54259 India Marine Fisheries Issues, Opportunities and Transitions for Sustainable Development Agriculture and Rural Development Sector Unit South Asia Region ARD   agriculture and rural development THE WORLD BANK Report No. 54259-IN India Marine Fisheries Issues, Opportunities and Transitions for Sustainable Development August 2010 Agriculture and Rural Development Sector Unit South Asia Region THE WORLD BANK CURRENCY EQUIVALENTS Currency unit: Indian rupee (annual average) 2000: $1 = Rs. 47.0 2002: $1 = Rs. 49.3 2004: $1= Rs. 45.0 2006: $1=Rs. 45.3 2008: = Rs. 43.8 2001: $1 = Rs. 48.5 2003: $1 = Rs. 46.7 2005: $1= Rs. 43.0 2007: $1=Rs. 44.7 2009: = Rs. 48.9 FISCAL YEAR (FY) April 1–March 31 ACRONYMS ANU Australian National University INCOIS Indian National Centre for Ocean Information Services AFMA Australian Fisheries Management Authority IUU Illegal, Unreported and Unregulated Fishing BPL Below Poverty Line ITQ Individual Transferable Quota CBO Community-Based Organisations LPG Liquefied Petroleum Gas CIFE Central Institute of Fisheries Education M&E Monitoring and Evaluation CIFNETCentral Institute of Fisheries and Nautical MEY Maximum Economic Yield Engineering and Training MCS Monitoring, Control and Surveillance CIFT Central Institute of Fisheries Technology MPEDA Marine Products Export Development Authority CMFP Comprehensive Marine Fisheries Policy MSY Maximum Sustainable Yield CMFRI Central Marine Fisheries Research Institute NABARD National Bank for Agriculture and Rural Development CCRF Code of Conduct for Responsible Fisheries HACCP Hazard Analysis and Critical Control Points CP Continuing Program NFDB National Fisheries Development Board CRZ Coastal Regulation Zone NFF National Fishworkers Forum CZM Coastal Zone Management NGO Non Governmental organisation DAHDF Department of Animal Husbandry, Dairying and NPF Northern Prawn Fishery Fisheries NREGS National Rural Employment Guarantee Scheme DARE Department of Agricultural Research and Education NSS National Sample Survey DOF Department of Fisheries PFZ Potential Fishing Zone DFV Development of Fishing Villages PROFISH Global Program on Fisheries DFID Department for International Development RFMO Regional Fisheries Management Organisations EEZ Exclusive Economic Zone SASDA South Asia Agriculture and Rural Development EU European Union SASSD South Asia Sustainable Development Department FMP Fishery Management Plan SEAI Seafood Exporters Association of India GDP Gross Domestic Product SHG Self-Help Group GOI Government of India SIFFS South Indian Federation of Fishermen Societies FAO Food and Agricultural Organisation SSF Small-Scale Fisheries FMC Fisheries Management Companies TURF Territorial Use Rights in Fishing FMU Fishery Management Unit UNDP United Nations Development Program FSI Fishery Survey of India VMS Vessel Monitoring System HSD High Speed Diesel WBFM Wealth- Based Fisheries Management ICAR Indian Council of Agricultural Research WTO World Trade Organisation IFQ Individual Fishing Quota WWF World Wildlife Fund Unit Measurements ha - hectare km - kilometre nm - nautical mile mt - million tonnes Vice President: Isabel Guerrero Country Director: N. Roberto Zagha Department Director: John Henry Stein Sector Manager: Simeon Ehui Table of ConTenTs Acknowledgements vii Executive Summary ix Introduction 1 Fisheries and the Marine Sub-sector in India 1 Study Objectives and Methods 3 Structure of the Report 4 International Best Practice in Fisheries Development 5 The Global Marine Fisheries – Where does India Fit? 5 Alternative Approaches to Marine Fisheries Development 6 The International Development Record and Fisheries Policy 9 Making the Transition to Better Fisheries Management – Key Issues 12 Fisheries Management, Poverty Reduction and Livelihoods 14 Key Chapter Messages 15 India’s Marine Fisheries Sub-sector 17 Fisheries Sector and the Marine Sub-sector 17 Historical Overview of Marine Fisheries 17 Economic Context of Marine Fisheries 18 Structure of Marine Fisheries 20 Fish Production Trends 22 Institutional Framework 24 Fiscal Analysis 28 Market Supply Chains 29 Fisheries Management 32 Key Chapter Messages 35 TableofConTenTs iii Livelihood Context and Key Issues 37 Background 37 Poverty and Livelihoods in Marine Fisheries 37 Livelihoods and the Evolving Marine Sub-sector 39 Transitions to More Holistic Fisheries Management and Livelihood Diversification 40 Key Chapter Messages 43 Analysis of Legal and Policy Framework 45 Introduction 45 Legal and Policy Context 45 The Legal Framework 46 The Fisheries Policy Profile 48 Policy Performance 50 Causes of Poor Policy Performance 52 Key Chapter Messages 54 Creating Conditions for Reforming the Marine Fishing Sub-sector in India 55 What are the Opportunities? 55 What are the Key Constraints? 55 Moving Forward with Critical Marine Fisheries Reforms 58 References 63 Annexes Annex 1. Glossary 67 Annex 2. The Tragedy of the Commons and Dissipation of Rent 71 Annex 3. Development Approach to Fisheries Policy 73 Annex 4. Fisheries Management: Best Practice Considerations from Other Countries 77 Annex 5. Livelihoods of Coastal Fishers 83 Annex 6. International Obligations 91 Annex 7. Foreign Access 93 Annex 8. Allocating Fishing Rights in India 95 Annex 9. Recommendations for Legal Reforms in Marine Fisheries, India 97 Tables Table 1: India – comparison of actual and estimated optimal marine fishing fleet size 6 Table 2: Fisheries management and policy compliance – an international comparison 7 Table 3: Fishing craft, coastal states and union territories 21 Table 4: Coastal fisheries infrastructure 2005 22 iv InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 5: Public institutional matrix – Indian marine fisheries 25 Table 6: Main characteristics of the major markets 30 Table 7: Disposition of the fish catch – India 1980 to 2005 31 Table 8: Annual pollutant discharge in the Indian coastal environment 34 Table 9: Comparison of fisheries objectives in key policy documents in India 49 Figures Figure 1: Fisheries sector production India 2008–09 18 Figure 2: The three phases of development of Indian fisheries 19 Figure 3: Exports from India by volume and value 20 Figure 4: Total fish production since 1950-51 23 Boxes Box 1. Key features of fisheries management approaches that maximise fish production xiii Box 2. Key features of fisheries management that maximises net benefits xiv Box 3. What is fishing capacity? 3 Box 4. Comparison of approaches to fisheries management 9 Box 5. Analysis of the fisheries policy profile and policy process – 4 steps 10 Box 6. Fish production trends, Kerala 24 Box 7. South Indian federation of fishermen societies 27 Box 8. Bottom trawling along the Kerala coast 32 Box 9. Zoning as a tool for fisheries management 33 Box 10. Credit and debt issues in Tamil Nadu. 38 Box 11. Fleet reduction in Tamil Nadu 40 Box 12. Occupational diversification strategies in Ganjam district 41 Box 13. Successful Bank-supported livelihood programs, South Asia 42 Box 14. Turtle protection and conflict with fishing 47 TableofConTenTs v aCknowledgemenTs This policy note represents a first step by the World Venkatesh Salagrama (fisheries livelihoods and policy – Bank towards improving the understanding of the India) and Derek Staples (fisheries management marine fisheries sub-sector in India. The study was and policy – Australia). They were supported by undertaken following a formal request for analytical several specialists: Judith Swan (marine law); Sanjay and policy assistance from the Department of Animal Upadhyay (environmental law); Pragmatix Ltd (social, Husbandry, Dairying and Fisheries (DAHDF) – Ministry institutional, livelihoods – Viju James – Principal); Nick of Agriculture, Government of India. The policy Ruello (fish products marketing); IDDRA Ltd (Arthur note briefly describes how marine fisheries have Neiland – fisheries economics and policy and Steve evolved over time in India, identifies key issues and Cunningham – principles and best practices); and opportunities, and sets out proposed reforms that Saswata Chaudhury (fiscal analysis). could support more effective policies and management practices to gradually improve the productivity of fish The team acknowledges the indispensable stocks, increase net benefits, and improve equity and contributions and leadership of senior staff in the coastal livelihoods. DAHDF in Delhi, particularly Mr. Tarun Shridhar – Joint Secretary, Mr. A. J. Bhatacharya – former Joint Secretary, The policy note was compiled by Grant Milne, under the Mr. M. K. R. Nair – Commissioner, and Mr. G. D. Chandrapal general guidance of Adolfo Brizzi, South Asia Agriculture – Technical Director (retired), as well as officials in state and Rural Development (SASDA), World Bank. Expert fisheries departments in the four focal states. Many technical guidance was provided by Michael Arbuckle individuals in these agencies provided excellent support, and Kieran Kelleher, Senior Fisheries Specialists in ideas, and cooperation throughout the field work phases the Agriculture and Rural Development Anchor unit and were a sounding board for new concepts around (ARD) of the Bank. The policy note draws on seminal reforms during follow-on consultations in October literature from a range of Indian and global sources, and November, 2008. Consultations were held in each as well as detailed background papers developed for of the focal states in addition to a national meeting Karnataka, Andhra Pradesh, Orissa, and Gujarat, and a in Hyderabad, organised by the Action for Food draft overview paper. The report also builds on lessons Production group. from a scoping study of marine fisheries in Tamil Nadu in 2005 as part of tsunami recovery planning. Grant Milne, Task Manager, supervised the project, with The state background papers and draft overview excellent administrative support from Talat Fayziev, paper were prepared by the team’s lead consultants, Ryma Pitts, and Vibhuti Narang (SASDA). The policy aCknowleDgeMenTs vii note benefited significantly from reviews and comments provided by PROFISH, FAO-CP, and DFID funds. Thanks by staff and managers in SASDA. Three peer reviewers are also offered to the New Zealand Ministry of Fisheries offered extremely constructive input on an earlier for seconding Dr. Ramana Rallapudi to the consultant draft: Rolf Willmann (Senior Fisheries Planning Officer, team. I also acknowledge the major contribution of Dr. FAO Fisheries Department, Rome), Philip Townsley Kunjan Gopalakrishnan for reviewing a draft report and (international fisheries livelihoods consultant, Rome), providing detailed comments and suggestions. and Mr. V. Vivekanandan (national fisheries advisor to the South Indian Federation of Fishermen Societies, The team gratefully recognises the collaboration of the Trivandrum, India). I am also indebted to Shankar many people who assisted in the preparation of this Narayanan from the World Bank office in Delhi for his report. However, the opinions presented here and any strong contribution to the social, institutional and errors are the sole responsibility of the authors and livelihoods component, particularly in the early stages of should not be attributed to the individuals or institutions the project. The team acknowledges the financial support acknowledged above. viii InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development exeCuTive summary Background working people in these small coastal communities are engaged in marine fisheries-related livelihoods. Nearly This study represents a collaborative initiative by the half are involved full-time in marine fishing and related World Bank and the Department of Animal Husbandry, work such as processing and trade. Coastal fishing Dairying and Fisheries – Ministry of Agriculture, communities, while generally having good access to Government of India, to review the marine fisheries health, roads and electricity, are also characterised sub-sector, within a broader sector that also includes by low levels of education, high illiteracy, and poor aquaculture and inland fisheries. The policy note access to piped water and sanitation. The majority of provides a major step forward in understanding current small-scale participants in the sub-sector are poor, issues and future opportunities facing the marine with annual earnings below Rs 25,000 (US$570) not fisheries sub-sector. uncommon. Debt levels are often very high, made worse by the lack of regular cash surpluses from fishing, According to Government of India figures, the marine problems in finding alternative income during lean sub-sector accounts for approximately 39 percent fishing seasons, and being able to fish only during the of the total national fish production of 7.60 million usual nine-month season. These factors can lead to a tonnes. Inland fishing accounts for 61 percent of total perpetual cycle of debt for many smaller-scale fishers. fish production, largely through freshwater aquaculture from large inland agriculture water storage areas The marine sub-sector has experienced three recognised (tanks), smaller farm ponds, and reservoirs. India is the phases of development. Phase I was a pre-development world’s third largest fish producing nation and second stage (up to 1965) where fishing was still largely in inland aquaculture1. dominated by small indigenous craft and gear, and mechanisation was in the very early stages. Phase II The marine fishing sub-sector accounts for approximately (from 1965 to 1986) reflected a major expansion in the one percent of national Gross Domestic Product (GDP), use of synthetic gear, focus on exports, increases in but forms an important component of the rural coastal the number of larger mechanised vessels, government economy, generating income, employment, livelihoods, investment in new fishing harbors, introduction of purse and food security for an estimated 3.52 million people seine harvesting, and the start of motorizing smaller, along the 8,118 km Indian coastline, who depend on artisanal boats that could now extend their range fishing for their livelihoods. Close to 100 percent of further offshore. Phase III (1986-2000) was characterised 1 See Annex 1 for a glossary of terms. by rapid growth in motorizing the artisanal fleet, further exeCuTIvesuMMary ix extension of fishing offshore and extended voyage Objectives of the Report and fishing, and introduction of seasonal closures of selected fisheries as concerns developed over depleting fish Analytical Approach stocks. A fourth phase (post-2000 modernisation) is now The study represents an initial analytical review of the emerging, characterised in inshore areas by declining Indian marine sub-sector with special emphasis on fish catches, depleted fish stocks, increasing conflict inshore waters, which faces the greatest challenges for over fish resources, and mounting investment needs. At management and sustainable development. The main the same time however, the country is trying to expand objectives of the study were to: a) appraise the general fishing activities in its 2.02 million km2 offshore Exclusive structure, conduct and performance of the marine Economic Zone (EEZ), where there may be scope for fisheries sub-sector in India with particular focus on further growth. the role that marine fishery plays in rural livelihoods for coastal communities; b) identify the main constraints in India’s economy has until recently, grown at a remarkable average annual rate of more than 8.0 percent from the marine sub-sector that are impacting on biological 2003/04. Although certain industry and service sectors sustainability and economically healthy fisheries; c) draw of the Indian economy have become world leaders with on national and international experience to recommend innovative growth and development, much of the rural alternative policy approaches and strategies to economy in India, including coastal areas dominated by address these issues; and d) inform the Government marine fishing, is lagging behind. Sustained economic of India during subsequent consultations with key growth is critical for India to address poverty, and marine stakeholders about long-term transformations towards fisheries can play a part in this process. Globally, marine better sub-sector performance. fisheries are recognised as valuable capital assets capable Based on discussions between the government of of generating significant and sustainable economic, India, fisheries departments in several states, and the social and environmental benefits under appropriate Bank team, the states of Andhra Pradesh, Karnataka, policy, institutional and management regimes. At Gujarat and Orissa were selected for analytical work the same time, global marine fisheries are an under- that contributed to this broader national sub-sector performing asset; recent estimates (World Bank 2008) synthesis. A small core team spent approximately two suggest that the difference between potential and actual weeks in each state to gather information and meet net economic benefits could be as high as US$50 billion key stakeholders to discuss the predominant technical, annually. At a global level, this situation warrants better policy and management issues. Other important governance, stronger policy legal frameworks and more effective management systems leading to increasing information was gathered from secondary sources in productivity, reducing overcapacity of fishing effort and cooperation with various government agencies and enhancing the real value of landed fish. national fisheries research institutions. In particular, secondary data and various reports from Tamil Nadu and India’s marine fishery sub-sector has a high potential Kerala provided a rich source of information, and also capital value, but also follows global trends with these helped confirm that the patterns emerging from the values not being fully realised. The sub-sector can clearly four focal states could reasonably represent a national generate greater net benefits and become a stronger picture of marine fishing. End-of-mission presentations engine for rural economic growth and social development were given to key government stakeholders in each in coastal India. However, to achieve this potential, a of the four focal states and Delhi to gain valuable program of reforms, carefully implemented over an feedback on the data collected. This feedback was also extended period of time at both national and state levels, important in shaping the team’s conclusions about must address core policy, legal, institutional and fisheries issues and opportunities for improving sub-sector management issues, especially for inshore waters. performance. Further feedback was obtained through x InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development structured consultations in each of the four focal states Central government policy on marine fisheries in India is for small-scale fishers, processors, civil society and informed by two key policy documents; the Five Year Plans government officials, as well as a national meeting for developed by the Planning Commission (defining fiscal senior representatives from government, fishworker contributions to fisheries), and the 2004 Comprehensive organisations and NGOs. Marine Fishing Policy (CMFP – Government of India 2004b) from the Ministry of Agriculture (defining various desired goals and identifying schemes on which Opportunities and Key Constraints the funds are spent). The historical performance of the sub-sector against key objectives set out in these policy What are the Opportunities? documents could be improved, even when compared with more traditional management objectives based on As in other regions, India’s marine fishing sub-sector increasing fish production. Fiscal processes that direct has the potential to develop a more valuable asset base funds from the centre to coastal states tend to support (building more productive fish stocks); generate a subsidies and welfare schemes for fishers rather than higher level of sustainable net economic, social and reward good fisheries management performance. While environmental benefits in the future (capturing the improving the welfare of coastal fishers is an important inherent value of more productive fish stocks); and social policy objective, some of the schemes such as improving the distribution of these benefits (providing fuel, boat and gear subsidies, may be encouraging for better equity among stakeholders). The sub-sector participants to remain in a sub-sector that is already can build on the strengths provided by an experienced highly overcapitalised, particularly for inshore fishers. labor force, a long history of fishing, good local examples Some estimates suggest that the 242,000 fishing of fisheries management, and expanding global and vessels currently registered within inshore Indian waters domestic demand for high quality marine fish products. represent more than 2.5 times the optimal number Marine fisheries can become more highly integrated of fishing vessels (and capacity) relative to available with India’s growing rural economy and the wealth fish stocks. Yet as this report will suggest, limited generated can help provide coastal dwellers with new opportunities to engage in this growing economy. Yet, alternatives currently exist for coastal fishers to move independent research that evaluated international out of the sub-sector into other livelihood options. compliance with the United Nations Food and Agriculture Marine fishing policies at the state/union territory level Organisation’s Code of Conduct for Responsible Fisheries range from a lack of any guiding policy document, to Article 7 (fisheries management) suggests that India’s new and relatively comprehensive policy statements marine fisheries, along with many other countries, could (such as in Orissa). show a better performance. Five major legal instruments and several related pieces of legislation from the central government are used What are the Key Constraints? to administer marine fishing at the national level. The To achieve these opportunities, reforms are needed current legal framework needs further strengthening to guide improved economic performance of the sub- to provide a sufficiently sound basis for sub-sector sector, in particular for inshore waters and work around development, both in terms of meeting the demands of the following five key constraints: the 2004 CMFP and the requirements of international law. State fisheries legislation is largely based on a model 1. The current policy, legal and administrative bill prepared by the central Government in 1979. While systems can only serve as a partial foundation providing for some concordance of the law among for reform towards more progressive fisheries states, it also exposed states to the same short-comings management. and limitations of the existing national legal framework, exeCuTIvesuMMary xi as well as predating the United Nations Convention on the benefit of public subsidies, has increased competition the Law of the Sea. In all states studied, policy and legal for those fishing with smaller inshore vessels. Trawlers implementation needs to be improved; few effective now account for an estimated 20 percent of the fishing administrative systems are in place to support improved labor force but 60 percent of the catch. These issues fisheries management performance. Coordination appear to trap the poor inshore fishers and processors between national laws and authority (outside the 22 km into a cycle of perpetual low profits and debt. Rising territorial waters boundary) and state laws and authority world fuel prices (until recently) put even more pressure (within the 22 km boundary) is another area where on the viability of motorised vessels and increased calls improvements could be made. for further subsidies from the government. Small-scale fishers also have few points of entry into the broader state 2. The biological and economic sustainability of or national policy debate on marine fisheries, nor easy marine fish stocks in India faces challenges. access to programs that could help them sustain their livelihood both from fishing and non-fishing sources. Strong economic growth in India over the past several Education levels tend to be low, making it difficult for years and increasing global markets for fish products fishers to take advantage of alternative employment have contributed to an unprecedented expansion of opportunities in the expanding national economy. fishing capacity and changes in the composition of fish being harvested. At the same time that fishing 4. Fisheries management needs to be strengthened, capacity has been increasing, however, marine catch especially for inshore waters. levels in inshore waters are stagnating and fish stock health is showing some alarming signs of depletion. For waters under the authority of the government As an example, in case of the stocks assessed by the of India, between 22 km (12 nautical miles) and the government of India, over 61 percent of marine capture 370 km (200 nautical miles) Indian EEZ, more effective fish stocks are already over-exploited, and most of the mechanisms are needed to set out conservation and remaining stocks are fully exploited, leaving little or no management measures, and their enforcement. Like scope for future expansion in inshore waters. Another many other countries, marine fisheries management factor contributing to declining fish stocks may be objectives in India are largely based on biological criteria. expanding coastal development activities, including For waters within the 22 km limit, states generally provide land reclamation; construction of ports, bridges, roads, only a basic regulatory and licensing regime for fisheries and buildings for industrial and residential purposes; oil management, augmented by seasonal fishing bans, and natural gas exploration; pollution from agricultural ordered by the Government of India and implemented run-off containing chemicals, fertilisers and pesticides; by the maritime states and Union Territories regulating and industrial effluents and urban sewage. mesh size, and limited use of zoning. Most state fisheries departments lack working patrol vessels, making 3. Small scale fishers are losing their livelihoods enforcement of even these basic kinds of regulations and opportunities for development, and there quite challenging. There is increasing conflict as smaller are presently few options for alternatives. inshore vessels and larger offshore mechanised trawlers compete for fish within the 22 km boundary, as the The current situation with marine fishing is affecting shallow waters are traditionally more productive. This inshore fishers through declining catches, reduced situation is even more difficult to analyse because fishing incomes, and increasing conflicts. This is particularly true vessel designs are evolving outside of the current vessel for smaller boat owners and crew who are unable to classification system in India. Although there has been protect their resource access effectively, or shift to newer an attempt to limit fishing vessels in some states, entry and more distant fishing areas in the Indian EEZ. The into the sub-sector by new vessels has been difficult to rapid growth of the mechanised trawler fleet, often with restrict in practice. xii InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development 5. Market channels, particularly for small-scale lower net benefits, and a growing poverty trap for fishers, are inefficient and hinder delivery of high the more marginalised stakeholders. Evidence from quality products at optimal prices. this study and other relevant research suggests that India may be heading in this direction with its marine Indian fish products exports (mainly shrimp) passing fisheries sub-sector, particularly for inshore areas through European Union certified processing plants where the majority of vessels operate. It must be can usually meet high international health and safety noted however, that India is not alone in confronting standards; at the same time however, the cost of these types of challenges for marine fisheries. Within adjusting to these standards has been very challenging the region, Indonesia, Thailand, and Vietnam also face for smaller-scale Indian processors. In contrast, domestic similar issues. Outside the region, many other countries marine fish market chains in India are generally share this situation. characterised by unhygienic conditions, poor handling of fish and loss of quality (from the boat to the final market), The present status of marine fisheries in India – particularly and a subsequent reduction in profits. High levels of within 22 km of shore, and future uncertainty – calls for product losses through wastage (up to 15 percent a better implementation of appropriate reforms through of harvest) are common. While new developments consultative and analytical processes that could lead in marketing channels such as mega-grocery stores to improved awareness, more efficient legal and policy are emerging in some larger cities, with modern fish frameworks, stronger institutions and stakeholder handling practices and facilities, smaller-scale fishers participation, and more effective fisheries management are often unable to gain access to these marketing systems. Any reform process must gradually shift the channels due to the poor quality of their product. policy, institutional and management focus from what Major contributors to this problem are the lack of easily could be termed a more ‘conventional’ goal (harvesting accessible and low-cost credit, and the affordability of basic infrastructure such as ice, cold storage, and cold transport that would enable fishers to maintain better quality and obtain higher prices. While demand Box 1. Key features of fisheries management for fish products in India is forecast to rise significantly approaches that maximise fish production in the future, along with the expected increase in the � Policy and management focus is on fish population, the small-scale fishers and traders appear to production – a policy goal that can contribute to lack adequate information about market requirements overexploitation. and emerging market opportunities. Globally, India can � Fishing is typically viewed only in its biological also face increasing market competition as well as risks dimension. if the rupee appreciates relative to the US dollar as it did � Fishing benefits are often seen in terms of from 2004 to 2006. employment and livelihoods for the poor, which can lead to subsidies and other policies that may encourage overcapacity. Recommended Reforms for � Strategies often focus on improving technology Improved Sub-sector Performance (boats, gear, etc.) to enable fishers to increase harvests, even where stocks are at risk. Direction of Reforms � Fishers have poorly defined and unenforced use-rights for fish, often contributing to an open Overcapacity contributes to fishing effort in excess of access, common property situation that provides strong incentives for immediate exploitation. the effort required to harvest the biological Maximum Sustainable Yield (MSY), resulting in declining catches, Source: DFID 2005 and study team. exeCuTIvesuMMary xiii increasing volumes of fish through expanded capacity pathway to improved sub-sector performance in India, and changes in technology, where users operate in especially for inshore areas where most of the problems an open access system – see Box 1), to one based on are generated. This can be seen in a limited but growing improving the productivity of fish stocks, maximising number of global experiences where this approach is net benefits, and improving equity with a management being used, for example in Chile, Mexico, New Zealand, system that has well-defined fishing rights (see Box 2). South Africa, and Namibia. India’s inshore waters clearly This second approach has a goal of achieving the offer a significantly more complex and challenging Maximum Economic Yield (MEY) from sustainable fish operating environment than the other countries (larger production, supported by more effective management population, long coastline, complicated stakeholder systems including well-defined resource access rights for groups and institutions, huge artisanal and traditional stakeholders. It also builds on progressive management fisheries, poor structures for monitoring and surveillance, prescriptions associated with Eco-System Based Fisheries etc). Yet, the underlying precepts are still applicable and Management, promoted by the Food and Agriculture broad lessons can be learned from these countries of Organisation (FAO). how the reform processes worked towards a transition, problems encountered and successes achieved. An Transitioning to a more progressive and holistic overarching lesson is that this kind of reform process can fisheries management approach with a stronger focus take decades to fully achieve the desired results. on economics and access rights may offer a long-term While a number of interim measures can help improve fisheries management in India, a longer-term transition Box 2. Key features of fisheries management in fisheries management will be needed eventually, to address critical policy issues. These are, reducing the that maximise net benefits: current overcapacity of fishing effort, allocating more � The inherent wealth in fish resources is represented secure fishing rights to stakeholders, and mitigating by the resource rent, or net benefits from harvesting any negative impacts on stakeholders if fleet or capacity fish. In the absence of effective management, fish reductions should occur, largely for inshore fishing. stocks are usually overexploited and potential Therefore, it is important that the costs of mitigation resource benefits dissipated, or compensation for stakeholders affected by these � An effective management system can reduce potential changes be considered early in any transition investments in excess capacity, lower operating process. Appropriate programs need to be identified costs, and increase productivity and unit prices and implemented to support broader livelihood because of larger stocks and better quality fish – this leads to higher net benefits, opportunities and ensure that safety nets are provided where required. � The net benefits can be capitalised into the value of defined fishing-use rights, and/or captured by the public fisheries management agency to support Phasing and Timing of Reforms new economic activities in coastal communities, From global experience, considerable time and � Collective decisions are taken about how to generate net benefits, how to share these benefits, commitment will be required by major stakeholders – and how to use them, from the government of India and state governments, � Developing a more effective fisheries management to inshore fishers and processors, and appropriate civil approach based on net benefits is a long-term and society organisations – to successfully engage in a challenging goal with many intermediate steps reform process. Reforms need to be innovative, adaptive required to lay the groundwork. and responsive; they must build appropriate capacities Source: DFID 2005 and study team. and provide the necessary tools and information about xiv InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development best practices. It is important that early on, a process the design of improved fisheries management systems. be established for extensive stakeholder participation, It should also identify targeted legal, policy, regulatory, education and awareness-building, especially at the and institutional reforms at both national and state community level; this will help overcome vested levels; these will help drive improved marine sub-sector interests and allow local solutions to be identified, performance, and start building necessary capacities. which is critical in the Indian context. In addition, it is important that the planning and early implementation Phase 3 includes policy implementation planning, and of programs aim to minimise any impacts of change on would build upon the two earlier phases, and analyse people in the sub-sector, particularly smaller operators, and define a concrete, long-term fisheries sub-sector and to facilitate development of expanded livelihood development program for India to improve social, opportunities. This will help shift the expectations economic and environment performance. A monitoring and capacities of new generations in coastal fishing and evaluation system needs to be developed to track communities to more viable economic alternatives sub-sector performance, including livelihoods. Lessons beyond fishing. learned from pilot work at the state level could play a major role in formulating longer-term programs that Recommended Actions could be financed both through central schemes and possible multi-lateral support. It is recommended that the following actions be implemented at the national and state levels in a Each phase should consist of a series of linked phased approach over three to five years to initiate a components, with specific objectives and activities. gradual transition in fisheries management. This three However, at the same time, all phases need to be built to five year program would lay a strong foundation upon specific, generic activities including information for longer-term actions that would ultimately improve collection and analysis, human capacity-building, and net economic, social and environmental benefits from the identification and evaluation of options. National the sector: level activities could be implemented through the National Fisheries Development Board (NFDB) in a) National Actions Hyderabad, under the guidance of the Department of Phase 1 includes consultation and review, and should Animal Husbandry, Dairying and Fisheries in the Ministry focus on providing additional and targeted strategic of Agriculture. analysis of the marine fisheries sector in India and complement a wide body of work already completed. b) State Actions It should also evaluate international and domestic best practices for fisheries management and coastal It is recommended that state-level activities be planned livelihood development that could be replicated and implemented in at least one state to pilot the reform more widely in India as part of a broader effort to process for the marine fisheries sub-sector in India, and build stronger capacities and a knowledge base. This provide valuable lessons for scaling up in other coastal evidence-based approach would lay a robust foundation states. The following actions are suggested: for more detailed policy analysis, and careful consideration of options for reform interventions and livelihood Phase 1 includes review, analysis and preparation, and improvement that could be implemented, particularly at should provide additional and highly targeted analysis a national level. of the marine fisheries sub-sector at the state level. It should include a bio-economic assessment of selected Phase 2 includes policy development, and would build priority fisheries, and development of improved baseline upon Phase 1 and set out possible policy options and information around coastal fisheries and non-fisheries fisheries development strategies for the future, including livelihoods. exeCuTIvesuMMary xv Phase 2 includes implementation of management Dairying and Fisheries, Ministry of Agriculture (chaired and livelihood reforms, and should put the proposed by the Joint Secretary), to provide broad oversight fisheries management reforms into practice, with the and strategic guidance to the proposed national and identification of a number of specific fisheries for the state-level activities. There is considerable operational implementation of new fisheries management plans. A merit in considering the Secretary to be the Chief robust monitoring and evaluation system would need Executive Officer of the National Fisheries Development to be installed, building upon current systems as well Board (NFDB). Many of the reform activities could be as the FAO Ecosystems Approach and other reforms to implemented quite effectively through the NFDB. improve net benefits. Phase 2 should also strengthen the Other members of the task force could include one socio-economic and livelihood status of the state fishers. senior representative from the participating state(s), a Activities under this component could include capacity member of a national civil society fisheries organisation, building, developing alternative livelihoods for coastal a member from the fishing industry, and representatives fishers, establishing fish marketing kiosks for retail fish from key international partners. Consideration may also marketing, provision of Information Technology (IT) be given to establishing a linkage between the proposed kiosks, and improving post-harvest support for small- task force and the Central Board of Fisheries, which is scale fishers through a network of mini-chill rooms, cold composed of state Ministers and chaired by the Union storage facilities, flake ice plants, etc. Minister of Agriculture. This would ensure that all coastal state Ministers responsible for marine fisheries are aware c) Recommended Implementation Approach of the task force activities and where required, can assist It is recommended that a high level task force be participating states in overcoming implementation constituted by the Department of Animal Husbandry, hurdles. xvi InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development inTroduCTion Fisheries and the Marine Sub-sector Marine fisheries in India remained in a pre-developed phase until 1965 when average annual production in India was less than 0.8 million tonnes. This was followed by a prolonged growth phase up to 1988, with annual India is endowed with a wide diversity of water production ranging from 0.82 to 1.8 million tonnes. Peak resources, which sustain a large fisheries sector in production followed during the 1990s when coastal the country. India has a coastline of 8,118 km with areas were becoming fully exploited and yielded annual an Exclusive Economic Zone (EEZ) stretching over production between 1.8 and 2.8 million tonnes. Marine 2.02 million km2, and a continental shelf covering products exports are one of the fastest growth sectors of 0.53 million km2. India also has inland water sources India, reaching US$1.9 billion in 2008/09. Domestic per covering over 190,000 km and open water bodies with capita consumption of fish is estimated to increase by a water-spread area of about 740,000 hectares. Brackish an average of 3.3 percent from 2000 to 2020 (Dastagiri water area that could be used for aquaculture is 1.24 and Mruthyunjaya 2003), double the estimated annual million hectares, of which only 165,000 hectares have average global change in demand for fish as food from been developed. Total fish production from India’s 1997 to 2020 of 1.5 percent (Delgado et al. 2003). fisheries sector in 2009 was an estimated 7.60 million tonnes (Government of India 2010). The marine sub- Marine fisheries in India are a shared responsibility sector contributed approximately 39 percent of total between the national and state governments. In a fish production, or 2.99 million tonnes. The balance, legal and constitutional sense, state governments termed inland fisheries, was accounted for by freshwater are responsible for waters inside the 12 nautical mile aquaculture, inland capture, and coastal aquaculture. territorial limit (22 km) while the Government of India India contributes nearly five percent towards global (GOI) is responsible for waters between 12 nautical miles fish production. The country ranks third in the world in and the country’s 200 nautical mile (370 km) EEZ. Marine total fish production and second in inland aquaculture. fisheries management faces a number of challenges The fisheries sector has registered an average annual such as open access fishery property rights systems; growth rate of around four percent during the last weaknesses in several aspects of state- and national- five years. The sector contributes around one per cent level legal and policy frameworks; low state government to Gross Domestic Product (GDP) and 4.7 percent to capacity for monitoring, control and surveillance (MCS); agriculture GDP (Central Statistics Organisation 2007 and knowledge gaps regarding the sustainability of key and Government of India 2010). fish stocks. These kinds of issues are not unique to India. InTroDuCTIon  Strong economic growth in India in the past several years people3 in fishing communities spread along the (India Brand Equity Foundation 2008)2 and increasing 8,118 km Indian coastline and offshore islands. Most of global markets for marine fish have contributed to an these people are highly dependent on fishing for their emerging post-modernisation phase, characterised employment, income and subsistence food. A majority by an unprecedented expansion of both inshore and of the fishers and processors are poor and have limited offshore fishing capacity, greater emphasis on larger scope for diversification out of the sector without scale offshore commercial fishing in the EEZ, and external assistance. They are not well-connected to changes in the composition of fish being harvested. India’s rapidly growing economy and lack the formal While the EEZ offers growth potential of an estimated education to take advantage of new jobs emerging from 3.9 million tonnes (2/3 off the west coast and in depths wider national economic growth. up to 50 meters), the reality is that the majority of coastal fishers will continue to operate in inshore waters where, A fisheries development model for inshore waters according to the Food and Agriculture Organisation needs to be developed that is characterised by (FAO - 2008a), declines in catches, catch rate per unit of more productive fish stocks, more effective fisheries effort and real incomes are emerging as characteristic management, and improved equity. This will require indicators. For fish stocks assessed by the GOI, 61 percent strengthened policy, legal, regulatory and management of capture fish stocks are overexploited and most of the systems around a more holistic approach, supported other commercial stocks are fully exploited. by appropriate economic and financial incentives, and above all, stronger access and use rights for resource The present status of inshore marine fisheries in India users. This approach closely aligns with guidance by the and growing challenges, call for early implementation Commission on Economic Growth (2008) which states of appropriate policy measures to gradually shift the that economic growth is critical to address poverty, and focus from harvesting increasing volumes of fish in a de as part of this process, a market economy needs to be facto open access resource situation, to a more holistic based on deep institutional underpinnings that define approach based on a long-term goal of maximising property rights, enforce contracts, convey prices, and net economic, social and environment benefits from bridge informational gaps between buyers and sellers. sustainable fish production. The status quo with current fisheries management is not working. Loss of There is no reason why these general economic and the inherent value or ‘wealth’ of the resource is the first institutional concepts cannot begin to be extended to consequence of ineffective management of fisheries; marine fisheries in India. excessive levels of fishing capacity may also lead to India brings exceptional challenges in reforming fishing effort beyond the biological MSY, contributing to its marine fisheries because of the large number of declining catches and in extreme cases, stock collapse. participants, boats and on-shore infrastructure, poor The outcome of not reforming current management regulation and management, and a traditional focus on systems may be seen in continued resource depletion, increasing fish catches as a central policy mechanism poor net returns, reduced food security, and a growing poverty trap for the more marginalised stakeholders. for pro-poor growth. Revitalising India’s marine fisheries Evidence is beginning to surface that suggests India’s sub-sector will likely require major changes in policy marine fisheries may be heading in this direction now, and governance with respect to stronger access and particularly for inshore waters. use rights, which could limit and in some cases reduce access to selected inshore fisheries that have excess Reform is both urgent and important because aside from fishing effort relative to sustainable stocks. This may generating valuable export earnings, marine fishing supports the livelihoods of an estimated 3.52 million 3 Other references, for example, Planning Commission (2006) estimates that 14 million people are involved in marine and inland fishing, 2 For example average growth of 8.8 percent from 2003/04 to 2006/07. aquaculture, marketing, and related services.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development on design and implementation that accounts for Box 3. What is fishing capacity? national and local conditions, and putting in place appropriate mechanisms and instruments to help In general, capacity can be defined with reference sub-sector participants to cope with these changing to fishing inputs (vessels, potential effort) or outputs (potential catch) over a period of time by a vessel (or conditions; fleet) if fully utilised. Variations include: ii) The process of allocating stronger fishing rights � Fisheries scientists often view capacity based on must be decided early on through extensive comparisons between fishing effort (number of stakeholder consultation. Fishing rights can be days fished, number of nets used, etc), fishing allocated in any way that policy-makers desire, mortality and MSY. When total mortality exceeds MSY, there is excess fishing capacity. including favoring disadvantaged fishers. � Fisheries managers often see capacity in terms Considerable time may be required to build of the number of vessels (or total horsepower), capacity among stakeholders to even engage in average fishing days, and harvests relative to stock this consultation process; conservation goals. iii) Care will be needed before a change in approach � Economists will often measure capacity based on a level of potential fishing output and maximising to fisheries management is pursued; the true net benefits. costs of change versus no change must be made Source: FAO 2008b. explicit and transparent to policy-makers and other stakeholders. Where fisheries may be providing a ‘safety-net’ for the poor, further mechanisms ultimately lead to a reduction in overall fishing capacity must be developed to invest in pro-poor fishing, (see Box 3 for definitions of capacity), yet without alternative non-fishing employment, and indirectly eventual rationalisation of fishing capacity relative to in education or infrastructure; stock sustainability, further sub-sector development iv) The development of new and more progressive may be very limited for the majority of fishers operating fisheries management approaches in any country in inshore waters. will produce winners and losers. Difficult political choices are inevitable; impacts must be monitored, According to a recent study from Sierra Leone (DFID, and compensation mechanisms put in place. World Bank, FAO 2007) a long-term transition in fisheries policy and management around more sustainable social and economic net benefits may raise two main questions Study Objectives and Methods that should also be paramount for Indian policy-makers. First, will a stronger focus on potential net benefits and the In November 2006, the Department of Animal economics of the fisheries overshadow other important Husbandry, Dairying and Fisheries in the Ministry issues such as the importance of fisheries for livelihoods of Agriculture (DAHDF) – GOI requested the World and social welfare? Secondly, will the inherent wealth in Bank to undertake an initial review of the marine sub- fisheries be captured and used exclusively by the already sector as a first step towards a potentially longer- rich and powerful in society, simply increasing social term engagement in supporting the sustainable problems and perpetuating existing inequities with development of the Indian fisheries sector. The smaller scale operators? In responding to these concerns, subsequent study aimed to: a) review the general four important issues need to be taken into account by structure, conduct and performance of the marine policy makers: fisheries sub-sector in India with particular focus on i) The success and impact of new approaches for inshore fishing and the role that the marine fishery fisheries management will depend, to some extent, plays in rural livelihoods for coastal communities; InTroDuCTIon  b) identify the main constraints in the marine sub- and vulnerability. The team spent approximately two sector that are impacting on biological sustainability weeks in each state to gather critical information and and economically healthy fisheries; c) draw on national meet the key stakeholders. The bulk of data and other and international experience to recommend alternative information were collected from secondary sources, policy approaches and strategies to address these issues; with primary data collection through small samples of and d) provide material to assist the government of India communities being undertaken, especially for social in consultations with key stakeholders about long-term and institutional assessments at community levels. transformations towards better performance. Other inputs included a 2005 scoping study already completed for Tamil Nadu, reports from Orissa through Structure of the Report an ongoing UK - DFID/United Nations Development Program (UNDP), and secondary material from Kerala. The report identifies options for improving the performance of the marine sub-sector through Following the completion of a draft report, structured integrated reforms, focusing on inshore waters. The consultations were held in each of the four focal states as report highlights key trends and lessons from state- well as at the national level. State workshops focused on level analyses; it also includes examples of how similar gathering feedback on key issues and proposed reforms issues are being resolved in other countries. The study from small-scale fishers, processors, civil society groups, is based largely on background papers developed and local fisheries department officials. A national- from analyses of marine fisheries in Andhra Pradesh, level consultation in Hyderabad was aimed at senior participants from all coastal states and Ministry officials Karnataka, Gujarat and Orissa. These states were from Delhi. These consultations provided valuable identified by DAHDF in consultation with the state inputs for revising the draft report into a final version, fisheries departments, ensuring that the study covered particularly with proposed reforms over the short, both east and west coasts, and could take advantage intermediate and long-term. of available information. A small core study team carried out field assessments in each state, consisting The report is organised as follows. Chapter 2 provides of focus group discussions, key person interviews benchmarks for efficient fisheries management based and household-level interviews, supplemented by largely on wealth-based management approaches, and a secondary literature collection. The field work was draws from global best practices. Chapter 3 examines conducted in major coastal ports, rural landing centers the general structure, conduct and performance of the and fishing villages. Stakeholders consulted included sub-sector as well as a brief historical review. Chapter 4 state and district level officials of the Department of discusses the livelihood context of marine fisheries Fisheries, boat owners, crew and drivers, fish vendors, and key issues that must be acknowledged in any auctioneers, traders, loading and unloading workers, sub-sector transformation. Chapter 5 provides a brief ice makers and a range of ancillary workers such as net analysis of the current Indian legal and policy setting in menders, mechanics, painters, and carpenters. Focus marine fisheries against the benchmarks in Chapter 2. group discussions and household interviews were Chapter 6 discusses options for moving a transitional carried out to ascertain income, indebtedness, poverty reform process forward.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development inTernaTional besT PraCTiCe in fisheries develoPmenT The Global Marine Fisheries – vessels, suggesting that a significant reduction in capacity is needed to support more sustainable fishing, Where does India Fit? particularly for inshore areas4. The State of World Fish Resources and Aquaculture India is not alone in facing these types of policy (FAO 2007a), estimates that 25 percent of the challenges in fisheries, either within South Asia or world’s fish resources were categorised in 2005, as worldwide. A recent global study (Pitcher et al. 2006)5 “overexploited, depleted and recovering�, 50 percent focusing on compliance with the United Nations Code as “fully exploited� and 25 percent as “underexploited of Conduct for Responsible Fisheries (CCRF) Article 7 and moderately exploited�. The terms “exploited� and (fisheries management) highlights the performance “overexploited� refer here to a biological MSY reference of national fisheries policy and fisheries management point. At a fiscal level, the defining characteristic of the systems (Table 2). Some countries (for example New fishing industry globally is one of subsidies and other Zealand, South Africa, USA and Canada) were rated government support that usually provide the wrong as performing reasonably well in terms of fisheries signals to fishers, encouraging excessive capacity and policy design and implementation, including fisheries fishing effort. A study edited by Sumaila and Pauly management. Others including India, Indonesia, Thailand (2006) estimates that world fisheries are currently and Vietnam could perform better. There is clearly subsidised between US$30 billion and US$34 billion considerable scope for learning and experience sharing per annum. between countries with different types of fisheries and policy context. Based on results published by the Central Marine a) The countries included in the table by the authors of Fisheries Research Institute (CMFRI 2007), the the current India study have been chosen to reflect the overexploitation situation in India appears to be more diversity of fisheries sectors and policy performance serious than the global average. From the previous worldwide; a more in-depth comparative analysis is chapter, recent data in India suggest a general decline in catch returns and fisheries performance. Varkey et al. (2006) compared the current and optimal fleet sizes 4 It must be noted however, that in the four states where field work was undertaken, an increasing number of registered fishing vessels are no in India based on recent census results and analysis longer actively fishing due to stagnant or declining catches – this may (Table 1). Using these numbers and excluding deep make the issue of reducing overcapacity somewhat easier to address. 5 The study by Pitcher et al. (2006) is the most recent and most water vessels operating in distant offshore waters, India comprehensive global review of marine fisheries performance available has more than 2.5 times the optimal number of fishing in the literature. InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  Table 1: India – comparison of actual and estimated optimal marine fishing fleet size Fishing vessel type Actual numbers Estimated optimal Potential overcapacity (%) numbers Traditional non-motorised 106,044 31,058 241 craft Small-scale motorised craft 76,057 20,928 311 Mechanised craft 59,619 15,998 273 Deepwater vessels 180 n/a n/a Total 241,720 67,984 255 Source: CMFRI (2006); Government of India (2007a), Varkey et al. (2006). in preparation by Pitcher et al. at the University of open access situation generally have been ineffective. British Columbia; The main reason is a chronic failure by governments to b) Pitcher et al. (2006) includes 2 main sections first deal decisively with the free and open access nature in the CCRF evaluation (policy intention and of marine fisheries. implementation); within each section there were In addition, government policies tend to center on 3 sub-sections and 6-9 questions for each; the maximising biological harvests or employment through current table reflects the average score across all incentives that can actually encourage greater fishing questions in each section (used to give an Overall capacity. Public subsidies are often a contributing factor Policy Performance rating for each country); Low = to poor fisheries performance. An assessment by the Low compliance to, High = high compliance; World Wildlife Fund (2004) on global marine fisheries concluded that harmful subsidies are a significant part of the failure of governments to establish effective, Alternative Approaches to Marine science-based fishing management regimes. As a result, Fisheries Development subsidies represent nearly 20 percent of fishing industry revenue, flowing to fishing fleets already operating at Conventional Approaches more than twice the optimal capacity. According to the same report, harmful subsidies are a fundamental driver It is widely accepted by most natural resource of fishing overcapacity and encourage unsustainable management experts and policy makers that unlimited levels of fishing effort. These can take the form of and unrestricted (open) access to common property many of the subsidies currently available in India to resources can lead to these resources being overexploited the sub-sector, including social support, insurance, with all scarcity rents dissipated (Tietenberg 2000). fuel, ice boxes, vessel construction, modernisation and Unmanaged marine fisheries face chronic economic conversion, and port and harbor expansion (Marine overexploitation and overfishing largely because of Products Export Development Authority – MPEDA- 2002). open access characteristics6. Open access situations While welfare support can be viewed as a positive social can destroy incentives for conservation and promote policy action, subsidies for boats, gear, fuel, etc, can often inefficient allocation of resources. In recognition of this act as an incentive for marginal fishers to remain in the problem, many countries have attempted to manage sub-sector when it is not otherwise economic to do their marine fisheries, but management efforts within an so. Also, these kinds of subsidies can encourage new participants to enter the sub-sector, for example people 6 For more details about rents and open access fisheries, refer to Annex 2. from inland rural areas who may see fishing as a means of  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 2: Fisheries management and policy compliance – an international comparison Country Annual World Compliance with the CCRF Article 7 (fisheries Fisheries landings ranking for management) (B) management (tonnes) landings Policy design Policy Overall policy performance implementation performance score Europe Norway 2,618,910 10 High High High 4/6 Iceland 1,735,887 12 High High High 6/6 Denmark 1,404,017 14 Medium Low Medium 4/6 UK 881,859 22 Medium Low Medium 4/6 France 586,041 27 Medium Low Medium 4/6 Poland 217,112 47 Low Low Low n.a. North America USA 4,690,860 5 High Medium Medium 4/6 Canada 977,257 21 High High High 5/6 Africa South Africa 587,744 26 High High High 3/6 Senegal 376,324 35 Low Low Low n.a. Namibia 297,651 41 High High High 3/6 Asia China 14,552,262 1 Medium Low Medium 4/6 Japan 5,101,361 3 High Medium Medium 5/6 Indonesia 3,621,498 7 Low Low Low 3/6 INDIA 2,776,067 8 Low Low Low 2/6 Thailand 2,656,129 9 Low Low Low 2/6 Vietnam 1,217,193 16 Low Low Low 1/6 Australasia New Zealand 591,763 25 High High High 6/6 Australia 236,644 46 High High High n.a South America Peru 8,390,557 2 Low Low Low 3/6 Brazil 518,470 29 Low Low Low 2/6 Note: The results shown in this table have been generated using information and data published in Pitcher et al. (2006) and available at the following website: ftp://ftp.fisheries.ubc.ca/CodeConduct. survival during drought periods. In the absence of other Many government fisheries policies also seek to livelihood options for farmers in this position or people enhance post-harvest value-addition, which is a logical who have lost low-skilled jobs in the formal sector, goal provided that an effective management system inshore fishing may appear to be the only means of is in place. In the absence of effective management providing food and possibly modest earnings to support however, any increases in value-addition simply a family. generates higher raw ‘first-sale’ fish prices that in InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  turn may encourage yet more entry into a sub-sector More holistic approaches use resource rents or net with excess capacity, and fuel higher subsequent benefits as the foundation of fisheries management exploitation. systems7. Under these approaches, many elements in normal fisheries management need to be effectively More Holistic Fisheries Management operating, for example stock assessment, monitoring, Approaches control and surveillance (MCS), fishery management information systems, etc. These activities would be Fish resources are inherently valuable, in many cases part of any modern and well-managed fishery, for extremely valuable. Well-managed fish resources can example as suggested by the FAO for Ecosystem make significant contributions to social and economic Based Fisheries Management. However, their focus welfare on a sustainable basis. The amount of these and the relationship between the different elements benefits, often termed “wealth� (measured by the will change as rents become a more prominent policy estimated net economic benefits or resource rents) focus. Countries with an abundance of natural resources varies according to changes in fish stock abundance, should be able to invest the rents from these resources fish prices and fishing costs. However, the indications to increase domestic economic growth and also are that these potential values are substantial, generate finances that can be redistributed to address perhaps as high as US$50 billion globally. Moreover, poverty. An important part of a more holistic approach this return is available on a recurrent basis due to the focused on net benefits or rents will be to develop bio- renewable nature of fish resources. The generation economic modeling methods to estimate resource and appropriate use of resource rents can also help rents in different fishery management units (FMUs). support the achievement of a range of policy goals The identification of appropriate economic rents, such as economic growth, poverty alleviation, and and the development and implementation of fishery resource conservation. The experiences of those few management plans (FMPs) are key requirements. marine fisheries around the world that are reasonably well-managed suggest that resource users are able to Successful fisheries management, based on increase the value of these net benefits or rents, often maximising net benefits will achieve biological substantially, once they operate under more effective sustainability, because resource users possessing well- management systems, including well-defined resource defined use rights know they need a healthy resource allocation and use rights. base to generate, sustain and increase the value of the fishery. Identifying goals (maximising net benefits, Unfortunately, if access is left free and open, it will rents or ‘wealth’) and constraints (sustainability) is usually attract excess levels of fishing capacity, both in therefore essential, as well as attacking them in the terms of the number of fishers and capital investment correct order. If management systems fail to deal with by those who are fishing. Loss of net benefits is the first the value of the fishery as measured by net benefits, consequence of ineffective management of fisheries, but then continued overexploitation is guaranteed. There if the potential amount of net benefits is great enough is no example of a well-managed marine fishery (measured by the ratio of fish prices to fishing costs) then anywhere in the world that has not dealt first with the excessive levels of capacity may also drive fishing effort economic aspects. Box 4 summarizes key differences beyond the MSY level, leading to declining catches. The fishery is then characterised by both overcapacity and between more conventional and more holistic overfishing. The implication of this conclusion is that approaches to fisheries management that take greater reforms to marine fishing should strive to create and account of net economic, social and environmental manage this inherent value of the resource, moving benefits. beyond traditional objectives such as biological sustainability (often represented by MSY). 7 For more details on this approach, refer to Annex 3 in the main report.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Box 4. Comparison of approaches to fisheries management Conventional approaches to fisheries management Holistic fisheries management based on net benefits; � Physical weight of fish caught (production maximisation and technology upgrades) is usually emphasised as the main policy goal; � Fisheries management systems have biological targets (MSY), and a top-down approach with government fishery managers setting catch limits and input controls (fishing effort); � Fishers participate in exploitation of the resource, usually with weak ‘rights’ (it can be argued that certain co- management approaches can help in the development of a rights-based framework, at least for inshore fishing); � Success indicators are defined with reference to increasing production levels (landings, employment, exports, GDP; fiscal receipts, value-addition, food security); � Key issue of resource rent is hardly ever addressed; � Access to benefits depend on being a fisher (or one engaged in related trade); � Incentives exist to increase participation in the sector (often perverse incentives leading to overexploitation where access restrictions do not exist); � Objective is to unlock the inherent wealth (resource rent or net benefits) of fish stocks; � Macro-economic contribution of the sector is the main focus; countries reinvest rents domestically to ensure pro-poor growth; � Many of the usual fishery management techniques are used but in a different way; � Relies on a fishery management planning approach, with a focus on generation and equitable distribution of resource rent within each specified fishery; � As governance and stakeholder capacity increases, government plays the enabling (oversight) role for private sector expansion; � The approach is about achieving goals, not setting new ones; it is consistent with existing goals: resource sustainability, economic growth and livelihoods enhancement; � Not prescriptive; provides an approach that can be tailored to the specific conditions and objectives of different countries and fisheries; � It is important to develop the right institutions and incentives for successful fisheries; Source: Study background papers. The International Development in theory could be applied across different situations (large or small countries; simple or complex fisheries; Record and Fisheries Policy single country or federal-state systems). These emerging Where fisheries management systems are moving best practices (albeit at an early stage in most of the towards a more holistic approach (e.g. New Zealand, countries) represent a good opportunity for India to Namibia, Chile), these are proving to be more review its marine fisheries sub-sector, make relevant economically successful than more conventional and objective comparisons, and identify future options biological approaches. A set of guiding principles for more effective sub-sector development. While the is now beginning to emerge relating to success in underlying lessons from these countries are relevant fisheries management, which can form the basis of for India, the country also has very different conditions international best practices in the future, and which and significant challenges that need to be overcome InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  during implementation. These include the sheer scale of the sub-sector, length of the coastline, complexity Box 5. Analysis of the fisheries policy profile of management issues and processes for inshore and policy process – 4 steps waters, need to improve performance with basic fisheries management, high levels of poverty in coastal Step 1: Identify the policy profile areas, low levels of education, poor access to credit by � What is the general policy context? smaller fishers, and institutional gaps related to policy � What are the objectives of the fisheries policy? and law. A shift in approach for India will necessarily � Which organisations are responsible for policy design and implementation? be slow (it could take decades to fully achieve), require � What are the policy instruments? careful planning, and carry with it potentially high social costs that must be identified early and addressed. Step 2: Assessment of policy performance Lessons from other countries should not be adopted � Have the stated objectives of the policy been blindly, but rather should be reviewed with an open mind, achieved? taking into account the Indian context and modified to � What information underlies the assessment? suit local conditions. These country examples, when Step 3: Evaluate policy performance? studied in more detail, preferably through on-site � How can the level of policy performance be visits, may provide useful lessons on how successful explained? processes engaged with stakeholders in a reform � How have policy approaches been shaped by program; how to revise policy and legal frameworks particular narratives? using consultative processes; how to set up new Step 4: Identify options for policy change fisheries management units to support inshore fishers � What opportunities currently exist for policy change? in a co-management approach; data requirements and � What constraints does policy change face? methods for bio-economic modeling and rent estimation; � How can these constraints be overcome? and how countries have dealt with overcapacity issues. Source: Study background papers Factors of Success in Fisheries Management and Emerging Best Practices macroeconomic goals of national and state According to Cunningham and Bostock (2005), there governments. Clear specification of the roles and are several major factors which appear to be important responsibilities of the various levels of government for success in marine fisheries management. These can and the private sector is required to ensure effective be illustrated by several emerging examples8 of best decision-making in fisheries. The characteristics practice in countries that are at different stages along the of the framework (strength, flexibility and process to achieving an effective wealth-based fisheries appropriateness) will impact on the achievement of management approach9. management objectives. In Australia, the Northern Prawn Fishery (NPF) is a good example of how i) A clear and well-founded policy framework: an effective policy framework was able to set the Australian Northern Prawn Fishery. Management of boundaries for the fisheries management system, fishery resources must sit within an effective national and how this was supported by an appropriate legal policy framework. This consists of the declared framework. objectives of the various government departments (fisheries, trade, environment, etc,) and the overall ii) Appropriate institutional capacity: Mauritania. Effective institutional arrangements are crucial to the performance of fisheries management systems 8 Source: Study team and Hilborn et al. 2005. 9 See Annex 4 for more details for some of these cases. and the contribution of fisheries to the economy. 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development The range of institutions can relate to management Individual Transferable Quota (ITQ) system was organisations, legislative frameworks, policy introduced. The right to catch fish is allocated as a processes, research and information collection and proportional interest in the amount of fish that can so forth. To ensure that the tasks are performed be sustainably taken each year, and as a fishing right adequately, an appropriate level of institutional in perpetuity. Therefore, fishers face the costs of capacity is also needed; this is a major factor affecting good or poor fishing practices on an individual basis success in developing countries in particular. In and there is clearly an incentive not to overfish, and Mauritania, an African coastal state with large fishery to protect their business investments into the future. resources, the development and implementation Since New Zealand adopted a resource rent-centred of an appropriate institutional framework and approach to management, the total asset value of its building capacity helped ensure that a significant fisheries has increased to US$3.0 billion. proportion of central government revenue came v) Appropriate incentives: Pacific halibut fishery: from the fishery sector through the collection Canada and USA. A key challenge for fishery of resource rent. Presently, 20 percent of central management is to address the perverse incentives government expenditures are financed from fishing which occur in unmanaged (or weakly managed) revenues. The expected annual rent generation is fisheries and which drive overexploitation. In the case US$100 million per year. of the Pacific Halibut fishery spanning both Canadian iii) Holistic fishery management and stakeholder and American waters, the introduction of rights- participation: Shetland. Fisheries managers cannot based fishing in 1995 has had numerous positive effects. What once had been an annual fishery with act in isolation from other stakeholders, and fisheries a reasonably long season had been reduced to a cannot be managed without reference to other classic ‘derby’ fishery with crews racing non-stop inter-acting sectors and to the wider economic and for 48 hours in vessels of ever-increasing size and eco-system context. In the case of two fisheries in motors to catch as much fish as fast as possible Shetland, the management regimes were changed from the opening of the season, with impacts on to take account of a range of external factors, and crew safety and product quality. Recognising the to draw upon the collaborative efforts of different problems with the ‘race to fish’, Canadian fishermen stakeholders to find an appropriate response to the asked for Individual Fishing Quotas (IFQs) from their needs identified. government, which was successful in reducing the iv) Resource rent or net benefits as a central concept: annual race for fish. In 1995, IFQs were introduced New Zealand. The ability to extract resource rent in Alaska to replicate the Canadian success. Stock and allocate it within the economy is a critical recovery has taken place, landings have increased, contributor to success in fisheries management prices on markets have improved and stabilised, for three reasons. First, it probably means that and the fishing season has been lengthened with the fishery is being managed properly from an improved sea-safety. Discards have also been economic perspective. Secondly, it also means reduced along with ghost fishing, since fishers can that the fisheries is probably also being exploited on now fish more selectively and efficiently. a biologically sustainable level. Thirdly, a fishery that vi) Dealing with complexity and change and ability is contributing to a wider economy (through to learn and adapt: Namibia. Fisheries do not collection and use of resource rent) is probably operate in isolation, but are located within diverse also fulfilling the social objectives of a fishery and complex systems, which make up the natural, management regime. In the case of New Zealand, social and economic environments. To successfully resource rent is at the center of management, manage such complexity requires flexibility, and and incentives are aligned to the goal. In 1986, an the ability to learn and adapt. The case of Namibia InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  is interesting in this respect. At Independence in and durable. Resource stocks have stabilised, fishers 1990, the country went through a period of turmoil, are playing a central role in resource management, with complex political and economic changes. In the and marketing systems have improved through inshore fisheries, operators from South Africa had larger bulk sales from local organisations rather than a large presence. Offshore, a large fleet of foreign from individual fishers. fishing vessels operated under free and open access conditions. Despite the political complexities (both regionally and internationally), Namibia was able to Making the Transition to Better define the boundaries of its EEZ, establish a quota Fisheries Management – Key Issues system, and create a sense of ownership of its fisheries. Of particular note is the fact that the new state asserted It is generally accepted that fisheries management jurisdiction over the rich off-shore fishing grounds. performance in most countries is relatively weak. Attempts Today the new fisheries management systems have to develop and implement fisheries management systems been successful in generating significant economic based mainly on increasing production, have overlooked rents for Namibia and continue to represent a source the wider range of issues which affect fisheries exploitation, of economic growth. GDP contribution increased especially the management of people and their economic from 4 percent in 1990 to over 10 percent in 1998. activities, and environment considerations. The inertia Fish exports are now worth US$300 million annually. of institutional change also means that many fisheries Resource rents now cover all fisheries management management authorities are still structured in a way costs in addition to generating surpluses to that is consistent with the old paradigm of maximising government for general redistribution. production rather than maximising net benefits. Therefore, the key questions are: vii) Setting an effective legal framework for small- scale shellfish fisheries: Chile. The Chilean inshore 1. How can institutional change be brought about? shellfish fishery covers more than 40 species along 2. What are the issues that need to be tackled to a 3,000 km stretch of coastline, involves 10,000 improve fisheries policy performance? divers in 250 communities, and generates revenues 3. What new approaches can be used in fisheries of US$170 million per year. Until the 1980s, the management? area along the coast was an open access fishery In attempting to address these questions and work with the usual problems of overcapacity, conflict towards a more holistic fisheries management approach and growing concerns over sustainability. In 1996, to maximise net benefits, there are at least 10 important a new Fisheries Act supported the development points to be considered as follows: of Territorial Use Rights from Fishing (TURFs). Implementation started in 1996 with TURFs i) Policy and policy analysis (problem definition): granted to officially recognised fisher organisations. For any country, the national fisheries policy is Co-management takes place between the local the formal statement that sets out clearly and fisher organisation and the Ministry of Fisheries. explicitly the objectives, and the associated Before a TURF is granted, the local organisation must course of action, for management of the fishery. provide a detailed base-line survey of the shellfish It represents the reference point against which grounds, habitat maps, stock assessments and two- all that happens in the fishery sector is measured. year management plan. The local organisations often Policy analysis, as a starting point for considering contract technical consultants to assist with these change, is needed to measure the performance tasks. TURFs are underpinned by strong legislation of policy (the extent to which objectives are and a regulatory framework that protects use rights achieved) and then attempt to explain the level of that are allocated. These rights are exclusive, secure, performance (policy evaluation – see Box 5).  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development ii) Policy process and future vision (opportunities incentives to fisheries stakeholders to align behind identified): The policy process involves both the the policy objectives and cooperate within the design and implementation of policy. Fisheries management systems. Appropriate organisations policy should reflect a consensus by society on (public and private sector) will be needed to provide what it wishes to achieve through the exploitation a range of services for the management system and (or not) of its fish resources and how it is going to sector. achieve those objectives. The ‘visioning’ of the future vi) Importance of legal frameworks: The legal of the fishery is important to gain ownership by the framework exists to support the implementation of stakeholders, and to initiate the overall process of the policy and subsequent strategy. It is essential to change. establish efficient policies and strategic direction iii) Information to shape reform and shift before developing or reforming legal instruments. perceptions: Stakeholders and key decision-makers Close attention should be paid to the nature of need to understand the nature and performance of the legal instruments that are developed. The best the fisheries, and the potential benefits which can generic approach seems to have a broad Fisheries Law be realised under different management regimes. that establishes general goals and directions for Information flows during the reform process are the fisheries sector based on Policy and Strategy critical to build credibility, shape perceptions and documents, and then to develop a “cascading� maintain support for change. structure of legal and regulatory instruments to implement the law. The precise instruments chosen iv) New approaches to fisheries management need will depend on the particular circumstances of the to be designed, tested and made operational: country concerned. In federal systems, national New approaches to fisheries management based on policy and legislation must guide state policy and improved fishing rights and maximising net benefits legal frameworks to ensure harmonisation in critical may offer a viable alternative to the conventional areas. approach of maximising production in an open access system. However, there is a need to adapt vii) Launching, piloting and scaling-up of new any new approach to country and fishery-specific fisheries management systems takes time: The conditions, to test management arrangements movement towards new management systems is a and tools, and develop management plans which process that takes considerable time to implement. can be made operational in the future through Successful implementation of this process starts appropriate instruments. This could be organised by identifying a set of potential FMUs that will as a set of program components including the pilot encompass a resource or set of resources and all testing of different institutional arrangements (such of those who exploit these resources in a defined as co-management for inshore fishing with small spatial and/or temporal area. Once such FMUs have communities or alternatives based on individual or been identified, the second step is to prioritise them. collective use rights separate from direct government The third step is to develop fishery management involvement) across a number of locations. plans for the priority FMUs, starting with one or two and then gradually scaling up in step with improved v) New institutions and organisations should capacities and institutional development. be developed and evaluated: Institutional arrangements which can enable the effective viii) Supporting the process and linking to other performance of new fisheries management systems public policies: As discussed in the section above, should be developed. For example, frameworks the move towards new management systems will of rights and fiscal arrangements, which provide require capacity that is usually not in great supply InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  in most countries. There is almost always a need It is critical to analyse who gains and who loses and therefore for a capacity-building exercise, involving to devise appropriate social policies. human capacity (training and the recruitment of new skills) and institutional capacity (for example, the development of systems to manage fishing Fisheries Management, Poverty rights on a day-to-day basis). Another difficulty Reduction and Livelihoods in many countries is that the fishing sector is poorly integrated into macroeconomic goals. An The marine fisheries sub-sector can provide a range important role for the fisheries line Ministry is to of direct and indirect benefits. Direct benefits include educate the key central government agencies as to employment, income, and food security, all important the possible contribution that fish resources might to underpin livelihoods. Indirect benefits can arise make at different levels, depending on the value of when some of the wealth generated by the fisheries the resource. is reinvested in the economy, leading to income and ix) Political support and governance (importance employer multiplier effects (as the sub-sector expands) of champions for change; nature of governance and/or through government fiscal policy (taxation and arrangements may affect extent of lead taken by reinvestment of public revenues in other parts of the government): Global experience suggests that the economy). One major way in which fisheries can address movement towards more effective management poverty reduction is through contributing to sustained systems such as a wealth-based approach is not economic growth. Also, by focusing on pro-poor growth simple, and will face countervailing pressure to and the ways in which poverty in fisheries (and other maintain the status quo. There is a need to proceed sectors) can be addressed from a macro-economic gradually, exploring the implications of change perspective, the empirical evidence shows that there is a greater chance of success in reducing poverty. In for different groups and individuals, and build addition, programs can also be developed to provide consensus around the new approach. The need for alternative sources of livelihoods for fishers and their a gradual approach will be particularly great as the families; India has several leading examples of rural first fisheries are moved towards a new management livelihood programs, linked to private investment and system. Experience elsewhere strongly suggests markets that could easily be adapted to coastal areas. that once the results become available are seen as successful, demands for change will emerge from A major question often arising in the context of poverty other fisheries (or FMUs). and coastal fishers is whether more holistic fisheries x) Dealing with transition – costs and benefits of management approaches based on net benefits, change; mitigation and compensation; winners generally apply to all scales of fishing, for example large and losers; disinvestment of old institutions trawlers versus artisanal boats, or small-scale fisheries and systems: Although more holistic fisheries (SSF). Global experience shows that these more holistic management offers the prospect of a substantial approaches to fisheries management can apply across increase in net social and economic welfare, the board. As in the case of Chile, it can certainly be used there are two key issues. First, in the short term, to defend the interests of small-scale fishers or any other investment will be required in both the fish group felt to constitute a particularly deserving case, stocks and the institutional arrangements for but not in the same way as the standard government improved management. Secondly, once the pay- approach of simply encouraging more fishers to the off does develop, attention will have to be paid to sector by subsidising new boats, nets, fuel, etc. Instead, the distribution of the gains and the losses, both for particular target groups can be allocated an interest in the reasons of equity and for reasons of sustainability. inherent resource wealth, for example through individual  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development catching rights or an interest in a collective set of rights, by the target group. Work to develop community-based through community-based fisheries management. fisheries in southern India by UNDP, FAO and the South Various arrangements can be introduced to make certain Indian Federation of Fishing Societies (SIFFS) is beginning these allocations and the wealth generated is retained to show some promise (FAO 2008a). Key Chapter Messages 1. Based on compliance with the United Nations/FAO International Code of Conduct for Responsible Fisheries Article 7 (fisheries management) India, along with many other countries could improve its performance in terms of national policy and management systems, particularly for inshore waters where we see the highest concentration of fishers, vessels and conflict. 2. Conventional fisheries policies and management, based on de facto open access systems and maximising biological yields, generally fail to optimise the value of net benefits or ‘wealth’ that is inherent in marine fish stocks. 3. Based on emerging global experiences, countries that are gradually shifting to a more holistic fisheries management approach, focusing on maximising net benefits and allocating more well-defined rights to the resource, tend to improve marine fishing performance. 4. Critical success factors and valuable experiences are emerging from a number of countries that can guide India in considering future reforms to its marine sub-sector. At the same time however, it is important that these lessons be evaluated carefully in the Indian context. InTernaTIonalbesTPraCTICeInfIsherIesDeveloPMenT  india’s marine fisheries sub-seCTor Fisheries Sector and the Marine to the pre-development stage (up to 1965) where fishing was predominantly by indigenous craft and Sub-sector gear and the process of mechanisation was in the initial stages. Phase II (from 1965 to 1986) is characterised The Indian fisheries sector consists of several sub-sectors by a substantial increase in the use of synthetic based on fish production (Figure 1). The marine sub- gear materials, export trade expansion, increased sector accounts for approximately 39 percent of the use of larger mechanised vessels such as trawlers, total fish harvest in India, with inland fishing making establishment of larger fishing harbors, introduction of up 61 percent. This reflects a remarkable shift; in purse seine harvesting and initiation of motorisation of 1950-51, marine fishing accounted for 71 percent of smaller artisanal boats. Phase III (1986-2000) witnessed total fish production. Inland fishing includes freshwater substantial growth in motorisation of the artisanal fleet, aquaculture – fish caught in 195,000 km of rivers and increased use of ring seines, extension of fishing grounds canals; 5.3 million ha (surface area) of reservoirs, farm further offshore, increases in extended voyage fishing, ponds and tanks, 0.8 million beels and small lakes, and and introduction of seasonal closure of fisheries. 1.24 million ha (surface area) of brackish water near the coasts. It also includes open water capture from beels A fourth phase (post-2000 modernisation) is now and small lakes. Inland fishing also includes coastal emerging that could describe the recent stagnation with aquaculture with cultivation of high value marine fish, inshore fish catches, reduced investment, and increasing shellfish such as prawns , oysters, crabs, etc, in enclosures conflicts at sea over access to fish. This is a result of the established in seawater close to shore or just onshore. “open access� nature of the inshore marine fisheries, as Both inland and marine sub-sectors provide rural well as policies, and management systems that failed and coastal communities with significant livelihood to control the expansion of total fishing effort to a level opportunities. commensurate with the productivity of the resources. This period also coincided with (and was influenced by) major changes in the macro-economic environment Historical Overview of Marine from economic liberalisation and structural adjustment Fisheries programs at the national level, to the establishment of new global trade regimes under the aegis of the The Central Marine Fisheries Research Institute (CMFRI World Trade Organisation (WTO). The collective impact 2003) identifies three phases of development in marine of such changes can be summarized as diminishing fisheries in the country (Figure 2). Phase I corresponds access for different stakeholders in fisheries to resources, InDIa’sMarInefIsherIessub-seCTor  Figure 1. Fisheries sector production India, 2008–09 Marine sub-sector 39 % Inland sub-sector 61 % Source: GOI 2009 technology, investments, and markets. It also reflects a the fisheries sector for the country can be described by recent expansion of long-range fishing effort into the contributions to national GDP, foreign exchange earnings, more distant areas of the Indian EEZ. domestic food security, and employment generation. The GDP contribution from fisheries is about 1/20th that of agriculture. The percentage contribution of fisheries to Economic Context of Marine Fisheries GDP has increased from 0.46 percent in 1950-51 to a peak of 1.24 percent in 1997-98, and then has declined to just Contribution to National GDP over one percent in 2007-08. Marine fishing accounts for about half this GDP value. With respect to marine fishing, the country has a coastline of 8,118 km with an EEZ stretching over Contribution to Exports 2.02 million km2, and a continental shelf covering 0.53 million km2. Marine fisheries remain an important Since the beginning of modernisation in the 1950s, the source of employment, income and food security. At the fisheries sector, especially the marine and the coastal global level, it is ranked third10 in overall fish production aquaculture sub-sectors, have had a growing focus on and second in aquaculture. The economic importance of export markets (MPEDA 2006), particularly for shrimp, which now makes up 54 percent of total exports by value. 10 According to FAO data, India ranks 8th in fisheries production. This report will use the Indian data on this point. Frozen fish, cuttlefish and squid account for another 32  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Figure 2. The three phases of development of Indian fisheries 3 Total catch (million tonnes) Motorisation Expansion Diversification 2.5 2 Mechanisation Start of motorisation 1.5 Non Non-motorised traditional boats Mot 1 Mec Non 0.5 Mot Non Mec Mot Mec 0 1950 1960 1970 1980 1990 2000 Source: CMFRI 2003. Note: Non=non-motorised; Mot=motorised; Mec=mechanised. percent of total export value. The remainder is comprised since the 1960s. From 2002 to 2008, export volumes of dried fish products, as well as live and chilled exports. and value showed modest gains (Figure 3). Japan, the About 20 percent of India’s total marine fish production USA, the European Union (EU) and Southeast Asia is exported. (including China) are the main export markets. The EU remains the largest export market, now accounting for According to the Planning Commission (2006), India’s 35 percent of total value (The Hindu 2008). A worrying share in the global fish products trade increased from trend from April 2007 to January 2008 however, was 6.1 percent in 1992 to 6.5 percent in 2003. India is now the 18 percent drop in the volume of seafood exports estimated to account for five percent of the global fish and a corresponding decline in value of 13 percent. The products trade. There has been a steady increase in decline is attributed largely to the appreciating India exports by volume, value, and unit value realisation rupee relative to the US$ during this period. InDIa’sMarInefIsherIessub-seCTor  Figure 3. Exports from India by volume and value 2500 700 700 2000 500 Tonnes x 1,000 1500 US$ Million 400 300 1000 200 500 100 0 0 2002 2003 2004 2005 2006 2007 2008 Export Volue Export Volume Source: (Planning Commission, 2006; MPEDA 2009). Employment Generation in Marine Structure of Marine Fisheries Fisheries Fishing Vessels The 17th Livestock Census of 2003 (Government of India 2004a) gives the total number of fishers in the country According to CFMRI (2006), there were more than (inland and marine) as 14.5 million, of whom 4.6 million 240,000 fishing vessels12 in the sector, of which are men (32 percent), 4.0 million are women (28 percent), nearly 60,000 were large mechanised vessels (about and 5.8 million are children (40 percent). According 25 percent), 76,000 were smaller motorised (about to the 2005 Marine Fisheries Census (CMFRI 2006), 31 percent) and the rest smaller non-motorised the total population of marine fishers in the country (about 44 percent). This means 75 percent of the is 3.52 million, living in 756,212 households in 3,202 vessels are fishing largely in inshore waters. The non- fishing villages along the coast11, or nearly 25 percent motorised craft are still the dominant fishing boats in of the total number of fishers in India. Of this total, over the Indian waters although their contribution to overall 900,000 are recorded as active fishers, 1.0 million as part landings is much less (Table 3). The largest number time fishers while 1.4 million fell into the category of of mechanised boats is in Gujarat and Maharashtra ‘others’. (over 13,000 each), while Tamil Nadu tops the list of 11 For the remainder of the report, the 3.52 million figure will be used. 12 More recent data (Yadava 2008) suggest a figure of 280,000 vessels. 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 3: Fishing crafts, coastal states and union territories State/Union Territory Mechanised Vessels Motorised Non-Motorised Total Marine Fishing Traditional Boats Traditional Boats Vessels Andhra Pradesh 2,541 14,112 24,386 41,039 Goa 1,087 932 532 2,551 Gujarat 13,047 7,376 3,729 24,152 Karnataka 4,373 3,705 7,577 15,655 Kerala 5,504 14,151 9,522 29,177 Maharashtra 13,053 3,382 7,073 23,508 Orissa 3,577 4,719 15,444 23,740 Tamil Nadu 7,711 22,478 24,231 54,420 West Bengal 6,829 1,776 10,041 18,646 A&N Islands 230 160 1,180 1,570 Daman and Diu 562 654 211 1,427 Lakshadweep 478 306 594 1,378 Puducherry 627 2,306 1,524 4,457 Total 59,619 76,057 106,044 241,720 Source: CMFRI (2006); Government of India 2007a. motorised boats with over 24,000 boats. The largest that have an inboard diesel engine, whether they number of non-motorised boats is in Andhra Pradesh use small 15 hp motors or larger 150 hp engines. and Tamil Nadu (over 24,000 each). Of the total fishing Though the predominant mechanised vessel is the vessels in the sector, the 2005 Census found 185,438 large trawler, it also includes a limited number of gill- boats (about 78 percent) to be owned by fishers. Within netters and long liners, some of which are already vessel categories, the ownership of the mechanised, involved in offshore tuna fishing in the outer reaches motorised and non-mechanised boats by the fishers of the EEZ. There is also a fourth category generally was 60 percent, 70 percent and 92 percent respectively, not reflected in the Indian data; the 180 or so deep indicating that nearly a quarter of the boats are owned sea vessels, of which only about 30 are still operating. by people not involved in fishing themselves.13 From Second, the mechanised vessels, especially trawlers, Chapter 2, Varkey et al. (2006) estimated that India has operate from a limited number of harbors and more than 2.5 times the optimal number of fishing hence are more amenable for certain management vessels, suggesting a significant reduction in capacity is controls. In contrast, the smaller motorised boats needed to support more sustainable fishing, especially land anywhere they wish along the coast and cannot for inshore waters. be managed without self-control or peer pressure (such as a community-based management system). These three broad categories of vessel classification The ring seine boats of Kerala are another example; mask a number of underlying issues (Vivekanandan they are large (70’-90’) vessels with an investment 2007). First, they do not reflect perfectly homogeneous of US$50,000 and above. Despite their size however, categories from a management perspective; as an they are actually beach landing boats of traditional example the mechanised category includes all boats design, labor intensive (with 40-60 persons per 13 It is possible that the ownership of motorised and non-mechanised unit), owned by groups (for livelihood rather than boats among the fishers is higher than reported. investment). They follow local traditions and are InDIa’sMarInefIsherIessub-seCTor  Table 4: Coastal fisheries infrastructure 2005 Boat- Ice Cold Freezing Canning Curing Peeling Fishmeal Major Minor building factories storage plants plants yards sheds plants harbor & harbors yards ports & landing centers 224 905 108 113 13 992 293 46 4 203 Source: CMFRI (2006). under village community control. By some measures Fish factories, canneries and fish meal plants exist in these boats are large mechanised vessels, yet by other all states with most of the modern European Union definitions these could be classified as artisanal. Thirdly, certified plants being located in Gujarat. Ice plants the structure of the fishery also includes different and freezing plants occur around the coast but ice interest groups that transcend the government’s availability and price are constraining factors, and vessel categories used. For example, there is a large the handling and sanitary quality of ice is commonly interest group that calls itself “traditional� or “artisanal� unsatisfactory. A notable feature of the seafood yet this category comprises an assortment of craft and industry is the declining number of sizeable export gear types. processing enterprises in the states and concentration around cities such as Kochi and Mumbai where fish Fisheries Infrastructure is imported from other states for processing and shipping. The Marine Census 2005 provides a summary of coastal fisheries-related infrastructure (Table 4)14. Each state has a number of major fishing ports as well as numerous Fish Production Trends small landings sites, often on exposed beaches or in semi-sheltered estuaries and bays. The port facilities As a result of modernisation, the Indian fisheries sector and markets also vary markedly across the country but witnessed a steady growth from the 1st Five Year Plan most are overcrowded with old wholesale market places launched in 1951. The total annual fish production from in need of upgrading. Some upgrading is occurring all sources was over 7.6 million tonnes during 2008- as international retail chains are expanding in major 09, which was a significant improvement over the 0.75 cities and taking an increasing volume of fish. Most of million tonnes in 1950-51 (Figure 4). The west coast the states have inadequate facilities for drying fish and currently contributes approximately 70 percent to the storing dried products. total marine landings, while the east coast accounts for more than half the freshwater fish production and Much of the boat-building activity in the country involves nearly 95 percent of the cultivated shrimp production. artisanal, small-scale, operations and is not formalised, Marine fish production increased from 0.53 million either legally or even physically (the construction tonnes in 1950-51 to a peak of just under 2.9 activities can shift from place to place depending on million tonnes in 2000-01, and then a leveling-off in convenience). This makes it difficult to keep track of the subsequent years. A similar trend is shown using data numbers or activities of the boat- building yards and, from from SIFFS (2007). Despite this apparent leveling off in a management and sea safety perspective, to monitor the marine fish harvests, the Working Group on fisheries numbers and quality of the boats they produce. for the 11th Five Year Plan (2007-2012) estimated that additional annual yields were possible for tuna and 14 The Fisheries Survey of India (2009) indicates an estimated 1,914 fish billfish from offshore waters (217,800 tonnes), sharks landing centers in coastal India.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development (26,200 tonnes) and others including coastal pelagic, indicated that nearly two-thirds were overexploited oceanic squids and deep-sea lobsters (29,000 tonnes). (exploitation rate greater than 65 percent); 28 percent Whether these additional production targets can be were fully exploited (exploitation rates between 50 met is unclear. percent and 65 percent); and only 11 percent were under-exploited (exploitation rates less than 50 percent). The contribution of the inland sector to the overall production has increased at a higher rate than that of This is in sharp contrast to global figures published by the marine sector, from 0.218 million tonnes during FAO (2007a) indicating that in 2005, around 25 percent 1950-51 to 4.61 million tonnes in 2008-09 (Figure 4). of the world’s fish resources were categorised as The relative stability of inland aquaculture (compared overexploited, depleted and recovering, 50 percent as to marine capture fisheries) together with a shift in fully exploited, and 25 percent as underexploited and inland fishing from traditional subsistence activities moderately exploited. Estimated illegal, unreported and to more commercial enterprises has increased its unregulated (IUU) fishing in EEZs in both the Western importance at the national level. It is expected that and Eastern Indian Ocean represents an average of 18 the inland sector’s importance will continue to grow percent and 32 percent, respectively of regional catches in the coming years. (Pitcher and Ganapathiraju 2008). Information from As outlined in Chapter 2, a recent assessment of the Kerala (SIFFS 2007) illustrates the pressure on most status of 61 fish stocks from around India (CMFRI, 2007), marine fisheries (Box 6). Figure 4. Total fish production since 1950-51 8 7 6 5 Million tonnes 4 Inland 3 Marine 2 1 0 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Source: (Planning Commission, 2006, GOI 2010). InDIa’sMarInefIsherIessub-seCTor  smaller motorised vessels supposedly operating within Box 6. Fish production trends, Kerala state jurisdiction. At the same time, larger mechanised trawlers that should be fishing outside the 22 km zone Kerala is a leading maritime state. Marine fish often cross into the zone closer to the shore to fish in production increased from 325,000 tonnes from the competition with smaller boats. mid-1980s to 600,000 tonnes in the early 1990s. Since then, fish production has stagnated despite enormous increases in fishing capacity. For certain species, catch Agencies Dealing with the Marine levels have declined. Mackerel production has dropped Fisheries Sector from 128,000 tonnes in 1996 to just 20,000 tonnes in 2001. Annual landings of shrimp declined from an Mathew (2003) provides a description of the main average of 51,000 tonnes between 1985 to 1994, to government departments and Ministries dealing with an average of 46,000 tonnes during 1995 to 2004. The various aspects of fisheries (Table 5). Additional details production of sharks, rays, ribbon fish, catfish, anchovies, on selected institutions are provided below. goat fish, croakers, carangids and pomfret show clear declining trends. Conversely, sardines, squid, and seer Key Central Government Organisations fish show increasing trends. Source: SIFFS (2007) At the central government level, marine fishing falls under the purview of the Department of Animal Husbandry, Dairying and Fisheries (DAHDF) which is part of the Ministry of Agriculture, Government of India. Institutional Framework The fisheries division within the DAHDF implements and monitors the central sector schemes and centrally Background sponsored schemes15 delivered through the state Article 246 of the Constitution of India makes fisheries governments. The division is the focal point for fisheries a subject for the State List. This means that all laws and policy, strategy, management and development (Yadava regulations related to fishing, fish marketing, fishers’ 2008). On paper, the DAHDF is responsible for fisheries welfare, etc, have to be framed by the state legislatures. management in the Indian EEZ outside of the 22 km As FAO (2000) notes, the involvement of the Union territorial boundary. In the past, this has focused mainly Government on issues related to fisheries management on foreign fishing vessels and is covered by a number of is high. Also, fish production from the EEZ, major fishing Acts and regulations. harbors, fishing vessel industry, seafood export trade, National Fisheries Development Board (NFDB) and marine and inland research and training are on the is an autonomous body under the administrative Union List in the Seventh Schedule of the Constitution control of the DAHDF and inaugurated in September (Mathew, 2003). Under existing law, the maritime states 2006. The board’s objectives include the following of India control the seas up to 22 kilometers (12 nautical three particularly challenging ones of a) coordinating miles) from the shore, while the GOI has control over activities pertaining to fisheries undertaken by different the EEZ from 22 km to the 370 km (200 nautical mile) Ministries/Departments in central and state/union limit. Within states, a range of zones and boundaries governments; b) improving production, processing, may exist but mainly on paper. The GOI sees the entire storage, transport and marketing; and c) achieving area beyond 22 km as an under-exploited zone. For sustainable management and conservation of natural administration purposes, it is generally assumed by aquatic resources including the fish stocks. authorities that all boats registered (or unregistered) in the states (especially smaller vessels) do not fish beyond 22 km. Yet, there is considerable fishing beyond 22 km by 15 The latter have a component of contribution by the state governments.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 5: Public institutional matrix – Indian marine fisheries Ministry/Department Responsibilities At the national-(Union) level Ministry of Agriculture Fisheries in the EEZ, infrastructure, survey and assessment of fishery resources, (Department of Animal research, training and extension; distribute subsidies: Husbandry, Dairying and � Motorisation of traditional craft and purchasing fishing gear Fisheries), along with national � Reimbursement of Excise Duty on High Speed Diesel (HSD) oil fisheries research institutions � Fishing harbor facilities at major and minor ports � Renovation/construction of fish farms � Establishment of shrimp seed hatchery of 2-5 million capacity � Development of Fishing Villages (DFV) program provides basic civic amenities such as housing, drinking water and community halls � Relief programs to fishers during the lean period � Accident insurance for fishers Ministry of Shipping Fishing vessel industry and fishing harbors (Union List); minor fishing ports (Concurrent List) Coast Guard (under the Ministry Regulation of fishing by foreign vessels, prevention of marine pollution from ships of Defense) and protection of endangered marine species Ministry of Food Processing Fish processing Industries Marine Products Export Increasing exports, specifying standards, processing, marketing, extension and Development Authority, MPEDA training in various aspects of the industry MPEDA (2001) (Ministry of Commerce and Industry) Ministry of Environment and Protection of wild animals and forests and marine biodiversity (Concurrent List); Forests Coastal habitat protection issues Ministry of External Affairs Law of the Sea matters Department of Ocean Implementation of 1982 UN Convention on the Law of the Sea Development, Ministry of Earth Sciences Ministry of Earth Sciences Monitoring ocean pollution, identifying potential fishing zones Ministry of Water Resources Erosion-related issues Ministry of Tourism Tourism (activities that have an impact on fisheries) At the state-level Department of Fisheries All fisheries and mariculture activities in the state Department of Forests Protection of wild animals and forests and marine biodiversity (Concurrent List) Department of Ports Minor fishing harbors (Concurrent List) Source: Mathew (2003), Yadava (2008). Key State Government Organisations implementation. The DOF is tasked with providing direct support for increasing supply from both capture The State Departments of Fisheries (DOF) are the and culture fisheries. It has a mandate to monitor and nodal agencies responsible for formulation of policy, promote improved management of the resources, and development and management programs and their subject to resource constraints, actively promotes the InDIa’sMarInefIsherIessub-seCTor  involvement of small-scale and poorer participants in Education (CIFE) in Mumbai, undertakes education and the sector. research in fisheries. The Central Institute of Fisheries Technology (CIFT), also in Kochi, carries out research The state-level fisheries departments largely function in fishing technology, craft and gear, processing and along the same lines as at the beginning of the preservation; it also helps in quality control certification modernisation period about 40 years ago. They face for export of seafood. The Fishery Survey of India (FSI), many constraints to effectively cope with the emerging headquartered in Mumbai has a mandate for national fish- management trends and issues such as open access, stock assessments. A significant level of research is carried overcapacity and stagnant or declining catches, out and practical information is provided both to the increasing conflict, coastal pollution, etc. Typically, state and central policy makers, and private stakeholders department staff implement social welfare schemes ranging from small scale fishers to large trawler operators. for the fishing community (insurance, diesel subsidies, Notification to fishermen on Potential Fishing Zones etc); maintain records of fishing operations; implement (PFZ) in collaboration with the Indian National Centre various fishing regulations (governing where vessels of for Ocean Information Services (INCOIS), Hyderabad, certain categories can fish, enforcing periodic fishing under the National Remote Sensing Agency, is based on bans, monitoring gear use, etc); oversee construction remote sensing data from satellite imagery. Training is of fishing harbors and set up marketing and processing provided by the Central Institute of Fisheries, Nautical infrastructure (encouraging even higher production); Engineering and Training (CIFNET). provide technical support, training and extension where possible; support fishing cooperatives; and compile fisheries statistics (Department of Fisheries-Andhra Financial Institutions Pradesh, 1998). Most states do not have working patrol The National Bank for Agriculture and Rural boats, vehicles, or other equipment required to support Development (NABARD) has a special component for effective fisheries regulation, including monitoring, preferential lending to the fisheries sector at subsidised enforcement and control. As summarised by Sathyapalan, rates of interest. NABARD’s support to fishing sector Srinivasan, and Scholtens (2008), department officials must simultaneously act as welfare providers, registration included refinancing mechanised and other boats and officers and policemen. aquaculture. In the Tenth 5-Year Plan period, NABARD had plans to refinance loans worth over 6 thousand Research Organisations crores or US$1.5 billion. Fisheries research is undertaken by both the central Trade Associations government and the individual state governments. The central government research institutions The Seafood Exporters Association of India (SEAI) generally fall under the control of the Indian Council is the representative body of seafood exporters. It of Agricultural Research (ICAR), which is affiliated takes an active part, in conjunction with the MPEDA, with the Department of Agricultural Research and in conducting the International Seafood Fairs in Education (DARE). Fisheries research in the states is India, besides participating in various international done by agricultural universities and their colleges of fairs and exhibitions. It also brings out the Seafood fisheries. ICAR coordinates the activities of six major Exporters Journal. research centers, covering inland fishing, aquaculture, education and technology. The Central Marine Fisheries Training Institutions Research Institute (CMFRI) in Kochi, Kerala is directly supporting marine fishing in India. Another fisheries The main bodies involved in training and capacity building research organisation, the Central Institute of Fisheries at the field level are the state Departments of Fisheries,  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development which frequently offer courses in new technologies or ancillary activities for supporting fishing effort (such Box 7. South Indian Federation of Fishermen as gear and engine repairing), and post-harvest issues Societies such as processing, quality control and fish handling. Besides the DOFs, the state agriculture universities in The South Indian Federation of Fishermen Societies (SIFFS) is a Non-Governmental Organisation (NGO) several states also have their own colleges of fisheries supporting the small scale marine fisheries sector. SIFFS is which undertake more systematic and regular training the apex body of organisations of small-scale artisanal fish in fisheries at graduate, post-graduate and doctoral workers. It has a three-tier organisational structure. With levels. The CMFRI undertakes extension and training over 6,000 member fishermen, organised through 100 programs, generally of a one-off kind. MPEDA has a primary societies in eight districts of southern peninsular strong training role especially in the processing sector, India, SIFFS over the last two decades has kept its focus on but also undertakes regular extension programs on strengthening the artisanal fisheries. SIFFS was originally fishing and related activities. established to help small scale operators market their fish and receive a fair price. SIFFS now provides a wide range Community Institutions of services to member and non-member fish workers, including access to credit. Today, over 50,000 fish workers The most important community institutions are the including non-members are using these services. In 2003- traditional governance systems (caste/kinship-based, 04, the network of SIFFS reported an annual fish sales with geographical origin also being important in case turnover of Rs.36.85 crores. of migrant/settler communities). Some of traditional Source: SIFFS (2008) management systems are still in place to provide fisheries governance at the local level, although these are being eroded by changes in society and the Major Institutional Issues macro-economic policies of governments. Apart from these community-based institutions, there are three The marine sub-sector has no separate central ministry other kinds of institutions in the fishing communities of its own; the Fisheries Division remains as a small of India: group within a small department in the large Ministry 1. State-supported cooperatives function as channels of Agriculture. The lack of a separate centralised body for aid but have often become so entrenched that to coordinate fisheries at the national level means that their more important role of bringing about social different aspects of fisheries are handled by several change is often ignored. ministries and departments. Finding common ground 2. Community-based organisations (CBOs) led by around different priorities and coordination in a NGOs, tend to be more specific in their orientation mutually reinforcing manner is difficult in the absence in terms of target groups (by gender, for instance) or of any effective inter-ministerial bodies. There is also issues. Women’s self-help groups (SHGs) are the most considerable industry and government uncertainty visible manifestation of the modern community about how the NFDB will interact with other organisations institutions in the village (Box 7). such as state Department of Fisheries, MPEDA and the 3. Fishworkers’ organisations, which seek to network research and training centers, especially in the area of with other fishers’ bodies and bring their issues vocational training. At the other end of the spectrum, the and concerns to the notice of the policymakers in a traditional community governance systems may prove proactive manner. The National Fishworkers’ Forum to be highly effective and efficient at the grassroots level, (NFF) is the biggest fishers’ body in the country but their potential contribution to the existing policy- and has its affiliates in several coastal states of the making processes or to the implementation issues is country. rarely utilised. InDIa’sMarInefIsherIessub-seCTor  Fiscal Analysis for both state and particularly central allocations with operational programs is welfare schemes, including The Central government fiscal support to development support to cooperatives, housing schemes, a special at both the national and state level comes through the Prime Minister’s program for poorer communities, fuel budget allocation process as part of Five Year National subsidies, insurance, and various relief programs. These Plans. Within each of these Five Year Plans, funds are account for nearly half of all state fisheries budgets allocated to the fisheries sector through both Non-Plan and nearly three-quarters of all central contributions to (mainly for staff salaries) and Plan (targeted to specific operational programs. A further 20.7 percent of the total schemes, which are implemented by the central and state central allocation for operational programs is towards governments, either separately or in many cases jointly constructing berthing facilities. (Yadava 2008). The overall public expenditure during the Xth Plan (2002 to 2007) on fisheries was Rs. 2,497 crore The sub-sector generates very little in public revenues (US$ 640.5 million) including both central and state through various taxes and fees. Perhaps the largest contributions. This was comprised central government source of funds is a 0.3 percent tax on the shipped contribution of Rs. 1,176.5 crore (US$ 301.7 million) value of fish product exports, which amounts to around and state governments contribution of Rs. 1,320.5 US$4 million and is used to support the MPEDA (Yadava (US$ 338.6 million). For the central fisheries-Plan-related 2008). Only mechanised vessels are formally registered budget in the Xth Plan, about 57 percent of the total and license fees are fairly low. Fees from the use of was allocated to support the marine fisheries sector, government landing and berthing sites are low, and down from 80 percent in the Vth Plan (Yadava 2008). The often not collected due to inadequate mechanisms allocations for marine fishing includes the large costs for to penalise defaulters. The low levels of rent capture infrastructure (ports and landing sites), marine product (revenue) by the government reflect a range of factors, exports development, research (especially fishery including politics and vested interests, labor market surveys), and marine fisheries welfare. Taking into account imperfections, poverty of small-scale fishers and an both the DAHDF and the Department of Agricultural inability to pay. More broadly the situation also reflects Research and Extension (DARE) budgets, the largest the low level of net benefits (or rents) being generated allocations go to the Fisheries Institutes (33 percent), due to poor productivity of fish stocks and overcapacity followed by marine product export development (17 in the inshore marine fishery sector. percent), infrastructure (11.5 percent), welfare (11.5 percent), marine fisheries development (10.6 percent), A general conclusion is that while significant funds are aquaculture (10.2 percent), information and databases available from both central schemes and state allocations (3.8 percent), inland fisheries development (1.3 percent), for the fisheries sector, the linkage to marine fisheries and central administration (1.3 percent). management is not well defined. As an example, funding allocation to monitoring, control and surveillance in For the coastal states, and taking Andhra Pradesh the IXth Plan was only Rs. 20 million, or approximately as a representative example, state fisheries budgets US$ 450,000 for the entire country. The focus of current are largely directed to supporting staff salaries and budget allocations appears to be on maintaining staff maintenance (77.4 percent of the total state fisheries at the state level, delivering social welfare schemes budget allocation). Within the operational programs and various fishing subsidies, and supporting further sphere (excluding staff costs), marine fisheries activities expansion of harbors and landing sites. Some of the account for only 12.3 percent of the total operational programs could legitimately be viewed as genuine allocation. Central schemes provide approximately welfare enhancing programs, for example housing 50 percent of the funds to operational programs within improvement, free accident insurance, and savings the state fisheries sector. The largest single budget item schemes. On the other hand, other programs associated  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development with the marine sub-sector such as fuel, boat and gear in India are not available, the DAHDF publishes data on subsidies may provide incentives for many participants the “Disposal of catch by states� (Table 7). The results (especially in inshore waters) to continue fishing at indicate that the majority of fish is marketed as fresh, the same time that the sub-sector already has serious largely for domestic markets, and that over the period overcapacity. In any transition to more effective fisheries 1980 to 2005, this percentage has increased significantly, management, it will be important to consider reducing supporting previous data showing increased domestic the subsidies that are encouraging overcapacity while consumption of fish products. providing more assistance to coastal fishers to improve their fishing and also develop non-fishing livelihoods. Key Aspects of the Export Market Chain From earlier in this chapter, it is clear that until recently Market Supply Chains India has enjoyed steady growth in fish products exports by volume, value, and unit value realisation Domestic Fish Consumption over the past four decades. Indian fish products exports have been dominated by marine and brackish Fish consumption in India tends to be low, although water production, with shrimp being the prima donna. this trend varies from state to state. According to Frozen shrimp dominated the exports right from the National Sample Surveys (NSS) by the Government of 1960s and, although its contribution declined from India (2007b), some 34.2 percent of the rural population 52 percent in 1989-90 to 28 percent in 2005-06 in and 27.8 percent of the urban population are reported terms of volume, it still accounts for nearly 59 percent to consume fish as part of their regular diet. Several of the total fish products export earnings. Fresh/frozen recent studies indicate a growing trend in per capita fish, largely consisting of marine species, are growing consumption from 3.1 kg in 1973 to 4.7 kg in 1997 in export volume, from 19 percent in 1989-90 to 35.6 and conclude that domestic fish consumption is likely percent in 2005-06, although their gross value remains to grow to 5.8 kg by 2020. This is also evidenced by low at 14 percent of the total export earnings. Other the fact that the domestic urban markets for fish grew important export items include cuttlefish, squids and faster than any other market supply chain in the country dried fish. However, the recent drop in value of exports since the 1990s. (again largely prawns) underpins the crisis that the Indian marine export sector is undergoing due to Market Chains (i) the abundance of low-cost white shrimp from Thailand, Vietnam, Indonesia and other nations, (ii) appreciation There are five major markets and supply chains for the of the rupee relative to other major currencies, (iii) the diverse harvest from India’s marine fisheries (Table 6). anti-dumping tax imposed by the United States; and The market used by the fishers depends on the fishing iv) the hike of more than 80 percent in fuel prices (which gear, total volume, species, size and the quality of the continues to increase). The export value of the fisheries fish landed. The best quality fish and prawns typically go industry has plunged 50 percent in US dollar terms to the more lucrative export or distant urban markets. and fallen by 20 percent in rupee terms. The crisis has The less prized species/size, lower quality or damaged potential impacts on more than 2 million aquaculture individuals are sold locally. Leftover or poor quality fish workers and capture fishers as well as 50,000 employees are commonly dried while the lowest grade ends up as in the seafood processing market. Quality remains livestock/fish feed or fertiliser. Thus a typical landing site an issue; the study team confirms the findings of the has fish products going to several alternative market Working Group on Fisheries for the XIth Five Year Plan chains. While data pertaining to the tonnage of fish (Planning Commission 2006), that poor post-harvest delivered through each of these specific market channels handling has led to high losses (up to 15 percent). InDIa’sMarInefIsherIessub-seCTor  Table 6: Main characteristics of the major markets Market Fresh local Traditional dry Distant-urban Export Livestock or fish Characteristics fish feed The supply Cheaper species; Cheaper species; Higher priced Narrow range of Cheap, low lower quality lower quality species and higher priced & quality fish. Often outlets; better higher quality discards quality species Customer & Know local Varies; some Weak; focus on Insufficient Usually good local consumer focus customers processing with maximising sales production and knowledge left-over fish. volume volume focus Logistics & Transport; Transport & Cold chain & Cold chain & Transport & distribution sanitation & cold sanitation poor sanitation with sanitation at sanitation poor, chain poor fishers at landings landings needs but improving. a weak link improving Information & Informal and Informal but Insufficient Insufficient Informal for local communication adequate adequate with information flow; information flow; market; but more local consumers, Consumers’ Promotion needs formal for fish inadequate with knowledge could more brand focus, meal processing distant consumers be widened and industry participation Chain Credit/loans Credit/loans Trade is not Trade with Credit/loans relationships difficulties difficulties transparent, fishers not difficulties weaken this weaken this fishers tied into transparent; need weaken this supply chain supply chain loans. Relations stronger relations supply chain weak with customers Source: Study background papers. The export market differs from the domestic market system, this means the exporting country governments in that there can be formal and high barriers to entry. must have satisfactory regulations and procedures Fish exports usually need to meet standards set by to certify compliance to EU regulations. According importing countries to satisfy health concerns of the to Henson et al. (2004), the Indian government consumer, particularly in EU and US markets where introduced reforms to its regulatory systems around standards may be very stringent. In both regions, it fish processing facilities to respond to the challenges is mandatory for all imported fish products to have of the domestic industry in meeting external market been processed in facilities with health and safety export requirements, particularly for the EU market. standards equivalent to the EU and US, including the Significant investments have been made in inspection implementation of Hazard Analysis and Critical Control and laboratory testing capacities. Points (HACCP)16. While the US requires the importing company/distributor to ensure that imports meet For processing companies in India wanting to export regulatory requirements, in the EU this assurance is fish products to the EU (and US), the costs of plant the responsibility of a “Competent Authority� in the upgrading can be quite high. For example, the Henson exporting country, in this case, India. With the EU et al. study (2004) estimated that the range in costs of compliance was between US$ 51,400 and US$ 514,300, 16 A systematic and preventative approach to food and pharmaceutical with a weighted average cost of US$ 265,492. This safety that requires exporters to address potential physical, chemical and biological hazards during processing. represented 7.6 percent of annual average turnover. 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 7: Disposal of the fish catch - India 1980 to 2005 Year Marketed Frozen Cured Canned Reduced Offal for Misc. fresh reduction Percentage of total harvest volume 1980 65.17 5.92 21.00 0.21 5.14 0.57 1.98 1990 65.18 7.46 15.63 0.76 8.41 0.91 1.65 2000 76.38 4.93 6.05 0.89 5.66 0.02 6.06 2005 82.79 5.98 5.26 0.36 4.44 0.03 1.15 Source: Government of India 2007d, Salagrama (2004). A range of national and state subsidies in both the The dry fish market chain also engages many thousands fishing and post-harvest areas has been provided to of women and men. Small pelagic species such as oil help Indian exporters meet market health and safety sardines and mackerel, and small demersal fish (silver standards, but smaller processers still find the costs bellies, croakers, etc.) are bought along the beaches very high. However, while many large processors have and port landings by processors or a processor-trader. raised the sanitation standards in most factories to After drying, this fish may be sold directly to consumers meet the EU requirements, the industry approach has at a local market, or door to door in nearby villages. been largely reactive to evolving market standards Alternatively, it may be handled by one or more market and requirements, rather than being more proactive intermediaries, a commission agent, or wholesale and trying to become market leaders in meeting trader, before it is retailed, sometimes at a weekly dried and surpassing export requirements. Further, Indian fish market. fish products still carry a stigma that their eating quality, packaging and traceability are below world The distant urban market demand from Indian cities standards. has been growing strongly in recent years, particularly for the limited volumes of “prime� finned marine Key Aspects of the Domestic Market species. There is some evidence that this is India’s Chain fastest growing and most vibrant market chain, and it is likely to continue experiencing strong growth. This While the export market captures government growth, of course is conditional on improvements in attention because of its high value and the employment fish quality. Yet, domestic marketing systems are highly it provides in processing and packing prawns and disorganised, unhygienic, and have very poor fish cephalopods, the domestic (both fresh and dried fish) storage and handling facilities, including inadequate markets are very important for marine fish (as well as transport systems (poor roads and not enough inland fish). In the fresh fish trade, female fisher- folk refrigerated vehicles). There is also a considerable time buy pelagic and other inexpensive fish from fishers delay during transport of fish from the landing centers at beach landings or ports, either directly or via an to the markets, which can drastically affect quality auction. They sell these door to door on foot (head and price. In general, market promotion is insufficient, loaders), on the roadside, or at markets in nearby especially by processing companies who need new, villages. The fish is sometimes bartered for agricultural creative strategies that address prospective customers’ goods and credit may be extended to the consumer. uncertainty about product availability and quality. A This trade only provides a marginal living because of lack of a standardised product quality specifications the borrowing costs and the vagaries of supply. for major items (squid, cuttlefish and prawns), and InDIa’sMarInefIsherIessub-seCTor  quality guarantees tailored to attract new customers is Existing Management Systems a major constraint to further growth in fish marketing. If smaller scale fishers and processors are to be The nature of the actors involved in each sub-sector increasingly engaged in selling high quality products of the fishery is a crucial aspect of the fishery and has to the growing domestic market for fish products in great significance for management. Artisanal fishing in India, these issues regarding quality improvement general is characterised by the participation of fishermen and market information need to be addressed. One whose caste is traditionally involved in marine fishing. approach that should be developed further in coastal This was strongly represented in Gujarat for example. communities is the establishment of new marketing This characteristic gives local people some kind of institutions that could be supported by NGOs or historical right to fish. Where these traditional systems through a local fishing cooperative. There is already are still in place in certain coastal fishery communities some valuable experience through SIFFs in southern they can limit access into inshore nearby coastal waters. India (described earlier in this chapter), and through Mechanised fishing (which includes all non-artisanal World Bank livelihood projects in several Indian states, vessels) reflects more of an open-entry category with that help communities access more efficient market the owner being more of an investor (even if he/she is channels for a range of products. These institutions from the fishing community/caste) and crew coming need to be operated as a commercial business to access from anywhere. Trawlers (originally shrimp trawlers) markets, facilitate credit, and provide a mechanism for have been allowed to increase in numbers over the past training programs. several years, but in some areas as much as half the fleet is berthed due to poor economic returns. All maritime states have various fishery regulations to guide fisheries Fisheries Management management. However, the study in four focal states revealed that inshore management is mainly confined to Traditional Systems technical measures like regulating a minimum mesh size for specific fisheries, closed area/seasons for between 6 Before Independence from Britain in 1947, fishing was and 8 weeks, prohibitions on catching certain species, an entirely artisanal occupation with little intervention and listing species that cannot be exported below a from the outside world. Fishers had to sell or barter their minimum size. catch to procure other food items. Fishing technology during this early period was influenced by the While these types of regulations should be part of any availability and changes in the raw materials needed fisheries management system, most are not effectively to make boats and nets and the markets for fish and implemented in India (Mathew, 2003), reflecting points fish products. The strong social cohesion in the fishery made earlier in the report about capacity and equipment communities prior to “modernisation� formed the basis constraints in state fisheries departments. Moreover, for good governance and there are many examples of these measures are inconsistent among states, making strong and viable traditional systems of management the reasons for the different interventions difficult to in various parts of the country, with heads of villages, understand and even more difficult to implement by DOF governing traditional fishing. These include exclusive field officers. One example of implementation failure rights to certain fishing areas (demarcated as zones is bottom trawling that is prevalent in parts of western running at right angles to the coast), sharing of the India, mainly along the Kerala coast (Box 8), which raises benefits of the harvest and conflict resolution. In growing concerns over environment damage, high many communities these systems still exist but have losses from unutilised by-catch, and more importantly, been eroded with more modern ideas of fishery the use of fishing nets below regulation size. The ring management. seine is another case; the Kerala state government had  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development industry, tourism, and urban development, the Coastal Box 8. Bottom trawling along the Kerala Regulation Zone (CRZ) Notification 1991, was issued coast under the provisions of the Environment (Protection) Act 1986. A positive feature of the 1991 Notification is More than 90 percent of the mechanised boats the recognition of traditional and customary rights of operating along the Kerala coast are bottom trawlers. fishing communities. At this time however, a revised These vessels use non-selective fishing gear that can be quite destructive to the sea floor environment in Notification is being considered by the government of addition to harvesting high levels of by-catch. A study of India, led by the Ministry of Environment and Forests. 375 bottom trawlers operating from six major harbors in A number of concerns have been raised by NGOs 2002 found that: representing fishing communities including: � 240,000 tonnes of low-value fish are thrown back � Inadequate public consultation with fishers and into the sea due to lack of on-board storage, processors; lack of explicit language specifying that markets, etc. violations committed under the 1991 Notification � 94% of bottom trawlers were using mesh sizes must be settled and penalised; below regulations. � 232 non-targeted species were being harvested as � A proposed zoning scheme that may divert coastal by-catch. lands used by fishing communities for settlement and landing sites, to large development projects; � Destruction of eggs and juveniles was alarming. Source: Chandrapal 2005. Box 9. Zoning as a tool for fisheries to pass legislation to protect the ring seine vessels from management a Supreme Court judgment that included all boats with more than 10 hp motors in the monsoon fishery ban on � Maharashtra. Operation of trawl by mechanised the west coast of India. More complex arrangements fishing vessels is prohibited in some specified depths (5 fathoms and 10 fathoms), trawl ban exist with zoning (Box 9) where states have created during monsoon, trawl gear operation is not varying regulations but in practice have little means of allowed between 6 pm and 6 am etc. enforcement. The marine fishery sector and the coastal � Goa. The area up to 5 km from the coast line is specified zone in general need consistent and agreed fisheries area and mechanised fishing vessels are prohibited management systems. from fishing in the area; restriction on mesh size of nets i.e.:20 mm for prawns and 24 mm for fish. Impact of Coastal Development and � Karnataka. The area up to 6 km from the shore or up to 4 fathoms is reserved for traditional craft, deep Pollution on Marine Fisheries sea vessels are requested to operate beyond 20 km. � Kerala. The area from the shore up to 30 meters India’s coastal zone supports nearly 30 percent of the deep in the sea along the coast from Kollengode in country’s population and a significant share of industry. the south to Paravoor – a length of 70 km is called Five major potential stressors on marine eco-systems, the First zone. The area up to 20 km line in the sea include coastal pollution, climate change, eco-system along the coastline from Paravoor in the south to fragmentation and habitat loss, invasive species, and Manjeswar in the north (length of 512 km) is the overfishing (Nellemann et al. 2008). With the dramatic Second zone. Mechanised fishing, except fishing by motorised country craft, is prohibited in the First growth in India’s economy over the past decade, and Second zones. Only fishing with country craft is concerns have been raised about impacts on coastal allowed in these zones. zones and indirectly on the marine fishery. To protect Source: Madhusoodanakurup (2008). coastal areas from unregulated development for InDIa’sMarInefIsherIessub-seCTor  � No explicit recognition of traditional and customary growth, urbanization, agriculture, aquaculture and rights of fishing communities in the coastal zone; and industrialization, all of which release a wide range of � The proposed expansion of the coastal zone to pollutants into the ocean each year (Table 8). Is coastal include territorial waters, the area from the shore pollution a major cause of reductions in fish stocks and to 12 nautical miles, which could have major catches? The evidence is scattered and mixed. From implications for livelihoods of fishing communities the same 2008 NIO study, the authors concluded that (Sharma 2006). for water and sediment quality, open shore waters (2 km away) are clean except for near coastal cities; While the government has clearly identified coastal inshore regions have been degraded to a varying zone development as a cause for environment concern degree depending on pollution rates and flushing it is clear that the ongoing policy, legal and regulatory characteristics; increases in petroleum hydrocarbons changes may help the coastal fishing communities in water and sediments occurs, especially in ports; and their abilities to earn livelihoods from fishing. This, bacterial counts have increased in several locations; in turn will add to the concern as any development though marine sediments are generally free from activity will be at the cost of the environment. gross contamination from heavy metals. With respect Concerned stakeholders feel strongly that the revised to contaminants in organisms, except in a few cases, CZM Notification must explicitly recognise rights of commercial fish and shell fish are generally free from fishing communities in the coastal zone with respect to heavy metal contamination. The issue of marine the right to maintain housing in coastal areas/existing pollution and potential impacts on fishing appears to fishing villages, settlements or fishing hamlets, with or be focused in specific points along the coast, rather than without legal title deeds; a right to use coastal lands for fishing-based livelihoods; and a right to access marine a more ambient condition, a view supported by Zingde resources under sustainable management. (1999). The impact is probably greatest on traditional fishers in inshore areas near heavily industrialized areas According to the National Institute of Oceanography in states such as Gujarat, Maharashtra, Andhra Pradesh (2008), coastal pollution in India stems from population and Tamil Nadu (Sharma 2006). Table 8: Annual pollutant discharge in the Indian coastal environment Input/Pollutant Annual Discharge Sediments 1.6 billion tones Industrial effluents 50 x 106 m3 Sewage – largely untreated 1.41 x 109 m3 Garbage and other solids 34 x 109 tonnes Agriculture fertiliser residue 5 x 106 tonnes Synthetic detergents – residue 130,000 tonnes Agriculture pesticides – residue 65,000 tonnes Petroleum hydrocarbons (tar ball residue) 3,500 tonnes Mining rejects, dredged spoils, sand extraction 0.2 x 106 tonnes Source: National Institute of Oceanography (2008).  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Key Chapter Messages 1. India’s marine fisheries sector makes significant contributions to local and national economic development, trade, livelihoods and environment. There is a strong foundation to build on through an experienced labor force, long history of marine fishing and strong demand for fish products. 2. Yet, the sustainability of fish stocks in Indian waters, particularly for inshore waters, appears uncertain. Over 61 percent of India’s capture fisheries are over-exploited, and most of the remainder are fully exploited with very little prospect for future expansion. 3. Sustaining economic benefits in inshore waters may be difficult. Catch rates and fish exports are declining, the marine fishery is overcapitalised by a factor of more than two; the large number of boats not actively fishing clearly point to overcapacity and poor economic returns. While the government of India is encouraging a shift to more distant deep water fishing in the outer reaches of the EEZ, the majority of fishers operating in inshore waters will continue to face constraints. 4. Fiscal flows from the centre to states for marine fishing are not directly linked to fisheries management but instead mainly support welfare schemes and infrastructure; these subsidies address important socio-economic policy goals, but at the same time, some of the non-welfare subsidies (for boats, gear, nets, fuel, etc) may be providing the wrong economic signals to inshore producers and can continue to encourage fishing overcapacity. 5. The roles and responsibilities of government agencies directly involved in the marine sub-sector and primary resource users suffer from implementation failure. Ineffective administrative systems, as well as capacity and equipment constraints make it difficult for state fisheries departments to support improved fisheries management performance, especially for inshore waters. The lack of a single, strong central Ministry for fisheries weakens the position of the marine sub-sector within the overall government machinery. 6. Product quality remains an issue for both marine and inland fish, leading to losses of up to 15 percent of harvest plus lower prices for poorer quality fish that are sold. Smaller-scale fishers are often unable to gain access to more efficient marketing systems and supporting infrastructure (ice, cold storage, etc.) that would lead to better quality and prices. 7. There is inadequate information about market requirements both in India and globally, poor access to market information (especially for small-scale fishers), and insufficient understanding of market chains and emerging opportunities by policy makers and processors. InDIa’sMarInefIsherIessub-seCTor  livelihood ConTexT and key issues Background 5. Supplementary workers – those involved in support activities not directly related to fishing, but are Referring again to data from the 2005 Marine Fisheries essential components of the fishing economy (For Census and CSO (2006)17, marine fisheries form the example, sellers of supplies, clothes, and suppliers of livelihood basis for 3.52 million people in over 3,000 villages consumption credit.). along the coast. Nearly half of this population is actively involved in fishing and related work such as processing From the previous chapter, producers tend to fall into and trade and the majority operate in inshore waters. The three broad categories; large mechanised trawlers, main categories of stakeholders in the sub-sector are: smaller motorised boats, and small non-motorised (or artisanal) fishers. There is often some overlap within 1. Producers – those involved in fishing and other the three categories, and particularly between the production-related activities, including the shore- mechanised and motorised vessels in terms of where fish based owners of production-related tools; are harvested, species caught, and what happens to the 2. Processors – those involved in traditional fish fish once it reaches shore. processing activities (such as drying and salting) as well as those in export processing (peeling, freezing, packing); Poverty and Livelihoods in Marine 3. Traders – those involved in trading of fish, ranging Fisheries from small-scale fish vendors selling fresh or dried fish (including some whose transactions are only Structural Features Relating to Poverty partly monetized), to large-scale operators catering and Livelihoods to urban and export markets. This group also includes a vast array of market intermediaries; An analysis of the coastal fishing communities in the 4. Ancillary workers – those involved in various four focal states18, augmented by secondary data, for support activities directly related to fishing (boat example (GOI 2007c) presents a set of structural features builders, mechanics, ice plant operators and sellers, that are important in determining the people’s access to transporters, net makers and menders, basket different resources and, consequently to the extent of makers and sellers, etc.); their poverty: 17 As indicated in the previous chapter, data from different official sources on coastal populations and fishers are not in agreement. 18 Refer to Annex 5 in the main report for more information. lIvelIhooDConTexTanDkeyIssues  � Of the more than 3,000 coastal fishing villages in India, 85 percent are electrified, 80 percent Box 10. Credit and debt issues in Tamil Nadu connected by road, 65 percent have a hospital, and A major study in Tamil Nadu found that 62 percent 42 percent have a bank; of loans held by small scale fishers and traders was � Nearly 57 percent of the population is educated, from traders, money lenders, merchants and other which is below the national average of 65 percent. informal sources for credit due to ease of access Only 6 percent of the fishers have education above relative to more formal structures such as banks and secondary level; government-sponsored programs. Micro-finance institutes accounted for another 18 percent of total � Fishing communities are characterised by high loans. Effective interest rates varied considerably, levels of illiteracy, and poor access to piped water from as much as 190 percent with informal money and efficient sanitation services; lenders to 12 to 14 percent from commercial banks. � Close to 100 percent of working people in these Micro-finance institutions offered funds at between communities are engaged in fisheries-related 16 and 18 percent. The average cumulative debt load per person in one survey was approximately livelihoods, for about half of them it is full-time Rs. 81,000, covering funds for capital purchases (boats, work; gear, ice boxes), working capital, investment funds to � Fishing is a largely caste-based occupation and caste start new businesses, and other requirements. The plays a determining role for entry into, or exit from, top financial needs for fishers were working capital, fishing; health insurance, medical and other emergencies, and asset replacement. � There is a clear gender-based division of labor, as males largely do the sea fishing; fish once landed, Source: (FAO 2007b) are often handled by women for processing and marketing. The fact that the men are at sea most of the time requires the women to act as de facto are poor. The boat owners, by virtue of their assets are heads of the households, giving them a prominent relatively better off but face more risk than their workers. role in the family; The crew can always move on to another activity (where � Because fishing (as well as processing and trade) these exist) or a different boat, which the boat owners are labor intensive, age becomes an important cannot do so easily. There is a heavy dependence on the criterion for inclusion or exclusion from the activity. informal money market for almost all stakeholders in the Factors such as hard working conditions, poor fisheries sector, except the large boat owners and traders living conditions, early marriages and child birth, who often double as money lenders to other stakeholders alienation, lack of insurance and healthcare, can force further down the supply chain. Smaller fishers rely on the fishers out of productive work at a relatively early informal money markets to meet almost all of their age (about 50 years); the lack of old age insurance consumption and life cycle needs. This dependence on and pension worsens their conditions. On the other the ‘informal’ and ‘internal’ money market is largely on hand, poverty and the open access nature of the account of cumbersome procedures of taking loans from resource force children to take to fishing at a very the formal money market (Box 10). early age, reducing their opportunities for education and/or diversification. High costs of credit that reduce the profit earned by various small stakeholders also has several serious In general, all laborers without assets, working in implications for their poor and vulnerable livelihoods. motorised and non-motorised sectors (constituting First, the lack of surplus over livelihood costs keeps about 60 percent of the producers as fishing crew) them in debt, and since borrowing is necessary to help  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development households tide over the lean season, high costs imply on the size of operations, and others (distant urban a perpetuation of cyclical household debt. Secondly, trade and export trade) may have even longer it stops households saving for the lean season, better turnover cycles extending up to a month. health care or education for their children. Thirdly, it denies economic protection from market or natural resource-based shocks. Livelihoods and the Evolving Marine Sub-sector Income Patterns The phenomenal growth in the fishing economy in the A majority of activities in fishing are in the informal modernisation phase was accompanied by the entry of sector and with no record of investments, catches and new fishing methods, players, and trading systems that returns over time, it is difficult to arrive at any consistent have had long-lasting impacts on the life and livelihoods quantitative estimates of earnings in the sector. While of the fishers, particularly for small-scale fishers. the actual incomes from fishing are hard to quantify, it Mechanised trawlers now account for 20 percent of the is however possible to draw certain broad conclusions labor force in primary fishing, yet they corner 60 percent from the data collected in this study: of the catch. Smaller scale vessels (motorised and non- � Annual incomes for large trawler owners can range motorised) account for 80 percent of the labor and from Rs. 75,000 to Rs. 150,000 or more; the majority account for 40 percent of the catch. These changes have of traditional boat owners earn annual incomes affected the terms of access for the poor to resources, the ranging from less than Rs. 25,000 to Rs. 100,000; the focus and organisation of production, new systems of majority of crew members earn annual incomes from preservation, new market intermediaries, altered terms less than Rs. 35,000 to Rs. 75,000; traders can earn of trade, and access to markets. from less than Rs. 25,000 to Rs. 100,000 per annum. � The higher average annual fishing incomes are Within a state’s territorial waters, the consequences generally in Karnataka; lower annual incomes are of an open-access system with declining fish stocks found in Andhra Pradesh, Orissa and Gujarat. In overall, and general over-capitalization of fishing these latter three states, annual income from marine capacity are felt in many ways: a) reduced productivity fishing of less than Rs. 25,000 are quite common. within the fishery (returns per unit of labor or capital); b) further reductions in resource stocks and negative � Incomes from fishing are usually confined to a changes in household livelihoods; and c) human maximum of nine months a year. health and gender workloads (as women have to bear � The earnings from fishing are not confined to the brunt of lower incomes with which to provide monetary payments; they frequently include non- food for the whole household, bring up children and monetized income like fish or other consumables, or tackle health problems, and consequently, either find utilities like firewood. Similarly, the cost of operations supplementary agricultural work or increase their is not always monetized; a number of activities fishing-related activities). An FAO study in Tamil Nadu like launching and hauling of boats, repairing nets, (Neiland et al. 2006) indicated that of 212 small scale women gutting fish for drying, involve drawing fishers surveyed, 59 percent indicated that the viability upon the ‘social capital’ without which the economic of their principal livelihood had declined from the viability of at least some of the activities can suffer. previous year. Of these individuals, 85 percent said that � While some of the trades (local fish trade) depend it was a matter of concern because of a greater risk of on daily turnovers for consumption and business starving. Major reasons for the downturn in livelihoods purposes, others (like dried fish trade) have a longer were decreased fish catches and scarcity of fish during turnover cycle, i.e., about a week or two depending poor fishing seasons; low fish prices, especially during lIvelIhooDConTexTanDkeyIssues  supply gluts; increased input costs; and poor access to more distant and lucrative markets. Box 11. Fleet reduction in Tamil Nadu A feasibility study was completed in Palk Bay, Tamil Nadu on the potential of introducing fleet reduction as one Transitions to More Holistic Fisheries means of helping address the overcapacity problem. Management and Livelihood It was found that 23 percent of trawler owners would be willing to participate in a boat buy-back program. Diversification Although this is a positive response and one that correlates with the declining economic performance What are the Options? that comes with overcapacity, such a program could only work if it were supported by tighter controls on Previous chapters have suggested that a policy shift is new boats entering the sector. needed from the current fisheries management approach Source: SIFFS (2007) towards a system where the productivity of fish stocks is improved to generate higher wealth, underpinned by economic incentives and stronger access rights The Orissa example in Box 12 illustrates the potential for fish resources. Further, this transformation may to broaden livelihoods, especially for women, through require a reduction in fishing capacity. As suggested in well-organised programs involving Self-Help Groups, Chapters 1 and 2, a transition to more holistic fisheries access to credit, training in relevant income generating management based on maximising net benefits may activities, and assistance with developing marketing raise important livelihood and equity issues that are channels. both real and important for a country like India. It is beyond the scope of this study to pre-determine the Unlike inland villages, there are limited opportunities allocation of fishing rights between larger mechanised for coastal people to shift to farming due to a lack of fishing vessels, smaller motorised boats, and traditional available productive land, poor soils in many areas, non-motorised boats. This can only be determined by and limited ground water. Although some coastal stakeholders through a comprehensive and inclusive areas support paddy cultivation, these sites are always process of change management, leading to policy and under risk of sea inundation and salinization. Forestry legislative reform. However, it is critical to examine how has potential in many coastal areas and this option has well coastal communities and fishers could adapt to this been developed in some states such as Andhra Pradesh changing policy environment should it be reflected by and Tamil Nadu as part of Tsunami rehabilitation. This reductions in capacity. With larger trawlers, there may implies potential opportunities for community forestry be better scope for capacity reductions (Box 11) but the programs, particularly where active pulpwood markets situation for smaller operators is less clear. What options exist for fast growing coastal species such as Casuarina. are available to coastal dwellers to diversify into other At the same time however, field results indicate that livelihood alternatives as fishing capacity is reduced? coastal fishers have a strong affinity for the sub-sector as a way of life and might not be amenable to change. Field results suggest that the options chosen by men who are under pressure from poor catches, weather One conclusion that can be drawn about many of the patterns, etc, frequently derive from fisheries itself, either alternative activities that fishers have moved into is by shifting to another location or by shifting from fishing that they sometimes may be no more sustainable than to shore-based trade activities related to fishing. On the the ones they have left behind. This is because the other hand, choices by women appear to range across availability of alternative/supplementary options, as a wider array of activities in different sectors (Box 12). well as improving access to credit requires concerted 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development efforts by the government, private sector links, and long-term strategic thinking to assure the viability Box 12. Occupational diversification of options promoted (Salagrama and Koriya 2008). strategies in Ganjam district Current efforts by the government (or the NGOs) to The fisherwomen in several villages of Ganjam district address this issue often suffer from lack of clear focus, in Orissa faced a major need to diversify out of fishing in insufficient resources, coherence, and appropriate late-1990s, as the men found it increasingly difficult to go support systems for developing strong backward and fishing because of encroachment of trawling boats into forward market linkages. their traditional fishing grounds. Working in seasonal agriculture in the neighboring villages had always been For India, one possible strategy is to consider coastal a seasonal activity for the women, but now the number dwellers within the wider economy and seek to improve of women moving in for work increased greatly. This fisheries and non-fisheries- based livelihoods. Salagrama led to traveling farther out and working as far away as and Koriya (2008) suggest that programs need to 40 km from home. Women also started working in the address vertical diversification (move the producer Gopalpur Port, outside the agriculture season, loading and unloading goods. Some women started working in higher up the fisheries value chain) and horizontal the government’s social forestry programs, while others diversification (invest in livelihood alternatives outside found work as maids in the hotels in Gopalpur. Other fishing). These options are not mutually exclusive and sources of income included construction labor, opening can complement local and regional economic growth petty shops, making sweetmeats for door-to-door sale, and diversification. World Bank experience over the past collecting flowers used in making fragrances, etc. 20 years in India (Hayward and Brizzi, 2007) suggests Source: Study background papers. that there are at least five key areas where appropriate investment can be made to help the overall process; 1) developing institutions for the poor; 2) human There is a small number of similar and very successful capital development; 3) networks; 4) systems of capital government-financed programs in India, helping development and linkages with markets; and 5) the fishing communities broaden their livelihood private sector. The new livelihood opportunities could of base, particularly around tsunami rehabilitation. In course be created either within the sector (e.g. new fish Tamil Nadu for example, the Tsunami Emergency processing and value-added product development) or Assistance Project is assisting 3,387 self-help groups outside the sector (e.g. fishers developing new skills and to establish small business enterprises, following skill trades in small business development, coastal forestry, training and creation of revolving funds for internal loans. agriculture, or handicrafts), or some combination Examples of successful businesses include compressed of the two. There is a wealth of experience from the mud block production for commercial construction, World Bank rural livelihoods programs in South Asia manufacturing sanitary napkins, salt production, that demonstrate how poor and landless people can aquaculture (mud crabs, sea weed), bakeries, bamboo become part of a vibrant and growing rural economy crafts, palm leaf crafts, mushroom cultivation, garment (Box 13). These programs build up the organisational production, incense stick production, livestock, welding capacity and skills of communities, often provide links shops, and commercial fish drying. to better education, and help people (or small groups) to start small businesses and access credit, and federate Another opportunity is through the “National Rural to a scale that better equips people to negotiate for Employment Guarantee Scheme� (NREGS) which in 2007, improved service delivery from government programs, operated in 330 districts, providing 30 million families tap into external investments, manage demand for their with an average of 43 days’ work at a set minimum products and services, and provide a more attractive wage (The Economist 2008). Assuming a person works market for the private sector. the full 100 days at an average wage of Rs. 60 per day, lIvelIhooDConTexTanDkeyIssues  Box 13. Successful Bank-supported livelihood programs, South Asia Afghanistan – National Solidarity Project: Establishing more than 21,000 voluntary Community Development Councils, creating community development plans, providing block grants for local development including drinking water, sanitation, small-scale irrigation, roads, schools, electricity, etc. Bangladesh – Social Investment Program Project: Helping 2 million people in 1,000 villages by building strong community capacities and institutions, helping them create village development plans, and funding support for implementation as well as maintenance of local assets. India – Rural Poverty Projects (Andhra Pradesh, Bihar, Madhya Pradesh, Rajasthan, Tamil Nadu, Chattisgarh, and most recently in Orissa: Building bankable community organisations of poor and marginal groups (especially women), revolving funds for credit and internal loans to start small business, federating the groups to improve market access and access commercial credit. These projects are improving the rural livelihoods of over 16 million families. India – Natural Resource Livelihood Projects (Andhra Pradesh, Karnataka, Himachal Pradesh, Uttarakhand, Uttar Pradesh): Improving more than 600,000 ha of natural resources including soil, water, and forests to generate higher incomes for more than 600,000 families, and creating new groups for marginal farmers, the landless and women to help them establish small businesses, access credit, etc. Nepal and Pakistan – Poverty Alleviation Funds: Helping poorer groups in over 5,500 communities to improve access to income-generating projects and social services, and create new community infrastructure through social mobilisation, capacity-building and access to credit. Sri Lanka – Gemi Diriya Project: Building local capacities and institutions in over 1,000 communities (encompassing 1 million people), helping communities mobilize local resources, establish small businesses and facilitate linkages with the public and private sector. total earnings would be Rs. 6,000, augmenting livelihood by The Energy and Resources Institute (1996) suggested activities outside of fishing. that without mitigation measures, a one meter rise in sea level due to climate change could affect an area Climate Change, Disaster Management, of 5,763 km2 and put 7.1 million people at risk, largely and Alternative Livelihoods because of land loss in coastal areas and higher risk of cyclone damage. The main point here is that programs In any debate about improving livelihoods of coastal designed to provide alternative sources of livelihoods fishers, the potential impact of climate change must for coastal fishers must look ahead to identify potential be acknowledged. One impact would be on the fishery, risks from climate change with respect to ongoing particularly inshore fisheries where increase in sea fishing, new land-based activities (agriculture, forestry, temperature leads to coral bleaching and declines animal husbandry), and locating new small businesses. in fish stocks (Sridhar 2002). Further, increased sea In a similar light, experience with the 2004 Tsunami has temperatures in shallow coastal areas could result shown how vulnerable coastal people are to natural in certain fish species migrating to cooler locations; disasters; livelihood programs need to be coupled with as an example SIFFS (2007) raise the possibility of broader coastal protection initiatives such as shelter sardine populations in southern Indian waters moving belts and protected landing centers to reduce the risk northwards from states such as Kerala. A second impact of life and livelihood losses from future disasters of would be loss of coastal areas if sea levels rise. A study this nature.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Key Chapter Messages 1. Marine fisheries provide a source of livelihood for more than 3.5 million people in over 3,000 villages along the coast. Close to 100 percent of working people in these small coastal communities are engaged in fisheries-related livelihoods. The majority of coastal fishers are small-scale operators, fishing in inshore waters. 2. Coastal fishing communities are characterised by low levels of education, high levels of illiteracy, and poor access to piped water. 3. The majority of small-scale participants in the sub-sector are poor. Annual earnings below Rs. 25,000 are not unusual. Debt levels are high; the lack of regular surpluses, lean season catches, and a 9-month fishing season lead to a perpetual cycle of debt for many fishers. 4. The current situation with marine fishing in India’s coastal states is affecting fishers through declining catches, reduced incomes, and increasing conflicts, particularly for smaller boat owners and crew operating in inshore waters. 5. A policy shift to fisheries management, based more on maximising net benefits, will require alternative and enhanced livelihood opportunities to be developed for fishers and implemented as soon as possible. Potential longer-term impacts from climate change need to be factored into alternative livelihood program planning and implementation. lIvelIhooDConTexTanDkeyIssues  analysis of legal and PoliCy framework Introduction Legal and Policy Context This chapter provides a preliminary analysis of the India has three levels of government. The central fisheries legal and policy framework currently in effect government, or the Union, operates as a parliamentary in India. Such an analysis seeks to draw lessons from democracy with a bicameral legislature. Below the past policy performance to better inform future policy Union there are 28 states and seven Union Territory development. This is a particularly relevant, although governments (for example Puducherry). Members of complex, piece of analysis for India, given the large Parliament are directly elected to the lower house of number of agencies and stakeholders involved and the the Union Government and to the state /union territory policy changes signaled in the Comprehensive Marine legislatures. Members of the upper house, known as the Fisheries Policy Statement (CMFP) 2004. Council of States, are elected through state electoral colleges. In addition there are 3,682 municipal entities The chapter utilises information summarised in previous and nearly 250,000 local bodies. Policy-making across chapters of this policy note and lays out a brief, formal Union and state / territorial governments is consequently policy analysis to guide further dialogue. Current a complex, demanding and often extended process. fisheries policy in India is then compared to some of the key international best practice benchmarks summarised Provisions within the Indian Constitution help guide in Chapter 2. The analysis relies heavily on information the policy-making process between the states, union presented in various studies that accompany this report territories and the Union by defining the functions of and in particular draws on the consultant’s report on the various arms of the government. Schedule VII of the Assessment of National Fisheries Policies and Laws19. The Constitution contains lists setting out these mandates analysis focuses more on the policy framework since it and areas where concurrent powers exist. While the must be designed to subsequently guide supporting function of administering fishing and fisheries beyond legislation. It is critical to get the right policy framework territorial waters is listed as a Union responsibility (which established; then focus on developing appropriate means that the central government is competent to legislate on this item) fisheries generally is listed as a State legislation and regulations for implementation. responsibility (which means that the state governments have the exclusive power to make laws with respect to fisheries within their jurisdiction). Thus, while the state 19 Judith Swan and Sanjay Upadhyay, Legal Specialists. has a jurisdiction over fisheries in territorial waters analysIsoflegalanDPolICyfraMework  within 22 km (12 nautical miles), the central government 4. Wildlife Protection Act, 1972, amended 1983, regulates fishing and fisheries beyond 22 km20. 1986, 1991. 5. Water Prevention and Control of Pollution Act, 1974. The Constitution also requires the Indian President to 6. The Coast Guard Act, 1978. carry out a financial review at Union and state level every 5 years. This requirement has led to the establishment 7. Forest Conservation Act, 1980. of the Planning Commission and the development of 8. Environment Protection Act, 1986. a series of Five Year Plans. The Five Year Plans are the 9. Coastal Regulation Zone Notification, 1991. GOI’s key economic planning instrument and were 10. Foreign Trade Act, 1992. first initiated in 1951. India has since implemented 11. Biological Diversity Act, 2002. a total of Ten Five Year Plans, interspersed with four transitional annual plans. These plans have important 12. Coastal Aquaculture Authority Act, 2005. policy implications at both the Union and state levels as This legal framework is far from comprehensive; it they define the amount of funds allocated from central contains a number of gaps, is outdated in many areas, not taxation to fund fisheries schemes encompassing many fully consistent with India’s international obligations22, of the operational activities of the Union and state and focused on foreign access23 and development, with government agencies. less emphasis on fisheries management. At the same time however, the plethora of Acts makes it difficult for a coordinated approach towards improved fisheries The Legal Framework management. In particular, the Wildlife Conservation Five major legal instruments of the central Government Act is used by the implementing agency (Ministry of directly govern marine fisheries activities: Environment and Forests) to enforce bans on fishing for certain species including sharks, sea cucumbers, etc. 1. The Indian Fisheries Act, 1897. This authority can extend to a total ban on all fishing 2. Marine Products Export Development Authority Act in certain areas during breeding seasons for rare or 1972 (No. 13 of 1972). endangered species (see Box 14), leading to potential 3. The Maritime Zones of India (Regulation of fishing interdepartmental conflicts. The Coastal Regulation by foreign vessels) Act, 1981 (No. 42 of 1981). Zone Notification of 1991 entered into force under the 4. The Maritime Zones of India (Regulation of fishing Environment Protection Act, 1986, and was designed to by foreign vessels) Rules, 1982. protect coastal areas from unregulated development for industry, tourism, and urban development. The 5. The Operation of Deep Sea Fishing Vessels, 20m OAL21 Notification recognised the customary rights of traditional and above, Notifications dated 14 December 2006. coastal fishing communities by restricting development In addition, there are several related laws dealing with the for up to 200 meters from the high-tide level. A more environment, biodiversity, trade, and shipping impact on recent development has been the requirement of all fisheries and coastal communities, namely: states to prepare coastal zone management plans. However, these are being developed as a new Notification 1. Indian Ports Act, 1908. and could weaken the earlier protections given to coastal 2. Indian Forest Act, 1927. fishers from other forms of development. 3. Merchant Shipping Act, 1958. The inadequacy of the current legal framework is readily acknowledged in the 2004 national Comprehensive 20 However, the protection of certain fish species lies in the concurrent jurisdiction of both the centre and the state. 22 See Annex 6. 21 Overall average length. 23 See Annex 7.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Marine Fishing Policy (CMFP – (discussed in the next Union law. Most significantly, the model Act predated section) and some points for legislative reform are now the United Nations Convention on the Law of the Sea. being proposed, including the need for an enabling Thus, concepts and requirements in the UN Law (and legal framework around the operation of Indian flag subsequent international instruments ratified by India) vessels in the EEZ, introduction of new fishing units, are not fully addressed, such as the eco-system and ensuring resource conservation, limited access fishery, precautionary approaches to fisheries management. harbor management, and harmonizing domestic The state Acts are all divided into four Chapters: 1) and international fisheries law. But, few details are Preliminary; 2) Regulation of Fishing; 3) Penalties; and available about how to reform new legislation – and 4) Miscellaneous. A major concern is that insufficient more broadly how to apply legal reforms to help attention has been paid to fisheries management reduce fishing overcapacity and provide stronger or the sustainability of the resource. State laws resource rights. (with some notable exceptions such as Gujarat) are primarily concerned with fisher welfare, especially for State fisheries legislation is based on a model Act small-scale traditional fishers, and on the promotion prepared by the central government in 1979. This of exports, trade, and labor in the more industrial allowed for some important conformity of the law sub-sector. Coordination on fisheries matters with among states, but also exposed them all to the the states is sometimes difficult, as there can be weak same short-comings and limitations of the existing political will in states to coordinate with neighbors on sensitive matters such as closed seasons. In many other jurisdictions, the focal points and processes for institutional cooperation are written into the law Box 14. Turtle protection and conflict with and policy. Existing communications and occasional fishing meetings appear to be keeping some momentum moving forward, but the issue of better cooperation In Orissa, inshore fishers suffer from loss of access to fishing grounds in traditional coastal Mangrove areas in fisheries enforcement has not been tackled to the due to the restrictions related to conserving the Olive extent needed. Ridley turtle. Although the non-motorised sector has been granted certain exemptions, the smaller In summary, the current legal framework for fisheries motorised boats have not. The ban affects 120 km of at both Union and state/union territory level is the state’s 480 km coast for 7 months each year, from extremely complex, involves a range of government November to May. The restricted fishing area covers institutions, and may need strengthening to provide about 2,800 km2 or 14 percent of the harvestable area up to 100 meters depth, with a potential loss of a sound enough basis for fisheries management and 20,000 tonnes of fish harvest. According to the Orissa development, either in terms of meeting the demands Department of Fisheries (DOF), around 17,546 families, of the 2004 CMFP or the requirements of evolving comprising some 100,000 people are subjected to international law. The GOI is presently developing new loss of livelihood because of the ban. In Kendrapara national fisheries legislation (Maritime Zones of India district alone, over 85 fishing villages, comprising Act), to address some of these concerns. The draft about 40,000 fishers, are affected. The NGOs, Orissa Traditional Fish Workers Union and Samudram, put Maritime Zones of India Act was sent to 26 agencies the number of families affected at 27,825. While few for comment, reflecting the scope of challenges with dispute the need to protect the turtles during egg legal reform in India. It should be noted that most laying and hatching periods, the affected fishers have fishing countries face similar challenges in structuring not been compensated for the loss of fishing access and implementing the legal and policy framework and income. for fisheries management. The complexities require Source: Study team as much clarity as possible in terms of the overall analysIsoflegalanDPolICyfraMework  objectives, empowerment of lead agencies and and emphasised the need for a greater focus on coordination and communication with supporting sustainability measures, particularly in stressed inshore agencies. fisheries. The schemes funded through the Tenth Plan nonetheless still targeted fisheries development with the aim of increasing fish production from an The Fisheries Policy Profile estimated 6.12 million tonnes (in 2000-01) to a target of 8.19 million tonnes by 2007. Most of this increase The Central government policy on fisheries in India is was expected to come from inland fisheries and informed by two key policy documents; the Five Year aquaculture production but some increased marine Plans developed by the Planning Commission and the harvests were also envisaged through exploitation of CMFP 2004 developed by the Ministry of Agriculture. As ostensibly “un-fished� offshore resources. The Tenth noted above, the former defines the fiscal contributions Plan continued to focus government expenditure that the Union Government makes to fisheries each in fisheries on technological and infrastructure year. The Five Year Plan is not however silent on policy development. as it also sets out strategies and objectives and defines various schemes on which these funds are to be spent. The Eleventh Five Year Plan is currently midway through In addition to this, the CMFP 2004 was developed as implementation. The aspects of this Plan that relate to a guiding document to inform the Union and state fisheries are being informed by a specially appointed governments more generally on policy development Working Group of 52 members, largely consisting for the “conservation, management and sustainable of officials from the states, Union and international utilisation� of India’s fisheries resources. The Fisheries fisheries agencies. The Working Group report proposes policy at the state / union territory level ranges from an seven objectives for fisheries over the next five years absence of any guiding policy, in the case of Gujarat, to the (Table 8) and identifies these objectives as current development of a relatively comprehensive policy in the government policy. state of Orissa which was developed in partnership with the Union Government and the support of international To implement these objectives, the Working Group aid agencies. has recommended that various schemes detailed in the last Five Year Plan are continued. They have also From the outset in 1951, the Five Year Plans have included recommended several new schemes targeted largely specific reference to fisheries which is a reflection of their at fisheries development; principally aquaculture perceived economic and social importance to India. development, deep-sea vessel construction, Until the advent of the 2004 CFMP, the Five Year Plans mariculture and value addition activities. A central were the only policy framework for fisheries in India. government budget of Rs. 4,013 crores (US$ 1.0 billion) All ten of the Five Year Plans established so far have is proposed, which is a significant increase over focused fisheries policy on increasing fish production the previous Five Year Plan budget for fisheries of through technological and infrastructure development Rs. 2,497 crores (US$ 640.5 million). A large part of (mechanisation, building new port and landing this increased expenditure has accompanied the facilities, etc), aquaculture development, and through operations of the newly established National Fisheries the expansion of fishing into relatively under-utilised Development Board (Rs. 2,069 crores). As in the past offshore fisheries. years, some of these centrally sponsored schemes are designed specifically to support the state activities The Tenth Five Year Plan began in 2002 and expired in and are expected to be co-financed by the states. 2007. This Plan did recognise that the marine fisheries Consequently the operational activities of the Centre in India were facing increasing sustainability problems and states/union territories fisheries agencies are heavily  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table 9: Comparison of fisheries objectives in key policy documents in India Tenth Five Year Plan Eleventh Five Year Plan CMFP 2004 Policy elements To enhance fish production Enhancing the production of To augment India’s marine Fish production outcomes: from aquaculture and fish from Indian waters, both fish production up to Increased production marine fisheries and in marine and inland, on an the sustainable level in a particular to utilise the full environmentally sustainable responsible manner so as Increased consumption potential of the deep sea and socially equitable basis; to boost export of seafood Increased exports fisheries to enhance fish Address the hitherto from the country and also consumption unexplored potentials of increase per capita fish Management of coastal the Indian fisheries such as protein intake of the masses fisheries island fisheries and non- Increase fish seed food fisheries; production Equity of participation Train fisherwomen Promoting fish as health To ensure socio-economic Socio-economic outcomes Optimal exploitation of the food and meeting the security of the artisanal Social equity fishery wealth changing requirements of fishermen whose livelihood both domestic and export solely depends on this Socio-economic security Increased investment for markets to make the sector vocation Increased profitability/ infrastructure globally competitive; optimal use of fishery To ensure sustainable Increasing profitability of development of marine resources fishers and aqua-farmers fisheries with due concern Infrastructure through an integrated for ecological integration development approach from production and biodiversity to consumption; Strengthening of infrastructure in harvest, post harvest, value addition and marketing and upliftment of fisher and aqua-farmer communities with gainful employment opportunities and capacity strengthening Enhancing the production To ensure sustainable Environmental outcomes of fish from Indian waters, development of marine Protection/preservation of both marine and inland, fisheries with due concern the environment on an environmentally for ecological integration sustainable and socially and biodiversity Environmental equitable basis; sustainability Conservation of aquatic resources and genetic diversity, as also preservation of the health of eco-systems; analysIsoflegalanDPolICyfraMework  influenced by the policies set by the Union government previous chapter, the state legislation provides a (central government) and resourced through the Five rudimentary regulatory and licensing regime for fisheries Year Plan process. management within territorial waters, but management objectives and roles and responsibilities are often not Comprehensive Marine Fisheries Policy well-defined, and legal powers are weak. Enforcement of 2004 even this minimal level of regulatory and licensing regime is very low due to budget, capacity and technology The 2004 CMFP is the current national fisheries policy constraints in the state fisheries departments. framework for India. The policy document establishes three key objectives: i) Augment marine fish production of India up to the Policy Performance sustainable level in a responsible manner so as to The Five Year Annual Plans issued by the Union boost export of seafood from the country and also Government seemingly offer the best prospects for increase per capita fish protein intake of the masses; anchoring a performance assessment given that they ii) Ensure socio-economic security of the artisanal have a large impact on the way fisheries management fishermen whose livelihood solely depends on this activities are funded and directed in both state and vocation; Union jurisdictions. They are consequently the primary iii) Ensure sustainable development of marine fisheries policy documents that provide a historical link between with due concern for ecological integrity and the objectives set by the government and the activities biodiversity. undertaken in the administration and use of fisheries. Two such five year plans have particular relevance for The 2004 CMFP consists of ten components which include assessing recent fisheries policy performance; the Tenth establishing a “stringent fisheries management system� Five Year Plan, which expired in 2007; and the Eleventh encompassing an improved regulatory and Monitoring, Five Year Plan, which is now in operation. Control, Surveillance (MCS) systems. The CMFP also proposes a new legal framework to enable various The Working Group Report on the Eleventh Five Year Plan components of the new policy to be implemented. What provides an assessment of the delivery performance makes the CMFP significant is that it also identifies a with respect to the schemes funded during the Tenth need to reform the legal framework. An Inter-Ministerial Five Year Plan (operated between 2002 and 2007). They Empowered Committee on Marine Fisheries has been estimated that actual expenditure on the schemes established to steward the implementation of the Policy identified in the Tenth Plan averaged 80 percent of under the Chairmanship of the Secretary in the DAHDF. the original budgets allocated and identified this as Outside this framework, regional consultations have the key financial achievement. This expenditure is also apparently been held to discuss how best to make this translated into physical outputs delivered, namely policy operational. 10,910 motorised traditional craft, 18 intermediate craft, 11 deep-sea vessels fitted with Vessel Monitoring Fisheries Management Systems Systems (VMS) and other resources, 500 fishermen provided with safety equipment and 73,000 fishermen On the whole, there is no comprehensive mechanism for provided with development rebates (mainly rebates for management of fisheries outside the territorial sea other installing diesel motors). than the granting of licenses, and even those provisions are largely procedural and not related to mechanisms or The Working Group Report also provides a summary procedures to decide conservation and management of the status, potential and issues surrounding India’s measures or their enforcement. As described in the fisheries, but unfortunately does not explicitly link this 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development analysis to the schemes funded or to the outcomes management of coastal fisheries is less than optimal originally sought in the Tenth Five Year Plan. A limited and leading to the overexploitation of inshore analysis can however be carried out using information fisheries (both in terms of fishing and capacity); provided in the Tenth Five Year Plan, the Working Group iv) Growing levels of conflict between users, between Report and supplemented by the information provided states, and between states and neighboring in this report. countries such as Pakistan, as vessel numbers and capacity increase, and fish stocks decline, suggest One specific target set in the Tenth Plan was that fish equity in participation in management or in access to production should reach 8.19 million tonnes by the the fisheries resource is poor; end of the planning period in 2007. The Eleventh Plan Working Group estimated that annual fish production in v) There is evidence that coastal fisheries are the four years from 2002 to 2005 increased from 5.96 to overexploited and deepwater/island fisheries are 6.3 million tonnes. This represented an average increase underexploited. of less than 2 percent per annum, which is well below the Overall, a simple comparison of fisheries policy target of 5.44 percent annually which would be needed outcomes measured against the key outcomes in the to reach an annual harvest of 8.19 million tonnes. Fish Tenth Five Year Annual Plan suggests that performance production from the marine sector in fact has changed very little over this period. can be significantly improved. This assessment mirrors the global findings in Chapter 2 which provided a A range of other intended outcomes for fisheries are comparative assessment of fisheries policy in India identified at various places in the Tenth Five Year Plan and the performance of other countries, benchmarked that warrant mention. For marine fisheries, these against the FAO International Code of Conduct for outcomes include; i) increased production from the Responsible Fisheries. deepwater fisheries (linked to the overall fish production target); ii) increased fish consumption per capita in It is also relevant to consider the objectives proposed India; iii) management of coastal fisheries; iv) equity within the 2004 CMFP and the links between this policy in participation; and v) optimal exploitation24. A few and the Eleventh Five Year Plan fisheries objectives. specific measures of performance against these outcome Put in direct terms, we are not only interested in statements are available, but some general comments examining whether past production-based objectives are provided below, based on information sources noted were met, but also in determining whether past above and earlier chapters of this report: fisheries performance and problems encountered are being adequately addressed in objectives and policies i) Increased production in deepwater fisheries is established for the future. In this respect it is not evolving but has not yet fully materialised; entirely clear how well the CMFP has been translated ii) Information on actual fish consumption change in into the objectives in the Eleventh Five Year Plan, but India is limited, but various studies cited earlier in the many synergies are apparent. report suggest that demand is expected to increase significantly; What is evident is that many of the outcomes being iii) Various fishery performance indicators (such as pursued around the use and management of fisheries change to catch per unit of effort, change in fishery in India are carried through, in one form or another, trophic status, change in numbers and capability of in all three policy documents. There is a consistent vessels, change in user conflict) show that current focus on fish production as a core outcome along with equity (with a particular focus on people involved in the 24 There is also a range of other activity-based targets specifically identified in the Tenth Five Year Plan that are not considered here, such artisanal fishing sector). There is also a continued focus as numbers of fish seeded and fisherwomen trained. on infrastructure development. What distinguished the analysIsoflegalanDPolICyfraMework  policy objectives set for the future from those in the past phenomenon that has occurred in all the maritime is the increased attention being given to environment states in India25, thus restoring eco-system health and sustainability. However, this must be broadened to resilience, increased catches of prime species etc. encompass economic growth, trade, and livelihoods (Salagrama and Koriya 2006). Policy Complexity Fisheries policy in India has become increasingly complex Causes of Poor Policy Performance and seeks to achieve a wide range of objectives aimed at industrial and artisanal fisheries, fish production and use, Problems of Open Access the generation of economic returns, providing social benefits and ensuring conservation of fish stocks and the What is now evident is that marine fisheries in India environment. Many of these objectives are conflicting have largely reached a plateau in terms of production, and have accumulated during the development of especially for inshore waters. Efforts to stimulate successive planning documents. Even with a high level of expansion of fishing in unexploited deepwater funding and capacity, it would still be difficult to achieve fisheries may materialise but will not address the issues these objectives across the range of fisheries jurisdictions surrounding inshore fishing. Clearly, the problems in India in the short-term. The reforms proposed in this classically found in fisheries worldwide when the open report will take many years of stakeholder commitment, access incentives of fishing are not adequately managed support and investment. are emerging in India. A basic tenet of the FAO International Code of Conduct is that: Policy Implementation Failure Where fisheries management rules are applied, their States should prevent overfishing and excess fishing implementation is often fragmented and the capacity capacity and should implement management measures to implement is weak. The management and use of to ensure that fishing effort is commensurate with the fisheries information is one such example. Both the productive capacity of the fishery resources and their Fishery Survey of India (FSI) and CMFRI are mandated sustainable utilisation; to provide information on the status of the resource. It is very difficult to increase these natural limits, The fishery potential of the Indian EEZ is periodically and although some suggest that interventions such assessed by an expert committee consisting of the as artificial reefs, restocking, and marine ranching scientists of the CMFRI, FSI and other fisheries institutes can increase productivity, result have been far of the country. The last such assessment was done in 2000. These findings are approved by the Ministry from spectacular (FAO 2004). Such measures can of Agriculture and are considered for planning and theoretically speed up recovery of degraded natural development activities. However, there is an urgent resources back to natural limits, but the costs often need for more formal and frequent reporting structures do not justify the results, except where overall labor and a framework on which the decision-making in costs are low. Further, stock enhancement strategies response to the findings can be applied, so as to make must be linked to policies and regulations that limit fisheries research in India more application-oriented. new entry of fishers; otherwise increased stocks could This will also help to bridge the gaps among the induce still further fishing capacity. Allowing fish stocks to recover naturally will ultimately give greater 25 “Fishing down the food chain� refers to the alteration of the eco-system yields with reduced risks of stock collapse. Reducing through sequentially fishing down longer-lived, larger fish that are higher in the food chain (e.g. sharks) until the only fish left to catch are the fishing effort can increase the value of the catch the short-lived, small fish that feed on plants and detritus (e.g. squid by reversing the “fishing down the food chain� and cuttlefish).  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development fisheries research community, fisheries policy, and Policy Coherence day-to-day fisheries management, with scope for better public scrutiny and review of scientific advice. The most recent fisheries policy reflects, to some extent, the overarching goals of development for India, The fisheries laws themselves generally provide a as encapsulated in the Five Year National Plan. In the weak environment for officials to enforce. Penalties 10th plan, explicit recognition is made of the fact that are very low in relation to international standards. For development which merely expands the production example, the Maritime Zones of India (Regulation of of goods and services and consequent growth in per- fishing by foreign vessels) Act, 1981 lists the powers capita income needs to be balanced by development of search and seizure by authorised officers, but aimed at enhancing of human well- being. This only in the context of boarding vessels. There is no recognises that social indicators on health, longevity, authority to exercise enforcement powers on land – literacy and environmental sustainability are just as for example, to conduct searches for fish that may have important as per-capita GDP. Policy implementation in been landed or are being transported after landing, to India is scheme-driven as noted earlier in this report. Past inspect documentation or to carry out other activities practice has been to build on existing schemes rather to investigate compliance. Offences under the Rules are than realign these to the changing policy environment. punishable by a maximum Rs50,000 (US$1,282) fine. This has been complicated by the fact that production- Compared to other global jurisdictions, this is exceedingly based activities are becoming less relevant and in fact low and would have little or no deterrent effect for larger are contributing to current fisheries problems. The operators. Higher fines for “serious offences�, such as result is that there is insufficient coherence between those described in Article 21 of the 1995 UN Fish Stocks current policy and practice in fisheries management Agreement, are not distinguished. However, in the 1980s, and use in India. there were more stringent penalties when the offending foreign fishing vessels were detained, crew arrested and Fisheries Management Systems put in jail, and vessels were confiscated and auctioned. Given the complex policy framework, coherency Other reasons for poor implementation of fisheries problems and current low capacity for implementation, rules include (i) inadequate human resources and there is a strong case for developing a more focused capacity, especially to police long stretches of coast policy framework for fisheries management and scattered with landing sites26, (ii) a lack of focus in use in India. One key element of successful fisheries the DOF on the role of officers to enforce (it often policy that has attracted little attention in the past is conflicts with the role of providing welfare support, the fisheries management system. The development especially to poor fishers), (iii) low awareness of the of a more effective fisheries management system rules and regulations by many stakeholders, and, at the Union- and state-levels offers one means of more importantly, (iv) an absence of effective co- focusing current policy. The key question to be asked management arrangements where self-regulation in developing such a system is what should be the could be fostered and encouraged, building on local objectives of fisheries management and what type experience, for example the traditional Padu system of system is best suited to meet these objectives. The for managing common property inshore fisheries in reforms proposed in this report offer some possible southern India and Sri Lanka (Bavinck 2001). solutions. 26 It was not uncommon in the states examined that fisheries department field staff lacked working patrol boats and vehicles. In one case, officers used public transport and bikes to visit coastal communities. analysIsoflegalanDPolICyfraMework  Key Chapter Messages 1. A review of economic, social and environmental performance suggests that fisheries management in India is meeting only a few policy outcomes against stated planning goals established by the government. Thus, the overall performance could be significantly improved. 2. The continued policy focus on increasing fish production, underpinned by capacity and infrastructure improvement in the face of increasing resource scarcity is not a viable option for the future. The current approach to fisheries management is not addressing overexploitation, nor contributing to more positive economic and social outcomes, particularly for inshore fishing. 3. A new policy focus must embrace economic growth, trade, livelihoods and the environment. At its core, marine fisheries policy needs to move away from production and capacity development and towards the generation of sustainable net economic benefits. With a more appropriate policy direction, over the longer-term marine fisheries can contribute to a broader economic growth and poverty alleviation, while also providing stronger incentives for resource conservation. 4. Any recasting of sub-sector policy objectives must be supported by the building of necessary institutions and capacity to put this new framework into effect. First and foremost, the current legal framework governing marine fishing needs targeted reform. There are good examples to build on, such as recent attempts by Gujarat and Orissa to update their laws, and with Tamil Nadu now beginning to engage in a comprehensive policy/strategy revision process. 5. Current organisational capacity and functions are too misaligned to support more holistic approaches for fisheries management that can maximise economic, social and environmental benefits. Fisheries departments need strengthening, a point raised earlier in the report. 6. Although India has some positive local experiences to build on, in general the country would benefit from a more comprehensive and effective fisheries management system on which to gradually develop this new future. Interim measures can be undertaken to improve basic fisheries management, provided these are consistent with long- term reforms. 7. The impact of future policy change will need to be evaluated and managed with care in terms of the economic value that might be generated, and with impartiality in how this value could be best allocated to ensure the sustainability of coastal communities.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development CreaTing CondiTions for reforming The marine fishing sub-seCTor in india What are the Opportunities? in rural India, marine fisheries stakeholders can become more integrated with India’s expanding rural economy. Fish resources are inherently valuable, measured by Coastal dwellers can be presented with more robust the potential contribution that well-managed fisheries livelihood opportunities, both from within fisheries (as its can make to social and economic welfare. Marine performance improves) and non-fisheries sectors. But to fisheries can provide a range of direct benefits including achieve these opportunities, there is a rising awareness employment, income, and food security, which are all and general agreement among key stakeholders in India important to underpin livelihoods. Indirect benefits can that reforms are needed to guide the improved economic be generated when income from fisheries is reinvested performance of the sub-sector. in the economy, leading to income and employer multiplier effects (as the sub-sector expands) and/or through government fiscal policy actions (taxation and What are the Key Constraints? reinvestment of public revenues in other parts of the economy). Globally, the economic rent (often termed net While marine fisheries in India and many other countries benefits or wealth) value from marine fisheries is thought have strong performance potentials, there are a number to exceed US$ 50 billion. Fisheries management based of difficult challenges to overcome. Empirical evidence on building this value can also address poverty reduction from many parts of the world shows that where policy by focusing on pro-poor growth, and exploiting the ways goals emphasise greater participation in the sector in which poverty in fisheries can be addressed from a by fishers and subsequent production increases (by broader macro-economic perspective. expanding vessel numbers, size, etc.), the long-term outcome tends to drift towards fisheries overexploitation India’s marine fishing sub-sector has the potential to and either limited or no reduction in poverty levels. develop a more valuable resource base, improve the In general, countries that have tried to manage productivity of fish stocks, generate a higher level of fisheries where fishing capacity is expanding beyond sustainable benefits, and provide better equity.The marine sustainable levels, have largely failed to improve sub- sub-sector can certainly build on a number of existing sector performance. Overcapacity can usually lead to strengths such as an experienced labor force, a long overfishing and subsequently to sub-sector stagnation history of fishing, local examples of improved fisheries and declining incomes. In many parts of India, there management, and rapidly growing global and domestic appears to be very little possibility of increasing the demand for fish products. Like agriculture-based regions numbers of fishers in inshore waters while providing CreaTIngConDITIonsforreforMIngTheMarInefIshIngsub-seCTorInInDIa  them with sustainable fishing livelihoods and increasing contains a number of gaps, is outdated in many areas, incomes. Any shift to apparently more plentiful offshore, remains inconsistent with some of India’s international deepwater resources is unlikely to benefit the majority obligations, and is focused more on foreign access to of inshore fishers. For India to build a more valuable and offshore fishing and fisheries development rather than sustainable marine fisheries asset base that can generate domestic fisheries management, especially for inshore a range of economic, social and environmental benefits, waters. The current national legal framework does not there are five main constraints that must be addressed, appear to provide a sufficiently robust foundation for as follows: improved fisheries management either in terms of meeting the demands of the 2004 CMFP statement, or 1. The current policy, legal and administrative the evolving requirements of international fisheries law. systems can only serve as a partial foundation At the same time, state fisheries legislation is based on a for reform towards more progressive fisheries model document prepared by the central Government management. in 1979. This allowed for some conformity of the law among states, but also exposed them to many of the The historical performance against the major objectives same limitations of the current national legal framework. in the 2004 CMFP and the current Five Year Plan across Most significantly, the 1979 document predated the all indicators identified is not as strong as desired. In the United Nations Convention on the Law of the Sea and three broad fields of economic, social, and environmental has not been amended accordingly. performance, marine fisheries in India is not fully meeting government expectations, even in terms of The government agencies directly involved in the marine more traditional policy objectives based on increasing sub-sector and primary resource users have many fish production. While the 2004 CMFP recognises the positive qualities, but suffer from the implementation need to depart from an open access system, the aspect failure and weak institutional capacity with respect to of assigning more clearly-defined fishing rights as part of fisheries management. There are few effective, let alone a transition to more sustainable fisheries management optimal, administrative systems operating to support approach is not addressed. Instead, the policy statement improved fisheries management performance. Fiscal simply refers to the need to establish fishing areas or processes, especially with funds flowing from the centre zones for small non-motorised boats, small motorised to coastal states for marine fishing, are not directly linked and larger mechanised boats, and deep sea vessels. to fisheries management performance, but instead tend While setting aside fishing zones is often part of effective to support welfare schemes, operational programs and infrastructure for fishers. While there is general fisheries management, it must be complemented by agreement that welfare support is important, central a system of well-defined property rights to different schemes for boats, gear, fuel, etc., usually provide the stakeholders. Fisheries policy at the state/union territory wrong economic signals to producers. Instead of helping level ranges from an absence of any significant guiding limit entry, these kinds of incentives may encourage more policy document (in the case of Gujarat) to a relatively participants to enter a sub-sector already overcapitalised comprehensive policy (in Orissa). However, even though by more than 200 percent, and to catch fish from stocks the Orissa policy emerged from a partnership with the that are already largely overexploited. This is particularly Union Government and support of international aid acute for inshore waters. agencies (primarily DFID), actual policy implementation remains fairly weak. 2. The biological and economic sustainability of marine fish stocks in India faces challenges. Five major legal instruments and several related pieces of legislation of the central government directly A number of indicators point to a declining contribution govern marine fisheries activities. This legal framework of India’s marine fisheries to sustainable development.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development For example, government data suggest that for marine in the sub-sector rely on central subsidies to continue stocks assessed, over 61 percent of India’s capture fishing. A high number of participants in the small- fisheries are already over-exploited, and most of the scale sector earn less than Rs. 25,000 per year, over a remaining stocks are fully exploited, with very little nine-month fishing season. The support systems at the prospect for future expansion. While fishing capacity has government, NGO and civil society levels are inadequate increased, catch rates for key species from inshore waters to help people fully cope with the changing operating are stagnant. There has been evidence of increased use environment and gain access to other, possibly more of destructive fishing gear, such as ring seines, in some viable livelihood alternatives. regions. Bottom trawling is another destructive approach for fishing in inshore waters, particularly in the western 4. Fisheries management needs to be strengthened, Indian Ocean. The harvest of juvenile fish/shrimp is also especially for inshore waters. increasing. The large number of vessels docked and no Waters between the 22 km state territorial limit and longer fishing clearly points to overcapacity and poor the 370 km Indian EEZ (managed by GOI) are generally economic returns. Smaller boats are making increasingly identified with larger mechanised vessels; more distant longer fishing trips to more distant areas, impacting on areas of the EEZ are thought to contain significant safety at sea. Conflicts between small-scale/artisanal underutilised fisheries resources. The primary mechanism boats and larger vessels operating within or just beyond for the management of offshore fisheries at this time the 22 km state/territorial fishing grounds are becoming is the granting of licenses. Additional mechanisms are more common. There is also growing concern over the required regarding conservation and management, and impact of coastal development and pollution on inshore their enforcement. Waters within the 22 km limit are fish stocks – a direct negative externality from India’s generally identified with smaller motorised and non- booming economy. motorised (artisanal) boats. Here, state legislation only 3. Small scale fishers are losing their livelihoods provides a rudimentary regulatory and licensing regime and opportunities for development, and there for fisheries management, but management objectives are few options for alternatives. are based on biological criteria and maximising harvests rather than maximising resource rents or net benefits Marine fisheries provide a source of livelihood for more in a more holistic management approach. Fisheries than three million people in over 3,000 villages along the management practices are fairly basic and generally coasts of India. Nearly half of this population is directly include seasonal fishing bans for selected stocks, and actively involved in fishing and related work such as regulating mesh size, trying to create fishing zones, processing and trade; for these people, fishing accounts etc. Yet, while these basic management approaches for most of their livelihoods. Yet the current open-access have some merit, enforcement is weak – most state system and the related decline in fish harvests is helping fisheries departments lack working patrol boats and trap poor people into a downward spiral of low profits, other monitoring equipment. Governance roles and few assets, marginalisation, increased poverty, declining responsibilities between the centre and state, and among health, and perpetual debt cycles. Limited availability a range of agencies within states are often not clear and of low-cost credit hampers the adoption of better can be exacerbated by large mechanised and smaller technologies, particularly for improving fish quality motorised vessels that cross over the 22 km boundary from boat to market. A further issue is that the growth to fish in both directions. There are few real barriers for in the trawler fleet has created competition with smaller, entry into the sub-sector, especially with larger-scale inshore vessels in many fishing areas. These trawlers vessels. Major stakeholders such as fishers and traders now account for 60 percent of the fish harvest, but only are not well-organised and lack sufficient access to 20 percent of the total labor force. Many participants policy processes relating to fisheries management and CreaTIngConDITIonsforreforMIngTheMarInefIshIngsub-seCTorInInDIa  broader sub-sector development. Finally, despite the with many other countries, yet global experience efforts of several NGOs who are trying to demonstrate shows that this approach usually results in low levels of co-management systems for inshore fishing on a small success in generating sustained economic benefits; in scale, formally Recognising the approach and scaling it some cases it leads to stock collapse from overcapacity up would be one logical interim step towards a more and overfishing. Marine fishing under open-access effective management. conditions usually fails to support sustained livelihood development of fishers, particularly smaller-scale 5. Market channels, particularly for small-scale operators, as economic rents are dissipated and incomes fishers, are inefficient and hinder delivery of high decline. quality products at optimal prices. It is an appropriate time for India to step back and learn Aside from exports (mainly shrimp) through EU certified from a small but growing body of emerging national and processing plants, marine fish market chains in India international best practices in fisheries management suffer from unhygienic conditions, poor handling of that can help guide marine fisheries into becoming the fish and large wastage in terms of both lost product a better-managed and more sustainable sector for and profits. Quantity losses due to poor quality of up to economic and social development. This is especially 15 percent of the harvest are common. Smaller-scale critical for inshore fishing, as opposed to deep sea fishers are often unable to gain access to more efficient fishing in more distant areas in the EEZ. While India’s marketing systems and supporting infrastructure (ice, marine fishing sub-sector has many positive features to cold storage, etc.) that would lead to better quality build on, a new approach is needed with an increased and prices. While demand for fish products in India focus on maximising economic, social and environment is forecast to rise significantly in the future, there benefits, improving productivity, and providing better is inadequate information about domestic market equity. This needs to be supported by appropriate trends and specific quality requirements (especially policy, legal, and institutional frameworks, and a for small-scale fishers), and insufficient understanding more effective fisheries management system for both about evolving market chains and opportunities. In inshore and offshore stocks. Such a holistic approach addition, smaller producers lack access to more efficient will eventually require the allocation of fishing rights; collective marketing institutions – starting from a for India, this will mean some challenging political and village level – that could represent their interests as a economic decisions on how to allocate limited stocks commercial business, providing better linkages with the among different groups currently operating in the private sector and access to credit. Globally, India faces sub-sector, particularly between larger mechanised increasing market competition from other developing fleets (mainly trawlers) and smaller motorised and non- countries in the region. motorised boats operating in inshore coastal waters. Further, this transition process, to be successful will require measures to restrict additional entry. These Moving Forward with Critical Marine decisions must be highly sensitive to the political and economic environment in India, particularly with equity Fisheries Reforms considerations and pro-poor growth.27 Clearly, while As this report has indicated, India’s marine fisheries actions are needed to address structural issues such as can generally be characterised as a free and open- overcapacity in fishing effort, the costs of mitigation access system, underpinned by fairly conventional or compensation for people affected by possible policy goals of maximising production based on structural changes must be accounted for in any long- increased fish landings through technology inputs and expanded fishing effort. This model is fairly consistent 27 Refer to Annex 8 for more details.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development term transition process. More specifically, broader � International lesson-learning: the experience gained livelihood opportunities must be developed for coastal from development interventions in fisheries over the fishers to help them take advantage of growing local past thirty years reveals the importance of a broad- and regional economies. based approach; major investments (e.g. harbor construction and fishing fleet) must be accompanied Improving the performance of marine fisheries, creating by less tangible but critically important interventions a more sustainable flow of social and economic benefits, (e.g. policies, institutions and processes for fisheries and ensuring a healthy marine environment requires a management); the latter often involves reform and number of reforms and actions to be implemented at change over a long period of time; both national and state levels. In brief, a comprehensive � Time, sequencing and funding: sufficient time is transitional reform process is needed to: needed to accomplish specific objectives in a realistic a) Build awareness of the potential opportunities and manner; this is usually predicated on the right inputs policy options, and gain broad support for change in the right sequence (usually in sequential phases); (from civil society at the community level to senior and supported by sufficient funding; policy makers); � Participation and consensus: the success of any b) Develop a new policy framework (including marine fisheries reform process will depend on the objectives and roles and responsibilities); achievement of a consensus about key decisions by c) Establish the supporting institutional framework key stakeholders; (legal framework, management systems and � Adaptive process: over the course of implementing processes, accountabilities, organisational design); reforms, new opportunities to further develop and d) Strengthen the required human capacity to strengthen India’s marine fisheries may arise; the implement more effective fisheries management; reform program needs to be flexible to capitalise on e) Put the framework and capacity into practice through these. pilot programs in selected states; and Recommended National Activities f) Monitor progress and use an adaptive process to continually improve sub-sector performance. National activities should aim to initiate a national reform process to support improved performance in the marine The selection of recommended activities in a reform fisheries sub-sector, characterised by more sustainable process must account for the following considerations: flows of net social and economic benefits, and a healthy � Activities specified: selected activities must lead to marine environment. A reform program is recommended the achievement of the program goal (fisheries with three phases – (1) Consultation and Review; reform) and include: awareness-building, policy (2) Policy Development; and (3) Policy Implementation development, institutional development, capacity- Planning – and several components, operating over 3 to building, practical implementation, and monitoring 5 years. and evaluation; � Sectoral context: the fisheries sector in India presents Phase 1: Consultation and Review a range of development opportunities (e.g. high demand for fish products) and constraints (e.g. weak Component 1.1. (Strategic Assessment) should produce fisheries management) which must be addressed; a comprehensive assessment of the marine fisheries � Institutional context: the underpinning institutional sector in India and the development of a preliminary framework (laws, policies, institutions and processes) marine fisheries strategy upto the year 2030. This would needs to be upgraded and realigned to meet be undertaken through a combination of activities development objectives; including stakeholder consultations, visioning exercises, CreaTIngConDITIonsforreforMIngTheMarInefIshIngsub-seCTorInInDIa  scenario building and international comparisons, and marine fisheries and other sectors would help identify awareness-building through exposure visits in India and actual rural livelihood projects/program models that globally. could be scaled-up in all coastal areas to improve both fishers’ and non-fishers’ livelihoods. Component 1.2. (National and International Best Practices in Fisheries) should identify and highlight best practices Phase 2: Policy Development in fisheries development and management relevant to India. Information and lesson-learning should Component 2.1. (Fisheries Policy Development) should be gathered and analysed from both national and produce a draft National Fisheries Policy and State international sources, using field studies, field visits, Guidelines. Following a retrospective analysis of fisheries study tours and the international literature. policy in India (1970-2008), a full range of alternative policy options would be identified and evaluated. Tools Component 1.3. (Building a Knowledge Base) should such as bio-economic modeling could be used to assess establish an improved and comprehensive knowledge the impact of alternative management strategies on base of India’s marine fisheries, including published different fisheries types throughout India. The theoretical reports and a web-based knowledge system. The and empirical information would be used to draft a knowledge base would draw on a wide variety of new fisheries policy following widespread stakeholder information sources including formal publications, consultation. informal reports, and a purposeful review of current programs and data. There would be a need for an early Component 2.2. (Institutional and Legal Framework) stock-taking and definition of likely future information should establish the basis for a revised National Fisheries needs, tools and media for different users – policy- Act and State Guidelines, leading to the development of makers, fishery managers, private sector traders and a draft Bill (for eventual approval by the government of local level fishers. India in the medium or longer term). Based on a detailed review of institutional and legal arrangements, targeted Component 1.4. (Capacity-building and institutional policy and legal reforms to support more holistic fisheries strengthening) should create an appropriate level management would be identified including: formalising of capacity (technical, policy decision-making) for and codifying fishing rights around co-management; fisheries development and fisheries management in key leasing of open seas; application of FAO Fisheries Code government institutions, and relevant private and civil of Conduct or development of comparable national society organisations. A capacity needs- assessment in codes, ICZ policy reform and Marine Environment Policy. the sector would be followed by a series of relevant and National guidelines for state-level policy and legal reform on-going capacity-building courses. would also need to be developed. Improved processes for inter-ministerial consultation and coordination, Component 1.5. (Livelihoods Support and Best Practice greater coherence between union and state roles and Interventions) should establish a monitoring and responsibilities would also need to be identified and evaluation system, and gather a baseline of information agreed on28. of fisheries and other related livelihoods in India and the impact of policy and other changes. Both published data Component 2.3. (Fisheries Management Systems) should and a series of new surveys as appropriate would need to identify and evaluate design options for improved be employed. This would also include the identification of fisheries management systems in India. A wide range of suitable indicators to monitor the future impact of policy multi-disciplinary information will have to be used along implementation and general livelihood improvement. A with appropriate consultation of fisheries stakeholders. full range of stakeholders would need to be engaged in this process. Interaction with programs and experts in 28 Refer to Annex 9 for more suggestions on legal reform 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development The identification and creation of an inventory of certain fisheries (identified in phase 2) would also need fisheries management units throughout India and to be considered. Successful pilot scale operations could for different types of fisheries should be undertaken, then be used to test and demonstrate new approaches followed by definition of the structure and operation of for fisheries development and management in India at fisheries management systems. A set of fisheries to be the state level. Awareness raising and capacity-building considered for “pilot scale� development activities in the around proposed strategies would be required too. future (Phase 3 below) would need to be identified as an important part of this activity. Component 3.2. (Implementation Planning and Preparation) should identify and elaborate a Program of Fisheries Component 2.4. (Long-term capacity-building) should Development for India to 2030, based upon a review establish the human and institutional capacity to build of proposed fisheries development and management upon and take forward the reform of national fisheries strategies (earlier phases mentioned above) and policy and the suggested new approaches to fisheries consultation and engagement with key stakeholders. management. A series of dedicated training courses Building on lessons learned from pilot work at the state and expert mentoring programs could be designed and level, the requirements for establishing an appropriate operated. National, regional and international experts process of fisheries development and management would be identified and outlined. An action plan should be in fisheries management will need to contribute to the developed for national- and state-level reform activities, on-going process. The component should also include resource mobilisation plans and training and capacity- periodic exposure visits within India and abroad to building. In addition, ongoing monitoring and evaluation countries already following a reform process, in order to operations would be needed, including support from continue sharing ideas and experiences, and building the establishment of a National Resource Centre for professional networks. national fisheries data and statistics, the establishment of guidelines for focused evaluation studies, and publication Phase 3: Policy Implementation Planning of output data from project activities. Component 3.1. (Fisheries Development Strategies) should identify and elaborate how fisheries policy at Recommended State Activities the national level can be implemented through a series It is recommended that state activities be undertaken in of inter-related strategies and actions at national, state 1-2 states to put into practice the reform process for the and local level. Building upon the results of reviews and marine fisheries sub-sector in India developed through analysis in earlier phases, a set of strategic interventions the national level activities. The recommended state in key areas relevant to fisheries development and activities should consist of two phases – (1) Review, fisheries management priorities, both at the national analysis and preparation; and (2) Implementation level and in each state, would need to be identified, of management reforms, and several components, elaborated and relevant costs calculated. This could operating over 4 to 5 years as a starting point. include holistic approaches to resource management, technology adoption, marketing strategies, capacity Phase 1: Review, Analysis and Preparation rationalisation, human resource development, research and development, etc. A range of possible options Component 1.1. (Policy Review and Analysis) should should be identified, evaluated and compared. The core review new state fisheries policy and strategy in line component of resource management would need to with new approaches to fisheries management and be built upon current systems as well as the FAO Eco- identify any gaps and appropriate policy responses. The systems Approach and other reforms to improve net opportunities for reform and necessary actions should benefits. The use of a set of “pilot scale� operations in be a key focus. CreaTIngConDITIonsforreforMIngTheMarInefIshIngsub-seCTorInInDIa  Component 1.2. (Fisheries Assessment) should produce an a fisheries management plan (FMP) for each of the selected updated status report on marine fisheries in the state, fisheries management units. The components of the including an inventory of all fisheries and their major plan (fish harvesting possibilities, catch control, capacity characteristics (fish stocks, productivity, wealth potential, control, technical management measures, precautionary catching/onshore sector, status of exploitation, etc.). On management measures, structure of use rights and fiscal the basis of this assessment, a number of pilot fisheries arrangements) would need to be worked out and agreed for reform implementation could then be selected. The between all stakeholders involved (using a combination pilot fisheries would be a core component of the reform of different types of information – bio-economic models, program, and the successes and lessons learned from key local knowledge etc.). The third activity would focus on interventions in these fisheries would form the basis for implementing the FMP, leading to the establishment future scaling-up throughout the selected state’s marine of sustainable fisheries that would eventually generate fisheries sub-sector. increased net economic, social and environmental benefits. Appropriate success indicators would need to Component 1.3. (Capacity-building) should establish be developed for each FMP and its implementation plan. necessary human and institutional capacity to manage Suggestions for indicators include: the value of rents and implement the fisheries reform process into the generated by the fishery, capitalised value of such rents, future. Capacity-building in fisheries policy, and analysis value of rents captured by public authorities, capacity of through a variety of dedicated courses and mentoring the fishing fleet in comparison to the resource availability, arrangements, along with a parallel set of awareness- sustainability of the targeted fish stocks, and the level raising and information dissemination activities need of income and employment generated on the basis of to be carried out throughout the period of the program, fishing. Finally, M&E systems would be needed to review including training for both fisher-folks (e.g. understanding and assess on-going activities, capacity-building related and using fishing rights) and fishers’ personnel (e.g. FAO to specific fisheries management reforms and reporting. Code of Conduct protocol). Component 2. (Socio-economic and Livelihood Support) Component 1.4. (Fisheries Livelihoods Monitoring and should encompass several activities. The first activity Evaluation (M&E) baseline) should create a baseline could support local capacity-building through learning, understanding of fisheries’ and non-fisheries’ livelihoods, exposure visits, training and participation. The second and establish a monitoring and evaluation system to activity would use an appropriate rural livelihood gauge the impact of future fisheries reform. It is intended program to benefit fishers suffering from low catches that this component will draw upon other livelihoods and income by providing options for coastal inhabitants programs in the state and link with the proposed national to broaden their livelihood base to non-fisheries M&E system. alternatives. This could occur through group formation, social mobilisation, institutional strengthening, and a Phase 2: Implementing Management Reforms revolving fund to finance the establishment of small- and Livelihood Support scale enterprises, mainly in non-fisheries livelihoods. The third activity could establish Potential Fishing Zone Component 1. (Implementation of Management Reforms) (PFZ) display boards to help reduce input costs in diesel should be based on four separate activities: The first and labor in the offshore areas for active inshore fishers. activity would identify and define up to three fisheries The fourth activity would improve the inadequate management units in the participating state(s). This would market infrastructure in key coastal areas through fish include the designation on a legal basis (under state and marketing sheds, platforms for hygienic display and local laws) and the principles of allocation of use rights to sale of fish, refrigeration facilities for storing the fish in a specific stakeholders. The second activity would produce hygienic condition, freshwater supply, sanitation, etc. It  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development should also help establish modern wholesale and retail key stakeholders. The marine fisheries sub-sector is fish markets as per EU or HACCP standards. The fifth important both to the national and state economies, as it activity would improve sea safety by providing training concerns the livelihoods of more than 3.5 million, mostly on appropriate safety measures. poor coastal inhabitants. Appropriate action needs to be taken urgently to improve the performance of the sub- Recommended Implementation sector and the lives of the participants. Approach The proposed reform activities are complex and span References both national and state jurisdictions and several Bavinck, M. (2001). Marine Resource Management: Conflict agencies. Effective coordination and communication and Resolution in the Fisheries of the Coromandel Coast. Sage are essential for successful implementation. Based on Publications, New Delhi. input from stakeholder workshops, it is recommended Chandrapal, G.D. (2005). Status of trash fish utilisation and fish that a high level task force, chaired by the Joint feed requirements in aquaculture – India. Paper presented at the Secretary, Department of Animal Husbandry, Dairying Regional Workshop on Low Value and Trash Fish in the Asia-Pacific Region. Hanoi. June 7-9, 2005. and Fisheries, Ministry of Agriculture, provide necessary broad oversight and strategic guidance to the proposed CMFRI (2003). Status of Exploited Marine Fishery Resources of India, Central Marine Fisheries Research Institute. national and state-level activities. Given the prominent role of the National Fisheries Development Board (NFDB) CMFRI (2006). Marine Fisheries Census 2005, Part I, Government of India Ministry of Agriculture, Department of Animal Husbandry, in marine fisheries development, there is considerable Dairying & Fisheries & Central Marine Fisheries Research Institute, operational merit in considering the Secretary of the 104 p. Cochin. task force to be the Chief Executive Officer of the NFDB. CMFRI (2007). Annual Report 2006-2007. Central Marine Fisheries Other members of the task force could include one Research Institute. Cochin. senior representative from the participating state(s) in a Commission on Growth Development (2008). The growth reform program, a member of a reputable national civil report – strategies for sustained growth and inclusive development. society fisheries organisation, members from the fishing Conference Edition. World Bank. Washington. industry, and representatives from key international CSO, (2006). Selected Socio-economic Statistics India 2006, Central partners. 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Analysis of fish supply and fisheries are aware of the task force activities and where demand in India, in A Profile of People, Technologies and Policies in Fisheries Sector in India (Ed. Anjani Kumar, P. K. Katiha and required, can assist participating states in overcoming P. K. Joshi), National Centre for Agricultural Economics and Policy implementation hurdles. Research: New Delhi. www.ncap.res.in/upload_files/others/oth_pdf. Delgado, C. Wada, N. Rosegrant, M. Meijer S. and Mahfuzuddin Implementing these proposed initial national- and Ahmed, (2003). Outlook for Fish to 2020 - Meeting Global Demand. state-level reform activities will take at least 3-5 years; International Food Policy Research Institute. Washington, D.C. a strong commitment by the government of India DFID (2005). 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FAO Fisheries and Presentation slides. Aquaculture Report No. 853, Rome. South Indian Federation of Fishermen Societies (2007). Marine Zingde M.D. (1999). Metal pollution in harbor and coastal fish landings in Kerala for the last two decades. SIFFS Fisheries sediments of Visakhapatnam, east coast of India, Indian Journal of Newsletter. Vol. 1, No. 2. December 2007. Marine Sciences, 23, 52-54. South Indian Federation of Fishermen Societies (2008). (http:// www.siffs.org/). CreaTIngConDITIonsforreforMIngTheMarInefIshIngsub-seCTorInInDIa  annex 1. glossary Aquaculture The cultivation of aquatic organisms. Aquaculture implies the cultivation of aquatic biota under controlled conditions. It includes algaculture (the production of kelp/seaweed and other algae); fish farming; shrimp farming, shellfish farming, and the growing of cultured pearls. Beel A term for a pond (wetland) with standing water (as opposed to moving water in rivers and canals. Generally found in the Ganga-Brahmaputra flood plains of the eastern Indian states of West Bengal and Assam, and Bangladesh. Bottom trawling An industrial fishing method where larger, mechanised vessels drag large, heavy nets across the seafloor. Community A group of habitations or hamlets, managing its affairs in accordance with customs and traditions. Crore Ten million Indian rupees (about US$250,000). Demersal fish A fish that feeds on or near the bottom of the ocean or a deep lake in the demersal zone. Demersal fish are also known as bottom feeders or groundfish. Examples include some species of catfish, such as the members of the genus Corydoras, cod, haddock, whiting, halibut, perch, snapper, eel, grouper, bream, bass, flounder, plaice, sole, and demersal shark. District India is divided into states and states are divided into districts. Many government development programs operate at the district level under the District Collector, who is the top civil servant at the district level. EEZ Under the law of the sea, an Exclusive Economic Zone (EEZ) is a sea zone over which a state has special rights for exploration and use of its marine resources. Generally a state’s EEZ extends to a distance of 200 nautical miles (370 km) out from its coast. Economic Rent (Resource Economic rent is generally defined as the difference between the income in the current Rents) use of the factor and the absolute minimum required to draw a factor into a particular use (from no use at all, or from the next best use). Resource rent is abnormal or supernormal profit which derives from the exploitation of natural resources. There are two main reasons of the existence of resource rent: The scarcity of the natural resource and the possible impact exploitation will have on natural growth of the resource in future. If the scarcity is reflected in a market price as in a perfect market, resource rent may be obtained. annex1.glossary  Fisheries Management The FMU usually can be characterised and constituted by identified fishing vessel Unit categories, which target resources consisting of one or, more probably, of a species assemblage. Given this, the identification of an FMU involves the prior identification of key fisheries, which at the initial disaggregated level may be locally structured according to the resource, the local fishing grounds and related ports from where the fishing vessels operate and where the economics of production originate (e.g. access to local/regional markets, trading, processing, vessel-related activities and costs, etc.). Gram Panchayat Village-level elected body. Gram Sabha Gathering of all villagers within the jurisdiction of a gram panchayat. Lakh One hundred thousand units. Mariculture The culture of fish or other aquatic organisms in the marine environment, either for food or profit (specifically aquaculture or fish farming in the sea); in its simplest form, juvenile fish are captured and allowed to grow for several months, with regular feeding, in a simple floating net cage until they reach harvest size. More complex systems can employ a range of technologies to produce young fish (fingerlings) using artificial breeding techniques, with grow-on stages involving formulated feeds and various designs of aquaculture structures (ponds, cages and raceways). Maximum Economic Yield In fisheries economics, MEY is, theoretically, the largest economic yield that can be taken (MEY) from a fishery over an indefinite period of time. It represents in basic terms the difference between gross economic earnings and costs relating to fishery activity. MEY occurs at a lower level of fishing effort than MSY, and as a consequence fisheries with high and expanding levels of fishing effort, often under open access conditions, tend to yield low economic returns, and are economically inefficient. Maximum Sustainable In fisheries ecology, MSY is, theoretically, the largest yield or catch that can be taken from a Yield (MSY) species’ stock over an indefinite period. MSY is extensively used for fisheries management. MSY in most modern fisheries models occurs at around 30% of the unexploited population size. Unfortunately errors in estimating the population dynamics of a species can lead to setting the maximum sustainable yield too high (or too low), leading to stock depletion. Monitoring, Control, Part of the overall composition of a fisheries management system, MCS focuses on Surveillance (MCS) the collection of appropriate data, licensing and enforcing systems, and provision of management information systems relative to fisheries management objectives and legal frameworks. MCS is essential to counter illegal, unreported and unregulated (IUU) activities within a fishery. Approaches and tools range from logbook data collection on boats, to inspection and regulation by fishery patrols, and more recently the design and operation of Vessel Monitoring Systems (VMS) using modern electronic and satellite technology. Panchayat A local unit of government covering a small number of contiguous villages. Pelagic fish Fish that swim near the surface, compared with demersal fish, which live closer to the sea bottom. Pelagic fish are mostly of the oily type such as herring, mackerel, and pilchard, containing up to 20% oil. Scheduled caste (SC) Low caste people of Indian origin, also called Dalits, formerly treated untouchables, or Harijans, who traditionally have been at the bottom of the social hierarchy in India. “Scheduled caste� is the official and most socially acceptable term used for these groups of people. “Scheduled� refers to the schedule in the Constitution of India where these castes are listed. The Constitution of India guarantees a government policy that grants these groups certain affirmative action rights through reservation in education, employment and elections to the Parliament, state legislatures and other local bodies.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Scheduled tribe (ST) Indigenous ethnic groups, similar to the SC, outside of the mainstream of society are often referred to as “scheduled tribes.� This refers to the schedule in the Constitution where these tribes are listed. The Constitution of India guarantees a government policy that grants them certain affirmative action rights through reservation in education, employment and elections to the Parliament, state legislatures and other local bodies. Purse-seining / Seining In commercial tuna fisheries operated on the high seas, modern fishing vessels use large seine nets (a long curtain of nylon net that hangs from floats at the surface and is weighted below) to encircle schools of surface-living tuna such as skipjack or yellow-fin. The end of the net is often fed out using a supporting launch, and then circled back to the fishing boat. The net is drawn back to form a huge bag, which can be reduced in size and lifted by mechanical crane on larger vessels. While seine netting for tuna is highly effective, it has the disadvantage of also taking other organisms including dolphins which accompany and prey on the tuna. Various tactics are used to scare away or even release the dolphins, but it remains a problem. Shellfish Soft bodied aquatic invertebrates having exoskeletons as shells such as mollusks, crustaceans, and echinoderms, used as food. Both saltwater and freshwater invertebrates as mentioned above are considered shellfish. The term finfish is sometimes used to distinguish ordinary (vertebrate) fish / true fish from shellfish. Trawl A tapering bag-like fish net towed at the stern of the fishing vessel. annex1.glossary  annex 2. The Tragedy of The Commons and dissiPaTion of renT A fisher entering an open access fishery for the first time (more powerful motors, better navigational equipment, would carry out a very simple cost benefit exercise: better echo-sounders etc.). The end result will be that the fishery will be forced towards the economic break- As a result, if the sustainable economic rent is positive, even point as before. potential fishers will see a net benefit (Benefit - Cost) from engaging in fishing. In the open access fishery, this Another option open to managers is to limit both the causes effort to increase towards an economic break- number of fishers and the total catch that may be landed even point, where rent is zero. each year. If the limit on the total catch can be effectively enforced, then this will probably prevent the detrimental The tragedy of the commons: For fisheries therefore is biological consequences of the tragedy of the commons that the open access, unregulated fishery will eventually scenario. However, participants in the fishery will still be reduced to a biological state at which it generates compete against each other for the largest share of the zero or possibly even negative rent. All participants will annual allowable harvest. Individuals will therefore still lose everything (“ruin for all�), despite the existence of follow a simple “cost to the group versus benefit to self� an option for managing the resource on an economically calculation in decisions to increase effort. Since everybody optimal basis (i.e. by keeping effort at the correct level). will follow the same logic, effort will increase. However, If one tries to avoid the tragedy of the commons by since the total catch is limited, the same amount of fish limiting only the number of fishers, the result will still be will be landed at much greater cost. Therefore, although unsuccessful. This is because the existing participants will theoretically there is no biological risk to the resource, the increase their fishing capacity by upgrading their vessels economic rents will decline as harvesting costs increase, Cost: The negative impact (cost) of an additional fisher in the fishery is that effort will increase, and the sustainable economic rent (any surplus between revenues and fixed plus variable costs) must therefore decrease. The loss in sustainable economic rent must however be borne by all fishers, and so this loss is a shared loss. The loss that will be experienced by individual fishers is therefore relatively small. Benefit: The benefit to new fishers is that each now gets a percentage of the rent, that percentage depending on the total number of fishers. This portion of the rent will always be larger than the portion of lost sustainable economic rent borne by each fisherman. Source: Ocean and Land Resource Consultants, 2008 annex2.TheTrageDyofTheCoMMonsanDDIssIPaTIonofrenT  until an economic break-even situation is reached. In take by the allocation of individual quotas. This is the fisheries managed in this way, the tendency is for the situation in a number of countries, for example, South fishing season to become very (sometimes ridiculously) Africa and New Zealand. In theory, this removes the “race short. The end result is a biologically intact resource to catch� incentive. This is sometimes used to explain why (optimistically), but nevertheless an economically South African fisheries are technologically inexpensive valueless fishery as before. and unsophisticated compared to their counterparts elsewhere. If this is true, it would certainly be desirable The essential ingredient missing from the last option is not to jeopardise this state of affairs by introducing new to limit the catch that each participant in the fishery may competitive forces which lead to long term rent losses.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development annex 3. develoPmenT aPProaCh To fisheries PoliCy Fisheries management, based on net benefits, begins FMPs are a key element. Such plans provide a means to with the recognition that fish resources are inherently structure the activities of the various parties involved very valuable, and that this value, or wealth, exists in the in the fisheries exploitation and management process. form of potential resource rents. These rents exist even in The design and implementation of FMPs tends to be a the absence of fishery management or policy (and serve lengthy process, especially in its initial stages. A successful to drive the fishery to its overexploited state). And they FMP process will have a number of general features, in will influence policy outcomes whether or not they are particular it must be participatory, transparent, holistic, explicitly recognised in policy. and use the best available information. Successful FMP processes are consultative and participatory, and there The new approach does not simply take such value or is hence a need to assist fishers to organise and function wealth explicitly into consideration but uses it as the within the planning process. The FMP approach has the foundation stone of fisheries management systems. great advantage of being able to federate stakeholders around a common object. Under this approach, many elements in fishery management systems will remain similar (e.g. stock FMPs can only be designed if appropriate management assessment, MCS, fishery information systems and so units can be identified. These units are essential for on), but their focus and the relationship among different successful management. It is not possible to calculate elements will change. Bringing resource rents to centre resource rents if FMUs are not defined, because then it stage will itself generally be a major change. And change is not possible to assign fishing costs in a meaningful will also be required in institutional arrangements, way. For successful management, FMUs are an essential including the structure of the line Ministry, the nature of element in preventing fishing effort from switching management mechanisms and instruments, the nature uncontrollably from one target species to another of research support, the organisation of communication depending, for instance, on fish prices and fish stock principles and processes, the Administration, Research availability. and the Profession, the design of fish information systems and so on. This approach is based on biological advice on the catch possibilities for each FMU. In a management context, The identification of appropriate fishery management such advice needs to be forward-looking and timely. units, and the development and implementation of There is a need to develop systems that can deliver such fishery management plans (FMPs) are key requirements. advice. These systems need to take into account other annex3.DeveloPMenTaPProaChTofIsherIesPolICy  40 Rent ($millions) ($millions) 30 Box A-1: Alternative fisheries development scenarios and assumed rent generation over time 40 40 Rent ($millions) 20 Rent ($millions) 30 40 30 10 (1) “Ideal� Rent 20 30 20 0 � Fisheries management system operated effectively 10 20 from year 1; 10 1 3 5 7 9 11 13 15 0 10 � Fishery expanded by adding controlled inputs 0 Year 1 0 1 3 3 5 5 7 7 9 9 11 11 13 13 15 15 (capital, vessels, fishing effort); 1 3 5 7 Year 9 11 13 15 � Rent increased to $36 million/year on a sustainable Year basis after 10 years (maximum economic yield, MEY). Year 60 40 Rent ($millions) ($millions) 60 (2) “Conventional� 60 20 � Fisheries management system is not effective (open 40 Rent ($millions) 60 40 access); Rent ($millions) 0 20 � Fishery inputs continually added to system; rapid Rent 40 20 1 3 5 7 9 11 13 15 -20 0 20 expansion; 0 -40 -20 1 1 3 3 5 5 7 7 9 9 11 11 13 13 15 15 � Rent increases rapidly up to year 6, but declines 0 -20 Year rapidly thereafter; -40 -20 1 3 5 7 9 11 13 15 -40 � Rent exceeds MEY early on then dissipates; leading Year to overcapitalisation and stagnation with no rent -40 Year Year (operating costs covered); 40 � Example: Nigeria. Rent ($millions) ($millions) 30 40 40 (3) “Corrected� Rent ($millions) 20 Rent ($millions) 30 40 � Fisheries management loses control after 5 years; 30 10 Rent 20 � Fishery inputs continue to be delivered but slowly; 30 20 0 � Rent declines rapidly after year 5; 10 20 10 1 3 5 7 9 11 13 0 � Fisheries management and development re- 10 0 Year established after year 8; Recovery of rent generation 1 3 5 7 9 11 13 0 1 3 5 7 9 11 13 and reaches MEY after 7 years; 1 3 5 7 Year 9 11 13 � Example: Namibia. Year Year 40 (4) “Measured� Rent ($millions) ($millions) 30 � Fisheries management system established early, but 40 then developed over first 10 years; 40 Rent ($millions) 20 Rent ($millions) 30 40 � Fishery inputs added slowly and carefully; 30 10 Rent 20 30 20 � Gradual increase in rent generation, which reaches 0 10 MEY after 15 years; 20 10 1 3 5 7 9 11 13 15 � Example: Mauritania. 0 10 0 Year 1 3 5 7 9 11 13 15 0 1 3 5 7 9 11 13 15 Source: (DFID, World Bank, FAO 2007). Year 11 1 3 5 7 9 Year 13 15 Note: Charts are derived using a hypothetical fishery model with a potential sustainable rent of $36 million/year under appropriate Year management conditions, values are non-discounted. Upper horizontal plot line = maximum economic yield (MEY). Lower curved line = rate of growth of economic rent over time.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development dimensions, such as eco-system constraints, as necessary. investments. Government is always faced with a vast Although this function is similar to current practice, there range of possible infrastructure projects – the problem are some important differences. First, the rent or wealth- is to choose between them. A more holistic approach maximising level of effort is less than the production- based on maximising net benefits provides some means maximising one, which means that fisheries generally to do so. should be operating within the resource constraint. Advice on catch possibilities should therefore be easier to formulate and less contentious. Secondly, fisheries Summary managers will pose questions to their research institutes in a rather different manner than currently (where, de As indicated above, fisheries development can take facto, researchers often end up setting the exploitation several forms with alternative objectives such as level rather than advising on possibilities). conserving fish stocks, economic efficiency, or social stability (DFID, World Bank, FAO 2007). Box A-1 lays out An important part of a more holistic approach based four alternative fisheries development scenarios based on maximising net benefits will be to estimate resource on a small, hypothetical fishery. The ideal approach (1) rents under different management arrangements. There assumes a case where the fisheries management system will be a need to develop bio-economic modeling works effectively from day one and then is gradually methods to estimate resource rents in different FMUs. It expanded to a point where the maximum economic should however be noted that, despite their need and yield is reached. The second case is with weak or no active usefulness, bio-economic models (in common with other management (typically what is seen in most countries) rent estimation techniques) may tend to under-estimate under an open access system, characterised initially by true rents. This is because once rational management is high rents as fishing effort increases rapidly and harvests put into place, fishers have an incentive to increase rents expand, but then declining rents as the system suffers and this is reflected in the fact that the value of fishing from overcapacity, overfishing, and reduced harvests. rights generally increases over time. This incentive may The third scenario represents a system with an initial be as important as the rent itself and needs to be kept in loss of fisheries management that is slowly corrected. mind in the design of management systems. It is certainly The final case (4) is a more measured approach with a a strong argument for Governments not attempting focus on maximising net benefits and where new fishing to tax away all resource rent, but rather taking a fiscal inputs added slowly and carefully. One can see parallels stance that represents appropriate sharing between with this case and the “ideal� system in scenario 1. resource users and the Government (as representative of Based on these hypothetical examples, it is fairly clear that the resource owners). when using economic criteria such as wealth creation Countries possessing a comparative advantage in fish (represented by economic rent) as a fundamental basis harvesting (usually because of the valuable fish resources for fisheries policy and development, it is possible to in their EEZs) often assume that they must also have achieve the ideal situation (case 1) of MEY over a given a similar advantage in fish processing. However, few period of time, either if fisheries development follows countries seem to have based their policy on detailed a measured approach from the beginning (case 4) or analyses of their true comparative advantage. if mid-stream corrections are made to a sub-optimal system (case 3). The only case (2) where optimal rents A final advantage of an FMP approach is that it will are not achieved is with conventional management in enable the identification of necessary infrastructure pursuit of production-based targets. annex3.DeveloPMenTaPProaChTofIsherIesPolICy  annex 4. fisheries managemenT: besT PraCTiCe ConsideraTions from oTher CounTries Australian Northern Prawn Fishery the existing fishing rights in the NPF became statutory fishing rights, providing operators with long-term Management of fisheries resources must sit within access rights to the fishery, and an incentive to an effective national policy framework. This consists collaborate with government and other stakeholders in of the declared objectives of the various government the management process. departments (fisheries, trade, environment, etc.) and the overall macro-economic goals of national and Mauritania state governments. Clear specification of the roles and responsibilities of various levels of the government Effective institutional arrangements are crucial to the and the private sector is required to ensure effective performance of fisheries management systems and decision-making in fisheries. The characteristics of the the contribution of fisheries to the economy. The range framework (strength, flexibility and appropriateness) of institutions which can be involved in the sector will impact on the achievement of management can be large, relating to, for example, management objectives. In Australia, the Northern Prawn Fishery (NPF) organisations, legislative frameworks, policy processes, is a good example of how an effective policy framework research and information collection and so forth. To was able to set the boundaries for the fisheries ensure that the tasks are performed adequately, an management system, and how this was supported by appropriate level of institutional capacity is also needed, an appropriate legal framework. The NPF is a limited and this is a major factor affecting success in developing entry, input-controlled trawl fishery, which has been countries in particular. In Mauritania, an African coastal successfully managed (to a greater degree) since 1995. state with large fisheries resources, the development and Net economic returns are high and the capitalised implementation of an appropriate institutional framework value of licenses is over US$ 350 million. Since 1995, was able to ensure that a significant proportion of the the Australian Fisheries Management Authority (AFMA) central government revenue came from the fisheries has managed the NPF under a statutory authority sector through the collection of resource rent. A state framework, at arms length from the political process. monopsony (a market situation in which there is only one AFMA is required to make management decisions buyer) was established to channel fish prior to export. based on a clear set of legislative objectives: ecological Differential tax rates were used as a means to extract sustainable development, the precautionary principle, resource rents to the government to finance other public and economic efficiency, guided by a ‘road-map’ with policy goals and implement fisheries policy. For example, agreed strategies and performance targets. Since 1995, taxes were higher on products that were frozen at sea as annex4.fIsherIesManageMenT:besTPraCTICeConsIDeraTIonsfroMoTherCounTrIes  to encourage development of processing in Mauritania, Canada and USA and were higher on cephalopods (squid, octopus) than other fish to discourage excessive targeting of the A key challenge for fishery management is to address the former. The system was successful in a number of ways; perverse incentives which occur in unmanaged (or weakly 20 percent of total government revenue was collected managed) fisheries, and which drive overexploitation. from marine fisheries in the mid-1980s (although Effective fisheries management systems will remove these subsequently a less successful licensing system has perverse incentives while at the same time encourage replaced it and government has become dependent on rational exploitation. One important approach is to fishing agreements. The development of the artisanal develop strong use rights systems. There are many types fishery was favored mainly because it provided a ready of use rights, and care must be taken to develop a system market for artisanal produce. The monopsony worked suitable to a specific fishery and its country context. If with artisanal fishers to ensure that their product quality successful, then a use rights system will give fishers a met the export market standards and also provided direct stake in the future of the resource, which can help countervailing power to the large buyers. promote effective fisheries development, exploitation patterns, and compliance (for removing the usual ‘race Shetland for fish’, as one example). For use rights to contribute to success they have to be both equitable in their allocation Fisheries managers cannot act in isolation from other and be seen to be a fair means of controlling effort by stakeholders and fisheries cannot be managed without the wider group of stakeholders to simply enter the reference to other inter-acting sectors and to the wider marine sub-sector. In the case of the Pacific Halibut economic and ecosystem context. In the case of two fisheries Fishery, spanning both Canadian and American waters, in Shetland, the management regimes were changed to the introduction of rights-based fishing in 1995 has had take account of a range of external factors, and to draw numerous positive effects. What once had been an annual upon the collaborative efforts of different stakeholders to fishery with a reasonably long season had been reduced find an appropriate response to the needs identified. In the to a classic ‘derby’ fishery with crews racing non-stop for first case, a small industrial fishery for sand eels was closed 48 hours in vessels of ever-increasing size and motors to in 1991 after a rapid decline in catches. Commercial fishers catch as much fish as fast as possible from the opening of came into conflict with environmental groups over the the season, with little regard for crew safety or product apparent link between seabird mortality and fish catches. quality. Recognising the problems with the “race to fish�, After extensive talks between the commercial fishers and Canadian fishermen asked for Individual Fishing Quotas environmental groups, the fishery was reopened in 1995 (IFQs) from their government, which was successful with reduced quotas, vessel limits, and closed seasons to in reducing the annual race for fish. In 1995, IFQs were protect the birds. Management of the fishery is now the introduced in Alaska to replicate the Canadian success. responsibility of the local fishing industry. In the second So what were the positive effects? Stock recovery has case, the management of demersal and pelagic fisheries29 taken place, landings have increased, prices on markets has been altered to allow the Shetlands to manage the have improved and stabilised, and the fishing season haddock quota on behalf of the island community. This has been lengthened with improved sea-safety. Discards proved to be a successful experiment, and as a result have also been reduced along with ghost fishing, since there was a rapid move towards adopting sectoral quotas fishers can now fish more selectively and efficiently. throughout the fishing industry at large in the UK. Namibia 29 Demersal fish live on or near the bottom of the sea and include species such as cod, haddock, whiting and halibut. Pelagic fish live near the surface and include species such as herring, mackerel, sardines and The fisheries do not operate in isolation, but are located pilchards. within diverse and complex systems, which make up the  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development natural, social and economic environments. Depending on shore fishing grounds. Today the fisheries management the country and the point in time, different combinations systems so established have been successful in generating of factors (components of the environments) will influence significant economic rents for Namibia and continue to and impact on the fisheries. There is a need to identify and represent a source of economic growth. understand these factors by adopting a multi-disciplinary approach to fisheries analysis and policy formulation. New Zealand While complexity is often cited as a cause of failure for New Zealand is one of only a small group of countries fisheries management systems, it can also be viewed as where fisheries management has been transformed from providing opportunities for developing new approaches an open access regime, heading down a familiar path of and systems. To successfully manage such complexity overcapacity, overfishing, increasing conflicts, etc, to one requires flexibility, and the ability to learn and adapt. centered on maximising net benefits. While New Zealand The case of Namibia is interesting in this respect. At and India represent very different contexts, the value in Independence in 1990, the country went through a period reviewing the country as a case study is to see how change of turmoil, with complex political and economic changes. processes were established and implemented and the In the inshore fisheries, operators from South Africa had resulting improvement in sub-sector performance. a large presence. Offshore a large fleet of foreign fishing vessels operated under free and open access conditions. Performance of the New Zealand Fishery Despite the political complexities (both regionally and Sector internationally), Namibia was able to define the boundaries of its EEZ, establish a quota system, and create a sense of The performance of the fishery sector in New Zealand, ownership of its fisheries. Of particular note is the fact and underlying policy, is guided by a clear goal, which that the new state asserted jurisdiction over the rich off- is to “maximise the value New Zealanders obtain through Box A-2. Comparative areas of fishery EEZs New Zealand : 4.3 million km2 India : 2.02 million km2 3,781,000 sq km 4,363,000 sq km 7,956,000 sq km Source: Arbuckle, M. (2008) Towards effective fisheries management the example of New Zealand, China, UK sustainable Development in Fisheries Seminar Shenzen April 2008. World Bank. annex4.fIsherIesManageMenT:besTPraCTICeConsIDeraTIonsfroMoTherCounTrIes  the sustainable use of fisheries resources and the protection 82% of these stocks are at or near the target level, and of the aquatic environment.� clear rebuilding strategies are in place for the remainder. With respect to utilization, the total export value in 2006 The fishery in New Zealand covers an EEZ zone of (FOB) was NZ$1 billion (US$ 780 million). The industry 4.3 million km2 (Box A-2). This is about twice the size of receives no direct subsidies from government. The total India’s EEZ but is far less productive in output. The current asset value of the fish stocks in 2006 was an estimated New Zealand total wild fish catch is approximately 482,000 tonnes. This is based on 130 species taken NZ$ 3.8 billion (US$ 3 billion). New Zealand’s fisheries are commercially of which 92 species (592 stocks) are under sustainable and are being managed in a way that creates quota management. Fisheries management is viewed as wealth. These achievements have not come overnight; sustainable; stock status information is now available on in fact the current sector structure and performance 60-70% of all stocks (by weight and value). Approximately reflects almost 30 years of evolution (Box A-3). Box A-3. Evolution of fisheries management and catch levels, New Zealand. Open access Science (MSY) Wealth (MEY) based limited-management management management 90,000 410,000 560,000 517,000 (1978) (1986) (1994) (2006) 700000000 1978 to 1986 1986 to 1994 1995 to 2007 4500 4000 600000000 3500 Quota value ($NZ millions) 500000000 3000 kilogrammes 400000000 2500 300000000 2000 1500 200000000 1000 100000000 500 0 0 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Year Catch Asset value Source: Arbuckle, M. (2008) Towards effective fisheries management the example of New Zealand, China, UK sustainable Development in Fisheries Seminar Shengen April 2008. World Bank. 0 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Role of Government and Industry finfish and shellfish. They are supported by a parent body, called the Seafood Industry Council (SeaFIC) which is a The role of the New Zealand government in the fisheries company wholly owned by the industry. Shareholdings sector is reflected in the Fisheries Act. The purpose of the are held by FMCs. SeaFIC has an 8 member Board and Act is to provide for the utilization of fisheries resources oversees delivery of services to FMCs, for example while ensuring their sustainability. Utilisation is to enable maintaining catch registries, providing research advice people to provide for their economic, social and cultural to fishers and the FMCs, and collecting and distributing well-being. The law and its implementation in and of itself funds for FMC activities does not meet the fisheries goal but provides an enabling framework to achieve the goal. It is recognised that the FMC Example – the Hoki Fishery fisheries goal can only be realised with the assistance of Management Company the fishing industry and other stakeholders. Hoki is a mid-depth fish species (generally living Resource rent is at the center of management and around 200 meters). It is caught by midwater or incentives are aligned to the goal. The right to catch bottom trawl methods. The annual sustainable catch fish is allocated as a proportional interest in the amount levels vary between 150-250,000 tonnes per year. of fish that can be sustainably taken each year so the The fishery is managed by allocation of shares in the fishers individually face the costs of good or poor fishing Total Allowable Catch to fishers. The value of fishing practices and have an incentive not to overfish. The right rights is currently US$ 600 million. In terms of the to catch is allocated in perpetuity so fishers have an FMC structure, shareholdings are proportional to the incentive to invest over the long term (i.e. they can be quota share ownership. Quotas encompass Hoki, Hake, sure of future access) and an incentive to conserve stocks Ling and Southern Blue Whiting (all major mid-depth to ensure there is fish to take to maintain their business species). Voting on the management of particular fish investments into the future. stocks by the fishing industry is proportional to the The fishers pay the full costs of management and expect shares held within particular stocks. Operation of the to get a good service for their money. Their investment FMC is financed through a levy, which is set by majority and fishing activities are not distorted by subsidies. The vote of shareholders at the Annual General Meeting. right to fish can be traded, subdivided and its title is The FMC has dedicated staff and is supported by the guaranteed by the Government (i.e. it can be registered Seafood Industry Council experts. Through industry and mortgaged) – resource rent is at the centre of management, the Hoki fishery achieved the Marine management – it has a realisable capital value and can Stewardship Council certification in the year 2000, after be used for investment in fishing and processing or other addressing 10 corrective actions. more profitable economic activities. A visual summary There is an active management plan being followed of the old model and the preferred model for roles and and a code of practice underpinned by civil contract responsibilities for marine fishing is shown in Box A-4. with agreed damages applied when a breach occurs. Evolving Institutional Capacity The main points of the Hoki Code of Practice are: a) Objective is to improve yield (maximising Given that the industry has a major role in productivity of optimal sized fish); sector management and development, what is a b) Binds all fishers who are authorised to take Hoki. typical institutional structure to implement the responsibilities? There are now more than 20 fishers c) Provides for monitoring of catch size; and/or industry-run fisheries management companies d) Provides for vessels to spread fishing effort among (FMC) operating for deepwater, mid-depth, inshore different biological stocks; annex4.fIsherIesManageMenT:besTPraCTICeConsIDeraTIonsfroMoTherCounTrIes  Box A-4: Preferred roles and responsibilities for government and industry in marine fishing Fishers are engaged in management planning processes DEFAULT PREFERRED Fisheries plans Government Fisheries plans developed by approves developed by Government standards resource users (e.g.catch limits) Government Resource users Ministry implements implement monitors plans plans operations Check, Monitor Research Resolve Operate Inform & disputes, enforce, catch, stock and (registry etc.) Educate litigate prosecute effort etc risks e) May limit catch to below the Government set catch g) Provides for use of mitigation devices to minimise limits; sea-bird mortalities caused when the birds hit trawl f) Sets areas closed to fishing (i.e. to protect juvenile warp. areas) and rules about when to cease fishing (e.g. when more than 10% small Hoki are found in tows);  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development annex 5. livelihoods of CoasTal fishers Andhra Pradesh cannot afford to pay fees (education is free till class 10). The main reasons cited for not going to school at all are Demographics: The 975 kilometre-long coastline of poor financial status, social stigma against the girl child Andhra Pradesh is home to 498 marine fishing villages receiving education, and the lack of parental awareness and 271 marine fish landing centers and four fishing about the importance of education. Field interviews also harbors (CMFRI, 2005). Just over half a million marine revealed that the main reason for boys not continuing fisher-folk in 130,000 families inhabit these areas, education was to join the family in the fishing operation; with an average family size of four persons. Nearly all for the girls it was to help in household work. Further, of them (99 percent) are Hindus, though low-caste, there is a general air of discouragement because parents belonging to the other backward classes (ie other see the educated youth in the fishing villages seldom than SC & ST people) Only around 27 percent of the getting white collar jobs in the government. At the same fishing populations are active fishers, with another time, educated youth are often unwilling to go the sea for 30 percent being engaged in fishing-associated activities fishing, which is a physically demanding and dangerous (ibid.). There is a strong gender divide in fishing-related occupation. occupations with fish harvesting, boat repairs and Status of water facilities: Most households (93 percent maintenance being done by men and women being of the 73 surveyed) use nearby sources like hand pumps, predominantly engaged in fish marketing (79 percent of tap stands or wells for domestic water supply. Only one those engaged in marketing are women) and in curing percent of households had piped water. Discussions with operations (87 percent). About 5 percent of fisher-folk the community revealed that poor water quality was a families have only women as the sole bread-winner major issue. Overall, the general water and sanitation from fishing-allied occupations (ibid.). situation in these households is very poor and hygiene practices require immediate attention from local NGOs Education status: Two-thirds of fisher-folk in rural and the government. coastal villages are illiterate, and most of the literate (67 percent) have only primary-schooling, with 5 percent Age composition and life expectancy: Among having had secondary school education, reflecting the the fishing households surveyed it was found that fact that 83 percent of the 627 educational institutions 40 percent of the total respondents were in the age situated in marine fishing villages are primary level group of 18 to 35 years. Discussions revealed that this schools (CMFRI, 2007). Discussions in the field showed fishing community expects males to live up to 55 years that a majority of students drop out after class 10 as they and women a little longer. annex5.lIvelIhooDsofCoasTalfIshers  Occupational status: In Andhra Pradesh 36 percent of have been trained as boat drivers but not many jobs the fisher-folk engaged in fishing-related occupations are available for them. are reported to be laborers (CMFRI, 2005). Of the 146 respondents surveyed for this study, 34 percent Involvement in other fishing activities: Although stated that they are involved full time in catching fish men and women share the labor in fishing, there is a as boat owners and 21 percent are crew members clear demarcation in their activities. Only the men go (Table A-1). A small proportion (only 9 percent) of the to sea for fishing and women do not play any role in total respondents is involved in other trades such as fish harvesting; instead, women are involved in fish grocery shops, pujaris (temple priests), phone kiosks, trading and salting. After the catch comes in each etc. Around 17 percent of the total respondents (mainly day and the marketable fish is sold, women collect women) are involved in agriculture. Many fishermen and clean the small fish for salting, which is done Table A-1. Occupational profile in villages surveyed, Andhra Pradesh Occupation Number in % Number in % Total full time part-time employment employment Fishing 50 34 0 0 50 Crew member 30 21 1 8 31 Trading 25 17 2 17 27 Boat driver 1 1 0 0 1 Ice-making 2 1 0 0 2 Agricultural labor 25 17 2 17 27 Others (including 13 9 7 58 20 grocery shop, pujari) Total 146 12 158 Source: Study background papers. Table A-2. Household income status, Andhra Pradesh Occupation Number of Range of annual income Respondents up to Rs. 25,000 % Rs. 25,000 – % 75,000 Boat-owning fishermen 50 48 96 2 4 Crew member 31 27 87 3 10 Trading 27 26 96 1 4 Trawler driver 1 1 100 0 0 Ice making 2 0 0 2 100 Agriculture labor 27 27 100 0 0 Others* 20 20 100 0 0 Total 158 150 95 8 5 Source: Study background papers. *Including grocery shop owner, temple priest, net repairer, etc.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development overnight after which they dry it the next day. Out Education status: Approximately 31 percent of the of the 73 households surveyed only 4 households fishermen possessed primary level of education, were involved in ancillary activities. An estimated 29 percent had secondary level and 10 percent 33 percent of the households surveyed reported that possessed above secondary level of education. About they are involved in local fresh-fish trade and 23 percent one third of the fishermen population had no formal in processed fish trade. Among this community only education (CMFRI, 2005). A large majority of the marine 1 percent was reported to be involved in distant fresh fisher-folk in Udupi (80 percent), Dakshin Kannada (69 fish trade. Under the processing activities, 25 percent percent) and Uttar Kannada (62 percent), had some level of the households are involved in dry-fish processing of formal education (ibid.). The household survey among activity. fishermen showed that nearly 80 percent had some degree of formal education (at least till primary school), Sources of household income: The main source of while 26 percent had primary education, 26 percent household income in the villages surveyed is from had secondary education (i.e., higher primary) and 28 fishing and fishing-related business. Most respondents percent had more than secondary level of education (i.e., (95 percent) stated that their annual household income high school). Only 19 percent are illiterate. A majority of was less than Rs. 25,000 per annum or Rs. 2,000 per the illiterate are the fresh and dry fish vendors and crew month (Table A-2). Only a small minority (5 percent) members, although there were a few traders and boat of households reported annual incomes higher than owners also. About 15 respondents, largely purse-seiner Rs. 25,000. and trawler owners and traders (9 out of 15), had crossed pre-degree and some had gone on to complete their graduation and ITI diploma, indicating more awareness Karnataka and capacity among this class than the traditional boat owners or crew members. This is even more evident Demographics: The 300-kilometre coastline of in the case of the 485 household members of the Karnataka stretches from Karwar in the north to fishermen where 83 percent are literate, 17 percent had Mangalore in the south, covering the three coastal studied beyond high school, and mostly the children districts of Uttar Kannada, Udupi and Dakshina of boat owners and traders had professional degrees in Kannada, bordered by the high Western Ghats in the engineering, medicine and management. east and the Arabian Sea to the west. According to Age composition and life expectancy: Approximately the National Fisheries Census of 2005 ,this coastal belt 42 percent of the fishermen surveyed were adults is home to 156 marine fishing villages and nearly one between 18 and 35 years of age, followed by adults million marine fisher-folk in around 170,914 families, between 35 and 60 years (27 percent) and those below most of whom are in Uttara Kannada (CMFRI, 2005). The 18 years (26 percent). Discussions in the field revealed National Census data shows that the average family size that this fishing community expects males to live up to is 5.66, the average population per village is 1,096 with 55 years and women a little longer. 968 females for 1000 males. It also reveals that a majority (90 percent) of the fisher-folk are Hindus, followed by Occupational status: In Karnataka the majority Muslims (9 percent) and Christians (1 percent). Also, (71 percent) of the fisher-folk own traditional boats about 6.5 percent of the fisher-folk families belonged and 19 percent have mechanised boats (CMFRI, 2005). to either scheduled caste or scheduled tribe. There is Of the 100 respondents surveyed for this study, 50 (or a strong gender divide in fishing-related occupations 50 percent) were involved in full time fishing activity with fish harvesting and boat repairs and maintenance with their own boats and 18 percent were working as being done by men, and women being predominant in crew members, while a small proportion (6 percent) fish marketing. were traders (Table A-3). Around 14 percent of the total annex5.lIvelIhooDsofCoasTalfIshers  Table A-3. Occupational profile of respondents in villages surveyed, Karnataka Occupation Number fully employed % Trawler owners 15 15 Purse-seine boat owners 14 14 Traditional boat owners 18 18 Crew members 18 18 Traders 6 6 Dry fish vendors 14 14 Fresh fish vendors 9 9 Ancillary workers 6 6 Total 100 100 Source: Study background papers. Table A-4. Annual household income by occupation, Karnataka Occupation Number of Range of annual income (Rs.) Respondents up to 35,000 35,000 - 75,000 - 100,000- > 150,000 75,000 100,000 150,000 Trawler owners 15 - 2 5 3 5 Purse-seiners 14 - - 5 3 6 Traditional boat owners 18 5 8 4 1 - Crew member 18 2 11 5 - - Traders 6 - 2 2 2 - Dry fish vendors 14 4 8 1 1 - Fresh fish vendors 9 - 8 - 1 - Ancillary workers 6 2 4 - - - Total 100 13 43 22 11 11 Source: Study background papers. respondents (mainly women) are involved in dry fish Amount and sources of household income: The main vending followed by 9 percent fresh fish vendors. Only source of household income in the villages surveyed 6 percent are involved as ancillary workers, largely is fishing and fishing related activities. More than because of low and uncertain wages. half of the respondents (56 percent) stated that their annual household income was less than Rs. 75,000 Involvement in other fishing activities: Only men go despite having two to three active members in fishing to sea for fishing and women focus on fish vending (both (Table A-4). fresh and dry) and salting. After the catch comes in and the marketable fish is sold, women collect and clean the Further, traders, purse-seine boat owners and trawler small fish for salting, which is done overnight then dried owners report higher incomes of up to Rs. 150,000 per year, either on coir mats or on plastic sheets in the beach for while the bulk of dry fish vendors, fresh fish vendors, two days. Out of 100 households surveyed, 19 percent ancillary workers, crew members and traditional boat reported that they were involved in the local dry fish owners report earning less than Rs. 35,000 per year trade and 9 percent in fresh fish trade. (or Rs. 3,000 per month or Rs. 100 per day).  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development A more detailed breakup of income shows that of the fishermen possessed primary level of education, 50 percent of purse-seine boat owners, nearly 50 percent 13 percent secondary level and 4 percent possessed of trawler owners surveyed) and 66 percent of traders above secondary level of education (CMFRI 2005). earn more than Rs. 70,000 per year, while 50 percent Out of the total 82 households surveyed a total of 161 of ancillary workers, 55 percent of crew members, individuals responded to the question about their 93 percent of dry fish vendors, 66 percent of fresh fish educational status. Among the surveyed households, vendors and 55 percent of traditional boat owners it was found that over 100 children (63 percent) study (10 out of 18) earn less than Rs. 30,000 per year or in classes I to V. Only one student is studying in class XII Rs. 2,500 per month – which is around Rs. 80 per day. which is almost negligible among the total respondents. It needs to be borne in mind that these are averages None of the household surveyed had any member of income that are uncertain and fluctuating. Also attending a college for a degree. there is no income during the lean season for most of them, which drives them into consumption-driven Drinking water facilities: Most households (96 percent) debt. This makes marine fishers, especially small scale use nearby sources outside their houses, like hand pumps, participants, an especially vulnerable section. tap stands or wells for domestic water supply. Only two percent of homes surveyed had piped water. As in the other states, poor water quality was a major issue. Orissa Age composition and life expectancy: An estimated Demographics: The 480 kilometre-long coastline of 68 percent of the heads of fishing households surveyed Orissa is home to 641 marine fishing villages that are were below 35 years old, with only 2 percent being above located in Balasore, Jagatsinghpur, Kendrapara, Bhadrak, 60 years old. Puri and Ganjam districts respectively (CMFRI, 2005). Just below half a million (450,391) marine fisher-folk in around Sources of household income: The main source of 86,352 households inhabit these areas, with an average income among the fishing communities surveyed family size of a little more than 5. Nearly all (98 percent) was from fishing and fishing- related business. But are Hindus, though more than half (55 percent) belong to the level of annual income reported was very low. As either scheduled castes or scheduled tribes. Only around much as 95 percent of the respondents reported that 27 percent of this population (or 120,000) are the active their annual household income was below Rs. 25,000 fishermen, and, of this number, an estimated 62 percent per annum (Table A-5). Only men go to sea for fishing are full-time fishermen, 28 percent are part-time fishers and only women are the auctioneers at the landing and another 10 percent are occasional (ibid.). Around centers. 34 percent of fisher-folk earned their livelihood from allied activities like marketing, repairing/making of nets, curing, Involvement in other fishing activities: An estimated peeling, labor and other fishery related activities. Most 57 percent of households surveyed were involved of the males were engaged in occupations such as in ancillary activities, 27 percent in trading and 24 repairing and making of nets (33 percent), labor (27 percent in processing activities. The majority of those percent), and marketing (21 percent) while more women in ancillary activities were in net-making and repairing were occupied in curing (33 percent), marketing (20 15 percent were involved in local fresh fish trade and percent), labor (19 percent) and repairing and making of none of the respondents was involved in processed fish nets (13 percent). trade. Among this community 13 percent were reported to be involved in distant fresh-fish trade. Under the Education: In Orissa about 51 percent of the fishermen processing activities, 14 percent of the households population has no formal education. Only 32 percent were involved in dry fish processing activity. annex5.lIvelIhooDsofCoasTalfIshers  Table A-5: Annual household income status Occupation Respondents Household income range per annum (%) up to Rs. 25,000 Rs. 25,000– 75,000 Rs. 75,000-100,000 Fishing 62 82 0 18 Crew member 9 67 33 0 Trading 8 88 12 0 Kerosene trader 1 100 0 0 Boat mechanic 3 0 100 0 Others 6 100 0 0 Total 89 80 5 15 Source: Study background papers. Gujarat received permission to start standards V to VII, due to lack of teachers they are not able to begin. Out of 808 Demographics: According to the Marine Fisheries respondents, 272 claimed to have attended schools in Census 2005 there are 263 marine villages in Gujarat their life. Among the 272, the majority of children (147) housing 59,889 fisher-folk families. Just over 330,000 were attending classes from VI to X. More than half the marine fisher-folk inhabit these areas, with an average respondents (66 percent) were illiterate. family size of five. Nearly 78 percent are Hindus, and only 6.5 percent of the fishing families belong to Status of water facilities: A large number of households either scheduled caste or scheduled tribe. Only around (34 percent) use piped water for domestic water supply. 26 percent of this population is active fishermen, with Another 30 percent buy water at different rates from another 23 percent being engaged in fishing-associated various sources. Only one household reported about activities (ibid.). obtaining water from the panchayat Swajaldhara scheme. Education status: Largely the youth are educated up to VIIth or maximum up to Xth Standard. Some of them Age composition and life expectancy: Among the from the richer fishing communities are sending their fishing households surveyed it was found that 34 percent children to colleges for higher studies. In Jaffrabad (a of the total respondents were in the age group of 18 large and wealthy fishing community), crew members to 35 years. Of those interviewed 33 percent fell in the can earn Rs. 7,000 per month at the age of 17 or 18 category of 6 years to 18 years of age. years on larger mechanised vessels. Parents prefer to Occupational status: In Gujarat, 26 percent of the educate the youth only up to the level Xth standard fisher-folk are engaged in active fishing and of these and then encourage them to become Khalasis (dock people, 83 percent are involved in full-time fishing laborers or crew). Some students are pursuing studies (CMFRI, 2005). Of the 108 respondents surveyed, in the Fisheries College in Veraval however, and want 67 percent stated they were involved full-time in fish- to pursue an MBA to start a new processing plant in catching as boat owners and 9 percent were working Jaffrabad. On the other side of the coin, discussions as crew members (Table A-6). A small proportion (only with non-motorised boat owners in Subhash Nagar, 6 percent) of the total respondents was involved in Porbandar, revealed there was only one government other trades such as grocery shops, pujaris (temple school up to standard IV. Although the school has priests), STD booths etc.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development Table A-6. Occupational profile in villages surveyed, Gujarat Occupation Number in full time employment % Fishing 72 67 Crew member 10 9 Trading 16 15 Boat mechanic 3 3 Kerosene trader 1 1 Others 6 6 Total 108 100 Sources of household income: The main source of households surveyed a total of 28 households were income among the fishing community is from fishing involved in ancillary activities. An estimated 23 percent and fishing-related business. But the level of annual of the households surveyed reported that they were income reported in this fishing community, is very low, involved in local fresh fish trade and a majority of the as much as 33 percent (36 out of 108) of the respondents respondent population (40 percent) was involved in reported that their annual household income was below distant fresh fish trade. One percent of the population Rs. 25,000 per annum (Table A-7). was involved in the processed and export fish trade. Among this community 10 percent is reported to be Involvement in other fishing activities: As in the involved in fresh fish cutting when it comes to processing other states, only men go to sea for fishing and women activities. Dried fish and fish meal activity is undertaken are involved in fish trading and salting. Out of the 101 by 3 percent of the respondents. Table A-7. Household income status, Gujarat Occupation Number of Range of annual income Respondents up to % Rs. 25,000 – % Rs. 75,000 – % Rs. 25,000 75,000 100,000 Boat-owning 72 15 21 34 47 12 17 fishermen Crew member 10 7 70 3 30 Trading 16 7 44 1 7 Kerosene 1 1 100 0 vendor Boat mechanic 3 0 3 100 Others* 6 6 100 0 Total 108 36 33 47 43 12 11 Source: Study background papers. *Including grocery shop owner, temple priest, net repairer, etc. annex5.lIvelIhooDsofCoasTalfIshers  annex 6. inTernaTional obligaTions Article 253 of the Indian Constitution expressly India has a moral duty to implement “soft law� mandates that the Parliament has the power to make instruments such as resolutions or declarations. For any law for the whole or any part of the territory of example, the 2001 FAO International Plan of Action on India for implementing any treaty, agreement or IUU fishing recommended, inter alia, that IUU fishing convention with any other country or countries, or be clearly addressed by the development of a National any decision made at any international conference, Plan of Action and strengthening an MCS System on an association or other body. Thus, it is not only a moral incremental basis including a VMS, an observer program duty but a clear provision in the Indian Constitution to and other cost-effective means such as reporting, formulate legislation for giving effect to international information systems and port control measures. Robust agreements. legislation would need to underpin these measures, which are not specifically identified in either the 2004 India has committed to a range of international fisheries obligations by becoming party to treaties Marine Fishing Policy component on Legislative Support or agreements, and membership in regional fishery or in any current legislation. bodies (RFBs). Prominent among these are the 1982 A major problem is that much of the current legislation United Nations Convention on the Law of the Sea and (both central and state), and to some degree the 2004 the 1995 UN Fish Stocks Agreement which relates to Marine Fishing Policy, pre-dates the entry into force of fishing for straddling and highly migratory fish stocks in many of these instruments. For example, India ratified areas beyond national jurisdiction30, the Indian Ocean the 1982 UN Convention in 1995 and the UN Fish Stocks Tuna Commission (IOTC) and the Commission for the Conservation of Antarctic Marine Living Resources Agreement in 2003. Both contain general principles that (CCAMLR). India is obliged by international law to form a basis for fisheries management and obligations implement “hard law�, or binding instruments, including for India as a flag State, coastal State and port State. Many international conservation and management measures countries have now implemented these in their national adopted by the regional fisheries management legislation but India has not yet done so. organisations (RFMOs) to which it is party. As an example, the UN Fish Stocks Agreement requires parties to issue authorisations to all vessels fishing 30 “Agreement for the Implementation of the Provisions of the United beyond areas of national jurisdiction. In contrast, the Nations Convention on the Law of the Sea relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish 2004 Marine Fishing Policy aims to provide “special Stocks (New York 1995)�. incentives for wholly Indian-owned vessels for venturing annex6.InTernaTIonaloblIgaTIons  into international waters and for concluding fishing lists, vessel monitoring systems, boarding and inspection arrangements with other nations under license etc�. and port State measures. There is currently no requirement for Indian vessels to be authorised to fish in areas beyond national jurisdiction. Implementation of these measures by law not only Another example is India’s inability to fulfill its obligations would fulfill India’s international obligations, but as a member of CCAMLR and the IOTC because there would also provide for adequate fines and penalties, is no legal authority to do so. Legislation is required harmonised at a level with other RFMO Members, to implement their conservation and management to deter the vessels from engaging in IUU fishing measures, including catch documentation schemes, and compensate India for resources that were taken transshipment requirements, IUU and authorised vessel illegally.  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development annex 7. foreign aCCess The Maritime Zones of India (Regulation of fishing by an Indian flag under current arrangements. The 1981 law foreign vessels) Act, 1981 and the Maritime Zones of is therefore disregarded as it is inconsistent with current India (Regulation of fishing by foreign vessels) Rules, government practice and policy. 1982 deal with the granting of licenses and permits to foreign vessels, prohibition of Indian citizens using Further, the Act does not incorporate the flag state foreign vessels and the responsibilities of permit and responsibilities of foreign fishing vessels under the license holders. Fishing in the EEZ under the Letters of international instruments. Transshipment remains an Permission by vessels operating under a joint venture, issue especially including those measures that India is has been authorised by Public Notices, dated 17 May, required to implement as a member of the IOTC. The 2006 and 14 December, 2006, relating to the Operation forms appended to the Rules are also outdated. of Deep Sea Fishing Vessels, 20m OAL and above, in the Finally, under the law, there is no requirement for Indian EEZ. With foreign equity collaboration, an Indian the government to maintain a register of licenses company has to produce evidence of at least 51% or permits, or implement the rules of a regional Indian equity.31 fisheries management organisation (RFMO). There is a requirement for the vessel to display the license or The legal regime governing these operations is out-dated permit on board the vessel. and weak. The 1981 Maritime Zones of India (Regulation of Fishing by Foreign Fishing Vessels) Act defines an Indian An Inter-Ministerial Empowered Committee on Marine vessel as one owned by a “company in which no less than Fisheries was established in 2004 following the adoption sixty per cent of the share capital is held by citizens of of the Indian Marine Fishing Policy to oversee the India�, and all other vessels are foreign vessels. Therefore, development of deep sea fishing under the Public Notices. joint venture vessels where Indian equity amounts to only However, it only meets once or twice a year, and with no fifty one per cent, as required by the Public Notice, are coherent national databases there is often insufficient considered foreign vessels even though they are flying information for decision-making. The Committee itself addresses operational problems, including the need 31 The company also has to produce evidence of owned/hired shore-based for further inter-agency cooperation and information processing facility. The entire catch has to be landed at an Indian port and processed. No mid-sea transfer of catch or export of unprocessed sharing, the failure by most vessels to report information catch would be permitted in case of joint venture project vessels. on landings to the MPEDA. annex7.foreIgnaCCess  annex 8. alloCaTing fishing righTs in india Limited Access and Rights-Based The mode of access is also important, for example, individual quotas, collective ‘group’ quotas, etc. The use Fisheries of rights-based management systems is increasing across the world and the processes by which these are developed, It has been the combination of “modernisation� with designed, and implemented being increasingly driven open access that has led to the existing poor state of from the ground up, thereby eliminating some of the India’s marine fisheries. A change from an open access political hazards that have previously hindered their system to one based on optimising rents supported by uptake. This, in turn, is providing signals to politicians rights allocation, will be necessary, if the health of both that controversies surrounding fishing rights are the fish resources and the fishers are to improve. Current surmountable and worthy of their attention. fishing capacity in India is estimated at more than twice of what is required to catch current harvest levels. Because the mechanised trawlers are more organised Overcapacity is especially acute for the mechanised sub- and smaller in number than small-scale fishers, it would sector. Reductions in the order of at least 50 percent will be logical to start with this group. In some states, because be necessary to reap the benefits of restored fish stocks of the very depressed state of the sector, natural attrition and associated increased social and economic benefits. is already happening with boats becoming idle and removed from the fishery. Governments could facilitate Limiting access implies allocating fishing rights in some this process by providing viable incentives to leave the ways among current stakeholders and eliminating sector (not providing subsidies and incentives to remain excess capacity through fleet reductions. Allocating in the sector). fishing rights is contentious because it means making some hard, explicit social, political, legal and economic There is still considerable resistance to allocating rights in decisions. The three most common forms of rights are (i) Indian fisheries. With small-scale fisheries, moving from a Territorial use rights in fishing (TURFs) – the right to fish common-pool resource (with access to all) into private in a particular location (ii) Input (effort) rights – the right ownership (with access limited to some) is often seen to take part in a fishery often through restricting licenses as a violation of their rights as long-term users of the (limited entry) and (iii) Output (harvest) rights – the right resources. In the larger-scale fisheries, powerful lobby that allows a certain level of resource usage. groups can block any allocation processes. However, at a recent meeting involving the Palk Bay fishers in The basic characteristics of fishing rights are well-known southern India, 23 percent of boat owners indicated and agreed. Fishing rights need to be durable (long their willingness to remove their boats from the fishery, lasting), divisible, transferable, exclusive and secure. provided they were compensated. annex8.alloCaTIngfIshIngrIghTsInInDIa  annex 9. reCommendaTions for legal reform in marine fisheries, india Concept Note for an Integrated agency responsible for coastal zone management, and with the states, could be considered for inclusion. Other Fisheries Law areas could include rules for national policy development (lead responsibility, review and implementation) Following is the basis for an indicative framework for a confidential information, ownership of information, a modern, integrated fisheries law that would implement public information program and annual administrative India’s international obligations and address most of the report to promote accountability. areas suggested in the 2004, CMFP for development of new legal instruments. Conservation, Management and Development: The management procedures, objectives, mechanisms and Preliminary: The general foundation for the proposed principles would be set out in clear terms. They would integrated Fisheries law includes the objective and implement India’s international obligations and form application of the Act, and definitions of the terms the basis for other authorities and responsibilities under used. The Act would apply to all fishing activities from the Act. Provisions could include the responsibility for the territorial sea to the outer limit of the EEZ, and, to determining conservation and management measures, implement the UN Fish Stocks Agreement, to Indian formulation and adoption of Fishery Management Plans, vessels and nationals beyond the limits of national prohibitions of specific fishing and related activities, jurisdiction. Key terms in current legislation (fish, fishing and procedure for declaring prohibitions, declaration vessel, fishing, among others) are not well defined or of Fisheries Management Areas, Fisheries Reserves and are undefined, making enforcement very difficult. These endangered species. A provision requiring the furnishing should be strengthened and modernised. of data, information, records returns, etc. would support management and development functions. Institutional Arrangements: The responsibilities and, as appropriate, appointment of personnel, power and Requirements for Fishing and other Activities: This authority of the Minister for purposes of transparency Part would set out basic requirement standards in and accountability need to be highlighted. Institutional fisheries legislation, for all activities under the scope mechanisms, such as advisory committees, or decision- of the Act, including fishing by Indian flag vessels, making bodies could be established. A coordinating foreign fishing vessels and deep sea vessels. It would be Committee among relevant agencies could be considered, designed to promote maximum compliance with the as a mechanism for stakeholder inputs. In particular, law, and cover fishing and related activities by foreign a mechanism for integrating responsibilities with the fishing vessels and Indian fishing vessels. It would annex9.reCoMMenDaTIonsforlegalreforMInMarInefIsherIes,InDIa  include requirements for Indian flagged vessels in areas the purposes of fish quality control may be appointed. beyond national jurisdiction, and for foreign fishing Duties of authorised persons would be set out so they vessels in respect of fishing, landing and transshipment. may safely carry out their responsibilities under the Act. An access agreement or joint venture must be in place for foreign fishing, and basic conditions of an Monitoring requirements, such as VMS and reporting agreement are required to facilitate increased benefits would be included. for India. The Minister should have authority to enter Dispute Resolution: Approaches to the resolution of into Fisheries Management Agreements, which provide disputes could be considered, such as a panel or other for cooperation on matters of fisheries management. mechanism, together with rules and procedure s and The Minister may also be authorised to participate enforcement provisions. on behalf of India in regional fishery management organisations or arrangements, such as the Indian Jurisdiction, Procedure, Fines, Liabilities, Seizures, Ocean Tuna Commission. Etc: Because the competence of the courts in most countries does not generally extend to the exclusive Licensing/access Limitation: This would describe economic zone or beyond the areas of national mechanisms for limiting access including licensing jurisdiction, the competence of specified courts would authority and procedures, and take into account be extended to all activities under the Act. Provisions current practices and proposed reforms. It would set relating to the initiation and elements of proceedings out, in consolidated form, the licenses or other forms are included. Procedures for the seizure and release of access limitation that are required under the Act, of vessels, vehicles, etc. would be set out. Fines and and provide for conditions, suspension, revocation, penalties would be included after a review to ensure cancellation and appeals of decisions. It would promote they were commensurate with the offence committed transparent procedures and spell out the authorities and and had a deterrent effect. responsibilities to ensure consistent and coordinated management. Conditions for revocation and cancellation Evidence: This Part would include presumptions, burden of licenses or other forms of access permissions would of proof, and interference with evidence. The concept be set, and an appeals procedure could be provided. of certificate evidence could be introduced, allowing prosecutions to be carried out in a cost-effective, timely, Monitoring, Control and Surveillance: Identification of just and fair manner as per the legal requirements. A authorised officers (e.g. coast guard personnel) and, as Part on the evidence is needed in fisheries laws due to appropriate, their appointment. Authority of authorised the fact that at-sea offences are different in nature than officers would be described, including search, seizure terrestrial offences, and the laws of evidence are often and arrest. They would apply to areas beyond India’s inadequate to cover such situations, leaving loopholes national jurisdiction in certain situations that implement in the enforcement of the law. India’s international obligations, including boarding and inspection of RFMO measures, and in situations of hot General: This Part could set out miscellaneous provisions pursuit as described in international law. not covered elsewhere in legislation, such as notification, import/export and contaminated fish, as well as standard The powers of authorised officers would apply, as provisions allowing regulations to be made. appropriate, to vessels, vehicles, premises, and other places where activities under the scope of the Act are List of Recommendations carried out. A range of inspection and enforcement authorities would be given, and the other personnel such Following is a list of recommendations made from the as observers, port samplers, inspectors and auditors for consultant’s report:  InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development 1. Constitutional, International, Policy and 1.3.1.2 FAO/Bay of Bengal Large Marine Ecosystem Planning Framework Program 1.1 Basic National Instruments: Constitution, It is recommended that a policy guideline be Maritime Zones Act considered that provides for involving fishers in the processes concerning management, development It is recommended that the Section 7(5) of the Maritime and conservation of coastal areas, and that a clear Zones of India Act be repealed or amended in order policy be adopted by the Central Government that will that the Government may require licenses for all fishing, guide the policy initiatives to be implemented by the scientific research and other activities in the EEZ, and coastal States. therefore promote sustainably managed fisheries. 1.3.2 Marine Fisheries Resources – Resource 1.2 Fisheries-related International Instruments Management 1.2.1 Membership in Regional Fishery Bodies (RFBs) It is recommended that consideration be given It is suggested that India’s policies, plans and laws would to emphasising resource management, including benefit from substantial reform with a view to broader harmonisation through mechanisms such as fishery incorporation and implementation of international management plans, as the foundation of a fisheries policy obligations, at the same time ensuring sustainability of and sustainable long-term use of the resource as its goal. the resource and economic benefits to Indian people. At Such an approach, taken in an integrated manner and the same time, institutional mechanisms for coordination using internationally accepted management principles, in implementation and administration should be is consistent with the best practices of approaches to identified or strengthened. fisheries law and policy. 1.3 The 2002 Tenth Five Year Plan and the 2004 1.3.3 Harvesting of Marine Fish Resources India - Comprehensive Marine Fishing Policy It is recommended that the identified measures be 1.3.1 Review of India - Comprehensive Marine Fishing considered as resource management issues for purposes Policy by Regional Organisations of implementation of the Policy and that international 1.3.1.1 APFIC obligations and guidelines be taken into account and implemented as appropriate. It is recommended that IUU fishing be clearly addressed in the implementation of the Policy and by the 1.3.4 Post-Harvest Operations development of an NPOA-IUU that includes developing It is recommended that post-harvest operations include and strengthening an MCS System on an incremental arrangements to ensure traceability of the fish to ensure basis including a VMS, an observer program and other it was caught legally and according to sustainable cost-effective means such as reporting, information practices, and is not a product of IUU fishing. systems and port control measures. Robust legislation would need to underpin these measures, which are 1.3.5 Fishermen’s Welfare not specifically identified in the Policy component on Legislative Support. It is recommended that measures for fisher’s welfare, as appropriate, should be reviewed from a financial/ It is recommended that a policy be developed in relation economic/social/institutional point of view, and that to institutional arrangements and human capacity the Conventions, guidelines and proceedings of the development to facilitate implementation of sustainable International Maritime Organisation, regarding safety at fisheries management. sea, be implemented on a priority basis. annex9.reCoMMenDaTIonsforlegalreforMInMarInefIsherIes,InDIa  1.3.6 Environment Aspects incremental level commensurate with institutional, human and financial resource availability; It is recommend that implementing actions by the � Laws should be harmonised at regional level with fisheries agencies in cooperation with those responsible those of other countries through active participation for the environment would include positive approaches in relevant RFMOs. for improved marine environmental quality as an objective, prohibiting the discharge of hazardous It is recommended that, as appropriate, the areas wastes, priority-setting, ensuring fishing interests are identified for further development should be considered taken into account by other agencies, communication under a separate heading of institutional arrangements strategies and harmonisation at state/national level as and their legal implications taken into account. appropriate. 2. Legal and Institutional Framework for Fisheries 1.3.7 Legislative Support Management And Related Activities It is recommended that, as appropriate, this study serve 2.1 Laws that directly regulate fishing activities as a basis for a review of the existing legislation in relation 2.1.1 Introduction to fishing operations as well as fisheries in general. It is recommended that legislation be enacted which It is recommended that a robust and comprehensive provides for the conservation and management fisheries act would best serve the recommendations of of living marine resources in the Indian EEZ. Such introducing separate laws in relation to the operation legislation should refer to a decision-making process, of Indian flag vessels in the EEZ, the management of fishery management plans including their framework introduction of new fishing units, ensuring conservation and process, management measures (e.g. licensing, of resources and providing for limited access fisheries. prohibitions, regulation of areas, gear, mesh, seasons, quotas, fishing capacity), cooperative mechanism with It is recommended that the policy supporting reciprocal other countries, Indian states and appropriate Ministries, unlicensed fishing rights in neighboring waters be and clear fines and penalties for non-compliance. discarded at the earliest possible opportunity, as Monitoring, control and surveillance measures should be being impractical and contrary to India’s international linked to these provisions as the information obtained obligations. would be fed into fisheries management. It is recommended that the Policy or its implementation In preparing such legislation, the existing legislation be strengthened with respect to the interface between should be reviewed, taking into account the analysis international and regional obligations and national law in this Study, and consolidated as appropriate in order as follows: to allow for a clear integrated approach to fisheries � National law must implement international management through robust legislation. obligations (this important step was overlooked) 2.2 Advantages and potential elements of a modern, and the conservation and management measures integrated fisheries law adopted by RFMOs in which India is a member – national law must not simply “harmonise� with Because the content of the draft MZI Act is not yet known, international laws and “consider participation in it is recommended that the advantages of developing a (undefined) RFMOs�; modern, integrated fisheries law, consistent with best � Because there is a wide range of international practices, be considered. These would include: obligations not yet implemented, these should � Fulfilling India’s international and regional be prioritised so that action can be taken at an obligations. 00 InDIaMarInefIsherIes: Issues, Opportunities and Transitions for Sustainable Development � Clarifying the application and scope of the Act. It is recommended that the draft legislation in relation � Clarifying and updating institutional and procedural to India’s EEZ should state the agency responsible for responsibilities. fisheries management and identify its functions, and as appropriate amend the relevant MPEDA functions. A � Allowing integrated fisheries management, according clear policy should be considered specifying the roles of to internationally accepted principles including the agencies in relation to fisheries and to each other. development of fisheries management plans. 2.3.3 Laws related to shipping � Facilitating integrated monitoring, control and surveillance (MCS). 2.3.3.1 The Merchant Shipping Act, 1958 � Updating provisions on jurisdiction, evidence, It is recommended that the definition of “fishing vessel� information, presumptions for consistency with be reviewed, that the term be defined in the draft MZI regional measures and cooperation. legislation in accordance with the best practices, and � Clarifying the linkages with institutional that the definition under the Merchant Shipping Act be arrangements and legislation of other government consequently aligned. agencies. 2.3.3.2 The Coast Guard Act, 1978 � Providing an incentive for the Indian maritime states to update, expand and harmonise their legislation to It is recommended that the clear authorities of complement national laws.. enforcement officers and their duties, consistent with best practices, be included in the draft MZI Act, as well It is recommended that, in developing the legislation, as authorities for high seas boarding and inspection in consideration also be given to key elements of an accordance with the UN Fish Stocks Agreement. A senior integrated fisheries law, based on the internationally best fishery officer from any national institute who is familiar practices and India’s international obligations outlined in with sea fishing and various species of fish caught should Annex 6. be included in the Coast Guard team for the high sea- 2.3 Fisheries-related laws boarding and inspection of a fishing vessel. 2.3.1 National Environment Policy 2006 It is further recommended that a clear policy and priorities for fisheries MCS be developed and reflected in It is recommended that development of laws and policies laws as appropriate. in relation to the environment be followed closely by fisheries authorities, and the appropriate undertakings 2.3.3.3 The Indian Ports Act, 1908 be sought to ensure the integrity of the fisheries resource The Major Port Trusts Act, 1963 and the fishers and the environmental requirements of each. It is recommended that the fisheries authorities monitor 2.3.2 Laws related to trade the development of the binding agreement on port state measures, effect appropriate liaison with port 2.3.2.1 The Marine Products Export Development Authority authorities and as appropriate implement the provisions Act 1972 (No.13 of 1972) of the agreement into law. annex9.reCoMMenDaTIonsforlegalreforMInMarInefIsherIes,InDIa 0 THE WORLD BANK 0, Lodi Estte New Delhi-000 INDIA www.worldbnk.org