The skills that are useful in enriching the entrepreneur’s ability are called as entrepreneurship skills.
The skills include leadership skills, business management skills, time management skills, creative
thinking skills and problem-solving skills.

17
 Financi
al skills
Manag
ement Manag
informa ement
tion skills
skills

Entreprene
urial skills Start-
Comm
up
unicatio busines
n skills
s skills

Marketi Operati
ng onal
skills skills

Fig 3. Elements of entrepreneurship skills

According to Mohamad et al., 2014, entrepreneurship skills have various dimensions that are
financial skills, management skills, star-up business skills, operational skills, marketing skills,
communication and management information skills. For example, entrepreneurs conduct studies to
assess the market feasibility of a proposed product to anticipate the problems and assess the
quantity, quality, cost and resources of inputs to run the business. ES can be obtained or acquired
through entrepreneurship development education and financial literacy. Suparno and Saptono
(2018) observed that the combined effect of education and financial literacy influenced on the
entrepreneurship skill development.
Entrepreneurship Development Cycle
The entrepreneurial development cycle is the combination of all support activities and
assistance that are provided continuously for the development of entrepreneurship. It assists in
evolving one’s skill in a systematic manner. Generally, there are three types of assistance for the
entrepreneurs.
i. Stimulating assistance
ii. Supportive assistance
iii. Sustaining assistance

18
 Stimulating
Sustaining assistance
assistance

Supportive
assistance

Fig 4. Elements of entrepreneurship development cycle

 Stimulating assistance: Activities and assistance that are encourage the potential
entrepreneurs to take initiative. These are called as stimulating assistance. For example:
Entrepreneurial education, training and planned publicity and guidance for preparation of
project reports etc.

 Supportive assistance: Activities and assistance that make the potential entrepreneurs to
conduct their operations. These are called supportive assistance. For example: Arranging
finance and other materials, helping in marketing the product etc.
 Sustaining assistance: Activities and assistance that is provided to the existing entrepreneurs
to continue their enterprise successfully. For example: Help in modernisation and policy
change.
Entrepreneurship development concepts
1. Stakeholders’ determination
Stakeholders are the key and vital for the successful execution of the business or enterprise.
The feasibility of stakeholders determines the success or failure of the enterprise. Feasibility
analysis offers a potential framework for planning and assessing a proposed development including
identifying stakeholders. Stakeholders’ feasibility analysis (SFA) is pivotal for an entrepreneurship
development process in which stakeholders are the focal point and their interest and attitude
ultimately determine the success and failure of an enterprise. There are three basic types of
feasibility analysis that are related to product development. There are technical, economic and
market feasibility analysis (Fig. 5.).

19
 Technical Economic Market
feasibility feasibility feasibility

Fig. 5. Types of feasibility analysis

Technical Feasibility Analysis: Technical feasibility is a standard practice to conduct feasibility
studies before commencing work on a particular project. It is undertaken to assess the practicality
and viability of a product or service before launching a product or establishing a business. Technical
feasibility evaluates the technical complexity of the expert system.
Economic Feasibility Analysis: Economic feasibility is the most commonly used method for
determining the efficiency. It is also called as cost analysis. It helps to identify the profit against
investment expected from a project. The two factor which are most essential in this analysis are cost
and time.
Market Feasibility Analysis: Market feasibility analysis is considered as the most important
analysis. This part of the study helps in describing the current market for the product or service,
identifying the market competition, and potential market.
In generally, at the pre-start-up phase, usually an attempt is made to identify the potential
stakeholders, which produce often unsatisfactory results due to lack of systematic approach while
identifying the stakeholders. The methods used for stakeholders analysis are,
1. Power/ interest grid.
2. Power/ influence grid.
3. Influence/ impact grid.
4. Salience model.
Salience model is a systematic method used for stakeholders’ analysis and classifying the
stakeholders (Fig. 6.). Salience model is a method used for classifying stakeholders and to decide
their contribution based on three attributes viz., power, legitimacy and urgency (Mitchell et al.,
1997).

20
 Fig. 6. Salience model for stakeholders’ analysis
According to the Salience model, non-stakeholders are those who are not holding any
attribute at the particular point of time. The stakeholders holding any one of the attributes are
determined as dormant (power only), discretionary (legitimacy only) and demanding (urgency
only). There were classified as latent stakeholders.

Similarly, stakeholders holding any two of the attributes were classified as dominant (power
and legitimacy), dangerous (power and urgency) and dependent (legitimacy and urgency). These
three stakeholders were categorized into broad category called expectant stakeholders. The
stakeholders who are holding all the three attributes and influence the business start-up are classified
as definitive stakeholders. Those who are not holding any attributes are known as disinterested
stakeholders (Table.1).
2. Product development
Any enterprise should be operative when the products are ready for sale. Product
development is the integrated step of the business. Product development strategy refers to the
methods and actions used to bring new products to a market or modify the existing products to
create new business. It comprises several steps from producing an idea till distributing the products

21
to consumers. Product development strategy is the process of bringing a new innovation to
consumers from concept to testing through distribution.

Fig. 7. Stages of product development process

The value addition in fish and fishery products is highly in demand due to its nutritional
value both at national and international levels. Value addition means adding extra value to the fish
and fishery products based on the market/ consumer requirements. The value addition ranges from
live fish to ready-to-serve convenience products. In general, value additions are the activity of
adding value to the activity in one or another way.
3. Marketing and Marketing mix
Marketing is the activity which follows the product development. Marketing is part of the
product development strategy that refers to the methods and actions used to bring new products to a
market or modify existing products to create new business. In marketing, it is important to study the
marketing mix for the success of the product with fullest consumer satisfaction. The starting point
for the decision process is provided by the company's marketing stimuli in terms of product,
promotion, price and distribution strategy. In the economic perspective, the basic 4P’s are most
important factors for the success of fish-entrepreneurship viz., product, price, people and profit.

Product Price People Profit

Fig. 8. 4P’s of the Marketing

Product is the prime factor of the enterprise and product development on which all the
entrepreneurs should ensure the availability of product through out time without breaking the supply
chain.
Price is the second important factor but in consumer point of view, it is a crucial factor in deciding
the purchase behaviour of consumers.

22
People are the vital determining factor of the products developed by the entrepreneurs, hence it is
prime important to incorporate the likes and dislikes of the customers for the development of the
enterprises.
Profit is the viable factor of the enterprise and ultimately determines the success of the products.
When the above three factors viz., product, price and people are considered properly, the enterprise
will earn profit in long run.
Later, the four components were extended in to seven components of marketing mix which
are very essential for an entrepreneur. Besides, the seven P’s, the distribution channel of the product
i.e., how the product is
Channelized to the consumers in fisheries, the common fish marketing channels are,
(i) Producer – Retailer – consumer,
(ii) Producer - wholesaler – Retailer - consumer
(iii) Producer - commission agent - wholesaler – retailer- consumer
(iv) Producer – wholesaler - commission agent - retailer consumer
(v) Producer – commission agent – wholesaler-commission agent – retailer-
consumer.

Fig. 9. Seven P’s of Marketing mix

(vi) Producer to consumer (Best Channel)

At present, direct marketing and online marketing are gaining popular as per the consumer
requirements. Entrepreneurs should focus on ‘ideal’ product which is preferred most by the
consumers by strategically incorporating the various ‘P’ elements of marketing mix.

23
 Table 2. Components and features of marketing mix

Components Aim/ target Features

Product What to sell? Quantity, quality, species, size
grades, packaging
Place Where to sell? Channels, location and transport
Price How much to sell? Market price Margins
Promotion Product visibility Promotional agencies
People Consumers Consumer satisfaction
Process Which product to sell? Value addition
Physical environment Infrastructure Icing and cold chain facilities

4. Market competition
Every market has competition. The strategy is to increase the market through mitigate the
impact of competition. The ability to reliably measure, track and compare the competitive intensity
of a market is extremely valuable to competition authorities and other policymakers to inform
decision-making. The fact that competition is a complex notion, and therefore not directly
observable, has resulted in the development of numerous methods to capture and measure the
degree of competition in markets over the years (OECD, 2021). The way forward to face the market
competition is through estimation of marketing efficiency and enhancing the product quality.
4.1. Marketing efficiency
Market efficiency refers to the degree to which market prices reflect all available, relevant
information. Market efficiency refers to the ability possessed by markets to include information that
offers maximum possible opportunities for traders to buy and sell securities without incurring
additional transaction costs. The concept of market efficiency is closely linked to the efficient
market hypothesis (EMH). Marketing efficiency is the degree of market performance.
4.2. Estimation of marketing efficiency
Marketing efficiency can be estimated using the following methods.
i. Conventional method

24
ii. Shepherd’s formula

iii. Acharya’s approach

iv. Price spread

Price spread is defined as the difference between the price paid by the consumers and the
price received by the producer for an equivalent quantity of produce produced. It is expressed as
percentage of consumer’s price. It is the common method used to estimate the marketing efficiency.

* 100

The linkages in market needs to be explored for the sustainable production and timely
delivery of products in long run. Market linkage is the identification of the products and linking the
same with commercial buyers through various marketing channels. dentification of the farmer's
products and linking them with commercial and institutional buyers.

5. Consumer satisfaction
Consumer is the king and whose wish and preferences makes the product a ideal product.
Consumer behaviour is mainly concentrated on three elements viz., product-specific, person-
specific and situation.
• Product specific: Consumer behaviour depends on the nature of the product.
• Person specific (individual): Consumers behave differently due to needs, personalities and
values.
• Situation: Buying behaviour is dependent on the given situation.

Hence, the success of entrepreneurship will be assessed through consumer satisfaction and
repeated purchasing behaviour for the particular product. The consumer preference towards a
product depended on various factors/ parameters.

25
 Design Size
and and
colour weight

Time Shape
of sell and form

Nutriti
Storage
onal
methods
value

Packagin
g Brand
material

Cooking Packag
methods ing

Fig. 10. Factors determining the consumer preference

6. Economics aspects for entrepreneurship development
Economics involves logical solution to the problem. Economic analysis is sales, cost, profit
projections of a product proposal. The major purpose of economic analysis is to serve as a basis for
a decision as to whether the corporate resources should be committed to the development of new
product. The starting point for any economic analysis should be an estimate of total market
potential. Besides, the basic aim of economic analysis is revolving around two aspects viz., cost
minimisation and yield (revenue) maximisation. Product development involves various factors of
production such as land, labour, capital and profit. These factors of products incurred capital
formation which requires investment based on the scale of production. Investment is inevitable
while considering product development as part of enterprise development.
6.1. Investment
Investment is application of money to earn more money. This process of analyzing financial
stability before a business/ entity. The investment should perform in an appreciating way with the
following features.
• Return – Major benefit expected from investment.
• Risk – Loss of principal amount of investment.
• Safety – protection of principal amount and expected rate of return.
• Liquidity – investment ready to convert into cash position.
6.2. Depreciation
Investment on equipment and machinery shows a kind of utility which is expressed as wear
and tear cost, i.e. depreciation. It is a reduction in the value of an asset over time, due in particular to
wear and tear on fixed assets. Depreciation is an accounting method of allocating the cost of a

26
tangible asset over its useful life to account for declines in value over time. The simplest and most
straight forward method of depreciation is straight-line depreciation. It splits an asset’s value
equally over multiple years, meaning you pay the same amount for every year of the asset’s useful
life. It is a good option for small businesses with simple accounting systems or businesses where the
business owner prepares and files the tax return

6.3. Cost estimation

Cost is an expenditure required to produce or sell a product or get an asset ready for normal use.

In other words, it’s the amount paid to manufacture a product, purchase inventory, sell merchandise,
or get equipment ready to use in a business process. Cost may be either direct or indirect. In terms
of product development, the costs include fixed costs, variable costs and total costs. The costs on
raw material, labours, equipment and machinery, miscellaneous are the part of variable or
operational costs besides fixed costs on assets.
6.4. Revenue estimation
Revenue meaning is the money that is produced by carrying out normal business operations
and is calculated by multiplying the average sales price by the number of items sold. It is the total
sum of money from which other costs and expenses are subtracted to calculate net income.

6.5. Profitability analysis

Profitability is the degree to which a business or activity yields profit or financial gain.
Profitability is measured with income and expenses. Income is money generated from the activities

27
of the business. Profit and profitability are not same. It has some differences. Profit is an absolute
amount, profitability is a relative term. It is the metric used to determine the scope of a profit of an
enterprise in relation to the size of the business. Profitability is a measurement of efficiency and
also ultimately its success or failure. It is a business's ability to produce a return on an investment
based on its resources in comparison with an alternative investment.
6.6. Return on investment (ROI)
Return on Investment (ROI) is a popular profitability metric used to evaluate how well an
investment has performed. ROI is expressed as a percentage and is calculated by dividing an
investment's net profit (or loss) by its initial cost or outlay. It is most commonly measured as net
income divided by the original capital cost of the investment. The higher the ratio, the greater the
benefit earned.

6.7 Breakeven point (BEP)

Break-even point is calculated by dividing the fixed costs of production by the price per
unit minus the variable costs of production. The break-even point is the level of production at
which the costs of production equal the revenues for a product.

Fig.11 Break-even point

6.8. Payback period (PBP)
Payback period can be defined as period of time required to recover its initial cost and
expenses and cost of investment done for project to reach at time where there is no loss no profit i.e.
breakeven point. It is the difference between initial investment and cash flows. It is the amount of
time required to recover the cost of an investment.

28
6.9. Economies of scale
Economies of scale refers to the phenomenon where the average costs per unit of output
decrease with the increase in the scale or magnitude of the output being produced by a firm.

Fig. 12. Economies of scale

6.10. Preparation of detailed project report (DRP)
Detailed Project Report (DRP) is a complete document for investment, decision making,
approval and planning. It is the base document for planning and implementing the project. It
describes how bankable projects can be helpful in achieving required performance. A good project
report should contain the following information towards satisfying the funding sources.
• Brief information about the project.
• Experience and skills of the people involved in the promotion of the project.
• Details and practical results of the industrial concerns of the promoters of the project.
• Project finance and sources of financing.
• Government approvals.
• Raw material requirement.
• Details of the requisite securities to be given to various financial organizations.
• Other important details of the proffered project idea include information about management
teams for the project, details about the building, plant, machinery, etc.
6.11. Investment analysis
The practice of evaluating an investment for profitability and risk is known as investment
analysis. It aims at researching and evaluating a security, to predict its future performance, to
determine its suitability to a specific investor and to involve evaluating or creating an overall
financial strategy. The common project evaluation methods to be estimated to justify the worth and
viability of the project includes,
1. Net Present Value (NPV)
2. Benefit-Cost Ratio (BCR)
3. Internal Rate of Return (IRR)

29
6.11.1. Net Present Value (NPV)
NPV stands for Net Present Value. It represents the positive and negative future cash flows
throughout a project’s life cycle discounted. NPV is calculated by taking the present value of all
cash flows over the life of a project. Then, the present value of cash flows is subtracted from the
investment's initial investment. If the difference is positive (greater than 0), the project will be
profitable.

Where,

I = discount rate
t = time of the cash flow
6.11.2. Benefit-Cost Ratio (BCR)
The benefit-cost ratio (BCR) is an indicator showing the relationship between the relative
costs and benefits of a proposed project, expressed in monetary or qualitative terms.

If a project has a BCR greater than 1.0, the project is expected to deliver a positive net
present value to a firm and its investors. If a project's BCR is less than 1.0, the project's costs
outweigh the benefits, and it should not be considered.
6.11.3. Internal Rate of Return (IRR)
IRR or Internal Rate of Return is a form of metric applicable in capital budgeting. It is used
to estimate the profitability of a probable business venture. The metric works as a discounting rate
that equates NPV of cash flows to zero. The formula for calculating IRR is,

30
6.12. Pricing of the product
Price is most attractive and decisive factor of consumer purchase of particular commodity.

Fig. 13. Price discovery in markets

Price linkages between markets are the important areas of marketing research towards deciding
their competitiveness. Market integration is still an important issue for price differentials induced by
supply shocks. Price transmission analysis is used to find out the degree of integration of markets.
Fundamental law of the one price policy implies that price differential does not exceed the transport
and transaction cost. The general pricing policies are based on,
(1) Marketing cost
(2) Profit-Margin Desired
(3) Competitors’ Pricing
(4) Government’s Policy of Price-Control
It is essential to have a inclusive, participatory and sustainable marketing system for the benefit of
both producers and consumers.
7. Risk management
Risk involves uncertainty about the effects/implications of an activity. Risk implies future
uncertainty about deviation from expected earnings or expected outcome.
Table 3. Risk faced by the entrepreneurs

31
 In terms of product development/ enterprise development, risk can occur at any stage but
with strategic techniques can be helpful in managing the risk. There are technology risk, market
risk, organisational risk and financial risk. Product development is a crucial stage of an enterprise
which requires strategic planning and execution in a systematic and economic way. It is highly
critical for product development using fish and fishery products due to its perishability. The
economic viability of the product development in an enterprise requires proper economic analysis
and marketing strategy throughout the fish supply chain. At the present stage, the green technologies
for the sustainable development in product development needs consideration. Entrepreneurship
development is a broader term with deeper ideas and techniques that needs strategic planning,
execution and follow-up throughout the business viz., pre-, during and post- entrepreneurship phase.

References
1. Acharya, S. S. & Agarwal, N. L. (1994). Agricultural prices - analysis and policy. Oxford &
IBH Publishing Co. Pvt. Ltd., New Delhi.
2. Jeyya Jeyanthi, Pe and Mohanty A.K. (2019) Stakeholders feasibility analysis: A tool for
successful entrepreneurship in fisheries, Fishtech Reporter, 5(1): 20-22.

32
 Chapter-4

MARINE PRODUCTS BUSINESS INCUBATION FORUM

P. Ganesan

Department of Fish Processing Technology, TNJFU – FC&RI, Thoothukudi-08

Introduction

Start-up is a modern entrepreneurship form designed to realize original business ideas, mostly based
on new technologies and the Internet. It evolves in the development cycle, which is determined by
the business idea development cycle and the financing cycle.
Best business ideas generate high profits and are burdened with low risk. The occurrence of
such opportunities is rare, but they can be assessed according to the following criteria, which are
derived from entrepreneur aspirations and capabilities and the commercial viability of the idea.
1. Identified market need/gap.
2. Identified customers and marketing strategy.
3. No or few existing competitors.
4. Not easily copied.
5. Growing market.
6. High margins.
7. Low fixed costs.
8. Low funding requirements.
9. Financeable (if not sufficient resources, the project needs to be able to attract finance).
10. Identifiable risks that can be monitored and mitigated.
11. Managerial skills that can be leveraged.
12. Scalability.
Many starting entrepreneurs mistakenly believe that their ground breaking business idea will
be equally understood and accepted by customers and that innovation is so superior that it will sell
itself. From the idea to its realization and then the acceptance and purchase of the product or
service, however, there is a long way to go. Finding a good business idea is not just a matter of
chance and fortune. There are also systematic ways to work out the idea. The entrepreneur must
have the skills, abilities, and knowledge necessary for the business. Experience with the industry is
very valuable. Good business ideas are based on commercial opportunities created by market needs.

33
Opportunities can be created through radical or incremental product or market innovations, with
little or no evidence of market need. Opportunities can also be spotted in finding unsatisfied
customer needs. Both approaches are only successful if they are connected with the needs of
customers. For people around the world, fisheries play a major role in nutritional security and in
food production. Fish is known for its high nutrition as it has various essential micronutrients,
minerals, and fatty acids. As India has a vast coastline, it is the second largest producer in the
World. There are more than 10 million of people involved in this sector for making their livelihood
in nearly 4000 coastal regions (Indian National Fishery Sector Overview). Tamil Nadu contributes
7.32 % to the overall national production. The capacity of the income generation of an individual is
directly related to the development of society.
In our institute, EDI-MPBIF is providing many business opportunities for entrepreneurs who are
having ideas about start-ups. We are having incubation and mentoring support for some of the
following value-added fish and fishery products
 Extruded products
 Battered and breaded products
 Bakery products
 Pasta products
 Seaweed products
 Cured products
 Canned products
 Retorted products
 Analog products
 Cosmeceutical products
Value addition is the most talked about word in food processing industry, particularly in export-
oriented fish processing industry because of the increased realization of valuable foreign exchange.
Value can be added to fish and fishery products according to the requirements of different markets.
These products range from live fish and shellfish to ready to serve convenience products. As far as
fish processing industry is concerned value addition is one of the possible approaches to raise
profitability since this industry is becoming highly competitive and increasingly expensive.
There is great demand for seafood/seafood-based products in ready to eat convenience‖
form. A number of such diverse products have already invaded the western markets. One factor
responsible for such a situation is more and more women getting educated and taking up
employment. Reasonably good expendable income, education, awareness and consciousness

34
towards hygiene and health, increased emphasis on leisure pursuits, etc. are some of the other
reasons.
The marketing of value-added products is completely different from the traditional seafood trade. It
is dynamic, sensitive, complex, and very expensive. Market surveys, packaging, and advertising are
a few of the very important areas, which ultimately determine the successful movement of a new
product. Most of the market channels currently used are not suitable to trade value-added products.
A new appropriate channel would be the supermarket chains that want to procure directly from the
source of supply. Appearance, packaging, and display are all important factors leading to the
successful marketing of any new value-added product. The retail pack must be clean, crisp, and
clear and make the contents appear attractive to the consumer. The consumer must be given the
confidence to experiment with a new product launched in the market. Packaging requirements
change with product form, target group, market area, species used, and so on. The latest packaging
must also keep abreast with the latest technology.
Chilled fish
Chilling is an effective way of reducing spoilage by cooling the fish as quickly as possible
without freezing. Immediate chilling of fish ensures high quality products.
Chilled fish is another important value-added item of international trade. Chilled fish fetches more
price than frozen fish. It is generally accepted that some tropical fish species can keep for longer
periods in comparison to fish from temperate or colder waters. Up to 35% yield of high value
products can be expected from fish processed within 5 days of storage in ice, after which a
progressive decrease in the utility was observed with increase in storage days. Modern packaging
techniques viz., vacuum packaging, modified atmospheric packaging and active packaging
significantly enhances the shelf life of chilled fish products.
Frozen fish fillets
Freezing and storage of whole fish, gutted fish, fillets etc. are methods for long- term
preservation of these species. Many varieties of fresh water fishes like rainbow trout, shell fishes,
catla, rohu, tilapia fillets can be frozen for domestic market and export to developed countries in
block frozen and IQF forms. In the importing countries these fillets are mainly used for conversion
into coated products. Fish fillets can also be used for the production of ready to serve value added
products such as fish in sauce and fish salads.
Speciality products
Stretched shrimp (Nobashi)
Increasing the length of peeled and deveined shrimp and minimising its curling by making
parallel cuttings at the bottom and applying pressure using simple mechanical devices is a new

35
technique adopted by the seafood processing industry in recent years. Increasing the length by about
1-2 cms depending on the size of the shrimp is possible by this method. The stretched shrimp will
have better appearance compared to conventional PD shrimp and it also fetches higher unit price.
The stretched shrimp because of its increased surface area will have more pickup of coating during
battering and breading and also good appearance. Shrimp is washed in chilled water containing 5-
ppm chlorine, beheaded, deveined, using bamboo stick and pealed keeping the last segment and tail
intact. The tail is then trimmed and the shrimp is stretched using a metallic stretcher after making 2-
3 parallel cuttings at the bottom side. Stretched shrimps are then packed in thermoformed trays
under vacuum and frozen at -40°C.
Barbecue
Shrimp is washed in chilled water containing 5-ppm chlorine, beheaded, deveined, peeled
and again washed in chilled water. Bamboo stick is then pierced into the meat from head portion to
tail. It is then packed in thermoformed trays under vacuum and frozen at -40°C.
Sushi (Cooked butterfly shrimp)
Shrimp is washed in chilled water containing 5ppm chlorine, beheaded, deveined and again
washed in chilled water. Bamboo stick is then pierced between the shell and the meat from head
portion to tail and then cooked in 1% brine for two minutes at 100°C. The cooked shrimp is then
cooled in chilled water, bamboo stick removed and then peeled completely, including the tail fans.
The ventral side is then gently cut down lengthwise completely using a sharp scalpel. The cut
surface is then gently opened up to form the butterfly shape, packed in thermoformed trays under
vacuum and frozen at - 40°C.
Skewered shrimp
The process is similar to that of barbecue, but piercing is carried out in such a way that 4-5
shrimps are arranged in a skewer in an inverted ― U‖ shape. It is then packed in thermoformed trays
under vacuum and frozen at -40°C.
Shrimp head-on (centre peeled)
Shrimp is washed in chilled water containing 5 ppm chlorine, pealed at the centre keeping
the head and the last two segments intact, deveined, and the tail is trimmed. It is again washed in
chilled water packed in thermoformed trays under vacuum and frozen at-40°C.
Shrimp head-on cooked (centre peeled)
Shrimp is washed in chilled water containing 5 ppm chlorine, deveined and then cooked in
1% brine for two minutes at 100°C. It is immediately cooled in chilled water
and pealed keeping the head and the last two segments intact. The tail is trimmed and again washed
in chilled water. It is then packed in thermoformed trays under vacuum and frozen at -40°C.

36
Battered and breaded fish products
Consumers are looking for better alternative for conventional fresh food that offers time-
saving preparation. Hence there exists an increased global demand for ready-to-heat frozen foods,
especially breaded and battered products with high standards of quality. Battering and breading
enhances the consumer satisfaction by improving the nutritional value, organoleptic characteristics
and appearance of the products. The most important advantage of coating is value addition as it
increases the bulk of the product. Also, this paves way for better utilisation of low cost or
underutilised fishes. Coating is referred as the batter and/or breading adhering to a food product.
Each ingredient in coating offers unique role in development of functionality and characteristics of
the product. Polysaccharides, proteins, fat, seasonings and water are the commonly used ingredients.
The method of product development differs with the type of product. Mostly this includes seven
major steps.
Portioning / forming
A perfectly portioned product is the right starting point. Mechanically deboned fish meat is
formed to different shapes and sizes after mixing with ingredients, if needed.
The product should keep its consistency with proper weight and shape. The key factor in this
production step is speed and accuracy of processing the frozen fish block at minimum costs without
any compromise to the product quality.
Predusting
Predusting is usually done with very fine raw flour type material or dry batter itself,
sprinkled on the surface of food substrate before coating. This helps to reduce the moisture on the
surface of the product so that the batter can adhere uniformly. Flavourings such as salt and spices
can be added in minimum amounts.
Battering
Batter is defined as the liquid mixture composed of water, flour, starch, and seasonings into
which the fish products are dipped prior to breading. Two types of batter are there- adhesive batter
and tempura batter. The adhesive batter is a fluid, consisting of flour and water. Tempura batter is
the puff-type batter containing raising/leavening agents. This forms a crisp, continuous, uniform
layer over the food. The predusted portions are applied with wet batter and excess batter can be
blown off by a current of air. The batter mix helps in governing the amount of bread to be picked up
and it contributes to flavour of the final product. Specific ingredients are used to aid viscosity,
texture and adhesion.

37
Breading
Breading was defined as the application of a dry mixture of flour starch, and seasonings
having a coarse composition to battered food products prior to cooking. Normally the battered fish
portions are dropped in to dried bread crumbs and are turned over to ensure complete coating with
bread crumbs. A fine layer or coarse layer of bread crumbs will contribute to the structure and
tastiness of the product. For soft products, the crumb depth should be fine so as to avoid product
damage on further processing.
Pre-frying/ flash frying
Pre-frying is the process of giving a shallow fry so as to coagulate batter over the product
and lock the flavour and juices to the product. The time of frying and temperature of oil are crucial
factors. This could be done at 180-200°C for 40-60 sec, thus restricting the actual heat transfer to
the surface of the product. The term pre-frying is used as frying will be completed only when the
consumers fry the product for 4-6 minutes depending on the product size.
Freezing
The fish portions are air cooled before freezing. This helps the coating temperature to drop
while the batter can stabilise itself and recover from the frying shock.
Freezing is done at a temperature of -10°C to -20°C in order to preserve freshness and quality of the
product over longer storage periods.
Packaging and storage
Proper packaging and storage is essential to prevent/retard desiccation, discoloration and
rancidity in coated products. Packaging in thermoformed containers and storage at -20°C are most
commonly used for breaded and battered products. The developments in value-added product
industry demands packaging that can withstand the higher temperatures of microwave reheating.
Advantages of coated products
 Enhanced nutritional quality
 Moisture barrier during frozen storage and reheating
 Crispy texture and appealing colour and flavour
 Structural reinforcement of the substrate
 Prevents loss of natural juices
 Increased bulk of the substrate and reduced product cost
 Improved overall acceptability of the product
Battering and breading have contributed significantly to the value addition of fishes, shell fishes and
mollusks. The first commercially successful coated fish item was fish fingers. Later several other
products like fish cutlets, fish balls, fish nuggets, etc. came into the market. Coated butterfly shrimp,

38
squid rings, stuffed squid rings etc. are among the fancy items that cater to the luxury markets.
Sophisticated equipment like meat bone separators, meat strainers, portioning and forming
equipment, preduster, battering and breading machine, fryer, freezers and packaging machineries
are in the market for the preparation of a wide variety of coated products.
Fish finger or Fish portion
Fish fingers, or portions or sticks are regular sized portions cut from rectangular frozen
blocks of fish flesh. They are normally coated with batter, and then crumbed before being flash fried
and frozen. They may be packed in retail or catering - size packs. The typical British fish finger
normally weighs about 1 oz. (28 g) of which up to about 50% of the total weight may be batter and
crumbs. Food Advisory Committee of the UK government has recommended a minimum fish
content of 55% for battered and 60% for fingers coated with breadcrumbs.
Shrimp products
Battered and breaded shrimp can be prepared from wild as well as from farmed shrimp in
different styles and forms. The most important among them are butterfly, round tail-on, peeled and
deveined (PD), nobashi (stretched shrimp) etc. The products from farmed shrimp have indicated
longer shelf life, 16-18 months compared to those from wild variety 12-14 months at –20 oC
Fish fillets
The brined fillets are battered and breaded. Fillets from freshwater fish are also used for the
production of coated products. The only problem noticed in this case is the presence of fin bones; its
complete removal is still a major hurdle.
Squid products
Squid rings and stuffed squid are the popular coated products processed out of squid.
Cleaned squid tubes are cut in the form of rings of uniform size, cooked in boiling brine (3%) for 1-
2 minutes followed by cooling, breading and battering. The coated rings are flash-fried, cooled,
frozen and packed. Stuffed squid is generally processed out of small size animals. The cleaned tubes
are filled with a stuffing mixture prepared using cooked squid tentacles, potato, fried onion, spices
etc. It is then battered, breaded and flash-fried.
Clam and other related products
Meat shucked out from depurated live clams after boiling is blanched in boiling brine,
cooled, battered, breaded, flash-fried and packed. Other bivalves such as oyster, mussels etc. can
also be converted into coated products by the same method.
Fish cutlet
Cooked fish mince is mixed with cooked potato, fried onion, spices and other optional
ingredients. This mass is then formed into the desired shape, each weighing

39
approximately 30g. The formed cutlets are battered and breaded.
Fish balls
Fish balls are generally prepared from mince of low-cost fish. Balls can be prepared by
different ways. The simplest method is by mixing the fish mince with starch, salt and spices. This
mix is then made into balls, cooked in boiling 1 % brine. The cooked balls are then battered and
breaded.
Crab claw balls
Swimming legs of crab may be used for this purpose. Crab claws are severed from the body,
washed in chilled portable water and the shell removed using a cracker. The leg meat is then
removed and mixed with 2 % starch-based binder. This is then stuffed on the exposed end of the
claw. Alternatively, the body meat mixed with the binder also can be used for stuffing. The stuffed
claw is then frozen, battered and breaded and flash fried. The coated products are packed in
thermoformed containers with built in cavities.
Mince based products
Fish mince separated from skin, bone and fins are comminated and used for preparation of
different products. Battered and breaded products like fish fingers, fish balls, cutlet etc. are
produced. Fish cutlets fetch good demand in domestic markets while fish fingers are demanded in
export market. Fish cutlets with partial replacement of fish meat with soy protein will increase the
acceptability and storage stability of fish cutlets. A ready to eat novel battered and breaded snack
product, 'Oyster pablano pepper fritter' have a good scope of attraction in value added markets. Fish
finger from Bombay duck adds on to the value addition potential of fish in our markets. Fish rolls
with good shelf life can be developed from frame meat of fishes, eg: rohu. Fish sausage, cakes and
patties are some other mince-based products.
Surimi and surimi-based products
Surimi, term for the mince that are deboned and washed, also act as an intermediary in development
of various products. It is one among the most consumed product fish. Low-cost fishes can be
conveniently used for the preparation of surimi. Block frozen surimi and surimi-based products are
popular. Shell fish analogue products from surimi fetches good demand in both domestic and export
markets. The history of surimi in India starts in1990‘s with the first surimi manufacturing plant was
set up in 1994. The Indian company Gadre Marine ‘became the third largest manufacturer of surimi,
exporting to 24 countries over the world. This shows the potential for production of surimi and
surimi-based products in India. The demand of these products is less in domestic markets but is
expanding nowadays. These healthy and simple products have great scope in Indian markets as

40
people are moving towards different alternatives. Shell fish analogue products from surimi fetches
good demand in both domestic and export markets.
Ready to serve fish products in retortable pouch
Ready to serve fish products viz. curry products, in retortable pouches are a recent
innovation in ready-to-serve fish products for the local market. The most common retortable pouch
consists of a 3-ply laminated material. Generally, it is polyester/aluminium/cast polypropylene.
These products have a shelf life of more than one year at room temperature. As there is increasing
demand in National and International market for ready to serve products the retort pouch technology
will have a good future. The technology for retort pouch processing of several varieties of ready to
serve fish and fish products has been standardised at CIFT and this technology has been transferred
successfully to entrepreneurs.
Extruded products
Fish based extruded products have got very good marketing potential. Formulation of
appropriate types of products using fish mince, starches etc., attractive packaging for the products
and market studies are needed for the popularization of such products. However, technological
studies involving use of indigenously available starches like cassava starch, potato starch, cornstarch
and the associated problems need thorough investigation. Such ttproducts can command very high
market potential particularly among the urban elites. The technology can be employed for profitable
utilization of bycatch and low value fish besides providing ample generation of employment
opportunities.
Intermediate moisture products (IMF)
The IMF technology is based on the reduction in water-activity of food to a level in which
most bacteria in will no longer grow. Intermediate moisture product from fishes can be made from a
combination of different techniques like drying, pH modification etc.
Seaweed products/Seaweed incorporated products
Seaweed incorporation in fish products increases the fibre content and retention of
PUFA. Nutradrink ‘and fish soup enriched with seaweed bioactive compounds are novel products
developed by CIFT. Sulphated polysaccharides with bioactive properties can be extracted from
seaweed. Seaweed incorporated semi-sweet biscuits and extruded snack products will also have
good nutritional importance.
Fish caviar substitutes
Polyunsaturated fatty acids and amino acids gives the nutritional importance of fish roe.
Besides the commercially available roe from sturgeon, salmon and cod, fish caviar substitute from

41
fresh water carp roe reconstituted with sodium alginate will have a greater potential as value added
fish caviar substitute.
Curing
The traditional methods of processing fish by salting, drying, smoking and pickling are
collectively known as curing. Cured fish consumption is more in areas where the availability of
fresh fish is comparatively limited, namely interior markets and hilly areas. This is also the cheapest
method of preservation, since no expensive technology is used. In India roughly 20 % of the fish
caught is preserved by curing. Considerable quantities of cured fish are also exported, mainly to
Singapore, Sri Lanka and to the Middle East. Simple sun drying was the widely practised traditional
method of fish preservation. By this, preservation was achieved by lowering of water content in the
fish, thereby retarding the activity of bacteria and fungi. The heat was able to destroy the bacteria to
a certain extent. Later on, a combination of salting and drying or salting, smoking and then drying
were developed.
Methods of Drying
There are basically two methods of drying fish. The common one is by utilizing the
atmospheric conditions like temperature, humidity and airflow. This is traditional sun drying. The
other is dehydration or artificial drying, by using artificial means like mechanical driers for removal
of moisture from the fish under controlled conditions. Sun drying depends heavily on the natural
weather conditions since the fish is dried by heat from the sun and the air current carries the water
away. Here there is no control over the operations and many a time the losses cannot be
substantiated. Hence it is necessary that the operations be controlled to get a product, which has an
extended shelf life, but at the same time the texture, taste and flavour is maintained. It is here that
artificial driers where processing parameters are controlled gain a lot of importance. Such processes
are carried out in a controlled chamber or area. Such products have advantages over sun-dried
products since they have better keeping quality and longer shelf life. In mechanical driers, removal
of water from the fish is achieved by an external input of thermal energy. This is an expensive
method since there is need for fuel for heating and maintenance of the temperature. The drying
chamber consists of a long tunnel in which the washed and cleaned fish is placed on trays or racks.
A blast of hot air is Passed over the material to be dried. After the required degree of drying the
product is removed from the drier and packed.
Salting
This is one of the oldest methods of preservation of fish. Salting is usually done as such or in
combination with drying or as a pre-treatment to smoking. During salting osmotic transfer of water
out of the fish and salt into the fish takes place, which affect fish preservation. It is based on

42
different factors like diffusion and biochemical changes in various constituents of the fish. Salting
amounts to a process of salt penetration into the fish’s flesh. Penetration ends when the salt
concentration of the fish equals that of the surrounding medium. Loss of water during salting limits
bacterial growth and enzyme activity, thus preserving the fish. The high salt content prevents the
growth of normal spoilage microflora in the fish; but halophiles, which can survive 12-15% of salt,
will survive.
Preparation of some popular products
Pickled products
Fish pickle makes use of the non-fatty variety of low-cost fish having good meat content.
Major ingredients are: fish, garlic, green chili, ginger, chili powder, turmeric powder, gingelly oil/
ground nut, salt, vinegar, and sugar. The method of preparation of pickle is simple, the preservative
being oil, salt, and vinegar. The traditional packing is in glass bottles. Modern packing materials
suitable for packing fish pickles have also been identified. Pouches and stand packs made of 12-
micron polyester laminated with 118-micron LD/HD co-extruded film can be used for packing
pickles.
Process
Mix the dressed fish with salt at the rate of 3% by weight of fish and dry in the sun /dryer for
2 to 3 hours and then deep fry the fish in oil and keep apart. Then fry mustard, green chilli, ginger
and garlic in oil. When frying is adequate add turmeric powder, followed by chilli powder under a
low flame and immediately remove from the flame and mixed with fried fish and allowed to cool.
Vinegar and salt were added and mixed thoroughly and adjust to a slightly salty taste. Finally, sugar
was added and mixed thoroughly. Stored the pickle in a clean container for at least 2 overnights for
maturing and fill in glass bottles or acid resistant packets (12 μ polyester with 250-gauge LDHD
polythene co-extruded film pouches)
Fish Soup Powder
Fish soup powder can be formulated from any type of fish having very low-fat content. Soup
powder prepared from different food materials like vegetables, meat, egg is in use in different parts
of the world. These are dry products rich in dietary constituents like protein and minerals. The soup
powder prepared out of miscellaneous fish is also a rich source of animal protein and other
nutritional factors.
Fish flakes or wafers
Fish wafers are partially deodourized thin flakes of cooked fish meat homogenized with
starch and salt. On frying the wafers swell to two to three times of its initial size and become crisp

43
and delicious. It is an ideal snack. Fish mince and starch are the base material for the preparation of
wafers
Fish paste
Fish paste is a high value convenience food popular in South East Asia prepared by mixing
fish and salt and allowing it to ferment. This results in the formation of either a paste or a liquid,
which is separated from the residue and is used as a flavoring agent Fish paste can also be prepared
without fermentation. Frozen fish paste is not relished because during storage, texture and spread
ability are adversely affected.
Fish paste is prepared by finely grinding texturized cooked fish meat, gelatinized, starch, sugar, milk
powder, colouring matter and flavour. It was packed in flexible pouches made of co-extruded
polypropylene; heat processed in air steam pressure in an autoclave and stored at ambient
temperature. The shelf life is 36 weeks. It became unacceptable due to changes in texture and spread
ability. Microbiological studies showed that the product is bacteriologically safe for human
consumption. Studies showed that the fish paste is acceptable as bread spread or similar types of
products. The large quantity of low value fish with low fat and white flesh available in India can be
used for making good quality fish paste.
Fish Noodles
This is a product similar to ordinary noodles available in the market, but contains 21%
protein. Surimi is used as the base for the production of fish noodles Table 7). Cooked surimi is
kneaded with salt and maida. The mix is passed through the extruder. Gelatinised noodles is dried
under sun or in an electrical drier at 50oC to a moisture level of 8%. The dried noodle is packed in
airtight containers or polythene bags. The product has very good rehydration property. The above
discussed value-added products have the scope for production and marketing and also can develop
viable entrepreneurial opportunities with betterment of the livelihood of the entrepreneurs.

44
 Chapter-5

LIVELIHOOD DEVELOPMENT THROUGH FRESHWATER AQUACULTURE

S. Athithan

Fisheries College & Research Institute (FC&RI),

Tamil Nadu Dr.J.Jayalalithaa Fisheries University (TNJFU), Thoothukudi

Introduction
Aquaculture as a sunshine sector is providing food, nutritional security and
livelihood to more than 14 million people around the world production in last six decades
i.e., from 0.75 million tonnes in 1950 - 51 to 14.730 million tonnes in 2020 – 2021 which is
account for 19.46 fold increase in 8 decades. The global aquaculture scenario for the year
from 1990 to 2020 is given below: The global aquaculture scenario for the year from 1990 to
2020 is given below:

45
 In last few decades, aquaculture became the fast-growing food producing sector; however, it
still stands inadequate to meet the nutritional demand in the country, particularly in tribal areas.
Almost all small-scale fish farmers of the world (98 %) are in developing countries - mostly in rural
areas and aquaculture component for rural development has had a poor record in many developing
countries.
Aquaculture is one of the most important potential sectors of the national economy. Fish has
been a staple food and its demand is increasing due to growing population and awareness on health
benefits. Aquaculture is emerging as an important solution and the challenge is to make this growth
more inclusive. Given the growing pressure on natural resources and the mounting threat posed by
climate change, it is important to make it more sustainable. Aquaculture has the potential to
generate income and create jobs, especially to the local youth. Being small and less risky, small-
scale aquaculture can be adopted easily by resource poor farmers.
Fish farming in rural areas mainly rely on natural productivity of the pond and can be
enhanced by adding animal manure to the water, which increases carrying capacity of the pond.
Such systems may not generate substantial financial returns to rural communities but a small
increase in food security and nutrition security, particularly in terms of protein, will have a
significant effect on the livelihoods of the rural people.
Sustainable livelihood approach (SLA) aims to reduce poverty and vulnerability in
communities engaged in small scale aquaculture and fisheries. Through SLA the fish farmers are
encouraged to enhance the pond carrying capacity, involve farm family, improve resource
utilization, integrate different components in the fish farming and optimally utilize farm areas and
farm wastes (Cow manure, vermicompost) to enhance the farm income for the family livelihood and
better sustainability.

46
The Inland Water Resources are huge and the potential resources furnished below:
Rivers & Canals- (2, 52,431.48 km)
Small Reservoir- (13,690 Numbers / 17, 76,991 ha)
Medium & Large Reservoir- (829 Numbers / 22, 54,810 ha)
Tanks & Ponds- (92, 00,327 ha)
Brackishwater- (10, 65,500 ha)
Beels / Oxbow Lakes / Derelict Waters- (4, 81,455.93 ha)
Ponds & Tanks- (2.36 million ha)
Flood Plain Wet Lands- (0.2 million ha)
Up Land Lakes- (0.72 million ha)
Other than Rivers & Canals- (9, 63,189.20)
In India, considering the inland aquatic resources available, the most suited. The
livelihood options through small scale enterprises are given below:
1) Composite Carp Farming
Indian Major Carps
Catla (Catla catla)
Rohu (Labeo rohita)
Mrigal (Cirrhinus mrigala)
Chinese (Exotic) Carps
Silver carp (Hypophthalmichthys molitrix)
Grass carp (Ctenopharyngodon idella)
Common carp (Cyprinus carpio)
2) Production of Major Carps
3) Production of Chinese Carps
Steps involved in culture operation
Pond preparation
Fertilization
Stocking
Feeding
Water quality management
Sampling
Harvesting
4) Production of Carp Fry & Fingerlings
5) Production of Cauvery Carp
6) Culture of Common Carp
7) Fish / Cattle Integration

47
8) Fish / Pig Integration
9) Fish / Chicks Integration
10) Fish / Ducks Integration
11) GIFT Tilapia Fish Farming
12) Scampi Farming
13) Cat Fish Farming
14) Magur (Clarias batrachus) Asian Cat Fish
15) Culture of Climbing Perch Fish
16) Freshwater Pearl Culture
17) Culture of Mahseer
18) Culture of Minor Carps & Barbs
19) Murrel Fish Farming
20) Breeding & Rearing of Ornamental Fishes (Live Bearers)
21) Breeding & Rearing of Ornamental Fishes (Egg Layers)
Egg Scatter Laying Non Adhesive Eggs
Egg Scatter Laying Adhesive Eggs
Egg Depositors
Egg Burriers
Nest Builders
22) Freshwater Ornamental Fish Rearing in Hapas in Earthen Ponds
23) Other than Breeding & Rearing are
Natural Collection & Selling
Aquatic Plants Propagation
Fabrication of Aquarium Tanks
Live & Artificial Feeds Preparation
Gold Fish / Koi Carp rearing in Earthern Ponds
Decoratives Works
Maintenance Works on monthly basis
24) Farm Made Fish Feed Preparation
25) LSF Preparation Methods
Extracts obtained from Seaweeds known as Seaweed Liquid Fertilizer
(SLF)
26) Biofloc Technology

48
Summary
There are 4 things farmpreneurs need to know about aquaculture are growing demand for
fish food, fish farming is greener than livestock, aquaculture is technology -enabled, not risky
anymore and creating Livelihood Opportunities in Rural India.
Conclusion
In India, the initiation and expansion of small-scale freshwater aquaculture practices lead to
increased production & augment income generation of stake holders in the Country.
References
1. http://dof.gov.in
2. https://fisheries.tn.gov.in
3. https://vikaspedia.in

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 Chapter-6

NUTRACEUTICALS FROM MARINE ORIGIN AND THEIR IMPORTANCE

P. Ganesan

Department of Fish Processing Technology, TNJFU – FC&RI, Thoothukudi-08

Introduction
Increasing consumer awareness about the relationship between diet, health, and disease prevention
has triggered research and development of new functional foods over the last few years. The aging
of the population, decrease in quality of life due to stress, and high incidence of lifestyle diseases
(cardiovascular disease, obesity, cancer, diabetes, and allergies) represent the driving forces in the
search for different foods and diets that promote healthy active aging, improve well-being, and
prevent the incidence of many diseases. Food is known to play an important role in the prevention
or onset and progression of chronic diseases such as atherosclerosis, obesity, diabetes, hypertension,
osteoporosis, cancer, and cardiovascular disease. The marine environment is a huge source of
healthy food, including seaweeds with several marine species containing a plethora of chemicals,
many of them with biological properties referred to as bioactive compounds. These chemicals can
be extracted and incorporated into several food matrices leading to the development of new
functional foods
According to Health Canada, functional food is similar to conventional food, which is
consumed as part of a usual diet that either provides physiological benefits or reduces the risk of
chronic disease beyond its basic nutritional functions. According to the Food Agriculture
Organization (FAO), functional foods are those foods similar to conventional food in appearance,
intended to be consumed as part of a normal diet containing biologically active compounds that
offer the potential for enhanced health or reduced risk of disease. Foods that besides their nutritional
effects, have demonstrated that they improve the state of health or well-being, reduce the risk of
disease, as well as benefit one or more functions of the human organism are considered functional
food. Functionality could be intrinsic to a feature introduced in the food matrix, improving health or
reducing any adverse health effect, accomplished, for example, by
i) Elimination or promotion of a chemical change of a harmful ingredient.
ii) Addition of new health-promoting food ingredients or probiotic microorganisms in an effective
concentration.
iii) Addition of an existing health-promoting food ingredient, increasing its concentration.
50
iv) Increasing the bioavailability or stability of the health-promoting food ingredient.
The characteristics of the marine environment such as temperature, salinity, light, pressure, and
nutrients are of special importance since due to their broad range of values marine organisms had to
evolve some protective mechanisms and metabolites. Crustaceans, macro or microalgae, fish, and
fish by-products, as well as bacteria and fungi, are the most representative groups of organisms of
potential interest as healthy food or as a source of functional ingredients, which include
polysaccharides, chitin, proteins, and peptides, lipids, pigments, vitamins, minerals, and phenolic
compounds.
The term “nutraceutical” was first coined by Stephen DeFelice in 1989 and consists of two
words nutrient (nurturing element) and pharmaceutical (medicinal component). It had gained
importance in recent years with an increase in the field of health-based research. Nutraceuticals are
the substances that as a whole or as a part are delivered in the form of dietary
supplements/ingredients that are clinically proven to hold health benefits (prevention and treatment
of disease). Marine nutraceuticals refer to the compounds derived from the sea. The potential of
marine nutraceuticals in human health had already been established
Types of marine nutraceuticals
Marine nutraceuticals can be broadly classified as follows: Marine lipids (animal origin and
microalgal origin), Polysaccharides derived from macroalgae, Marine probiotics, Marine natural
pigments, Chitin and other related products, Bioactive marine peptides/enzymes and Vitamins.
I. Marine lipids:
a. Lipids of animal origin
Marine lipids are originated either from fish, crustaceans, or other aquatic organisms. Phospholipids,
sterols, triacyl glycerols, wax esters, and their metabolic products form the main components of
marine lipids. Minor amounts of used lipids like glycerol esters, glycolipids, sulpholipids, and
hydrocarbons are also present in marine lipids. Marine lipids are derived mainly from fatty fish
flesh, lean fish liver, and the blubber of marine mammals. Fish oils and oils from marine mammals
are rich sources of Eicosapentaenoic acid (EPA) and Docosahexaenoic acid (DHA). EPA and DHA
have anti-inflammatory properties. Shrimp contains 1.8-2.6% lipids based on a wet weight basis.
Crustaceans contain much sphingomyelin which is having anti-bacterial and antitumor properties.
Lobsters and crabs contain 08-2.0% of lipids. The lipid content of bivalves is below 1.0% but is rich
in polyunsaturated fatty acids (PUFA) i.e. 50-64%. Lipids contain interesting health-promoting
compounds like sterols and alpha tocopherols. Highly unsaturated fatty acids (HUFA) are found to
reduce the effect of environmental change on the nervous system thereby reducing the stress in fish.

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b. Lipids of microalgal origin
Lipids derived from marine microalgae have a wide range of applications in the larval nutrition of
aquaculture, especially for the enrichment of live feeds. They also exhibit various properties like
anti-inflammatory, anti-allergic, anti-viral, and therapeutic. The wide spectrum of the properties is
due to the presence of various components like PUFA, HUFA, and other substances. Various
microalgal-originated lipid/fatty acids and their activities are given in Table 1.
Table.1 Various microalgal-originated lipid/fatty acids and their activities

Lipid/Fatty acid Activity

Eicosapentaenoic acid (EPA) Nutraceutical; antimicrobial and anti-inflammatory
alpha-Linolenic acid (GLA) The integrity of tissue and delay of aging
Arachidonic acid (ARA) Aggregative and vasoconstrictive platelets
Docosahexaenoic acid (DHA) Nutraceutical and brain development
Brassicasterol and stigmasterol Hypercholesterolemic
alpha-amino-butyric acid(GABA) Neurotransmitter, antioxidant, and anti-inflammatory
Okadaic acid Antifungal, secretion of nerve growth factor (NGF)
Microcolin-A Immunosuppressive

II. Polysaccharides derived from macroalgae

Seaweeds contain higher amounts of the polysaccharides like agar, alginates, and carrageenans.
These act as food fiber and are collectively called phycocolloids or hydrocolloids. Being rich in
fiber, seaweeds exhibit health benefits like reducing the absorption of toxins, and anti-carcinogenic
and antioxidant properties. In addition to the phycocolloids, seaweeds are sources of biologically
active phytochemicals like carotenoids, phycobilins, fatty acids, vitamins, sterols, tocopherol,
phycocyanins, and others. Some of the polysaccharides of the seaweeds and their properties are as
follows:
Table. 2 Polysaccharides of the seaweeds and their properties

Polysaccharide Property

Fucoidan Antioxidant, antiangiogenic and antitumor activities,

anticoagulant, immunomodulating and
Hypolipidemic, anti-inflammatory

Sphinganine amide and Antiviral activity

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 Caulerpa in (green algae)

Carrageenan Antibacterial, anti-tumour, antiviral and anti-

inflammatory activities

Alginic acid and xyloglucans Antiviral activity

Hyperoxaluria Potential blood anticoagulant agent

Sulfated polysaccharides Antioxidant, antithrombin activity, antitumor, cell

recognition, and cell adhesion or regulation of
receptor functions.

Alginate Stimulates the immune system, reduces intestinal

absorption, modulates colonic microflora, and
elevates colonial barrier function

III. Marine probiotics

The microbial diversity of marine environments is very rich and can be helpful to develop
safe and effective probiotics. Novel marine probiotics can be an effective alternative for fighting
antibiotic resistance. Lactobacillus and Bifidobacterium are found to possess anti-mutagenic and
immunomodulatory activity in host animals. Different strains of marine probiotic bacteria are
Lactobacillus (L. casei, L. acidophilus, L. rhamnosus GG (ATCC53013), L. johnsonii La-1),
Bifidobacterium(B. bifidum, B. longum, B. infantis, B. breve, B. adolescentis), Leuconostoc spp.
(Ln. lactis, Ln. mesenteroides subsp. Cremoris, Ln. mesenteroides subsp. dextranicum) and
Streptococcus spp. (S. salivarius subsp. thermophiles). The problem posed during the development
of new marine probiotics is the isolation and identification of the potential strains. The application
of biotechnological and molecular biological tactics is necessary for the development of marine
probiotic strains for use in the aquatic industry.
IV. Marine natural pigments
Marine macro and microalgae provide various types of bioactive compounds. The most
important and striking feature of marine algae is their natural pigments. The natural pigments of
marine algae provide food through photosynthesis and also provide pigmentation. In addition to
these, the natural pigments are also found to exhibit health benefits which make them one of the
important marine nutraceuticals. The marine natural pigments and their health benefits are given in
Table 3.

53
 Table. 3 The marine natural pigments and their health benefits

Natural pigments Health benefits

Chlorophyll a Antioxidant and antimutagenic

Pheophytin a Neuroprotective, Antimutagenic, and anti-

inflammatory
Pheophorbide a Antioxidant
Pyropheophytin a Antioxidant
Phycoerythrobilin Antioxidant
Lutein, zeaxanthin, and Antimutagenic and antioxidant
canthaxanthin

alpha-Carotene Antimutagenic and food additive

Fucoxanthin Antioxidant, anticancer, anti- inflammatory,

antiobesity, anti- angiogenic and Neuroprotective
Siphonaxanthin Anticancer and anti-angiogenic

Phycocyanin Anti-inflammatory and antioxidant

Astaxanthin Strong antioxidant, anti-inflammatory and dietary

supplement

V. Chitosan and its derivatives

Chitosan is a natural polymer derived from chitin and it is the second most abundant
polysaccharide after cellulose. Chitosan possesses special properties for use in pharmaceutical,
biomedical, food industry, health, and agriculture due to its biocompatibility, biodegradability, and
nontoxic nature. Through encapsulation, it is being used as a vehicle for nutraceutical compounds
and pharmacological compounds.
Antibacterial activity
Chitosan disrupts the barrier properties of the outer membrane of gram-negative bacteria due
to ionic interaction between the cationic groups of the chitosan molecules and the anionic groups of
the microbial cell membrane, which can rupture the cell membrane. Sulfuryl chitin, phosphoryl
chitin, and some chitin derivatives prepared by nitrous acid deamination of DAC, inhibited bacterial
growth and increased cytotoxicity of a macrophage cell line. NTM-DAC had higher bacterial
inhibition activity than carboxymethyl chitosan.

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Antifungal activity
Chitosan can also function as an antifungal agent by forming gas-permeable coats,
interfering with fungal growth, and stimulation various defense processes like, the buildup of
chitinases, production of proteinase inhibitors, and stimulators of callous synthesis.
Antioxidant activity
This property could be attributed to the ability of chitosan to chelate metals and combine
with lipids. Derivatives of chitosan, namely, N, O-carboxymethyl chitosan, N, O- carboxymethyl
chitosan lactate, N, O-carboxymethyl chitosan acetate, and N, O- carboxymethyl chitosan
pyrrolidine carboxylate had also exhibited the antioxidant activity.
VI. Bioactive marine peptides/enzymes
Peptides refer to specific protein fragments. The bioactive peptides act as sources of
biological compounds (nitrogen and amino acids) and also have numerous potential physiological
functions within the body. Some of the peptides may exhibit multifunctional properties like opioid,
immunomodulatory, antibacterial, antithrombotic, and antihypertensive activity (Kim, 2012).
Biofunctional peptides have a size range of 2 to 20 amino acid residues and are encrypted within the
sequence of the parent protein and are released during fish processing. They can be formed either by
acid or alkaline hydrolysis. The type of bioactive peptides formed is dependent on two factors: (a)
the primary sequence of the protein substrate and (b) the specificity of the enzyme(s) used to
generate such peptides. The major bioactivities of peptides are as follows: antihypertensive (ACE
inhibitory) activity, antioxidant activity, antimicrobial activity, antihypoallergenic activity, cell
immunity

Peptide bioactivity Marine resources

Big eye tuna (muscle), Alaska pollock, sea bream, yellowfin sole,
ACE inhibitory activity oyster, shrimp, clam, and sea cucumber

Antioxidant activity Big eye tuna (muscle), Alaska pollock, yellowfin sole, horse mackerel
(skin), croaker (skin), conger eel, Hoki fish (skin), squid, oyster,
mussel,

Antimicrobial activity Oyster, American lobster, shrimp, and sea urchin

Antihypoallergenic activity Big eye tuna (muscle), seaweed, pipe fish (muscle), and sea cucumber

Cell immunity Oyster

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Proteins isolated from Dunaliella, Phaeodactylum tricornutum, and Arthrospira platensis are having
potent antioxidant and anti-inflammatory activity which can be effectively used in aquaculture
practices. Similarly, enzymes (Superoxide dismutase and Carbonic anhydrase) derived from
Porphyridium, Anabaena, I. galbana, and Amphidinium carterae can also play an important role in
regulating the metabolite waste (CO2).
VII. Vitamins
Commercially produced cod liver oil is rich in vitamins A and D. Marine microalgae are also
known to have a good amount of alpha-carotene. Microalgae like, Arthrospira, I. galbana, P.
cruentum and Tetraselmis are rich in vitamins C, K, A, E, and alpha-carotene which possess strong
antioxidant activity. Vitamin A (particularly provitamin A, alpha-carotene) and E (particularly
alpha-tocopherol) serve as excellent antioxidants and free radical scavengers that protect cells from
damage by oxidants. Research has shown that vitamin E has several extraordinary beneficial effects
as a specific antioxidant, acting together with vitamin C and alpha- carotene, in improving
antioxidant defences in the body. Fat-soluble vitamin K isolated from Pavlova helps in blood
clotting or coagulation. The role of antioxidant vitamins in health and disease control has been well
documented. These antioxidants may also be defined as substances that interfere with normal
oxidation processes in oils and fats and delay their oxidation.
Marine Sources as Healthy Foods or Reservoirs of Functional Ingredients
Marine sources are known for their phenomenal biodiversity, which offers a strong basis for
their use as a natural source of healthy food as well as for many novel functional food ingredients
with biological properties. Crustaceans, macroalgae (seaweeds) or microalgae, fish, and fish by-
products, as well as bacteria and fungi, are the most representative groups of organisms of potential
interest as healthy food or as a source of functional ingredients, which include polysaccharides,
chitin, proteins and peptides, lipids, pigments, vitamins, minerals.
1. Seaweeds
Considering their great taxonomic diversity, algae or seaweeds, are a very interesting source
of healthy food as well as a natural source of compounds with biological activity that could be used
as functional ingredients. There are about 10,000 identified species of algae and about 5% of them
are used as food, especially in Asian countries as sea vegetables. Seaweeds when incorporated into
diets are low in calories can help in reducing obesity and blood pressure and also are known to help
to overcome free radical stress. Seaweeds are rich in polysaccharides, minerals, vitamins, proteins,
steroids, and dietary fibers in addition to possessing several biological properties such as
antibacterial, antioxidant, anti-inflammatory, anticoagulant, antiviral, and/or apoptotic activities.
The presence of pigments such as carotenoids, phycobilins, chlorophylls, and phenolic compounds

56
make them strongly antioxidant in nature. Some algae thrive in complex habitats exposed to extreme
conditions. To adapt and survive, they produce a wide variety of biologically active secondary
metabolites like acetogenins, terpenes, derivatives of amino acids, phenols, and polyphenols, which
are often halogenated. Algae are generally classified as brown macroalgae (phylum Ochrophyta),
red macroalgae (phylum Rhodophyta), or green macroalgae
(Phylum Chlorophyta). Brown algae owe their color to the presence of the carotenoid fucoxanthin.
Food reserves of brown algae are characteristically complex polysaccharides including laminarins,
fucans, and cellulose, as well as higher alcohols; many bioactive metabolites with different
pharmacological activities such as antioxidant, anti-inflammatory, antitumor, cytotoxic antifungal,
and nematocidal activities, have been isolated from these algae. Green algae owe their color to the
dominant presence of chlorophylls a and b, and the main polysaccharides present are normally vans.
In turn, red algae, which are also considered an important source of many biologically active
metabolites possess phycoerythrin and phycocyanin as the main pigments, and the primary
polysaccharides are agars and carrageenans.
2. Microalgae
Microalgae or phytoplankton are microscopic marine organisms that can be found in
benthic and littoral habitats in the ocean comprising blue–green algae (phylum Cyanobacteria, class
Cyanophyceae), diatoms (phylum Ochrophyta class Bacillariophyceae), dinoflagellates (phylum
Myzozoa, class Dinophyceae), as well as green and yellow–brown flagellates (Chlorophyta,
prasinophytes, prymnesiophyta, cryptophyta, and others). Microalgae play a key role in the
productivity of oceans, constituting the basis of the marine food chain, and are considered important
producers of some highly bioactive compounds. Microalgae have an abundance of PUFAs and
pigments such as carotenoids and chlorophylls -chlorophyll a, phycocyanins, and phycoerythrin
(phycobilins) are the pigments of interest found in blue–green algae. These compounds exhibit
biological properties such as anticancer, antifungal, antibacterial, and immuno- suppressive
properties. Diatoms are photosynthetic organisms that dominate the phytoplankton of cold and
nutrient-rich waters. They produce PUFAs such as eicosapentaenoic acid (EPA), docosahexaenoic
acid (DHA), and other omega-3 FAs, antioxidants fucoxanthin, and chlorophyll. Dinoflagellates’
eukaryotic primary producers are rich in chlorophyll and carotenoids as well as PUFAs.
3. Fish and Fish By-Products
Several million tons of fish and fish by-products are discarded as waste, representing a large
environmental problem. However, fish and fish by-products are known sources of potential
bioactive ingredients such as fish oils rich in PUFAs from fish livers, calcium from fish bones,
protein hydrolysates of high biological value, peptides with biological properties such as

57
antihypertensive activity, amino acids such as taurine, which have antioxidant activity and positive
effects on the cardiovascular system, as well as vitamins and minerals. Fish heads, viscera, skin
tails, blood, and seafood shells possess a plethora of compounds with the potential to be used as
functional food ingredients. Bioactive compounds from marine processing by-products can be
obtained by extraction and purification procedures enabling the isolation of bioactive peptides,
oligosaccharides, as well as FAs suitable for biotechnological applications
4. Crustaceans
Chitin is extractable from crustaceans’ shells, being the second most abundant natural
polymer. Chitosan is a biodegradable and biocompatible polymer chitin derivative. Its ability to
absorb fat is exploited in applications as an anticholesterol agent. Chitosan and Chito
oligosaccharides are reported to have several biological activities (antioxidant, antitumor,
anticancer, hypocholesterolemic, immunity-enhancing, antimicrobial) and hence find application in
food and health industries.
5. Marine Fungi and Bacteria
Marine bacteria and fungi have drawn increasing attention from researchers from all over the
world since they are considered sources of new marine natural compounds. Marine extremophilic
bacteria, for example, are of particular interest since they have metabolic pathways adapted to
various extreme marine environments. Many microbial enzymes and exopolysaccharides from
extremophiles have unique properties. Bacteria derived from intestinal tracts of marine organisms
such as fish have also been researched with interest, since these strains may be new probiotics or
have additional functions such as antibacterial activity. For example, it was observed that
Lactococcus lactis isolates from the intestinal tract of freshwater fish possess different phenotypic
properties, suggesting additional functions in comparison to those derived from a cheese starter.
Much interest has also been focused on marine fungi, which have been studied for their metabolites.
A unicellular marine fungus with a high concentration of γ-amino-butyric acid (GABA), which is a
promising functional and healthy food ingredient. In addition, marine fungi are a promising source
of novel bioactive compounds with anticancer, antibacterial, antiplasmodial, anti-inflammatory, and
antiviral properties.
Functional Foods Incorporating Marine-Derived Ingredients
Marine resources are a source of high-value-added compounds with biological properties to
be used as functional food ingredients. Several types of polysaccharides, such as sulfated
polysaccharides, chitin or chitosan, proteins and protein hydrolysates, peptides, amino acids such as
taurine, omega-3 oils, carotenoids, and other bioactive compounds are examples of compounds that
can be added at different stages, from processing to storage, of the food production process. Since

58
dairy products are widely accepted by consumers, the use of this type of product to deliver bioactive
compounds has received attention from the food industry in the last few years. Functional foods and
natural health products are an emerging field in food science due to their increasing popularity with
health-conscious consumers and are a source of new opportunities for the agri-food sector. Food
products containing marine-derived chitin, and chitosan, as well as oils rich in omega-3 fatty acids,
are some food products that are being commercialized in several markets around the world
including Japan, the USA, and some European countries.
The consumption of functional foods can provide various nutritional/health benefits, with diet
controls and modulating many functions of the body, maintaining good health and homeostasis.
Enhancement of immunity and antioxidant effect is the most studied health benefits. Nowadays,
marine-derived functional ingredients such as fish oils, fish proteins, and seaweeds themselves have
found application in bakery, dairy, confectionery, and pasta products. They are added as fortificants
and nutritional enrichments in food, to form functional foods. More concerted efforts in research
and design of novel marine ingredients-based functional foods are needed to contribute to the
reduction of health problems through diet. Despite the scientific progress in the use of marine-
derived food ingredients, there still are various challenges ahead that have to be overcome:
i) Efficient extraction methods and purification steps, to obtain food-grade validated extracts or
purified compounds with biological properties (antioxidant, antibacterial, prebiotic, and others).
Isolated functional ingredients should rely upon food methods compatible with economically viable
yields. Hence, different extraction methods must be applied to maximize the extraction efficiency of
functional ingredients with biological properties.
ii) To design functional foods based on the incorporation of marine-derived functional
ingredients upon biological validation. Consumers are more inclined to buy functional foods with
physiological health claims.
iii) Foods should have good sensorial characteristics to be accepted by the consumer. In general,
consumers do not compromise their taste for health. This is one of the most important challenges to
overcome in the use of some marine compounds, for example, fish oil.
Conclusions
In the present scenario, people are very health cautious and prefer to consume organic foodstuff
which is free from antibiotics, pesticides, hormones, and other contaminants. The ban on the usage
of antibiotics, pesticides, and hormones in the aquaculture industry improved the farmed fish quality
but still, it needs certain value addition to enhance the health benefits of consumers. Similarly, to
mitigate the stress in culture conditions (present intensive farming practices), in addition, to feeding,
certain compounds are desired by cultured fish. Now, the industry is looking for alternative products

59
which are derived from nature (organic) and have nutritional and health benefits. Marine
nutraceuticals are naturally available organic substances which are having greater health-promoting
factors and are derived from seaweeds, marine microalgae, marine lipids, etc. So, directly or
indirectly, marine nutraceuticals help shortly, to gratify everyone’s (fish farmers and consumers)
necessity for the aquaculture industry and overall enhance aquaculture production.

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 Chapter-7

BUSINESS OPPORTUNITIES IN PREPARATION OF FISHERY BY-PRODUCTS

Th. M. Muruganantham

Department of Fish Processing Technology, TNJFU – FC&RI, Thoothukudi

Introduction
Fish is a versatile food commodity. The expansion of fish processing industry results in the
generation of large quantities of wastes, which are estimated to be reach up to 75% of the total
volume. Fins, heads, skin and viscera of fish are discarded as “fish wastes”. The discard from the
world fisheries exceeds 20 million tons every year, which is equivalent to 25% of the total fish
production, including “non-target” fish, fish processing wastes and by-products. Fish waste
generation has become a global problem that causes significant economic loss. Therefore, it has
been proposed to use fish waste as a potential resource for many by-products. In some countries, the
use of fish by-products has developed into an important industry, with a growing focus on their
handling in a controlled, safe and hygienic way.
Co- Product vs By-Product
In processing of fish wastes into useful products, two terms, viz ‘Co-products’ and By-
products’ are used. The term "co-product" means products derived from fish along with the final
product, ultimately intended for human consumption without subsequent processing (eg. fish cheeks
in fillet operation). The term “by- products” represent the remains of fish resulting after processing,
which are not valued as human food but required to be further processed into usable products.
Therefore, no part of the fish is a waste and each part can be processed into valuable
products, as shown in the picture depicted below (Fig 1.1). In a finfish, head constitutes 9-20%,
backbone 9-15%, trimmings 8-17%, viscera 12-18% and skin 1-3%. Yield of fully developed eggs
(roe) shall vary from 8-27% depending on the species and the stage of maturity.
The total yield of edible portion of finfish accounts for 27 to 40% while that of crustaceans
is 25% for shrimp and 45% for crabs. Molluscan shellfish such as clams and oysters have a low
meat yield of about 10%. The remaining non-edible portion of seafood serves as good sources for
the preparation of several industrial products.

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 Fig 1.1 Waste generated from fin fish Source: Dumay, J. (2006)

By-products produced from fish and fishery wastes

Fish by-products are marketed after further processing to meet the consumer preferences and
sanitary regulations. Traditionally, fish by-products are used in the production of fishmeal, fish oil,
fish protein concentrate, fish hydrolysate, fish silage, fish soluble, fish maws, Ising glass, etc.
Heads, frames and fillet cut-offs and skin can be processed into gelatin, sauces, collagen and other
products for human consumption. Some by-products, in particular viscera, are highly perishable and
therefore be processed while fresh to produce enzymes like pepsin, trypsin, chymotrypsin, and
collagenase.
Fish bones are good sources of collagen and gelatin, calcium and other minerals such as
phosphorus, which are used in food, feed or food supplements. Calcium phosphate present in fish
bone, such as hydroxyapatite, helps to hasten bone repair after major trauma or surgery. Fish skin
from larger fish provides gelatin as well as leather for use in clothing, shoes, handbags, wallets,
belts and other items. Carp and redfish scales when treated using acid/alkali produce collagen
peptides.
Fish scales are treated with suitable solvents to produce pearl essence, a suspension of
guanine crystals. When guanine particles are deposited on the inside surface of solid beads, an
optical effect similar to that of real pearl is obtained. Fish roes are mature ovaries and caviar is the
processed fish roe. Fish roes are nutritionally important as they possess lipid rich in essential fatty
acids and protein rich in essential amino acids.
Shark fins are used to make a traditional shark fin soup in the Chinese culture and it is one of
the most valuable fish products in the world. Only the fine collagenous fibers called “needles” that
support the fin margin, are used in soup preparation. Shagreen is an untanned shark skin, with the
rough denticles attached. It is used as sandpaper in woodwork and other industries. It is also used to
cover sword hilts (providing a slip-free grip) and as a striking surface for matches. Shark skin is
largely used in leather preparation. Shark skin is tanned in a similar way as that of skins of other

62
animals. Shark leather is used to make a variety of products including furniture, bookbinding, shoes
and handbags. Shark liver is also eaten as food in China and the Solomon Islands. The liver is
cooked fresh or salted prior to product preparation. Shark liver is rich in various hydrocarbons. Oils
extracted from shark livers are used in the farming and textile industries as lubricants, in cosmetics,
as lamp fuel, as a wood preservative on boat hulls and in the pharmaceutical industry. Shark teeth
are used in handicrafts.
Squalene is a highly unsaturated aliphatic hydrocarbon found in the liver of deep-sea
dogfishes (Order: Squaliformes). Squalene is used as a fine lubricant because it is stable over a wide
temperature range (-75ºC to 330ºC). It is widely used in skin creams to soften skin, as moisturizer to
speed up wound healing and as a bactericide.
Production and processing of crustaceans and bivalves generate huge quantities of shell
wastes. The efficient use of shell wastes is important not only to maximize financial return but also
to address waste disposal problems. The degradation of shell wastes is a slow natural process. Chitin
and chitosan are produced from shrimp and crab shells and it has a wide range of applications.
Chitin and chitosan have the ability to form polyoxysalts and films and to chelate metals. Their
optical structure characteristics make them attractive compounds for utilization in medical,
pharmaceutical, food and cosmetic industries, nutraceuticals, bioremediation, gene therapy and
cosmetics. Crustacean shell wastes also yield pigments (carotenoids and astaxanthin) for use in
pharmaceutical industry.
Mussel shells provide calcium carbonate for industrial use. In some countries, oyster shells
are used as a raw material in building construction and in the production of quicklime (calcium
oxide). Shells can also be processed into pearl powder. Scallop and mussel shells are used in
handicrafts and jewelers and also for making buttons. Different kinds of fish byproducts and their
uses are given in the Table 1.1
Table 1.1. Fish by-products and their uses
Fish parts By-product Uses
Fish liver Fish liver oil, Vitamin A Pharmaceutical
Fish body Fish body oil Pharmaceutical
Fish protein & trimming Fish protein concentrate Human consumption
Fish meal, Fish silage, Fish Animal feed
soluble
Fish manure, Fish guano Agriculture
Fish albumin Human consumption
Fish skin & Fish bone Collagen, Gelatin, Fish leather Industrial
Fish scales Animal charcoal, guanine, Industrial
Shagreen
Fish eggs Fish roe (Cavier) Human consumption
Fish viscera Enzymes, Hormones Pharmaceutical, Industrial

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 Fish swim bladder Isinglass Industrial
Shark fins Shark fin rays Human consumption
Shark liver Shark liver oil, Squalene Human consumption
Shrimp shell Chitin, Chitosan, Pigments Industrial, Pharmaceutical
Mussel shell Calcium carbonate, pearl Industrial
powder, handicrafts, jewels
Though many products could be prepared from fish waste, two products viz. fish silage and
chitin are discussed below.
FISH SILAGE
Fish silage is a liquid product wherein whole fish or parts of fish are preserved by addition of acid
or by anaerobic production of lactic acid by bacteria. The necessity of preserving fish by ensilation
arose only with the need to preserve large quantities of pelagic fish catches or fish processing wastes
such as viscera, head, fins, filleting wastes, etc. Fish silage is preserved against microbial spoilage
mainly by lowering pH, which is accomplished by the addition of acid or in-situ production of acid.
The native endogenous enzymes present in fish gut break down proteins into smaller soluble units,
and the acid helps to speed up their activity and prevents bacterial spoilage.

Methods of production
Fish silage are commercially produced by two methods.
Acid preserved silage (External addition of acids):
Acid preserved silage is produced by the addition of inorganic or organic acids (Fig. 5.1.)
Inorganic mineral acids such as hydrochloric or sulphuric acid are more preferred, as they are
reasonably cheap and produce a lower pH than some organic acids such as formic, citric, benzoic
and lactic acids. Organic acids are regarded as “Generally regarded as safe, GRAS” by FDA. The
use of mineral acids causes greater corrosion problems, and hence, the silage has to be neutralized
before use.

 Fish is ground to particle size of not more than 10 mm in diameter.

 Ground fish is mixed well with 3.5% (w/w) of 85% formic acid using a mechanical mixer.
 The acidity of the mixture must be adjusted to pH 4 or lower to prevent bacterial action.
 The mixture is allowed to liquefy for two days at 20 oC or 5-10 days at 10oC or much longer
at lower temperature.
Fermentation is faster at slightly high temperature. The warmer the mixture, the faster is the
process. Therefore, in cold area, it would be necessary to heat the mixture initially; or to keep it in a
warm area until it becomes a liquid. Fish silage made with sulphuric acid can be neutralized with
calcium hydroxide [Ca(OH)2].

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Fermented silage (In situ production of acid by bacterial fermentation)
In fermented silage, fish is mixed with fermentable carbohydrate such as molasses and lactic
acid bacteria (LAB). The lactic acid bacteria produce lactic acid by fermentation and lower the pH.
They also produce bacteriocins, which together with the acid suppresses the growth of spoilage
bacteria and preserves the silage (Fig 5.2).
 Ground fish is made into slurry by mixing with 10% molasses and 30% water by weight.
 The mixture is cooked at 100oC for 10 min and cooled to room temperature.
 Young culture (18-22 h culture) of lactic acid bacterium, Lactobacillus plantarum is
introduced into the slurry, mixed well and allowed to ferment for 72 h.
Commercial enzymes like bromelain (0.7 - 0.9% w/w) is also used in fermented silage
production to accelerate the liquefaction process along with lactic acid bacteria. Liquefaction of the
silage takes about 3 to 7 days, depending on the temperature and nature of raw material. Addition of
15% molasses increases the proteolysis rate and reduces the liquefaction time to 12h. The silage
separates into 3 or 4 layers. The oily layer floats at the top. The middle aqueous layer forms most of
the silage. The bottom layer consists of sediment or sludge with undigested protein, scales and
bones. The shelf life of the product is not more than 6 months. The loss of tryptophan amino acid is
reported during prolonged storage. The biochemical composition of white flesh fish silage is 80%
water, 15% protein, 4-5% ash and 0.5% fat.
Advantages of fish silage
1. Low capital investment
2. No requirement for skilled labours
3. No smell in silage making process
Disadvantages of fish silage
1. Transportation cost is high due to bulkiness
2. Low marketability
3. Excess oil taints the fish flesh, if fatty fish is used.
Use of fish silage
Fish silage is a nutrient product similar to fish meal and hence, ideal as an animal feed and
a fertilizer. It has high digestibility because of the hydrolyzed proteins. The presence of organic acid
has antibacterial property in the intestine of the animals. Acid preserved and fermented silages are
principally used in animal / cattle feeds as protein supplement. Fish silage is fed directly as part of
the daily feed for pigs, which gives higher growth rates, improved health, and reduced mortality. In
feeding farmed fish, fish silage processed from same fish should not be used. Fish silage can be
mixed with other feed ingredients such as grains (rice bran) and fed to livestock. Fish silage can be

65
used in extruded feeds by replacing part of fish meal (10-15%), which makes stronger pellets. Fish
silage as a fertilizer is a good source of nitrogen, phosphorus, potassium, calcium, magnesium and
trace elements for plants. Fish silage is applied in irrigation water i.e. 2-5% liquid silage to the water
to increase the growth of plants.
Chitin and Chitosan
Chitin is widely distributed in nature and is the second most abundant polysaccharide after
cellulose. The name ‘chitin’ is derived from the Greek word ‘chiton’, meaning a “covering” or
“coat”. The use of chitin was first described by the French chemist, Henri Braconnot in 1811. Chitin
occurs as crystalline microfibrils in exoskeletons of crustacean such as crabs, shrimps, squilla,
cuttlefish and squid pens, and cell walls of fungi. The major source of chitin is exoskeletons of
crustacean such as shrimps, crabs and lobsters. The shell of crustacean consists of 30-40% skeletal
protein, 30-50% ash (calcium carbonate and calcium phosphate) and 20-30% chitin (Fig 6.1).
Shrimp shell is considered to be the major source of chitin production since it contains more chitin
than crab shell.

Composition of Crustacean Exoskeleton

15% Protein
30%
Ash
23%
Chitin
32% Moisture

Fig 6.1 Composition of crustacean shell waste

Chitosan is an important derivative of chitin and is soluble in acidic solution. The conversion
of chitin to chitosan is possible either by enzymatic or chemical hydrolysis. Chitin and chitosan are
bio-compatible, bio-degradable and non-toxic biopolymers.

Chemical structure - Chitin

Chitin (C8H13O5N) is composed of N-acetyl -D-glucosamine (GlcNAc) residues attached by
 (1-4) glycosidic linkage. In native chitin, one out of six GlcNAc residues remains deacetylated.
The crab chitin contains 5000 to 8000 GlcNAc residues. Chitin is characterized into α, β and γ chitin
on the basis of the H bond arrangement. In α chitin, the chains are arranged parallel to each other to
offer more stability and is present in arthropods and crustaceans. In β chitin, chains are arranged
anti-parallel and it is found in marine diatoms and squid pens. In γ chitin, chain arrangement is
complicated (Fig. 6.3.)

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 Fig. 6.3 Chemical structure of chitin

Chemical structure - Chitosan

Chitosan is the most important derivative of chitin obtained by deacetylation of chitin. It is a
linear polysaccharide composed of randomly distributed D-glucosamine (non-acetylated) and N-
acetyl glucosamine (acetylated) attached by  (1-4) glycosidic linkage. Chitosan carries a net
positive charge from amino groups (Fig. 6.4).

Fig 6.4 Chemical structure of chitosan

Production of chitin and chitosan from shrimp shell wastes by chemical method
 Pre-processing step: Shrimp shell wastes are washed in tap water to remove foreign
particles in the shell
 Deproteinization step: Shrimp shells are deproteinized with 4% NaOH at solid to solvent
ratio of 1:5 (w/v) for 1 h at 80oC. The alkali is drained and shells are washed repeatedly in
running tap water to a neutral pH.
 Demineralization step: Shrimp shells are then treated with 3% HCl for 1 h at solid to
solvent ratio of 1:5 (w/v). The acid is drained out and shells are washed repeatedly in
running tap water to a neutral pH.
 Decolorization step: Shells are bleached with 1% potassium permanganate for 30 min and
again with 1% oxalic acid for 30 min. The purified chitin is then dried at 65 oC for 1 h, until
it becomes crispy.
 Deacetylation step: The chitin is treated with 40% NaOH at solid to solvent ratio of 1:10
(w/v) at 80-100oC for 2 h. The alkali is washed out and the residue is washed repeatedly in

67
 running tap water until neutral pH. The resultant chitosan is dried in a drier for 4 h at 65oC.
(Fig. 6.5)

Chitin Chitosan
Fig 6.5. Chitin and chitosan

Yield of chitin and chitosan

Wastes (Dry weight basis) Chitin Chitosan

Shrimp waste 14-27% 20%

Crab waste 13-15% 12%.

Biological method for chitin production

Chitin can also be produced by biological method, which is a green technology with the
application of enzymes and microorganisms. It offers high reproducibility in shorter time, simple
manipulation, less solvent consumption and low energy input. The biological methods use
proteolytic enzymes to digest the proteins and the fermentation process use microorganism to digest
both protein and minerals.
Enzymatic method for chitin production
Chitin extraction requires proteases of plant, animal or microbial origin. Many proteases like
pepsin, papain, pancreatin, alcalase, devolvase, and trypsin remove proteins from crustacean shells.
This is done after or before demineralization. Purified or crude proteases can also be used. Crude
proteases derived from bacteria and fish viscera are cheaper and more common. Crude alkaline
proteases of Bacillus cereus, Bacillus subtilis, and Bacillus majovensis are used to achieve 88%
deproteinization. Alkaline proteases of marine fish and invertebrates are also used. The residual
protein content in shell after deproteinization varies from 6-10%.
Packaging of Chitin / Chitosan
Chitin and chitosan are packaged is a high-density polythene woven gusseted bag laminated
with 100-gauge low density polythene. It is also available as creams, capsules etc. Chitosan
available as powder in 100g and 250g poly jars.
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Potential applications of Chitin and Chitosan
Chitin and chitosan find applications in various fields such as water treatment, biomedical
and pharmaceutical industries, food and beverages, cosmetics, agrochemicals and biotechnology.

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 Chapter-8

TRAITS OF FISH ENTREPRENEUR

R. Santhakumar

Professor, Department of Fisheries Extension, Economics and Statistics,

TNJFU – FC&RI, Thoothukudi-08

Entrepreneur
“An entrepreneur is one who organizes and manages a business undertaking, assuming the
risk, for the sake of profit. The entrepreneur evaluates perceived opportunities and strives to make
the decisions that will enable the firm to realize sustained growth. “An entrepreneur is a person
having specific skill, ability, knowledge, awareness and self-confidence who bears the risk of
operating a business in the face of uncertainty about the future conditions. The term
“entrepreneurship” comes from the French verb “entreprendre” and the German word
“undernehmen”, both”, means to “undertake”. Fish-preneurship means undertaking a new business
venture in fisheries to make it profitable. It comprises of activities as gathering of information,
communication with chain partners, market orientation, strategic decision making, learning etc.
Entrepreneurship involves a lot of ‘special’ skills of the farmer, communication and risk
management, and competencies like leadership, initiative, openness to signals from society, vision,
creativity, self-reflection etc.
Challenges for fishpreneurship
1) Knowledge and skill gap 2) Technology gap 3) Market gap 4) Entrepreneurial gap
1.Knowledge and skill gap
In spite of large numbers of available entrepreneurial fishery technologies, there is weak
linkage of professionals with stakeholders with respect to acquisition of knowledge, capacity
building and interface for instant solutions of field problems. Therefore, frontline extension should
be rightfully utilized to awaken and sensitize the stakeholders about the scopes and opportunities
that are available for entrepreneurship development in fisheries
2.Technology gap
Today the main concern is lack of technology transfer and dissemination to the right people
at right time. Without using the appropriate technology, our products are getting low valued with
poor quality that fails to fetch the market. This indifference to technology is proving to be very

70
expensive. Hence, disruptive extension system needs to be adhered to bring sustainable
development through effective technology dissemination.
3.Market gap
Growers and producers have no access to market or lack proper understanding of market
network as a result middlemen siphon away the profits Marketing expertise ought to be utilized for
such a scenario
4.Entrepreneurial gap
Mostly the Indian farmers lack the basic entrepreneurial instinct to venture for start-up
business. That may be due to lack of entrepreneurial motivation, social responsibility, achievement
planning, risk taking ability, poor market linkage above all proper business plan, which needs to be
addressed through various capacity building programmes.
Five Core Elements of Entrepreneurship
1. Key part of entrepreneurship is to identify opportunities that no one has earlier noticed. Such
opportunities need not be large; these can even be small ones. Creativity and innovation from the
core of entrepreneurship that enables the entrepreneur to think entirely new ways of working.
Creative people are receptive to new ideas generated by other.
2. The entrepreneurs have an ability to apply the creativity to business problems. They understand
the people and environment around them. They can effectively materially resource for the same. It
is not enough to think creatively to think creatively, successful entrepreneurship demands that
thoughts be translated into action and result. They need an ability of getting thing done.
3. Entrepreneur always takes rise. Their main task is evaluating rise for cutting across accepted
boundaries, breaking rules and doing things in a different manner.
4. Entrepreneur focus on creating value by doing things in a cheaper, better and faster manner.
5. They have a sound belief in their ability to change the status quo- the way the things are being
done presently. With their drive and passion to achieve success they change the way things are
being performed
Characteristics of successful fishpreneur
 High achievement motivation
 Readiness for challenge
 Problem solving attitude
 An overpowering need to achieve
 Visionary and goal setting
 Positive mental attitude
 Dealing with failure

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  Objectivity
 Risk taking propensity
 Respect attitude towards money
 Tendency to anticipate developments
 Resourcefulness
 Communication abilities
 Technical expertise
 Spirit of innovation
 Self-initiative and personal responsibility
 Competing against self-imposed standards
 Regularity and dedication to work
 Confidence in self-capability
 Time management
Thus, entrepreneurship can be defined as “creating of value by people working together
toimplement an idea through the application of drive and a willingness to take risk.
Successful entrepreneur
1. Need to achieve: Entrepreneurs have got strong desire to achieve higher goals. Their inner self
motivates their behaviour towards high achievement: most of the people dream of success but do
not take any action towards achieving these dreams. Entrepreneurs with high n-Ach factor act
continuously to achieve the goal and make their dreams come true. For them, winning is
achievement
2. Independence: Most of the entrepreneurs start on their own because they dislike to work for
others. They prefer to be their own boss and want to be responsible for their own decisions
3. Risk-bearing: Entrepreneurs are the persons who take decisions under uncertainty and thus they
are willing to take risk, but they never gamble with the results. They choose moderate risk rather
than play wild gamble. They, therefore, undertake calculated risk which is high enough to be
exciting, but with a fairly reasonable chance to win
4. Locus of control: According to Rotter's locus of control theory, an individual perceives the
outcome of an event as being either within or beyond his personal control. Entrepreneurs believe in
their own ability to control the consequences of their endeavor by influencing their socioeconomic
environment rather than leave everything to luck.
5. Perseverance: Entrepreneur has got the quality of sticking to job he decides to undertake. Once
committed to a specific goal and course of action, entrepreneurs become absorbed to it. They

72
personally solve the problems that come across their way while setting up the project. They also
work sincerely until the whole project is successfully implemented
6. Positive self-concept: Entrepreneurs are always positive in their action. Being an achiever, he
directs his fantasies and dreams towards achievement of worthwhile goals and sets extraordinary
standard of excellence in what he is doing. This is based upon his awareness of SWOT analysis, i.e.
his strengths, weaknesses, opportunities and threats. He utilizes his positive knowledge to support
his thinking. He never exhibits any negative attitude.
7. Ability to find and explore opportunities: Entrepreneurs are always alert to opportunities. They
are very much quick to see and grab opportunities. They exhibit an innovative turn of mind and
convert the problems into viable opportunities. They plan intellectually and anticipate carefully how
to achieve their goals in realizing an opportunity.
8. Flexibility: Most of the successful entrepreneurs measure the pros and cons of a decision and
tend to change if the situation demands. They never feel reluctant to revise their decisions. They are
the persons with open mind without rigidity.
9. Sense of efficacy: Entrepreneurs are always oriented towards action for accomplishment of their
goals. Being confident of their abilities, they find themselves as problem solvers rather than problem
avoiders. They chalk out their goals for future and make planning to achieve them.
10. Openness to feedback and learning from experience: Successful entrepreneurs like to have
immediate feedback of their performance. They modify their plans on the basis of the feedback they
receive from the environment around them. They learn from their experience and never get
discouraged having received unfavorable information. On the contrary, they are stimulated by
unfavorable information to involve themselves sincerely in their own tasks to reach their desired
goals.
11. Confronting uncertainty: Successful entrepreneurs are always optimistic and take every odd as
the opportunity. They maneuver their environment in such a way that the works get accomplished
rationally. Thus, they win by the application of their extraordinary insight and skill.
12. Interpersonal skills: Entrepreneurs are always comfortable while dealing with people at all
levels. They interact with raw material suppliers, customers, bankers, etc... for different activities.
As successful entrepreneurs, they should be persons who like working with others possessing the
much-needed quality of interpersonal skill to deal with people.
13. Need to influence others: Once the entrepreneurs set their goals, they have to play the roles of
manager too. For influencing others (n Power), a low need to establish emotional relationship (low n
Affiliation), and a high need to discipline one's own self (to inhibit over expression of their
personality) are essential

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14. Time orientation: Entrepreneurs anticipate future trends basing upon their past experience and
exposure. They stick to the time pragmatically while doing their jobs.
15. Innovators: Successful entrepreneurs are innovators. They constantly put their efforts in
introducing new products, new method of production, opening new markets and recognizing the
enterprise.
16. Business communication skill: In order to motivate others in the business entrepreneurs must
possess good communication skill. Both written and oral communication skills are necessary for the
entrepreneurs for running enterprise efficiently.
17. Telescopic faculty: Successful entrepreneurs always tend to think ahead. They have got
telescopic faculties which make them think for the future. Future orientation makes them quite alert
to the changing conditions of the time and they tend to produce goods and commodities as per the
changing demands.
18. Leadership: Entrepreneurs should possess the quality of leadership. Leadership is the ability to
exert interpersonal influence by means of communication towards the achievement of goals.
Entrepreneurs as the leaders should provide the necessary spark to motivation by guiding, inspiring,
assisting and directing the members of the group for achievement of unity of action, efforts and
purpose. Hence, entrepreneurs by their own leadership styles and behaviour reduce the problems by
proper handling of situations. Good administrative work depends upon effective leadership of the
entrepreneur.
19. Business planning: Planning implies deciding in advance what, when and how to do a thing.
Entrepreneurs should be equipped with skill and knowledge to prepare their business plan. A
successful entrepreneur always follows the principles of management while planning for his
business. The planning can act as a bridge between the present position and expected future shape of
the enterprise. It provides a sense of vision to the entrepreneurs to cope with risky and uncertain
situation.
20. Decision making: Decision-making skill is a fundamental characteristic of an entrepreneur.
This implies the function of choosing a particular course of action at every stage of creation of an
enterprise out of several alternative courses for the purpose of achieving specified goals. Hence,
decision making is necessary at all times and mostly at conditions of uncertainty and risk.
21. Ability to mobilize resources: Entrepreneurs must have the ability to marshal all the inputs to
obtain the end product. They have to mobilize 6Ms, i.e. Man, Money, Material, Machinery, Market
and Method effectively to realize the final product as entrepreneurship is a function of gap filling
and input completing

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22. Self-confidence: Entrepreneurs must have self-confidence to accomplish the task effectively
and efficiently. They must take decisions on their own in uncertain and risky situation and should
stick to it confidently even if there occur initial setbacks
23. Stress takers: Entrepreneurs are capable of working for long hours and solving different
complexities at the same time. As the captain of an industry or an enterprise, an entrepreneur faces a
number of problems and in right moment he takes right Decisions which may involve physical as
well as mental stress. He can face these challenges if he has the capability to work for long hours
and keep himself cool under monotony
24. Hope of success: Hope of success is a significant quality of entrepreneurial personality.
Entrepreneurs set their goals with a hope of success rather than fear of failure. This is because they
set their goals on the basis of facts and their ability to maneuver them to their advantage.
SWOT analysis
SWOT is an acronym for Strength, Weakness, Opportunity and Threat
SWOT Analysis refers to identifying the strengths, weaknesses, opportunities and threats of
an entrepreneur, person, company or organization. To innovate, an entrepreneur has to make a
diagnosis of the current situation. The diagnosis of the current situation is done by conducting an
Internal Analysis and External Analysis. Analysis of Internal and External Environment together is
called SWOT Analysis. The Internal Analysis will cover the different functional areas like
production, finance, marketing, R & Distribution and so on. More specifically, this may look into
sales volume, market share, profitability and so on. This will reveal its strength and weakness The
External Analysis will do the necessary scanning of the business environment to identify any threat
and opportunities posed on the enterprise, its products or services. More specifically, this will
include the industry performance, competitive activity and a review of the growth and decline of the
user industries
STRENGTH is the positive internal factor and basic asset that would provide competitive
advantage for the growth and development.
Some of the strengths are:
(i) Availability of necessary infrastructure.

(ii) Adequate production capacity.

(iii) Skilled manpower.

(iv) Good manufacturing control.

(v) Low cost of manufacture.

(vi) Good location.

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 (vii) Wide distribution network.

(viii) Motivated staff.

(ix) Efficient management

WEAKNESS is negative internal factor and the liability that can create disadvantage for growth
and development:
Some of the weaknesses are:
i) Rising cost of operations.
(ii) Low level of motivation of staff.
(iii) Non-availability of raw materials.
(iv) Scarcity of capital.
(v) Outdated technology.
(vi) Inadequate infrastructure.
(vii) Shortage of trained technicians.
(viii) Lack of effective coordination.
(ix) Inadequate training in skills.
OPPORTUNITY is positive external factor and the ability to grow and achieve objectives in a
given situation.
Some of the opportunities are:
1) Increase in disposable income.
2) Availability of appropriate technology.
3) Favourable government policies.
4) Availability of different task environment like market information, distribution outlets and
media.
5) Presence of favourable cultural environment
THREAT is negative external factor that blocks the abilities to grow and develop for reaching
ultimate goal Some of the threats are:
1) Shortage of power, water, fuel.
2) Rejection of product in the market.
3) Tough competition.
4) Fiscal policy resulting into increased taxes, duties, imports reservations, licensing
5) Obsolete technology
6) Resource crunch.
7) Changing customer tastes and preferences.

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 8) Prolonged economic depressions.
Skills in marketing of fish products. The skills that could be adopted by farmers in marketing of fish
products successfully include the following. Survey the market to determine the size of fish
products that buyers pay best price. Sort fish products using sizes, colour, species and level of
processing. Package sorted fish in bags, paper cartoons or any other material of one’s choice. Grade
packaged fish products using quantity and quality of fish products. Label the packages appropriately
to give clear instruction to the buyers or consumers. Fix prices for each packaged fish products
based on market survey or demand. Transport packaged fish products to market or showcase them
for sale at better price. Advertise the fish products locally and internationally through media or
middlemen to attract buyers. Sell fish products to effective buyers at an agreed price with evidence
such as receipt. Keep appropriate records of sales of fish products for sustainability, expansion and
future references.
Challenges to marketing of fish Products
Challenges here are situations facing marketing of fish products which need great mental or
physical effort of the agents in order to carry out the operations successfully. These situations test
the abilities of all the marketing agents of fish products in one way or the other. The challenges
include the following. Perishability of fish products: Naturally, fish products are high perishable and
can easily get spoiled within a very short time if not handled properly. This condition forces the
farmers and other marketing agents to sell of their products as soon as possible. Inadequate and poor
processing facilities: Some of the facilities needed to process the products to a form that will enable
the marketing agents to store it safely within a short time are not readily available and not adequate
where available.
Poor quality fish products: The ability of fish products to store for a long time depends on the
quality of processing. Some of the products supplied to the market by the farmers are contaminated
and not well processed because they hasten to remove the products from their hand before they get
damaged. Poor quality fish products spoil during marketing as the products move from one agent to
another.
Inadequate storage facilities: Fish products especially captured fish take some time to be supplied
by farmers which makes its supply seasonal.
This means that fish products have to be stored to make it available all the period of the year. But
storage facilities that could be used for fish products are inadequate among the marketing agents.
This puts the agents under pressure to buy fish in a manageable quantity that can be disposed of
before it gets spoiled. Inadequate transportation system: This involves road and vehicles used for
transporting fish products. The poor road networks and scarcity of haulage vehicles in most

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countries in the tropics make it difficult to move fish products from the area of production to the
area of consumption, abundance to scarcity. Poor road system increases the cost of buying and
selling fish products, reduces payments to farmers and increases prices to consumers. It also results
in loss of fish products along the marketing chain. Small quantity supply: Most of the producers of
fish (farmers) are peasants and engage in small scale of production, as a result, they only supply
small quantity to the market. This forces the marketing agents to buy fish in small quantity
irrespective of their capital, hence increase the cost of transporting the fish products each time of
purchase.
Poor capital: Some marketing agents started with very little capital which makes it difficult for
them to purchase large quantity of fish products, store and transport the products. Poor capital
makes it difficult for wholesalers to buy large fish products of farmers who may want them to pay
for their fish before they get matured for sale. It also hinders retailers from buying enough and
selling their goods to the consumers on credit to keep them. Inadequate marketing
infrastructure: Most markets especially in the village lack infrastructure such as pipe born water,
cold rooms, electricity, telephone services that are necessary for processing and preservation of fish
products to avoid spoilage.
Inadequate marketing information: Most farmers and other marketing agents do not normally get
adequate information on the current market prices of fish products in their store, as such, they sale
of their products or goods with little or no gain. Some lack marketing facilities like telephone,
internet gadgets that could enable them to buy and sell their fish products without actually travelling
to the market or having contact with the customer.
Instability of market prices: The prices of fish products are unstable and have never remained
same for one full year without any fluctuation. The worst of it is that the fluctuation is hardly
forecast or determined by the marketing agents beforehand. The instability of the prices is
advantageous and disadvantageous depending on the fish products and the agents involved. For
instance, decrease in fish products may discourage farmers from increasing the scale of their
production which will affect the quantity of their supply later. In the same vein, decrease in price
will encourage other marketing agents such as wholesalers to buy more fish products from the
farmers and the retailers from the wholesalers but will discourage supply by all the agents including
farmers unless otherwise forced by other unforeseen factors.
Lack of uniform measurement: There is no uniform measure or standard for determining the size,
quantity or amount of fish products to be sold at what prize. The prices are decided by each agent
depending on market situations such as availability of the product, season of the year, location of the

78
market among others. This is why the prices of fish products differ widely among countries in the
tropics and states or cities within a particular country.
Policy in marketing of fish products: Marketing of fish products needs to be carried out within a
supportive policy, legal, institutional, macro-economic, infrastructural and bureaucratic
environment. The marketing agents and others cannot make investments in a climate of arbitrary
government policy changes, such as those that restrict imports, exports and internal produce
movement. The marketers find it difficult to function if their trading activities are hampered by
excessive bureaucracy.
Inappropriate law can interfere and reduce the efficiency of the market, increase the costs of
running business and retard the development of a competitive private sector. Weak support
institutions, such as agricultural extension services, municipalities that operate markets inefficiently
and export promotion bodies, can be particularly destructive. In addition, the ever-present challenge
of corruption can seriously influence marketing of fish products efficiency in many countries in the
tropics by increasing the transaction costs faced by agents in the marketing chain.
Presence of marketing agents: The agents in marketing of fish products are the auctioneer,
wholesaler, retailer and the vendor. These agents have great impact on the sources of marketing,
costs such as transport, commission charges and market margins received by the intermediaries such
as trader, commission agent, wholesaler and retailer. They decide the price to be paid by the
consumer and share of it received by the farmer/producer. An agent or a channel is considered good
or efficient if it makes the produce available to the consumer at the cheapest price and also ensures
the highest share to the producer. The cost of fish products is directly proportional to the number of
the agents involved in the market chain as each agent involved will increase the cost to make profit.
So, the smaller the number of agents involved in a chain, the lower the cost of the fish products. The
stronger the marketing agencies, the better for the marketers and consumers. The agents involved in
marketing of different fish products are summarized thus
 Producer (fish farmer) – fishermen cooperative society – wholesaler – retailer – consumer.
 Producer (fish farmer) – fishermen cooperative society/wholesaler – processing industries –
wholesalers – retailer – consumer
 Producer (fish farmer) – fishermen cooperative society – retailer – consumer
 Producer (fish farmer) – wholesaler – retailer – vendor – consumer
 Producer (fish farmer) – wholesaler – retailer – consumer
 Producer (fish farmer) – retailer – consumer
 Producer (fish farmer) – consumer

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 Chapter-9

PROSPECTS OF CRAB AND LOBSTER FATTENING FOR LIVELIHOOD SUPPORT

N. Jayakumar & R. Santhakumar

TNJFU - Fisheries College and Research Institute

Thoothukudi-08

PROSPECTS OF CRAB FATTENING

The mud crabs inhabit marine as well as brackish water environments. Mud crabs of genus
Scylla, also known as green crabs or mangrove crabs constitute an important secondary crop in the
traditional prawn or fish culture systems in the Asian countries. In India the mud crabs have come
into prominence since early eighties with the commencement of live crab export to the South East
Asian countries which has created a renewed interest in the exploitation as well as in the production
of mud crabs through aquaculture. Crab is exported in the form of live mud crab, frozen whole crab,
pasteurized crab meat, frozen stuffed crab, frozen cut crab without claw, and Frozen cut crab with
claw. The importance of live mud crabs as an export commodity has opened up great opportunities
for crab farming. It has high demand and price in the export market. Culturing of the mud crab is
not economical and hence the mud crab fattening being profitable is practiced. Fattening mud crab
is being undertaken in the states of Andhra Pradesh, Tamil Nadu, Karnataka, Odisha and West
Bengal.
Prospects of mud crab fattening
Mud crab fattening has been considered as most profitable venture and as a method for
small-scale aquaculture as the
 Extensive potential shallow coastal waters, lagoons, brackish waters lakes, estuaries and
intertidal swampy areas are available along the east and west coasts in the country.
 Fattening of crab is profitable, because of the fast turnover, relatively short period between
investment and returns low operating cost, high survival rate due to control of cannibalism and
short rearing period and good market demand for finish product.
 Crab fattening, could be carried out on part time avocation and needs relatively low capital.
Viable technology is available for this small-scale operation and the scope for development is
promising.
 Fattened crabs can be stocked at higher densities (15 crabs/sq m) compared to grow-out
systems (1 crab/sq m) as no moulting occurs and therefore losses due to cannibalism are
reduced to a great extent and

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 Short production time reducing the risk of losing crabs to disease and thus rendering a
higher survival rate for fattening (>90%) compared to grow-out systems (40%).

Crab Species for Fattening

Two s p e c i e s o f m u d c r a b s namely Scylla serrata and S. tranquebarica, are found
in the inshore sea, estuaries, backwaters, coastal lakes and mangroove swamps of all maritime states
on the main land and the creeks and bays of Andaman and Nicobar Islands. Both the species co-
exist in the inshore sea as well as in the inland brackish waters preferring muddy or sandy bottom.
These two species are used for fattening activity as they are relatively abundant in the coastal
area in the inshore sea, estuaries, backwaters, coastal lakes and mangrove swamps. Scylla
serrata is locally called ‘giant mud crab’. The colour is greenish with white polygonal
markings on the swimming and walking legs, chelipeds, carapace and with orange claws. It has
deep serration and pointed frontal spines. The spines at the dorsoposterior side of the merus are
more prominent. Scylla tranquebarica has almost similar features with the serrata species
except that the colour of the chelipeds is purple and polygonal markings are only prominent at
the cheliped and swimming legs and gradually fade towards the anterior walking legs. It has
shallow serrated and blunt frontal spines and the spines at the dorso-posterior side of the merus
are not as prominent as the Scylla serrata. This difference could not be identified at the
juvenile stage. Only when their size is reached sub adult (or) >90 g, Scylla serrata can be
differentiated from the Scylla tranquebarica. The sex of the crab can be identified even at the
juvenile stage.

Biology of Mud Crabs

Mud crabs grow to a very large size of about 22 cm in carapace and about 2 kg in weight.
The crabs belonging to the species S. tranquebarica is free living and grows to a large size with
carapace width of 22 cm and those of species S. serrata have borrowing habit and grow to about
12.7 cm in carapace width. Mud crabs are omnivorous and they feed on a wide variety of food items
such as shrimps, crabs, bivalve molluscs and fish. The females reach sexual maturity at a size of

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about 12 cm in S. tranquebarica and 8.5 cm in S. serrata in the brackish water. Both the species are
continuous breeders with peak breeding seasons which vary from place to place. The peak seasons
of seed abundance is May to October along the southwest coast, December to May in Madras coast
and March to June in the Chilka Lake. Each crab spawns once in two months. The number of eggs
carried by S. tranquebarica are about 1.1 to 7.0 million and by S. serrata are 0.5 to 0.9 million. The
berried females migrate from estuarine areas to the inshore sea. The eggs hatch out in the sea and
undergo metamorphosis and then they migrate to brackish water areas and spread to different parts
of the estuarine systems.
Crab Fattening
Crab fattening is essentially stocking of soft-shelled crabs or water crabs that are held in
smaller impoundments for 20 – 30 days till the shells are hardened and they ‘flesh out’. Crab
fattening can be carried out in ponds, cages or pens. The peak season when the crabs are available
for fattening is between July to November every year. The availability of the water crab in this
region has been p o s i n g a problem especially during the lean season.
I. Crab Fattening in Ponds
Small ponds ranging from 0.1 to 0.5 ha in size with a water depth of 1.5 m are generally
selected for the purpose. The pond should preferably have a sandy bottom. Bunds should have a
minimum of 1.0 m width at the top to prevent crabs from escaping by borrowing through the bunds.
Crabs are capable of climbing over the bunds, which is prevented by fixing overhanging fences on
dykes. Fencing of height between 0.5 to 1.0 m over the dyke is done with materials like bamboo
sticks, bamboo poles and knotless nets, asbestos sheets, fibreglass panels, etc. As the crabs are
highly cannibalistic especially on freshly moulted animals, 'refugee cages' made out of hollow
bamboo pieces, cement pipes or stones are placed inside the pond to minimise mortality.
(i) Water Supply and Drainage
Water exchange is through tidal water. Sluice gates may be used to regulate the inflow and
outflow of the tidal water. The sluice gates are fitted with bamboo screens to prevent the escape of
crabs. In regions where tidal influence is less, sea water is pumped in.
(ii) Pond Management
The pond is prepared by draining out the water. The pond is then allowed to dry in sunlight
before the liming is done. The water is let in during the high tide or sea water is pumped in to a
height of 1.5 m.
(iii) Stocking
Soft-shelled crabs of size 8 cm Carapace Width and above or crabs of more than 550 gm are
stocked in the density of 1 crab/m2. The stocking density is normally 1 crab/1 to 3 m2.

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(iv) Water Quality Management
Monitoring of water quality parameters such as temperature, salinity, dissolved
oxygen concentration, pH, water colour and daily transparency is important for the
maintenance of good water conditions. Mud crabs are highly tolerant to varying salinity
conditions, so brackish water would be ideal for crab fattening operation within a temperature
of 23 – 30º C. Optimum range for water quality parameters are as follows: Water temperature:
25 to 35 º C; salinity: 10 to 35 ppt; Dissolved oxygen: 4 ppm; pH: 8.0 to 8.5; Water depth: 80 –
100 cm; Transparency: 30 to 40 cm.
(v) Feeding
Mud crabs are omnivorous and they feed on a wide variety of food items. They feed
preferably on molluscs by crushing them with their claws. They also feed on small crabs, slow
moving animals, small fish and shrimps which they catch as they lie camouflage in the muddy
bottom of their natural habitat. Feed comprises 40% of the total cost of production. If brown
mussel meat is available and cheap, a mixed diet of 75% brown mussel meat and 25% trash
fish is recommended. The crabs are fed 10% of the crab biomass per day twice daily when the
mean carapace length is < 6 cm and 5% when > 6 cm with 40% of the daily feed ration given at
around 7.30 am and 60% given at around 5 pm.
(v) Harvesting
The crabs are harvested after the shell becomes sufficiently hardened and before next
moulting. The harvesting is done by draining the pond and using scoop nets and ring nets with baits.
Harvesting should be done in the early morning hours or evening to prevent mortality of crabs due
to overheating of water at noon time. In a year 9 to 10 cycles of fattening can be taken from a pond.
II. Crab Fattening in FRP Cages
The FRP cage of size 3’ x 3’ x 1.5’ consist of nine chambers. The cages are kept
immersed in water and tied with bamboo poles for support. The cage should be kept in
running water and some coconut leaves are to be spread over cage.

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(i) Stocking in Cages
Mud crabs are acclimated before releasing into cages to prevent thermal and
salinity shock that lead to death. Stocking of mud crabs in the early morning or late
afternoon when water temperature is low is preferable. Mud crab juveniles are stocked
individually in each chamber.
(ii) Feeding
The crabs are fed with clam, mussel and trash fishes at 5 - 10% of the crab biomass per
day twice daily.
(iii) Cage Maintenance
Crabs and cage need to be cleaned once in a week. Settlement of Oyster and plankton
on carapace need to be cleaned.
(iii) Duration of Fattening
The fattening duration is about 20 -30 days. The cages are checked from the 10th day of
stocking for the hard crabs. If hard crabs are found, they need to be harvested from 10th day
onwards and up to 30 days. The survival rate of the crabs is 90%.
(iv) Harvesting
Selective harvesting is the removal of harvestable size and fat mud crabs several times
during the culture period in the range of 500 to 750 gm and above by hand picking method. The
average increase in weight after fattening is around 40 – 50 gm, crabs may be harvested totally at
the end of 20 to 30 days culture by hand picking method. Harvested crabs are immediately placed in
a moist and shady, cool place. Mangrove fronds should be placed in the harvest container. Cool
water is poured frequently on the crabs. The crabs should not be exposed to heat nor should
they be bunched and hanged, as this would reduce the turgidity of the crab mussels. If algal and
barnacle fouling are found on the carapace, they should be removed by brushing.
(v) Packing
The first pair of largest legs with pincers / chelate legs of each crab should be firmly tied
up to the body by jute/nylon thread to avoid fighting among them. A stick should be firmly
placed on the carapace for instant arrest of its movement and the thread needs to be placed in
between the frontal portion of the body and chelate legs. After keeping the chelate legs in
folding posture, the thread should be coiled around their fingers (chelae) and both the ends of
thread need to be put into a double knot at the posterior end of the crab. Wet cloth is kept in
between the packed layers of crabs to enhance moist and cool condition during transport
from place to place. The tied-up crabs are washed with fresh seawater and packed either

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baskets or in perforated thermocol boxes or in wet baskets.

Packing Mudcrabs

Different forms of crabs for export

Prospects of Lobster Fattening
Marine resources of India constitute a coastline of 8118 km, Exclusive Economic Zone
(EEZ) of 2.02 million sq. mt., and a continental shelf area of 0.53 sq. mt. India is the third-largest
fish and aquaculture-producing country, accounting for 7.96% of the total global fish
production. India is one among the top five fish exporting countries in the world. About 17% of
India’s agricultural exports are fish and fish products. In 2021-22, the country exported marine
products of 1.36 million MT, worth of US$ 7.76 billion. In addition to shrimps, India exports
varieties of fish, squid, cuttlefish, octopus, crabs, lobsters, clams, mussels etc. Lobsters are one of
the most valuable and highly priced marine crustaceans in India, as well as an important export
commodity either in live condition or in frozen form.
Lobster Diversity in India
Lobsters are decapod crustaceans belonging to four families: Nephropidae (clawed / true
Lobsters), Palinuridae (Spiny / rock lobsters), Scyllaridae (Sand / slipper lobsters) and Synaxidae
(Coral lobsters). Commercially exploited lobsters in India belong to the families, Palinuridae and
Scyllaridae. Among the 38 species constituting the lobster fauna of India, only four species of
palinurids [Panulirus polyphagus (mud spiny lobster), P. homarus homarus (Scalloped spiny
lobster), P. ornatus (Ornate spiny lobster), Puerulus sewelli (Whip lobster)] and one species of

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scyllarid, Thenus unimaculatus (Flathead lobster / Sand lobster)] significantly contribute to the
fishery.
Lobster Fishery in India
Lobsters are one of the highly esteemed seafood delicacies and currently fetch the highest
unit value among commercially exploited marine resources. Although lobster constitutes only
0.05% of the annual marine fish catch of India (2010–2015), export fetches an average Rs. 196
crores (USD 32 million) in foreign exchange annually. The multispecies resource is intensively
exploited by both artisanal and mechanised sectors, with the latter contributing around 67% of the
total catch. Though lobsters are distributed almost throughout the Indian coast, major fisheries are
located on the northwest, northeast and the southern Indian region. The two north-western states
Gujarat and Maharashtra and the northeast state of West Bengal together contribute an average 65%
of the total annual country catch (2007–2014). P. polyphagus forms 61% of the total annual catch
and is the dominant species along the northwest and northeast coasts. This species is found in
muddy substrates and often near river mouths in depths, less than 40 m. The fishery is dominated by
sizes ranging from 15 - 20 cm in total length. P. homarus homarus, P. ornatus and T.
unimaculatus are the major species constituting the fishery along the southern region. The scalloped
spiny lobster, P. homarus homarus is mainly distributed along the South West and South East Coast
and are caught by traps, bottom set gill nets and occasionally in trawls. This species inhabits shallow
waters mostly between 1 and 5 m in rocky areas and their size in the fishery ranges from 15 - 20 cm.
The ornate spiny lobster, P. ornatus mainly forms a fishery on the South East coast of India in the
Gulf of Mannar. This is one of the largest of the Panulirus species and is caught in gill nets, as well
as in trawls. The fishery is dominated by sizes ranging from 25 - 35 cm. The major share of the
lobster landing in India is held by the trawlers, forming 67% of the total annual catch. The share of
the state of Gujarat to the total annual lobster landing is 28%, followed by Maharashtra, 27%; Tamil
Nadu, 15%; Kerala, 13%; West Bengal, 10%; and Andhra Pradesh, 5% (2007–2014). The deep-sea
lobster fishery is centred around the southern region with meagre landing in recent years.
Prospects of Lobster Fattening
India is one of the prominent countries in lobster production with the annual catch
fluctuating between 2000 - 3000 tonnes. Fishery trend showed that lobster catch increased from an
annual average of 1562 t during the period 2003 -2014 to 2466 t during 2015 - 2019. Lobsters,
especially live ones have a prominent place in the sea food export market in terms of both demand
and price from countries such as Japan, Korea, China, Taiwan, Europe and United States of
America. The main lobster landing centers in India are Veraval, Mumbai, Kozhikode, Colachel,
Mandapam, Thoothukudi and Chennai. The ever-increasing demand for Indian spiny lobsters in the

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world sea food market and high price have led to over exploitation of the lobster resources in the
seas around India. Unlike the American lobster, which has a relatively short larval life (several
weeks), the rock (spiny) lobster has a larval life of about six or seven months. The technical
difficulties presented by the fragile, demanding requirements of the early life stages discount the use
of traditional hatchery methods. The advantage of lobster fattening is that it skips that difficult stage
of larval life, allowing the capture of juvenile lobster for commercial cultivation. The best way of
utilizing the juveniles is to fatten them to bigger sizes for value addition. Fattening can be used for
value addition of bigger lobsters and for growing lobsters in late or early moult stages, which do not
survive transportation. This has led to the need for farming the lobsters, utilizing vast resource of
juveniles that are caught and underutilized. Live lobsters of P. ornatus weighing 500 g 1000 g are in
great demand in the South East Asian market. Medium sized P. homarus and P. potyphagus are
exported as whole cooked and frozen to Japan and other European countries. P. ornatus is the most
promising species as it grows faster in captivity. Since they attain maturity only at a larger size (700
- 800 g weight), juveniles of this species are most suited for fattening to the target size of 500 g,
which could be achieved in 3-4 months. Fattening of larger sizes (300 - 350 g) to the prime size
might be possible in three months. Lobster fattening can be carried out in indoor (Cement tanks) and
outdoor systems (Sea cages).

P. polyphagus P. homarus homarus

Juvenile Lobsters

P. versicolor P. ornatus

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Fattening in Indoor Systems
The indoor system required for fattening comprise of rectangular cement tanks of about 5
tonne capacity (4 m x 2.5 m x 0.75 m). Aeration pipes need to be fixed along the bottom of the tank
to ensure a uniform water circulation. Materials such as PVC pipes, hollow cement blocks or
boulders, tiles etc., should be provided as hide-outs. About ten lobsters can be stocked per square
metre. All species of lobsters can be held together for the fattening purpose. The major steps
involved in fattening are collection and transport of juveniles to the fattening site, acclimatization
and stocking, feed management, water quality and disease management, sampling and harvesting.
Lobsters weighing around 90 g can be used for fattening as the growth rate is high (35
g/month) in this size range. Careful handling is essential for transportation of live lobster. Animals
have to be acclimatized for two weeks before stocking in fattening tanks. Prior to acclimatization,
animals should be quarantined and fed with the proposed feed (bivalves) for fattening. Stocking can
be done based on the size, ranging from 6 – 30 Nos./m2 for lobsters of size range of 50 – 150 g.
Approximate initial weight of each lobster should be determined so as to know the quantity of feed
that has to be provided to attain target growth of the animals at the end of the fattening period.
Before stocking, newly collected lobsters should be maintained in well-aerated clean seawater tanks.
Natural food items such as mussels, clams, squids, trash fish etc. could be used as fattening diets.
Artificial diets could be used as supplementary diet for fattening. Initially, 4 - 5 % of body weight
has to be fed to the lobsters and subsequently the feed quantity is increased or decreased depending
upon their consumption. Feeding has to be done only once daily during the evening hours between 4
.00 - 5.00 p.m.
In lobster fattening, the main input is the feed. Although the feed given is live, chances for
the increase in the organic load is still high only. Thus, the water quality management methods such
as aeration, water circulation, and water exchange must be done regularly to maintain optimum
culture conditions for lobsters. Although some general ideas about water quality in tanks can be
obtained from visual observations, a much better picture can be obtained from chemical and
physical measurements such as salinity, temperature, pH, dissolved oxygen, ammonia and nitrate.
80 - 90 % water exchange should be done every morning. The optimal range of physico–chemical
parameters of the culture water to be maintained during fattening period are as follows: Salinity: 30
- 3 5ppt; Temperature: 26 - 33°C; pH: 7.5 - 8.5; Dissolved oxygen: > 4.5 mg/L; Total ammonia: < 1
ppm; Free ammonia: < 0.25 ppm; Nitrate: < 0.25 ppm.
Growth of the lobsters can be assessed by sampling the animals once in every thirty days.
Growth in lobsters occurs through the moulting phenomenon. The frequency of moulting depends
on the size of the animal. Small sized animals have increased moulting frequency than the bigger

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sized ones. Ten days before the date of harvesting the lobsters should be given a quarantine
treatment using 0.5 ppm malachite green for a period of one hour in order to remove the algal
deposits if any in the carapace of lobsters. On the day of harvesting, water level should be decreased
to 0.5 m and lobsters can be harvested using a hand net without damaging the antennae or other part
of the body.
Fattening in Outdoor Systems
The steps involved in outdoor lobster fattening are site selection, cage deployment, stocking,
feeding, sampling, cage maintenance and harvesting.
(a) Iron Cages
Iron cage designed by NIOT has a main frame of 2.5-inch GI pipe with steel woven mesh (2
m x 2 m x 1.2 m) and accommodates four inner cages (0.75 m x 0.75 m x 1. 1 m) with two layers of
nylon mesh with sizes 15 mm x 15 mm (inner) and 5 mm x 5 mm (outer). The volume of each inner
cage is 0.65 m3. A lifting arrangement with pulleys is provided for handling these inner cages at site.
The frame has four buoyancy ‘modules made of polyethylene containers of 200 L each filled with
PUF foam and sealed properly.
Site selection determines the potential yield and cost of shed construction for the fattening
activity. The cages can be deployed about 1.5 km from the shore and juvenile lobsters can be
stocked at a density of 1 5-20/m2. They can be fed with the feeds available near the site like clams,
trash fishes and mussels. Growth performance of the animals can be assessed at an interval of every
thirty days. Periodical cleaning of the cages should be done to remove any adhering organisms. The
animals also should be monitored regularly to check for the presence of any infestations or epibionts
colonizing on them. Depending upon the effort taken by beneficiary the profit will vary.
(b) FRP Cages
FRP cages with following specifications can be used for Lobster Fattening.
 Top (5'×5') Neck (4'×4')
 Main Hold: Top: 1.5 m x 1.5 m; Bottom: 1.35 m x 1.35 m; Height: 1 m; Door size (mouth) –
1.5 x 1.5 feet; with all side holes

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 This cage needs to be placed appropriately using weights in shallow coastal water which is
free of pollution. Short PVC pipes need be provided as hide-outs inside. The major steps involved in
fattening are collection and transport of juveniles to the fattening site, acclimatization and stocking,
feed management, sampling and harvesting as mentioned earlier.

Fattened Lobsters Ready for harvesting Harvested Fattened Lobsters

Conclusion
Crab fattening can be undertaken as an alternative livelihood option for the fishermen /
fisherwomen. This has proved to be a great success not only in terms of generating extra
income to the family but also in creating an awareness among fisherfolk about the value of
marine resources and the need for conservation and sustainable utilization.
Like crab fattening, lobster fattening can also be undertaken as an alternative livelihood
option by the fishermen / fisherwomen. This has also proved to be a great success not only in
terms of generating extra income to the family but also in creating an awareness among
fisherfolk about the value of marine resources and the need for conservation and sustainable
utilization. Meanwhile, lobster fishing should be done responsibly. Catching juvenile and
berried lobsters selectively should be avoided.

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 Chapter-10

PREPARATION OF BANKABLE PROJECTS/DETAILED PROJECT

REPORT IN FISHERIES

T. Umamaheswari

Department of Fisheries Extension, Economics and Statistics

Fisheries College and Research Institute, Thoothukudi

Introduction

Detailed Project Report (DPR) is an essential component of the project and hence to be prepared
carefully. Once the planning and the designing part of a project are completed, a DPR is prepared.
A DPR is a very extensive and elaborative outline (360 degree view) of a project which includes
essential information on resources and tasks to be carried out. It is the final blueprint/practical view
point of a project after which the implementation and operational process can occur. Also, the roles
and responsibilities are highlighted along with the safety measures so that execution can be carried
out hassle-free.
Why DPR?
DPR is a vital document which is mandatory while applying for any project finance. The
financing institute inspects the project report thoroughly to ascertain the various prospects of the
project. The document has the vital data which has been used to appraise any project and fund that
covers data and stats from every aspect of the business e.g., financial, technical, economic,
manufacturing or service-related aspects. To make the financing organisations’ task easy and get
quick loan approval, it’s essential to have a precise, up to the mark & pitch-perfect DPR.
Content of a DPR
A DPR should contain the information related to
• Location
• Land to be used
• Product to be manufactured
• Manufacturing process
• Annual manufacturing capacity
• Pricing of the machinery used for production
• Raw material to be used, necessary electricity, water, number of work force,
advertising and marketing expenses, any other financial aspects

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 • Importantly, the economic viability of the project
Objectives of a DPR
Objectives of a DPR include i) feasibility analysis of any project and ii) to help the financers to get
an in-depth insight into the project on various aspects viz., financial, social, economic, technology
and design.
a) Financial aspect
DPR helps the analysts to get an in-depth understanding of how a business will perform in the future
financially since it contains a projected profit and loss account, estimated sales account, production
cost, estimated revenue, gross profit and net profit. Also, explains the projected cash flow
statements and fund flow statements in the upcoming period of 3 years.
b) Social aspect
Analyzing the relationship between the proposed project and the society is critical as the project
depends on the society for its employment, infrastructure, consumption, profit, marketing and every
other factor that can influence the business. So, it’s vital to understand how the proposed project
will impact on the society and vice-versa. As a business that depends solely on society, it’s
important how it will be following its Social Responsibility. The DPR must have a detailed
dissection of how the project intends to give back to the Society once the production commences.
c) Economic aspect
Every business needs a continuous flow of capital for smooth operations and hence essential to
mention the primary source of funding for the proposed project in the DPR. Apart from funding
from external sources, the information about the owner’s financial status and the details of borrowed
funds should also be mentioned in the DPR. Helps the lender to understand the economic aspects of
the proposed project and how it will operate once they lend money. The estimated cost of the entire
project must be broken down into the following parts:
• Expenses towards the purchasing or leasing of Land
• Construction of infrastructure
• Machinery & equipment
• Preliminary expenses
• Preoperative expenses
• Working Capital
Also helps understand the analysts about expected financial sources along with the norms related to
equity financing and debt financing.

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d) Technology and design aspect
Helps the analysts to understand whether the proposed business will be able to cope with the
rapidly changing technologies and consumer demands. Now the technologies are changing at a rapid
pace. Any business with outdated technology or even technology that is working fine right now but
can’t withstand the onslaught of rapidly changing customer needs cannot survive for too long. So
the lender will be keen to know about the technology that the proposed business will be utilizing to
stay on the top in the future.
Preparation of DPR
The process of preparing a DPR for any financial firm needs a lot of attention and precision.
There is no fixed format for the DPR, but all the financial institution accepts a generalized form.
General format of a DPR
a) Introduction page
Should contain the potential of the business, its needs, finance & fund required.
b) Scope of the proposed project
Should contain detailed information on the performing activities once the business
commence.
c) Details of products and services
Should contain detailed information on the products and services the business is producing.
d) Location of proposed project
Should contain the detailed information about the exact location where the business will be
conducted.
e) Raw material
Must mention the details about the raw material necessary for the project.
f) Equipment and machinery description
Details of all the machinery and equipment required for the project must be mentioned.
g) Details of promoters
Qualification and experience details about the promoters along with their financial status
should be mentioned.
h) Details of employees
Mention the education details and their experience in the relevant industry.
i) Market potential of our product or services
Mention how well the product or service can perform in the market and what is the future
potential for the same.
j) Marketing tactics

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 Mention what marketing routes to advertise the product or services.
k) Estimated project cost
Disclose what the whole project will cost.
l) Utilisation of funds
Explain how the allotted fund will be utilized.
m) Source of financing
Mention of all financial sources.
n) Financial statements
A detailed insight into the previous Balance Sheet, Profit and Loss Statements for the
previous three years and Cash flow statement have to be provided.
o) Profitability ratios and Break-even evaluation
p) Conclusion
Content of DPR
The DPR should include a specific detail about the company consisting of the business
structure, how long the company has been in the relevant industry and other information. Should
also have details about the promoters of the company, their experience and qualification. The
information about the product or the services that are provided is also needed. The DPR must
contain the Market analysis performed before deciding to move ahead with the project. Should
include brief information on the following factors:
• Target Customer Base
• Potential growth
• Nature of Market
• Objectives of sales
• Marketing expenses
• Proposed Market share of the project
• The demand for the product or services at multiple levels
• Distribution channels
The project report must have complete detail on the total capital requirement of the project.
It must have detailed information on the sources of finance too. Apart from this, the information
about the owner’s fund and the borrowed funds must also be included in the DPR. A brief on how
the proposed project will generate employment in the locality and the information related to the
necessary skilled and unskilled labour should be included. Additionally, the plan on how to market
and advertise about the product or services and the plan to carve a niche in the market and any after-
sales services have to be included.

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 The DPR should have precise information about when each phase of the project will start
functioning. The timetable of various proposed activities should be prepared systematically. This
helps the analysts and financial institutes to understand at what stage and what interval finance is
needed.
SWOT analysis for a project is vital for a DPR. It helps the financial institutes to understand
how the business can grow in a highly competitive market. Shows how in-depth market research has
been performed while planning the proposed project. Including a well-planned SWOT analysis in
the DPR can prompt the financial institutes to lend the necessary funds quickly. No financial
institution is interested in investing money in the project unless a detailed feasibility report is
included in DPR. Also, helps the investor understand how feasible the project is and what is its
strength.
Benefits of DPR
• Helps in Cost Benefit Analysis
• Helps in identifying the risk
• Helps in identifying the ROI
• Assure performance for reliable quality
• Assess business weakness and strength
• Helps in getting funding/investment
• Helps in restructuring decisions
• Determines the payback period
• Compares Budgeted Vs Actual figures
Feasibility Study
A feasibility study is an in-depth examination of a project's potential for success and the goal
is to determine whether the project is even possible with the resources the company has, generate
sufficient cash flow to justify its cost, remain viable for the long term and good fit with the
company's mission and other activities
Challenges
Setting clear goals and objectives, Impractical deadlines / Time, Project scope and Budget
are some of the challenges in DPR preparation which need to be taken care and addressed
accordingly to get the financial support from the funding agency to take up any economic activity.

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Fisheries College and Research Institute, TNJFU – Thoothukudi
&
National Institute of Agricultural Extension Management
(MANAGE) Hyderabad