Casestudy 3

Livelihood Intervention through Inland

Fisheries: A case from Andhra Pradesh
Janaki Turaga1

The fishery sub-sector in Andhra Pradesh has witnessed a tremendous growth over the
last two decades. This case study endeavors to document the inland fishery sub-sector in
some detail. The high growth potential of the sector is reflected in the increasing number
of people opting for fishery either as a primary or secondary income generating
commercial activity, and the conversion of large numbers of agricultural lands into fish
tanks. This feature is especially prominent in the two districts of West Godavari and
Krishna. The case study details the growth, key players, major factors that helped growth
and sustainability of this livelihood option. It also examines intervention impact and
implications.

1. Background & Introduction

The inland fishery sector in Andhra Pradesh has witnessed a phenomenal growth since
the mid 1970s and has sustained over the last 25 years. Fish from Andhra Pradesh are
available across the country, more so in the states of West Bengal and the North East,
besides Orissa and Bihar.

The increase in fish production is matched by the growth of the ancillary industries. It
is estimated that approximately Rs 10,995 crores of revenue to the state is generated
from export of fish to other states (Field data March 2001). Government estimates that
currently 14.05 lakh people are employed in the fishery sector, which is expected to
increase to 21.60 lakhs by 2004 (Department of Animal Husbandry and Fisheries
2001).

1 Janaki Turaga is a free lance writer based at Delhi. Case was substantially updated by Aruna Masaruguppi

2. Extensive Spread
The inland fishery is practiced throughout the state in all the 23 districts by fishermen
and fish entrepreneurs in rivers, natural tanks, ponds, artificial tanks, reservoirs,
anicuts and in agricultural land converted into fish tanks. The fisheries department’s
control of the fishing activity is limited to these water bodies.
Traditionally fishing was practiced through capture technique, but in the mid 1970s,
the fisheries department introduced culture fishing in Kolleru lake in Krishna and West
Godavari districts. As a result, culture fishing is primarily concentrated in the two
districts, which have the largest yield and production and are the loci of the growth of
the sub-sector. In these districts, fishing has transcended from a traditional caste
based occupation to a non-fisherman caste based commercial activity.
Of the total fish and shrimp production in the country, 10 percent is the share of the
fisheries sector of Andhra Pradesh. Therefore, the VISION 2020 document of the
Government of Andhra Pradesh, perceives fisheries as one of the growth engines in the
agriculture sector. The yield from fisheries in 1999-2000 was 5.78 lakh tonnes, which
grew from 4.56 lakh tonnes in 1998-99, and for 2000-01, the projected production was
6.20 lakh tonnes.

Of the three sub-sectors in fisheries-marine, brackish and inland, the inland

fishery sub-sector is ranked second in the country, with a production of 3.80
lakh tonnes in 1999-2000 and a potential of 8 lakh tonnes. Fish production is
estimated to increase to 4.00 lakh tonnes in coming years. Inland fishery is
mainly practiced in ‘natural resources’ such as reservoirs, perennial and long
seasonal tanks, anicuts, ponds and rivers.
The trend since the last two decades is conversion of agriculture land into
fishponds. 0.90 lakh hectares of ponds specifically constructed for fish culture
are under fresh water aquaculture in the state. These ponds have the highest
production rate in the country with 3-5 tonnes per hectare. The species used
for culture are major carps and fresh water prawn, the latter being a recent
addition.
Table 1: Year Wise Inland Fish Production in Andhra Pradesh

Year
Quantity i n tonnes Value in lakhs
1990-91
136245 31145.61
1991-92
138876 24997.04
1992-93
51475 39368.35
1993-94
167045 38476.17
1994-95
195128 54282.23
1995-96
203969 55696.64
1996-97
207312 63941.56
1997-98
226314 80432.99

Source: Director of Fisheries, Andhra Pradesh 2000

Fish production is at the rate of 750 lakh kgs per hector- (in what??????,), in reservoirs
it is 30 kgs per hector, and in ponds 1500 kgs per hector. (Director of Fisheries, Andhra
Pradesh 2001).

3. The intervention

The inland fishery in the two districts began from Kolleru lake, which is the largest
fresh water lake in Asia, with a water-spread area of 348 sq miles. Here, the first
technological intervention of culture technique in fish rearing was made with the
traditional fishermen (predominantly belonging to the Vaddi community and some
scheduled caste fishermen) who were subsisting on fishing by capture technique. In
1976, the then chief minister of Andhra Pradesh, Jalagam Vengal Rao, moved by the
plight of the Kolleru fishermen, who were unable to subsist on fishing or on agriculture,
initiated a scheme for their benefit. The Andhra Pradesh Fisheries Department in 1976
initiated the experimental technique of fish culture in Kolleru lake, which succeeded
and was subsequently adopted by farmers near Kolleru lake as agriculture was giving
poor yields. In 1976, the fisheries department conducted numerous awareness and
training programmes for the fishermen of the Kolleru lake area to promote fishing by
culture technique.

The Andhra Pradesh Agricultural Development Bank formulated a scheme, which was
approved by the Agriculture Refinance and Development Corporation (based on the
information given by the AP Fisheries Department and on the recommendations of the
collectors of West Godavari and Krishna districts) with an outlay of Rs 209.26 lakhs for
the construction of 70 fish tanks (AP Fish Dept. 1998). Under the scheme, 35 tanks
were located in the districts of West Godavari and Krishna.

To promote fishing as a livelihood option for the fishermen of the Kolleru lake, Primary
Fishermen Cooperative Society was registered with 100 members and 50 acres, of
which 40 acres was the water spread area and 10 acres was bunds. Members were
allotted 40-50 cents land each by the government, and pattas were issued to enable
them to access institutional finance (G.O. Ms. No. 118 Revenue (Q) Department,
24.1.76).

For the fishermen of the scheduled caste and backward class, separate cooperative
societies were formed, and 10 percent of margin money of the total loan outlay was
given to them. 58 fish tanks were constructed in Krishna district having and area of
2672.00 acres benefiting 4947 fishermen of 58 Fishermen Cooperative Societies. Of the
58 Fishermen Cooperative Societies, 19 are Schedule Caste Service Cooperative
Societies; 30 are Backward Class Service Cooperative Societies and 9 are Economically
Backward Classes Fishermen Societies. Institutional financial assistance for the
construction of 58 fish tanks in Krishna district was Rs 1,42,41,238.00 till 1998. Loan
repayment was almost hundred percent.

In addition, the government issued free licenses for fishing in the Kolleru lake using
basket traps; supplied bamboo at concessional rates for the construction of bamboo
basket traps for fishermen of cooperative societies. During the 1407 Fasali, 49, 1610
fishermen of 14 Fishermen Cooperative Societies were given 170 bamboo traps and the
group insurance scheme paid Rs 35,000/- as insurance to the legal heirs of fishermen
who met with accidental death.

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After the formation of the co-operative fishermen societies, good yields were obtained in
the following years. But apparently, by early 1980s things changed, the societies were
unable to maintain the inputs required and could not repay the outstanding loans. The
reason cited for this was the lucrative nature of the venture. Many middlemen and
brokers entered the field and found a foot holds in the fishing community by giving
generous loans to the fishermen during the lean periods. When there was no harvesting
of fish, they financed occasions like marriages, festivals and other events. This resulted
in larger and larger chucks of income from fish production going to the middlemen
every season; indebtedness increased; fishermen could not clear loans; tanks had to be
auctioned to third party or outsiders by the collector of the district for recovering the
loans.

The bidders were from the Raju community who were traditionally agriculturists from
villages near Kolleru lake. This process cleared the outstanding loans of the Fishery
Co-operative Societies, but resulted in the transfer of the technology to non-fishing
communities. This led to commercialization of the occupation, and sideling of the
fisheries department.

Quite a few societies leased out their land to outside entrepreneurs and the Kolleru
villages illegally encroached vast areas of the lake for fish culture. As a result, recent
attempts by the government to evict the encroachers, who are the villagers themselves,
have resulted in conflict.

4. The Growth of the Inland Fishery Sector:

4.1 Phase I is the intervention phase in Kolleru lake area from 1976 to 1980, with
the fisheries department playing a key promoter role along with the banks.
About 38 fish tanks were constructed during this period under the scheme. The
department conducted education and awareness programmes for the fishermen
of select villages in and around Kolleru lake. The traditional fishermen adopted
the key technological intervention of culture technique with varying degree of
success.
4.2 Phase II is the acceptance and experimentation phase in Kolleru lake area
and its surrounding areas from 1980 to 86, with the fisheries department
playing a key promoter role and banks lending for constructions of fish tanks,
digging activities and working capital. The increasing acceptance of fishing as a
livelihood option and as commercial activity around Kolleru lake resulted in
emergence of an informal network of financers, brokers cum traders in labor,
feed, medicine, packing, transport, sale etc. Kaikaluru developed as a major
hub of trading activity with facilities like private hatchery and ice plant coming
up. The number of traders increased in Bhimavaram and Akividu, transport in
Gudivada, medicines and feed industries came up in Vijayawada, and Eluru.
Due to the high investments needed by the enterprise, commission agents
emerged for all activities that facilitated credit from the feed and medicine
industries for the fish entrepreneurs. A fish entrepreneur class emerged,
dominated by the Raju community in addition to other communities in and
around Kolleru lake.

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Technological innovations and modification in the culture technique, widespread
sharing of information occurred during this period. Key technological
innovations in culture practices such as feeding mechanism by perforated bags
as opposed to open casting, trench ponds, and nets over tanks to prevent fish
poaching by prey birds etc. evolved and were shared.
4.3 Phase III is the growth phase. Kolleru lake and surrounding areas saw an
exponential increase in the area under fishing and increase in production,
besides the ancillary activities and industries from 1986 to 1995. Soon
commercial activity took off, and the initiative spun out of the hands of the
fisheries department.
During this period, the number of commission agents, traders and minor players
in all the sectors increased; banks enhanced lending to the fisheries sector.
Fishing became an accepted commercial activity among the agriculturists who
increasingly converted their agricultural lands to fish tanks especially from
1990. Also this heightened activity made the local people function as fronts for
investors from outside; this led to encroachment of Kolleru lake, resulting in the
reduction of the lake area, which is a Wet Land Bird Sanctuary. However,
recently the Supreme Court has ordered re-conversion of lands to agriculture,
and hence forth, permission from the Court is mandatory for converting any
agriculture land to fishponds.
4.4 Phase IV is the spread effect phase. Small time investors in partnership with
experienced fish entrepreneurs financed this activity and helped it spread
beyond Kolleru from 1997.
The acceptance of the culture method and the high risk involved enabled the
growth of shrimp and prawn in the area. In 2001, 6 banks in the vicinity of
Kolleru lake area gave loans to the tune of Rs 10 crores for fishing activities
such as pond digging and feed loans. During the period, approximately 50
percent of the total loans of the banks went to the fishing activity. Banks also
financed ice plants and feed dealers.
5. The Impact
Given the technological intervention and the consequent increase in the production of
fish what has been the impact? The foremost impact has been the phenomenal
generation of livelihoods for approximately 15 lakhs people. The investment in the
sector has increased from a departmental budget and minor trading in fish to a private
commercial activity with shadow corporates operating in the area. The increase in the
number of ancillary industries is delineated in this section.

5.1 Employment
The impact of the intervention is the growth in the sectors connected with fishery.
From a traditional caste based occupation it has now become an enterprise and has
transcended the caste barriers. Such a situation was possible due to the specificity of
the location of the intervention