BASICS OF FISHERIES SCIENCE



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SUB Hamburg v A 2013/4901 j BASICS OF FISHERIES SCIENCE (A COMPLETE BOOK ON FISHERIES) VOLUME-V FISHERY ECONOMICS AND ADMINISTRATION KRISHNA CHANDRA BADAPANDA M. Sc., C.I.F.D.A. (Cal), D. F. Sc. (Bom)-First Class First E-mail. krishnacbp@yahoo.co.in NARENDRA PUBLISHING HOUSE DELHI-110006 (INDIA)

Contents Preface Acknowledgements XVll XIX DIVISION-I : FISHERY ADMINISTRATION 1-81 1. Fishery Administration - Prelude - Highlights - Fisheries 3 Resources of India - State Wise Extent of Coast Line/ Continental Shelf - Fish Production - Export Potential in Fisheries Sector - Fishery Policy - Special Features of Fisheries Administration - Administrative Feature of Fisheries - Responsibility of the Central Government - Administrative Setup at the Center - Central Schemes for Development of Fisheries Sector - Statutory Bodies under the Ministry of Agriculture - Institutes under the control of Department of Fisheries (Gol) - Responsibility of the State Government - Administrative Set-up at the State Governments - Administrative Structure of State Fisheries Departments - Director/ Commissioner: Technical vs. Administrative - Category of Officials - Administrative Functions 2. Fisheries Legislation - Meaning and Definition - Purpose 21 of Fisheries Legislation - Basic Terms Connected with Legislation - Types of Regulations - History of International Fisheries Regulations - Territorial Limits in Different Countries of the World - Contiguous Zone claims in Different Countries of the World - Fisheries Legislation in India - Coastal Regulation Zone - History of Fisheries Legislation in India - Indian Fisheries Act-1897 - Inland Fishery Legislation in India - Consequence in the Absence of Legal Regime - Details of Inland Fishery Regulations in Force - Suggestions for Inland

vi Fishery Legislation - Marine Fishery Legislations - Delimitations of Fishing Zones for Different Fishing Vessels 3. International Laws of the Sea - Prelude - International 36 Treaties on Laws of Sea before 1945 - International Treaties on Laws of Sea after 1945 - International Conventions on Fisheries - Freedom of Fishing - Restrictions on the Freedom of Fishing - Non-Territorial Restrictions - Factors Influencing the Marine Fisheries Regulations - Different Aspects of International Laws of the Sea 4. International Fisheries Organizations - International 48 Council for Exploration of Sea (ICES) - International Pacific Halibut Commission (IPHC) - International Pacific Salmon Fisheries Commission (IPSFC) - North Pacific Fur-Seal Commission (NPFSC) - International Whaling Commission (IWC)- North-East Atlantic Fisheries Commission (NEAFC) - International Commission for North-West Atlantic Fisheries (ICNEAF) - Inter-American Tropical Tuna Commission (IATTC)- International North Pacific Fisheries Commission (INPFC)- Food and Agriculture Organization (FAO) of UNO 5. Department of fisheries (FAO) - Prelude - Different 56 Divisions - Miscellaneous International Organizations in Fisheries 6. Planning in Fisheries - Meaning and Definition - History 61 and Development - Importance of Planning - Objectives of Planning - Advantages of Planning - Priority of Planning in Fisheries Development - Factors Governing Planning - Strategy of Fisheries Planning - Special Features of Fishing Industry necessitating Planning - Difficulties in Fishery Planning - Necessity for Emphasis on Fisheries Planning - Factors to be considered before Planning - Different Stages of Fisheries Planning - Formulation and Implementation of Schemes - Defects in Fishery Planning in India - Guidelines for Project Planning - Conceptualization of Projects - Essentials for Project Formulation - Project Formulation Strategy - The, Project Cycle - Project Evaluation - Importance - Various Stages of Evaluation - Methods of Evaluation - Cost Benefit Analysis - Actual Method of Analysis

vii 7. Fisheries Management - Prelude - History - Inception 74 of Modern Management - Objectives of Management - Persons Responsible for Management Science - Theories of Management - Management Principles - Various Activities under Management - Fishery Management - Leadership - Function of Leader - Top-10 Leadership Qualities - Necessity of Leadership - Types of Leadership - Quality of a Good Leader - Decision Making - Preconditions for Decision Making - Criteria for Decision DIVISION-II : FISHERY STATISTICS " 83-157 8. Statistics - Prelude - Definition - Scope and Objectives of 85 Fishery Statistics - Objectives - Source of Statistics at International Level - Method of Collection of Statistical Data's - Advantages of Census - Advantages of Sample Survey - Sampling Errors - Non-Sampling Errors - Classification of Data's - Presentation of Data's - Through Diagrams - Through Graphs 9. Measure of Central Tendency (Averages) - Prelude - 98 Classification of Central Tendency - Inter-Relationship and Essentials of Central Tendency - Arithmetic Mean - The Weighted Arithmetic Mean - Various Formulae for Computation of Mean - The Median - The Mode - Selection of Central Tendency (Averages) 10. The Variation/ Variance/ Dispersion - Prelude - 105 Definition - Types of Variation - Measures of Variation - Characteristics of an Ideal Measure of Variation - Range - Definition - Meaning Merits - Demerits - Range of Grouped Data - Coefficient of Range - Mean Deviation - Meaning - Definition - Coefficient of Mean Deviation - Merits - Demerits - Mean Deviation for Grouped Data - Standard Deviation - Definition - Variance - Meaning - Merits - Demerits - Formula - Coefficient of Variation or Relative Standard Deviation 11. Skewness and Kiirtosis - Skewness - Meaning - 111 Importance - Dispersion vs. Skewness - Types.of Skewness - Diagrammatic Representation of Skewness - Measure of

viii Skewness - Kurtosis - Meaning - Graphical Representation - Types of Kurtosis 12. Correlation - Meaning - Positive and Negative Correlation - 114 Properties of Correlation Coefficient - Measure of Correlation - Correlation Coefficient - Formulae for Computation 13. Linear Regression - Prelude - Meaning - Application in 118 Fisheries Statistics - Linear Regression by Least Square Method - Example of Regression Analysis - Regression Coefficient - Non-Linear Cases 14. Normal Distribution or Normal Curve - Prelude - 123 Meaning - Properties - Confidence Limits - Level of Significance - Relation between Confidence Limit and Level of Significance - Standard Normal Distribution - Fitting of Normal Curve - Standard Error - Definition - Sampling Variance - Utility 15. Tests of Significance - Prelude - Meaning and Definition -129 Level of Significance - Degree of Freedom - Procedure - Formulae - Detailed Procedure - Testing Hypothesis - One Tailed Test - Two Tailed Test 16. Student's T-Distribution - Prelude - Methodology - Utility 134 - Statistical Interpretation 17. x 2 (Chi-square) Test or Distribution - Prelude - 136 Contingency Table - Formulae - Explanation - Calculation of Degrees of Freedom - Calculation of % 2 in a 2x2 Contingency Table - Yates Correction for Continuity - Test for Goodness or Fit - Limitations of % 2 Test 18. Sampling Techniques - Basic Terms - Sampling Methods - 140 Inter-Relationship between Various Sampling Techniques 19. Index Number - Meaning - Types of Index Numbers - 146 Uses of Index Number - Weighted Averages - Index Numbers as Weighted Averages

ix 20. Status of Fisheries Statistics in India - Prelude - 149 Economic Statistics - Biological and Economic Statistics - Biological Statistics - Status in India - History of Indian Fishery Statistics - Steps taken for Updating the Fisheries Statistics in India - Statistical Figures at a Glance DIVISION-III : FISHERY ECONOMICS, FINANCE 159-253 AND INVESTMENT IN FISHERIES 21. Economics - Meaning and Definition - Definition by Adam 161 Smith-1876 - Definition by Marshall-1933 - Definition by Lionel Robins-1933 22. Fundamental Terms and Concepts of Economics: Goods 163 - Meaning and Definition - Classification Utility - Meaning and Definition - Utility vs. Usefulness - Utility vs. Pleasure - Utility vs. Satisfaction - Types of Utility Value - Meaning - Definition - Attributes of Value - Value vs. Price - Value is Relative Wealth - Meaning and Definition - Attributes of Wealth - Money vs. Wealth - Wealth vs. Income - Wealth vs. Welfare - Classification of Wealth 23. Human Wants and their Classification - Prelude - 169 Formation of Wants - Origin of Wants - Characteristics of Human Wants - Importance of Human Wants in Economic Theories - Classification of Wants - Necessities, Comforts and'luxuries are Relative Terms' 24. The Law of Diminishing Marginal Utility - Prelude - 174 The Law - Numerical Illustration - Graphical Illustration - Various Utilities - Limitations of the Law - Diminishing Marginal Utility for Money - Marginal Utility - Marginal Utility and Price - Importance of the Law 25. Law of Returns - Prelude - Law of Variable Proportion 179 - Diagrammatic Representations - Law of Increasing Returns - Meaning - The Law - Example - Law of Constant Returns - The Law - Meaning - Example - Law of Diminishing Returns - The Law - Example - Numerical Example - Graphical Representation - Limitations of the Law - Application

X of the Law - Law of Equi-Marginal Returns - Optimum Factor Combination - Practical Implication - Importance in Fisheries 26. Consumers' Surplus - Meaning - Definition - Explanation 187 - Graphical Representation - Limitations of the Law - Importance of the Law 27. Law of Demand and Supply - Meaning and Definition of 190 Demand - Explanation - Classification - Law of Demand - Assumptions - Factors Determining Demand - Demand in Fisheries Sector - Meaning of Supply - Law of Supply - Limitations - Supply in Fisheries Sector 28. Elasticity of Demand - Meaning - Factors Regulating 194 Elasticity of Demand - Measurement of Elasticity - Importance of Elasticity of Demand 29. Factors of Production - What is Production? - Definition 196 - Productive Sectors - Factor Influencing Production - Factors of Production - How Many Factors of Production? - Relative Importance of Factors of Production A. Land - Meaning - Definition - Importance - Characteristics B. Labor - Meaning - Definition - Characteristics - Supply of Labor - Working Population C. Capital - Meaning - Definition - Characteristics - Types of Capital - Wealth vs. Capital Capital vs. Income - Importance - Capital Formation D. Organization (Enterprise) - Meaning - Capital vs. Enterprise - Function - Quality of Enterprise E. Machinery - Introduction - Advantages - Disadvantages - Limitations 30. Theory of Distribution - Meaning - National Dividend - 205 Marginal Productivity Theory - Criticism of the Theory - Conclusion - Demand and Supply Theory - Demand for a Factor of Production - Supply of a Factor of Production - Interaction of Demand and Supply

xi The Rent - Meaning - Rent in Excessive Cultivation - Demand and Supply Theory of Rent - Effect of Economic Progress on Rent The Wages - Meaning - Definition - Method of Payment - Nominal Wages and Real Wages - Estimation of Real Wages The Interest - Meaning Gross and Net Interest - Why Interest is Paid - How Rate of Interest is Determined - Effect of Economic Growth The Profit - Meaning - Gross Profit - Net Profit - Reason for Variable Profit - Capital Formation 31. Money - Inflation and Deflation - Fiscal Policy - Barter 216 System - Disadvantages of Barter - Evolution of Money - What is Money? - Function of Money - Qualities of Good Money Material - Advantages of Money - Kinds of Money - Coins and Coinage - Paper Money - Value of Money - Measurements of Changes in the Value of Money - Index Number - Meaning - Preparation of Index Numbers - Use of Index Numbers - Effect of Changes in the Value of Money - Inflation - Meaning - Cause of Inflation - Remedies 32. Markets and Market forms - Markets - Definition - 222 Essential Features - Modern Definition - Types of Market - Conditions of a Perfect Market -Factors Regulating the Extent of Market - Market Forms 33. National Income - Definition - Gross National Products 226 (GNP) - Net National Products (NNP) - National Income - Personal Income - Disposable Income - Measurement of National Income - Difficulties in Measurement of National Income - Real GNP vs. Money GNP - Formulae for Computation 34. Depreciation - Meaning - Method of Calculation 35. Role of Economics in Fisheries Management - Prelude 234 - Basic Assumptions in Economics - Scope of Economics - Application of Economic Theories in Fisheries - Conclusion

xii 36. Finance and Investment in Fisheries - Prelude - Need 238 for Financial Assistance - Objectives of Financial Assistance - Types of Financial Assistance - Forms of Financial Assistance - Sources of Financial Assistance - Forms of Financing Agencies in Some Important Countries - Objectives of Fishermen Coop Credit, society - Method of Provision of Funds - Administration of Aid Schemes - Recovery of Loans from Fishermen - Default Committed by Fishermen - Financial Assistance in Fisheries - Administrative Cost - Evaluation of Financial Assistance - Financing in Indian Fishing Industry - Financial Requirements - History of Financial Assistance - Type of Finance - Financing Organizations DIVISION-IV : COOPERATIVES AND 255-340 SOCIO-ECONOMICS 37. Cooperative Movement - Prelude - Definitions of 257 Cooperative - Origin of Cooperation - Cooperative Principles - Cooperatives vs. other Associations - Classification of Cooperative Societies 38. The Consumers Coop Movement in England - Prelude 263 - The-then Socio Economic Condition - Inception of Industrial Revolution and its Impact - Socio-Economic Conditions of Industrial Workers - Organization of Trade Unions - Organization of Consumers' Coops - Fishermen Coops in England - Origin of Fishery Coops 39. The Credit Coop Movement in Germany - Prelude - 267 The-then Socio-Economic Condition - Origin of Cooperation - Comparative Account of Raiffeisen Society & Schulz Bank - India Borrows Coop Principles from Germany 40. The Cooperative Movement in Canada - Prelude - 271 Prevailing Conditions - First Society: Dominion Grange-1877, Ontario - The Wheat Board - Wheat Pools - Function of the Wheat Pools - The Great Depression-1930 - Multipurpose Agricultural Marketing Societies - Marketing Society in Labrador - Credit Coop in Quebec - Fishermen Cooperatives of British Columbia - Fishery Coops - Marketing of Fish

xiii 41. The Cooperative Movement in Japan - Topography - 276 Japan Compared to India - Similarity between Japanese and Indian Coops - Agricultural Cooperative Associations - The Multi-Purpose Agricultural Coop Society - Comparison of Coop Functions in Japan and India - History of Fisheries Coops in Japan - Sequence of Development 42. History of Cooperatives in India - Prelude - History of 283 Coops in India - Specialty of Coop in India - Fisheries Coops in India - Status of Fishermen in India - Characteristic Features of Fishing Industry - Structure of Fishermen Coops - Functions of Fishermen Coops - Progress of Fishermen Coops - Present Status of Fishermen Coops 43. Cooperative Movement in India - Prelude - Period of 291 Initial Efforts (1904 12) - Period of Unplanned Growth (1912 14) - The Period of Unplanned Expansion (1915-28) - Period of Reorganization (1929-39) - Period of Recovery (1939-1946) - Pre-Independence Coop Growth (1946-47) - Post- Independence Coop Growth (1947-51) - Coop Development During Five Year Plans 44. All India Rural Credit Survey-1951-52 - Prelude - 304 High-lights of the Survey - Credit-Flow from Various Agencies - Tune of Credit-flow to Various Sectors - Credit Utilization - Security Patterns - Outstanding Debts - Analysis of Failures of Coop Movement - General Reasons - Non-Economic Reasons - Basis for Rural Credit - Main Recommendations The All India Rural Debt and Investment Survey-1961-62 - Recommendations - Implementation of the Recommendations - Integrated Rural Credit Scheme All India Rural Credit Review Committee-1966 - Reorganization of Rural Credit 45. Working of the Coop Societies - Prelude - The Rights of 315 Members in Cooperative Society - The Duties of Members in Cooperative Societies - Administrative Organization of Coop Society - Financial Organization of Coop Society - What Form of Coop should a Village have?

xiv 46. Socio-economics - Prelude - Factors of Production - 327 Characteristics of Man-power as a Factor of Production - Risk in Fishing Industry - Status of Fishermen Community in India - The Social Factors - The Economic Factors - Role of Govt./ Coops./ Extension Agency/ NGOs 47. Fisheries: An Employment and Self-Employment Avenue 334 - Prelude - Types of Fishery - Characteristics of Fisheries as a Food Producing Avenues - Fisheries Research and Education for Employment - Self-Employment Avenues - Conclusion DIVISION-V : FISH MARKETING AND EXTENSION 341-425 ( 48. Marketing - Meaning and Definitions - Different Steps of 343 Fish Marketing - Significance of Marketing - Scope of Marketing - Price Determination by Utility - Characteristics of Fish as a Marketable Product - Disposition Trends - Additional Features - Marketing Functions - Marketing Services - Marketing Agencies - Marketing Channels - Horizontal Integration in Fish Marketing - Vertical Integration in' Fish Marketing - Perfect Competition - Monopoly - Marketing Margin 49. Price Determination in Fish Market - Prelude -Basic 353 Terminologies Connected with Price Determination - Characteristics Marketing Problems - Problems Connected with Fish Marketing - Problems Connected with Production - Problems in Marketing Organizations 50. Market Intelligence - Meaning and Definitions - 361 Importance - The Utility of Market Intelligence - Types of Market Information's - Difficulties in Market Intelligence - Dissemination of Market Intelligence - Market Intelligence in USA 51. Consumers' Education - Prelude - Strategies - Who is to 366 Educate? - Advantages of Consumers Education 52. Market Regulations - Prelude - Consumers' Protection - 369 Factor Influencing Market Regulations - Regulation of Public Marketing Facilities - Uniform Weights and Measures -

XV Minimum Standards - Enforcements - Objectives of Market Legislation - Market Legislations in India - Market Regulations in Other Countries Market Regulations In Norway - The Raw Fish Act-1989 - The Sales Organizations - Herring's Fishery - White-Fish Fishery Market Regulations in England - Fish Consumption Pattern - Marketing Regulations - Results of Regulations Herring's Fishery - Extra Statutory Prices - Regulations of Supply 53.; /Fish in International Trade - Prelude - Growth of 382 Exports of Marine Products from India - Role of Asia-Pacific Region in Global Fish Production - Top Ten Aquaculture Producers of Fish in term of Quantity - Problems of Marine Export Markets - Export Market of Japan - Top Ten Importers of Fish and Fishery products of world - Top Ten Exporters of Fish and Fishery products of world 54. Fish Marketing in India - Prelude - Concept of Modern 391 Marketing - Impact of Modern Marketing in Fisheries Sector - Traditional Marketing - Situation in Developing Countries - Economic Growth of Fisheries Cooperatives - Fishery Trade in Micro & Macro Level - Advantages in Forming Marketing Cooperatives - Handling of Fish and Quality Control - Whole- Sale and Retail Marketing - New-ventures and New-products - Inter-Relationship between Supply and Price of Fish - Cost of Marketing and Differential Prices - Pattern of Distribution of Fish - Experience of Fish Marketing by Cooperatives - Importance of Fish Auction in Price Determination - Relation between Marketing Decision and Financial Decision - Price Determination for Processed Fish - Sample Auction - Marketing Functions beyond Auction - Direct Delivery Systems and Minimum Price Support System - Break-Even Analysis - Sale Price vs. Volume of Sales - Factors Affecting Sale Price - Fixation of Sale Price - Relation between Selling Cost and Profit - Relation between Volume of Sales and Capital - Market Research - Market Forecasting - Field Survey - Trend Projections - Extension - Guidelines for Development of Fish

xvi Marketing - National Policy for Fish Marketing Developments - Directed Cooperatives - Technical Assistance 55. Fisheries Extension - Prelude - Guidelines for Extension 411 - Basic Principles of Extension - Educational Aspects - History of Extension - Role of Extension in Fisheries - Pre-Requisites for Extension Work - Programs for Fisheries Extension - Various Stages of Extension Program - Methods of Extension - Basing upon the use of Extension Methods - Basing upon the Forms of Extension - Persons Involved in Extension - Present Status of Extension in India - Four Paradigms of Agricultural Extension. 56. References 426