(Patil Pawan G. and M.Krishnan, 1998, The Kandeleru Shrimp Farming Industry and itsimpacts on the rural economy: an empirical analysis, in Ramesh Chand and V.C.Mathur(Eds.), Agriculture Industry Interface, Advance Publishing Concept, New Delhi – 110064,pp.156-173)THE KANDALERU SHRIMP FARMING INDUSTRY ANDITS IMPACTS ON THE RURAL ECONOMY:AN EMPIRICAL ANALYSIS#Pawan G. Patil* and M. Krishnan**Introduction
The role that brackishwater shrimp aquaculture development has played on India'seconomy is substantial. Indian marine exports were the second largest foreign exchange earnerin 1994-95 primarily because of high value shrimp exports to Japan, Europe and the UnitedStates. Shrimp (captured and cultured) constituted 70.2 per cent of the total marine export valuein 1994-95 which slipped slightly to 67.3 per cent in 1995-96 due to fluctuations in export prices.According to the latest export statistics, farmed shrimp alone generated over Rs.1,500 crore forthe Indian economy in 1995-96 (MPEDA, 1996).Amidst its economic boom in the coastal areas, shrimp farming is creating concern over itsdegradation of he environment (Flaherty and Karnjanakesorn, 1995; APO, 1995; Southgate andWhitaker, 1992) and its marginalization of local inhabitants from coastal resources (Sebastini etal., 1994; Bailey, 1988). The markets have yet to incorporate the brackishwater shrimp farmingin India's maritime states. Instead the environmental and social costs associated withrapid growthand development of environmental and social costs associated with this industry's negativeexternalities are often borne by the rural poor, who __________________________ * This research was conducted with the partial support of the Rajiv Gandhi Foundation, New Delhi,India while the first author was serving as the 1996-1997 Rajiv Gandhi Foundation Scholar. Theresults presented in this paper are preliminary and should be treated as such. The overall paperis subset of a wider study:
A Microeconomic Analysis of the Impacts of Brackishwater ShrimpAquaculture on Rural Producers and the Environment in Nellore District, Andhra Pradesh
(Patil, P.G.,London School of Economics, 1997). We would like to thank the staff of BFDA (Nellore) for thetheir assistance in our data gathering efforts. The ideas expressed in this paper are our own anddo not necessarily represent the above mentioned institutions. We alone are responsible for anyerrors.* Corresponding author; London School of Economics, Houghton Street, London WC 2A 2AE,United Kingdom; tel:44-171-837-8888 ext.5921; fax 4-171-713-5158; e-mail:email@example.com** Local Major Advisor to first author and Senior Scientist ( Economics), Central Institute forBrackishwater Aquaculture, Chennai – 600 008, India.