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8:52 PM
Action plan praparation for the 2014 in Trincomalee
Written By Freedam to the nation resettlement of IDPs on Tuesday, January 21, 2014 | 8:52 PM
Trincomalee district fisheries solidarity movement was conducted action plan preparation work shop in district cooperative society hall in 11 of January 2014.All the village leaders participated that program and facilitated by NAFSO training team.They mainly focusing Membership formation and strengthen their capacities, Continue Advocacy campaign ,Collaboration and build net work with Government and political sectors ,Specially with local government,Continue the training program on alternative livelihood ,Human right ,Women rights and so on
District coordinator welcome the team and presented the objective of the workshop |
Security read the last minutes of the comity |
Facilitate over view of the NAFSO Action in 2014 |
prepare brief action plan |
8:56 PM
Multiday Boat study
Written By Freedam to the nation resettlement of IDPs on Monday, January 20, 2014 | 8:56 PM
ECONOMICS OF FISHING BY
MULTI - DAY CRAFTS OF SRI LANKA
|
REINCORPFISH
“REINCORPORATING
THE EXCLUDED: PROVIDING SPACE FOR SMALL-SCALE FISHERS IN THE SUSTAINABLE
DEVELOPMENT OF FISHERIES OF SOUTH AFRICA AND SOUTH ASIA”
|
Oscar Amarasinghe
Department of Agricultural
Economics
Faculty of Agriculture
University of Ruhuna
Mapalana, Kamburupitiya
SRI LANKA
|
A research project
conducted in collaboration with the University of Amsterdam, University of Cape
Town, Ulster University, UK, Institute of Development Studies in Chennai,
India, Fisheries Management Resource Centre, Trivandrum, National Fisheries
Solidarity in Sri Lanka, University of Jaffna and University of Ruhuna, Sri
Lanka.
......................
RESEARCH TEAM
Research Officers:
B. H. Nilmini Palika Priyanthi
G. L. Loretta N. Silva
Research Assistants :
P. H. Menaka Sujith
M. G. Pabitha Waruna Galappaththi
K. M. Wimal Kumara Senadheera
K. G. K. Dilan Udayanga
Maduka Sampath
A. L. Ananada
B. G. Gamage
…………………
September 2013
Department of Agricultural Economics
Faculty of Agriculture
University of Ruhuna
Mapalana, Kamburupitiya
Chapter 1
Introduction, Objectives and Methodology
1.1 Fisheries in Sri Lanka
Sri Lanka
is an island in the Indian Ocean southeast of the Indian sub-continent between
6-10° N latitudes and 80-82° E longitudes. The coastline of Sri Lanka is about
1,785 km long and contains several bays and shallow
inlets. Since declaration of a 200 mile Exclusive Economic Zone (EEZ) in 1978,
Sri Lanka has had sovereign rights over about 517,000 km2 of the
ocean. Fishing takes place all around the coast, but primarily within the
continental shelf which has a width rarely extending beyond 40 km and averaging
25 km, with a total area of about 30,000 km2. This is around 6% of
the total area of the EEZ.
Fishing has been the
most important economic activity in the coastal areas of the country, and it is
estimated that, at present, nearly 220,960 persons are directly employed in the
fishing industry, including inland fishing. An additional 275,000 persons are
estimated to be employed in several fishery-related economic activities, such
as boat building; fish net manufacturing; ice production; processing, trading
and marketing of fish; and in providing other services required by the
industry, such as transport, repair of engines, and hull work. It is also
estimated that the livelihoods of about 2.5 million people are fisheries
related (Ministry of Fisheries, 2010). The contribution of fisheries to the
Gross National Product has stood around 2% during the past few years. Fish
contribute nearly 65 percent of all animal protein consumed in Sri Lanka. In
2010 the annual per capita consumption of seafood was 13.4 kilograms requiring
a total supply (production plus imports) of 274,890 Mt. Population growth forecasts
indicate that this rate of seafood consumption will require an increase of 274,890 to 458,290 metric tons by 2013(Ministry
of Fisheries, op.cit).In recent years, the fisheries sector has also emerged as
an important source of foreign exchange through the exports of several items of
high-value fish and fishery products, including chilled and frozen tuna,
shrimp, lobsters, shark fins, and sea cucumbers.
Fish resources in Sri Lanka are usually
categorized into three types.
·
Marine
resources
·
Inland (fresh
water) resources
·
Brackish
water resources
The
marine resources in Sri Lanka are divided into two sub-sectors:
Ø Coastal fishery
Ø Offshore and deep-sea fishery.
Coastal fishery
Fishing
activities concentrated within the area of the sea up to 40 km from the coast
are considered coastal fishery .On the basis of resource studies carried out in the past, annual
sustainable yields have been estimated at 250,000 tons, consisting of 170,000
tons of pelagic species and 80,000 tons of demersal species. (Amarasinghe &
De Silva, 2005). The actual coastal fish production in 2010 was 202,420 tons.
The coastal fishery is exploited by about. 40,000 small-scale fishing units,
ranging from traditional crafts such as outrigger canoe, theppams, wallams,
kattumarams, beachseines to small boats with Outboard motor.
Offshore and deep-sea fishery
Offshore
and deep sea fisheries extend beyond 40 km up to the edge of the 200 mile
Exclusive Economic Zone (EEZ).The magnitude of these resources is not known
clearly. The actual catch in 2010 amounted to 129,840 tons (Ministry of
Fisheries, op.cit). Offshore resources are mainly harvested by large crafts
(lengths varying from 28 feet to 45 feet) with inboard engines.
Sri
Lanka’s fishing fleet consist of 46,989 crafts of which 46 percent are
mechanized. There are 3,858 multiday boats, 953 day boats with inboard engine,
19,709 FRP boats with outboard motor, 1,842 mechanised traditional crafts,
19,485 traditional crafts and 1,142 beachseine crafts.
1.2 Technological Change in Sri Lanka’s fisheries and the emergence of multi-day fishing
1.2.1 The drive towards mehanisation
Sri Lanka, endowed with fisheries resources all around
the country, has hundreds of years of experience in harvesting them. The
traditional fishermen had mastered the techniques of harvesting fish with the
available technology: oru (outrigger canoes), vallam, theppam, beach seines, etc., by the onset of the 2nd World War.
Yet, the post-war period saw high rates of growth of population and increased
demand for food, which exerted tremendous pressure on agricultural and
fisheries resources. Technological change in agriculture brought about by the
introduction of new high-yielding paddy varieties from International Rice
Research Institute (IRRI) in early 1960’s, enabled Sri Lanka to meet her cereal
demand to a considerable extent, which marks the onset of ‘green revolution’ in Sri Lanka. Increased food demands too necessitated
higher rates of exploitation of of fish, but the ‘sea-going’ ability of the
traditional crafts was too low to
bring in sizeable increases in fish landings.
In order to face the new challenges of the post-war
period, the state, which assumed a regulatory role during the pre-war period,
took an active role; one of reformism, to expand fish production. Many
technological innovations have been
introduced to fisheries since then, with major emphasis on mechanisation. The state intervention in fisheries was
mainly characterised by measures adopted to improve traditional crafts and gear,
introduction of new fishing techniques and the development of fisheries
infrastructure to facilitate reaping the full benefits of the above measures.
Improvement of Traditional Crafts:-
Due to the high dependency of traditional crafts on weather
conditions for sailing, efforts were made to improve the traditional fishing
crafts of Sri Lanka; oruwa (outrigger canoe), vallam, cattumaran, etc. Unless the sea was clam, these crafts could
not be taken off for fishing operations and such operations had to coincide
with changes in wind movements.
The bimodal pattern of rainfall in Sri Lanka has given
rise to two periods of stormy and rainy weather, which in turn influence traditional
fishing operations, confining them to the non-monsoonal periods. While south-west monsoons, starting in May-June and prevail until
August-September, confine the traditional fishing operations of the southern
and western coasts from September to April, the north-east monsoons starting in
October-November and prevailing until February-March, restrict traditional
fishing activities of the north and east coasts to the period outside these
months. The monsoon period is called
the warakana (in the jargon of fishermen) and the
non-monsoon period is called the haraya. One of the
objectives of mechanisation of traditional
crafts was to circumvent
the problem of seasonality fishing
operations and to make way for year-round fishing.
Many of the smaller traditional crafts without sail confine their
fishing activities to inshore waters within 2
km from the shore due to the difficulty of rowing these crafts to deeper
waters, which require a considerable degree of skill and human energy. Mechanisation of these crafts was thought to
give them access to larger and richer fish resources beyond their traditional
area of operation. This was done by fixing an outboard engine (8 - 15 HP) to
the craft. To make way for the engine, fishermen in the south shave off the
pointed stern of the outrigger in a vertical
direction and fix it with a plank to support the engine. Some fishermen fix the outboard engine to the
side of the outrigger without shaving off the stern.
Introduction of New Crafts:-
Since late 1930's, experiments have been conducted by
the state to introduce suitable mechanised crafts into Sri Lankan
fisheries and the results of such experiments led to the introduction of 4 main
types of mechanised vessels, which are described below.
a. Mechanised crafts with outboard engines (the most commonly used craft is the 17-23
feet fibre-glass FRP boat);
b. One-Day Operating Craft (ODOC)
with inboard engine (the 3.5 ton day-boat, 28 – 34 ft. in length) or the 3.5
tonner;
c.
Multi-Day Operating Craft with inboard engine and ice compartment (MDOC)
(3.5 - 5.5 ton ‘Tank Boats’, more than 34
ft. in length);
d.
Small Trawlers (10 - 11 ton boats).
Of the crafts
mentioned above, the FRP boat (which was
introduced in early 1970’s), operates mainly in coastal waters along with
traditional crafts and beach seines. The 3.5 ton one-day operating
craft (ODOC) is meant to fish in off-shore waters, beyond 40
km from the coast line. This craft was introduced in late 1950’s and soon
became popular due to its ability to exploit fish resources that remained
under-utilised until then. However, this boat was not equipped with facilities
to ice the fish catch and, therefore,
the fishermen had to confine their fishing activities to one-day fishing trips. By late 1980’s, fishermen started introducing an ice
compartment to the existing
fleet of day-boats and subsequently, this modified boat (which was earlier
referred to as tank boats) was replaced by the multi-day boat which was slightly
larger in length (36 – 40 ft.) and equipped with an ice compartment and a cabin for the crew. The largest of the new crafts was the trawler which was more
than 40 ft in length with a 55 hp engine. This craft was equipped with radio
communication facilities and fish finders
and, it could carry a multitude of gear that facilitated lengthy fishing trips of three weeks to
one month. This craft however, did not become very popular among the fishermen
in Sri Lanka, due mainly to its high initial cost. As an alternative, Sri
Lankan fishermen opted to improve the MDOC by increasing its
capacity and horsepower..
Introduction of Improved Gear and New Fishing
Techniques:-
Along with the mechanised craft, the nylon gill net was introduced
into Sri Lankan fisheries that replaced all traditional hemp and cotton nets. The use of nets
was not much widespread in traditional fisheries, except in the case of beach seining and shallow water
fishing where fishermen used small cast nets. The rod and
line was the most common technique employed by traditional crafts.
The nylon gill net has many
advantages over the cotton and hemp nets in that it is more durable (lower rate
of depreciation than cotton and
hemp nets) and lighter in weight. With
the introduction of the nylon net, gill netting became a popular
technique of fishing, which led to a considerable increase in catches. The five-fold increase in fish production
from the 1950's until today is the combined result of both the introduction of
the nylon net and mechanised crafts. Today, the
nylon net is used by all types of crafts: the mechanised and traditional alike.
Apart from gill net fishing,
techniques such as long-lining, trolling, bottom set nets and lines, and
purse-seining were also
introduced and many of these techniques have become quite popular today.
The
Multiday Craft and Multiday Fishing
The
continuing pressure to stay at sea for longer periods and to travel further in
search of fish is reflected in the continuing increase in the length of
multi-day boats. Local boatyards are now
capable of producing boats up to 60 ft in length, which can stay at sea for
over two months. Along with the mechanized craft, the nylon gill net was
introduced into Sri Lankan fisheries that replaced all traditional hemp and
cotton nets. Gill netting became a popular technique of fishing within a short
period of time, which led to a considerable increase in catches. The ten-fold
increase in fish production from the 1950s until today is the combined result
of both the introduction of the nylon net and mechanized craft.
With
the exploitation of deep-sea and oceanic fish resources by the multi-day craft,
fish landings of the deep-sea and oceanic sub-sector started to increase at a
rapid pace, from 8,155 MT in 1989 to 76,500 MT in 1999; more than nine-fold
increase within a period of 10 years.
Sri Lanka has a multiday fishing fleet
of 3,858 roughly about 8 percent of the total fishing fleet of 46,989 crafts (Ministry
of Fisheries, 2012). The multi-day boats in operation today are of several
types, which vary according to their length and the degree of sophistication.
The length of these craft varies from 28 feet to 55 feet with insulated fish
hold, water and fuel tanks, gear hauler, GPS, SSB radio, eco-sounder and fish
finder devices (see figure 1). They are powered by inboard engines, the
horsepower of which varies from 40 to 120. With increasing length of the craft,
the size of its fish hold, the capacity of the fuel tank, water tank, etc. has
also increased, enabling the crafts to engage in longer fishing trips in more
distant waters. The current tendency is to construct longer and more
sophisticated craft of over 40 ft. in length, powered by inboard engines of 110
hp (see
photo 1).
Long lining and large-meshed gill
netting are the common techniques employed by the multiday crafts.
Figure 1. A detailed diagram of a multiday boat
Photo 1. A modern multiday boat (40 ft)
(Trincomalee Harbour)
If
one defines small-scale fisheries as "all fishing units, whether
traditional or modern, which do not demand heavy capital investment and do not
require the intervention of industrial concerns or capitalists outside the
fishing communities and that, the owners of these craft are personally involved
in decision-making in respect of production and marketing", then the
present-day deep-sea craft can also be categorized as small-scale fishing
units.
A
technical assessment of multi-day boat design and construction practices in Sri
Lanka by Oeyvind Gulbrandsen (an FAO consultant and naval architect) (1998) has
indicated that the present-day craft have an extreme barge like shape to
maximize the fish holding capacity and the fuel space for a given length of the
craft which may have adverse influence on the crafts stability. This report
also indicated that, multi-day boats built by one of the major national
boatyards did not meet international standards. According to boat managers,
this would have added another 40 per cent to the cost of a hull, putting boats
beyond the reach of would be boat owners. With regard to stability of locally
built boats, it has been noted that current procedures for incline tests did
not take account of the worst possible scenario - where a boat returns to port
with a poor catch, empty fuel and water tanks and wet nets piled on top of the
deck. Clearly defined rules and regulations for the construction and testing of
multi-day boats are needed, Gulbrandsen concludes. However, it should be noted
that, incidents of craft toppling over or any accidents at sea have not been
reported in both the study areas.
The
above assessment report also indicates that many of the multi-day boats
currently operating do not meet recognised international safety standards and
that they are not equipped with on board safety devices such as life jackets,
flares and inflatable rafts. Another factor of significant importance in terms
of the stability of >40 ft. long craft is the inadequacy of the fuel tank to
carry sufficient fuel for 3-month long fishing trips, which forces the crew to
carry additional fuel barrels on the deck or roof of the cabin of the craft,
adversely influencing the crafts stability. Usually, the two fuel tanks can
carry only up to 17,500 litres of fuel and, according to fishworkers,
approximately another 3,500 litres of fuel are required for engagement in such
long fishing trips. Fuel in these barrels is used first, so as to ensure the
craft’s stability during the rest of the trip. The capacity of the water tank,
which holds about 3,500 litres of water, also appears to be adequate only for
drinking and cooking purposes. Sea water is normally used for washing and
bathing. Fishworkers sometimes complain of skin diseases, caused by the use of
sea water for bathing and washing.
Areas of operation and duration of fishing trips
In the early 1990s, these boats began
to venture outside Sri Lanka's EEZ, first to fish in the neighboring Indian,
Maldivian and British Indian Ocean territorial waters and then in international
waters to the northeast (Bay of Bengal) and the northwest (Arabian Sea). The
pressure to stay at sea for longer periods and to travel further in search of
fish is reflected in the continuing increase in the length of multi-day boats.
Due
to its smaller size and the limited facilities available for longer fishing
trips, a majority of 32 ft. crafts
operates mainly within Sri Lanka’s EEZ, while some 34 crafts also operate
beyond the EEZ. Many of the larger crafts 36 feet and above) operate both
within and beyond Sri Lanka’s EEZ. Among the larger crafts, those above 36 ft. are
generally engaged in fishing operations of 2-4 weeks in duration, while the
>40 ft. craft are often engaged in fishing trips exceeding one month. The
most popular length categories among the >40 ft. craft are the 42-45 ft.
craft. Andaman Islands, Nicarbar Islands, Maldive Islands, Lakshadweep Islands
and occasionally, Bangladesh, Thailand, Madagascar and Australian Islands are
the areas of operation of most of the larger crafts. Long-lining for tuna and shark
(for shark fins) is the major technique employed. Incidences of these craft
fishing in very distant waters, such as the Red Sea, have also been reported.
During the monsoon period for the western and southern parts of Sri Lanka,
which falls in the months of May to September, many crafts in the southern and
western coasts usually fish in the EEZ and in international waters and the fishing
trips are shorter (less than one month in duration). Large meshed gill netting
is the common fishing technique employed during this time of the year. Since
facilities for freezing are not available in boats, fish cannot be preserved in
the fish hold for a very long time. It appears that the maximum holding period
is about one month, if fish is to be kept fresh, although fish is kept in the
fish hold for longer periods of time. The tendency is to target tuna and shark
(for fins) resources. In the latter case, only the fins are kept in the fish
hold while the rest of the body parts are either dried on board or thrown back
into the sea.
1.3 The Issue
Sri
Lanka has fishing rights over an area of about 517,000km2 nearly
eight times that of the total land area of the country (the extent of the area
within Sri Lanka’s EEZ). Yet multi-day boats tend to fish beyond the EEZ (see
figure 2) The question is “why do multi-day fishers illegally fish in others
territories, confronted with the risk arrest and detention, and sometimes even
physical harassment. The problem of fishermen crossing borders is a serious
one, especially fishing into the Indian territory, beyond the Indo-Sri Lankan
maritime border, which has now become a serious political issue affecting the
relations between the two countries. The number of fishing crafts captured and
the number of Sri Lankan crew members detained in foreign jails has increased
drastically during the past years (see section 4.3).
Figure 2 Areas of Operation by Offshore Crafts
Thus,
the issue boils down to, why do multi-day fishers poach? Some argue that
multiday boats are compelled to go beyond Sri Lanka’s EEZ and poach in the
territories of other countries in order to maintain economic viability- one of
‘necessity’. Others, believe that poaching is done because of the ‘greed’ for
higher profits, the reason why the Ministry of Fisheries is planning to
introduce the Vessel Monitoring System (VMS). The present study attempts at
probing into this “NEED or GREED” issue.
1.4 Objectives of the study
This study was undertaken with the
following major objectives:
·
To
understand the present status of the off-shore fisheries sub sector, in respect
of type of crafts, degree of sophistication, area of operation and target
catches
·
To find out
profitability of multi-day fishing by type of craft and area of operation
·
To
understand as to why Multiday Boats poach? Is it because of the ‘Need or the
Greed’?
·
To make
recommendations on the most profitable craft type and area of operation for multi-day
craft
1.5 Methodology
1.5.1 Selection of area for sampling
Out
of the 19 fishery harbours in the country, about 14 harbors provide anchorage
to off shore crafts (figure 3). Offshore fishery takes place mainly in the
Western and the Southern coasts. The following five harbours were purposively
selected for this study.
Sample
harbours:
1.
Negombo
(South-West)
2.
Beruwala
(West)
3.
Galle
(South)
4.
Kudawella
(South)
5.
Trincomalee
(East)
Negombo
|
Figure 3. Fisheries
Harbours of Sri Lanka
It
has been reported that a substantial portion of the large sized offshore boats
operate from these harbours and that these boats generally stay out for longer
periods of time during a single fishing trip compared to the smaller offshore
boats.
1.5.2 Populations and Sample
The
target population consists of all multi-day crafts operating from the selected
five harbours. About 10-23% of the target population was selected as the
sample. The sample size was smaller in Negombo due to the growing unrest in the
area due to diesel price hike and the protests waged by the multiday boatmen.
The study employed the stratified random proportionate sampling technique. The
strata consisted of diverse craft types (lengths varying from 32 feet to above
40 feet)
Table 1. Population and Sample
Harbour
|
Total No.
Of multiday crafts
|
Sample
|
Negombo
|
403
|
40
|
Beruwala
|
375
|
85
|
Galle
|
408
|
82
|
Kudawella
|
304
|
85
|
Trincomalee
|
154
|
30
|
1.5.3 Data collection
Information was gathered from two sources;
primary and secondary.
Primary sources of data
Primary data were
collected in the field using two methods.
(1)
Informal
methods
Information on Multi-day fishing were
obtained from an array of knowledgeable persons like experienced fishers,
elderly fishers, fisheries officials etc. through informal discussions.
(2)
Formal
methods
This
formed the major method of dta collection. A pre-tested questionnaire was
administered to the owners/skippers of multiday crafts registered in the study areas
(lists available at fisheries harbours). The questionnaire elicited information
on, length of crafts, area of operation, fish landings by type of fish, costs
and returns associated with fishing trips, information on arrests, etc.
Secondary sources of data
Research and survey reports published
by NARA and the Ministry of Fisheries and Aquatic Resource Development,
Journals, Magazines, Newspapers, University Dissertations, Internet, etc. provided
a host of information for the study.
1.5.4 Theoretical concepts
In order to determine the profitability
of offshore fisheries, Profitability Criteria, proposed by Amarasinghe (2005)
were used in this study, which are given below.
Cost structure
Total
costs of ‘production’ or harvesting of fish (TC) can be broken down in to total
fixed costs (FC) and total variable costs (VC).
(1)
TC =
Fc + Vc
There
are costs a fishing unit has to incur whether or not it engages in fishing,
such as, depreciation of crafts and gear, interest payments on loans, etc., and
these costs are called fixed costs. They do not vary as the level of output
varies. Those costs that do change as the level of output varies are known as
variable costs. The operational costs incurred in fishing trips fall into this category.
Total variable costs increase as the level of output increases.
Fixed
costs (Fc)
Fixed
costs associated with fishing can be broken down into, depreciation of craft
and gear, interest payments on borrowed capital and imputed interest on own
capital.
(2) Fc = d + r
k
+ r
k
+ mc
Where,
d = Annual depreciation
r
= interest rate
on borrowed funds
k
= total amount
of borrowed funds
r
= Imputed
interest on own capital
k
= Own capital
mc = Maintenance
cost
Annual
depreciation (d)
(3)
d = (Pp – Sy)
/ Pl
Where,
Pp = Purchase price of
craft or gear
Pl = Produtive life of
the asset in years
Sy = Salvage value at
the end of productive life
Variable Cost
(Vc)
Variable
costs in fishing can be considered as those operational costs incurred in
fishing trips. The total of variable costs incurred in all fishing trips over a
period of one year will give the annual variable costs. Variable costs are made
up of several components,
(4) Vc = C
+ C
+ C
Where,
C
= Fuel cost; C
= Cost of other inputs; C
= Cost of labour
Profits
(P)
(5) P = TR - TC
Where,
TR = The monitory value
of the fish catches
TC = Total cost
Total revenue in fisheries amounts to
the value of the total fish landings.
(6) TR = Y.py
Where, Y = Total annual fish landings
Py = Unit
price of fish
Distinction can be made between two
measures of profits, gross profits and net profits.
(7) Pg = TR – Vc
(8) Pn = TR - Tc
Where, Pg = Gross profits
Pn = Net
profits
1.5.5 Data Analysis
Data were statistically analyzed using
statistical packages such as SAS, Minitab. In addition, simple descriptive statistical
tools were also used to analyze quantitative data.
Chapter 2
Characteristics of Multiday Fishing
2.1 Types of Multiday Crafts
The
types of Multi-Day crafts, vary according to the length, and the degree of
sophistication too increases accordingly. In the study area, there are
different types of crafts ranging from 28 feet to 55 feet in length. A larger
number of smaller crafts (of 34-36 feet) are found in Gale, while the highest
percentage of the larger crafts (over 40 feet in length) were found in
Trincomalee. The study sample selected was a stratified, random and
proportionate sample, which was representative of the proportion of different
types of multiday crafts found in the Sri Lankan fleet.
Table 2. Type
of Multiday Crafts (by Length Category) in the study area
Percentage of Multiday Crafts in each category
|
|||
Harbour
|
32-35 feet
|
36-48 feet
|
>40 feet
|
Negombo
|
35
|
29
|
36
|
Beruwala
|
36
|
55
|
09
|
Galle
|
48
|
30
|
22
|
Kudawella
|
47
|
47
|
06
|
Trincomalee
|
17
|
24
|
59
|
With
increasing length of the craft, the size of its fish hold, the capacity of the
fuel tank, water tank, etc. and the presence of the number accessories and
their quality too increased, enabling the crafts to engage in longer fishing
trips in more distant waters. The current tendency is to construct longer
crafts with higher degree of sophistication. However, it is to be noted that
standards for boats has not been established so far by the Ministry of
Fisheries and, the general practice is for the boat yards to get the approval
of the Ministry for the crafts designed and constructed by them.
2.2 Value of Total Assets of Multi-day Crafts
The basic components of a multi-day
boat include, the hull, engine, SSB radio, GPS equipment, fish finding devices
(rarely present), winch, TV, Hi-Fi, etc. While there are a few well known boat
yards in the country which produce multi-day crafts, an innumerable number of
smaller yards are now found along the coastal belt of Sri Lanka. The latter
were established initially to construct boats for post-Tsunami distribution of
crafts undertaken by NGOs, but later were converted into large yards after
acquiring the required moulds.
As given in table 3, the cost of a
multiday craft with accessories vary from Rs. 4.2 m to Rs. 7.2 m depending on
the length of the craft.
Table 3. Value of
assets of multiday crafts
Harbour
|
Value of assets by type of multiday
craft (Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
4,876,428
|
5,191,401
|
7,272,138
|
Beruwala
|
5,174,500
|
5,941,013
|
6,678,700
|
Galle
|
4,887,786
|
5,383,145
|
6,174,796
|
Kudawella
|
4,978,581
|
5,719,769
|
6,078,500
|
Trincomalee
|
pn.a.
|
4,393,250
|
5,208,333
|
All harbours
|
4,979,324
|
5,325,716
|
6,282,493
|
Photo 2. Multiday craft equipped with gear and
accessories
2.3 Fishing Gears
Gillnets
and long lines are the most dominant type of fishing gear in the offshore
fishery. In gillnet operations, the number of net pieces per operation may vary
from 30-50 with 5.5” to 6” mesh size (each
drift gillnet unit is 1,000 meshes long by 80-120 meshes deep). The
number of net units per vessel is limited by the time taken to haul them, since
a net, which is too long result in an excessive hauling time and spoilage of
the catch in the water. Cost per net piece is around Rs.35,
000. Skipjack tuna, Sail fish and Marlins are the common species caught by
gillnetting. Use of gill nets generally reduces the quality of fish causing
post harvest losses.
Longlining takes two main forms
- tuna longlining and shark longlining. The
main line is usually heavy-duty (no. 250-400) nylon monofilament, although
tarred 4-6 mm Kuralon may also be used. 10-40 m lengths of no.
200-300 monofilament are used as branch lines, with different lengths of branch
line being fixed to the main line on a random basis every 30-50 m. Swivels
are used in the main line and on the branch lines to prevent twisting. Standard
tuna longline hooks (also called shark hooks in Sri Lanka) are attached to the
branch lines via a 2 m length of stainless steel wire. 300 mm
diameter buoys are attached to the mainline every 5-6 hooks using 3-4 mm
diameter polypropylene buoy lines of about 40 m in length. Multi-day boats
use between 600-700 hooks, about 100-200 hooks are set from a 3.5 t boat (see
Pushpasooriya & Amarasinghe 2006). Shark longlining targets shark
for their fins for the export market and flesh for the local market. Most boats
using offshore gill nets also carry shark longlines. Once the fishing grounds
are reached the shark longlines are set before the nets, which are then
attached to them. Cuttlefish is the pre Tuna long lining is quite popular at
present due to the growing demand in Japan and Singapore for tuna fish. Fish of
‘export quality’ are fetch very high prices.
The cost of fishing gear is
roughly about a third of the total value of fishing assets (see table 4), while
the hull, engine and accessories account for the rest (two thirds of the total
value).
Table
4. Total Value of a Multiday Craft with Gear m(example- Beruwala Harbour)
2.4 Facilities on Board
With
the increase of the length of the craft, facilities in multiday crafts are
improved. At present most of the crafts are fully equipped with SSB radio, GPS,
Hi Fi, VCD players, TV, etc The SSB radio is primarily used for communication
with other boats, which is especially important in finding fishing grounds. The
GPS used to find the boat’s position at sea (latitudes and longitudes). Some
crafts carry newspapers, magazines and even books for leisure reading. A couple
of large crafts, fitted with toilet -‘commode’ was also noticed in Trincomalee.
Generally there are 4 beds in a one
craft. Adequate food and portable water are available in the crafts. All most
all the crafts carry a first aid box with essential medicine, plasters and etc.
Safety Equipment
All
multiday crafts carry first-aid boxes and the required medicine to cope with
cuts, bruises, headaches and stomach aches. However, only 30-40 percent of all categories of multiday crafts carry
safety equipment such as life jackets, which is quite surprising.
2.5 Areas of operation and duration of fishing trips
Multi-day crafts usually exploit fish
resources in the offshore seas within Sri Lanka’s EEZ, in the international sea
and also in the EEZ of other countries.. Areas of operation are generally not
pre-determined for a particular boat and sometimes depend on messages received
on fish availability from other fishing boats already engaged in fishing. Elderly
and experienced fishers are able to predict the most suitable areas of fishing
based on their long experience.
The area of operation
and duration of fishing trip vary with the length of the craft, available space
on the boat for fuel, fish, water and food and, the extent to which the
owner/skipper are willing to bear risks. Craft with a higher capacity of fuel,
water and fish storage facilities are able to stay at sea for a longer duration
rather than a smaller craft (table 5).The crafts which belongs to <34ft
category (28-32 ft) operate mainly
within Sri Lanka’s EEZ, while all other craft operate both within and beyond
Sri Lanka’s EEZ. The duration of a fishing trip of such boats is less than a
week, while boats over 40 ft length are often engaged in fishing trips
exceeding three weeks. According to boat owners, many boats of 34 ft and above,
fish in the EEZ of a number of other countries. The most popular fishing
locations are Arabian sea, Bay of Bengal, other Indian waters, Andaman Islands,
Nicorbar Islands, Maldive Islands, Lakshadweep Islands and occasionally,
Bangladesh, Madagascar Indonesia and Australian Islands. Although, fishing in
others’ territories is illegal, craft operators take the risk of catching fish
in other territories for a better catch and higher profits. Resources within
the Indian EEZ are the most common targets of the multiday fishers of Sri
Lanka.
Field studies in the Trincomalee harbor revealed that
some crafts are only involved in fishing in ‘others’ territories. Poaching was
the general practice. Skippers of some of these crafts revealed that they have
recently found areas around Nagapattinam and Visakhapattinam of the east coast
of India to have abundant tuna resources. All their fishing trips during the
recent past had been to these areas.
Table 5.
Number of trips by multiday crafts
Harbour
|
Annual number of trips by type of
multiday craft (Number)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
n.a.
|
16
|
13
|
Beruwala
|
n.a.
|
11
|
9
|
Galle
|
29
|
20
|
16
|
Kudawella
|
n.a.
|
10
|
9
|
Trincomalee
|
n.a.
|
9
|
10
|
All harbours
|
29
|
13
|
11
|
2.6 Duration of Fishing Trips and Shore Leave
Table 6 reveals that both the duration of a fishing trip and period of
rest on shore (shore leave) increase with the length of the craft. Crafts with
a higher capacity for fuel storage, water storage and fish storage facilities
are able to stay at sea for longer period than small crafts. Availability of
fish and weather condition too affect to the duration of fishing trips.
Table 6. Duration of multiday fishing trips
Harbour
|
Duration of fishing trips by type of
multiday craft (days)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
-
|
16
|
25
|
Beruwala
|
7
|
18
|
30
|
Galle
|
10
|
16
|
16
|
Kudawella
|
9
|
17
|
19
|
Trincomalee
|
-
|
20
|
29
|
All harbours
|
9
|
17
|
24
|
It is evident from table 6 that, smaller crafts (34-35
ft) spend about 9 days at sea. Fishing trips of the 36-38 ft boats is around 17
days, while the larger crafts (40 ft and above) spend about 24 days at
sea. However, it should be mentioned
that, when crfats are engaged in fishing in Madagascar, Mauritious, or Andaman
Islands, the fishing trips may take 1.5 – 2 months.
Table 7. Duration of shore leave for
crew in multiday crafts
Harbour
|
Duration of shore leave by type of
multiday craft (days)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
n.a.
|
6.0
|
5.9
|
Beruwala
|
3.4
|
8.4
|
8.7
|
Galle
|
3.0
|
6.0
|
8.0
|
Kudawella
|
n.a.
|
n.a.
|
n.a.
|
Trincomalee
|
n.a.
|
7.3
|
11.0
|
All harbours
|
3.2
|
6.9
|
8.4
|
Shore leave can be
defined as the period of rest between two fishing trips. The decision on the
time spent on shore often lies with the skipper, who makes this decision after
discussing with the owner and communicating with crafts fishing at sea. Duration
of shore leave vary from 3.2 (34-35 ft crafts) to 8.4 days (crafts above 40 ft)
(table 7). Field studies reval that, when fishing is good there is a tendency
for the boat crew members to reduce their shore leave and to get ready for the
next fishing trip at the earliest posible time. The period of shore leave is
definitely not an indication of the status of labour conditions in multi-day
fishing! However, Priyanthi (2011) found that, the degree of satisfaction of
crew members on the priod os shore leave decreased with increasing length of
the crafts. Degree of satisfaction has been quite low with those engaged in
crafts above 40 feet, especially when they are enaged in fishing trips of 1.5-
2 months in duration.
2.7 Fish catch by variety
A
wide range of species is taken in the offshore fishery. The species taken
include several types of tuna, at least eight species of shark, half a dozen
billfish varieties, three scombrids collectively referred to here as Spanish
mackerels, and various other types. Tunas
are the most important species taken in the off-shore fishery with skipjack
dominating. Second in order of importance are billfish and sharks, and then
other species. Species composition of fish landings in the Beruwala harbour are
shown in table 4.4.
Table 8.Common Species of Fish caught by multiday boats
English name
|
Scientific name
|
Tunas
|
|
Yellowfin tuna
|
Thunnus albacores
|
Skipjack tuna
|
Katsuwonus
pelamis
|
Billfish
|
|
Broadbill swordfish
|
Xiphias
gladias
|
Indo-Pacific sailfish
|
Istiophorus platypterus
|
Sharks
|
|
Silky shark
|
Carcharhinus
falciformes
|
Oceanic white-tip shark
|
Carcharhinus
longimanus
|
Blue shark
|
Prionace
glauca
|
Scalloped hammerhead shark
|
Sphyrna
lewini
|
Smooth hammerhead shark
|
Sphyrna
zygaena
|
Spanish
mackerels
|
|
Narrow-barred Spanish mackerel
|
Scomberomorus
commerson
|
Others
|
|
Rainbow runner
|
Elegatis
bipinnulatus
|
Dolphin fish, mahimahi
|
Coryphaena
hippurus
|
Giant sea pike
|
Sphyraena
jello
|
Blunt-jawed sea pike
|
Sphyraena
obtusata
|
Queenfish
|
Chorinemus sp.
|
Trevally
|
Caranx and Carangoides sp.
|
Flying fish
|
Hirundichthuys
coromandelensis
|
In
respect of species composition of fish landed, tuna landings varied from 11
percent in Beruwala to 45 percent in Negombo (table 9). While Beruwal harbor
reported a very high percentage of skip jack tuna landed (77 percent). However,
it is to be noted that, composition of catches landed in different harbours
vary significantly over the year.
Table 9. Types of fish landed by
multiday boats in different harbours
Harbour
|
Fish types landed
by multiday craft (% of catch)
|
||
Yellow fin Tuna
|
Skip jack tuna
|
Other
|
|
Negombo
|
45.0
|
27.0
|
38.0
|
Beruwala
|
11.0
|
77.0
|
12.0
|
Galle
|
33.0
|
23.0
|
45.0
|
Kudawella
|
26.0
|
52.0
|
22.0
|
Trincomalee
|
38.0
|
15.0
|
47.0
|
All harbours
|
30.6
|
38.8
|
30.6
|
Average catches landed by a multiday boat
on a single trip vary considerably, mainly depending on the size of the vessel
and availability of fish. It is evident from table 10, that the average catch vary
significantly with the length of the craft. The larger the craft (longer
crafts), the larger will be the size of the fish storage tank, fuel tank, water
tank, and the number of days at sea. The
highest average landing of 3,462 kg of fish has been recorded by the >40
feet crafts, followed by 2,553 kg by the
36-38 ft category and, 1,804 kg by the 34-35 ft category of crafts. However, actual landings reported in
different harbours vary significantly from these average figures. For example,
average boat landings reported 34-35 ft category in Beruwala were 4,185 kg,
while those reported by the >40 ft boats in the same harbor were 5,072 kg.
Table 10. Avrege fish landings by multiday crafts
Harbour
|
Average fish landings by type of
multiday craft (kg per trip)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
763.0
|
1570.0
|
2856.0
|
Beruwala
|
2700.0
|
4185.0
|
5072.0
|
Galle
|
2006.0
|
1824.0
|
1859.0
|
Kudawella
|
2696.0
|
3745.0
|
5233.0
|
Trincomalee
|
855.0
|
1445.0
|
2291.0
|
All harbours
|
1804.0
|
2553.8
|
3462.2
|
Fish landings from different craft categories cannot
be compared by harbor. Catches vary (within the same craft category) among
harbours significantly, because of variations in resource access. The latter is
generally related to the distances from the harbor site, which is closely
linked with costs involved in fishing operations. Thus, fishers from different
harbours have differential access to particular resource areas, which give rise
to variations in fish landings among harbours.
2.8 On board processing into Salt-dried fish
We
have already noted that multiday boats generally stay one week to about one
month (and some crafts even up to 1.5 – 2 months) at sea. When the duration of
the fishing trip gets longer, the quality of the fish, in the fish hold
decreases, particularly those caught at the beginning of the fishing trip.
Therefore, many boats carry salt and land part of the total fish catch as
salt-dried fish. During field studied it was observed that some crafts land up
to 10% of the total fish landings as salt-dried fish (ex. Beruwala Harbour).
Generally, larger crafts land a higher percentage of dry fish than smaller
crafts, since they are forced to salt-dry some of their fish due to their
lengthy fishing trips.
Today,
dry fish landed by multiday crafts fetch higher prices than dry fish prepared
on the beach. Such dry fish is known as ‘Boattu Karawala’ (boat dry
fish). It is generally said that that the process of drying fish on the beach,
which is generally practiced by many fishing households all around the country,
is not ‘hygienic. On the other hand, drying fish on the boat deck is considered
as a cleaner and hygienically better method of drying fish.
2.9 Quality of fish landed
Fish landed by multiday crafts vary significantly in respect of quality.
The landed fish fetch different prices according to species as well as the
quality of fish. Generally, quality can be categorized into three: good (Grade A), Moderate (Grade
B) and Poor (Grade C). Fish deteriorate in quality due to factors such as
longer fishing trips, poor fish preservation facilities on board, improper fish
handling, lack of technical knowledge of those who handle fish, etc. It is
known that gill netting cause severe loss of blood from fish, leading to
quality deterioration. Therefore, heavy use of gill nets is also cited by
fishers as a cause of low quality fish landed.
Fish quality was more
closely studied in the Beruwala harbor during field studies. About 25–30 percent
of the catch landed by multiday boats in Beruwala was of poor quality. An
earlier study carried out by the University of Ruhuna (Pushpasooriya &
Amarasinghe, op.cit) had the following to say in respect of fish quality landed
by multiday crafts in Negombo: “When the duration of the
fishing trip was less than two weeks, there were no landings of low quality
fish. When the trip duration was two to four weeks, a small amount of low
quality fish was landed, equivalent to about 1% of the total catch and 3% of
the total Skipjack tuna catch. Therefore the multi-day boats that spend less
than four weeks at the sea land good quality fresh fish and generally do not
land salt dried fish. Boats staying out at sea for over four to six weeks
landed the highest amount of low quality Skipjack tuna; equivalent to 8% of the
total fish catch and 12% of the total Skipjack tuna catch. When the duration of
the fishing trip was more than six weeks and less than eight weeks, poor
quality Skipjack tuna made up 5% of the total catch and 10% of the total
skipjack tuna catch”.
2.10 Fish marketing and meeting fish health
standards
Many owners of multiday crafts
possess their own fish vans, which await at the beach when crafts return from
fishing. Then, the catches are loaded into vans and transported to large urban
markets, like Colombo. Auctioning is
also quite common. After inspecting the quality of fishes, merchants bid for
catches. Some of these merchants are
suppliers of fish to fish export firms. Then flesh is generally examined for
quality, which is done by taking flesh samples from each fish. Bidding is done
separately for different quality fish. Rarely, catches may be handed over to
‘known merchants’ on personal trust, and only the weight of the catch is
recorded. The craft owner is paid according to the price paid for the fish the
at wholesale markets.
The government set up a fish product quality
control division in the Department of Fisheries and Aquatic Resources in 1999, to
control quality and safety standards of fish products that are produced for
export
(Amarasighe, 2003). In accordance with the conditions laid down by
the European Commission with regards to import of fisheries products from third
countries, the Quality Control Unit is expected to carry out activities, such
as, approval of fish processing establishments; issuing of operating licenses
to establishments to process fish for export; inspecting fish processing
establishments; inspecting landing sites; inspecting fishing boats; inspecting
transportation of fish (raw materials) from the landing sites to the processing
plants; issuing of health certificates in respect of each consignment of
fish/fishery products for export; approving laboratories used for testing
samples of products, water, ice, etc..; taking the official samples and carry
out testing in the approved laboratories; taking remedial action whenever
processing establishments, boats and landing sites do not comply with
requirements coming under the regulation; taking necessary action on complaints
received from importing countries; conduct awareness programs for the
industry in quality and safety; and, monitoring of residues in farmed shrimps,
etc.
However,
Haripriya (2006) reported that, there was hardly any monitoring of quality
standards at the ‘craft level’ and that boat crew workers only rarely
cooperated in meeting with the requirements of the Health Certification
program. The same study reported that harbours failed to maintain the levels of
sanitation expected by the health certification programme.
Chapter 3
Profitability of Multiday Fishing
3.1 Costs of Multiday Fishing
3.1.1 Variable
Costs:
Variable costs in fishing can be considered as those
operational costs incurred in fishing trips. As explained under theoretical concepts, the total variable
costs comprise of three major cost items: Labor cost or crew share (CL),
cost of fuel (Cf) and other costs (Co). The latter
include cost of food, ice, medicine, water and etc. There are many cost items
related to craft operations other than the major cost items, such as, ice
maintenance, bonuses, license charges, handling charges and payments for
watchers when boats are at anchorage, cost of transport of the catch, gate
charges, commission paid to various individuals, etc.
Table 11 gives a breakdown of different
cost items in the total variable cost (or operational costs), which is given as
percentages. Labor cost accounts for the highest share of the variable cost (about
50-63%). Fuel too accounts for a considerable portion of the variable cost (21
- 29%). It is to be noted that, the price of fuel has been increasing
continuously, which has significantly pushed up craft operational expenditure.
Food carried on board accounts for about 7-11% of the total variable cost. Quite
interestingly it was noted that, food carried on board consisted of a number of
very expensive food items, such as sausages, cheese, Nescafe, coca cola, etc.
Table 11. Costs as a
percentage of variable costs in craft operations
Source
(field studies, Beruwala Harbour)
As shown in table 12, variable
costs increase with the length of the crafts (and the duration of fishing
trips). Evidently, there is a significant variation among variable costs within
a particular boat category among different harbours, which is due to high
variability in fishing: fishing location, duration of fishing trip, etc.
Table 12. Variable
costs of fishing by multiday crafts
Harbour
|
Average Variable costs per trip by type
of multiday craft (Rs. per trip)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
258,943
|
350,110
|
629,457
|
Beruwala
|
517,795
|
786,434
|
931,415
|
Galle
|
210,235
|
285,345
|
310,344
|
Kudawella
|
451,269
|
660,447
|
990,116
|
Trincomalee
|
274,513
|
293,163
|
578,142
|
All harbours
|
342,551
|
475,100
|
687,895
|
Variable costs of 34-35 ft crafts vary from Rs.
258,943 (Negombo) to Rs. 517,795 (Beruwala), that of 36-38 crafts from Rs.
293,163 ( Trincomalee) to Rs. 786,434 (Beruwala), while variable costs vary
from Rs. 310,344 (Galle) to Rs. 990,116 (Kudawella) in the above 40 ft
category. On an average, a fishing trip of a 34-35 ft craft costs about Rs.
343,000, that of a 36-38 craft about Rs. 475,000 and that of a larger craft
(above 40 ft) about Rs. 690,000. It is to be noted that this is a huge sum of
money the craft owners have to spend in putting his boat into sea.
3.1.2 Fixed Costs
There are costs
a fishing unit has to incur whether or not it engages in fishing, which are
called fixed costs. They do not vary along with the level of the output. Fixed
costs associated with fishing can be broken down into, depreciation of crafts
and gear, interest payments on borrowed capital and imputed interest on own
capital (refer methodology section,p.42).
According
the equation (3) under methodology: annual depreciation was calculated for
Hull, Engine, Gear and for Accessories (refer methodology section,p.43 ) using
the straight line depreciation method. .In this study the interest paid by
commercial banks on savings deposits was taken as imputed interest rate on own
capital, assuming that the next best alternative is investment in bank saving
deposits. Current interest rate on savings is about 10%. In respect of borrowed capital interest rates
varied widely, because fishers have borrowed from bank as well as a wide range
of informal lending sources. Table 13 gives the annual fixed costs of multiday
crafts, as calculated employing the above methods.
Table 13. Annual fixed costs of
multiday crafts
Harbour
|
Average annual fixed costs by type of
multiday craft (Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
548,007
|
590,798
|
971,850
|
Beruwala
|
581,878
|
700,483
|
1,065,567
|
Galle
|
878,161
|
991,752
|
1,111,644
|
Kudawella
|
522,437
|
680,693
|
1,015,656
|
Trincomalee
|
496,867
|
626,587
|
1,059,461
|
All harbours
|
605,470
|
718,062
|
1,044,836
|
Since
total value of assets increase with craft length, fixed costs too increase with
the length of the craft. As shown in table 13, the average fixed costs were Rs.
605,470 for the 34-35 craft category, Rs. 718,062 for the 36-38 crafts and Rs.
1,044,836 for the large crafts above 40 ft.
3.1.3.
Maintenance Costs
Annual
maintenance costs consist of insurance payments, servicing of the engine,
caretaker fees, harbour fee (for anchorage) and net mending (repair) costs.
Figure ..shows the size of each of the above cost component in the total cost
of maintaining a multiday craft.
Nearly
half of the annual maintenance cost cosnist of insurance payments, which vary
significantly from craft to craft, depending on the total sum for which the
craft owner has insured the craft (because owners do not insure the craft
always for its full value). The other major costs are the caretaker fees (when
the craft is in anchorage at harbour a person is paid to look after it),
harbour fee and the cost of serving the engine.
Figure. 4. Components of Annual Maintenance Cost of Multiday Crafts
|
As
shown in table 14, average annual maintenance costs do not vary significantly
among craft gategories. Although, the absolute costs vary among individual
crafts cosniderably and among harbours, the average annual costs of all types
of crafts range from Rs. 305,000 to Rs, 370,000.
Table 14. Average annual maintenance costs
Harbour
|
Average annual
maintenance costs by type of multiday craft (Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
160,443
|
197,800
|
341,790
|
Beruwala
|
458,366
|
467,617
|
581,380
|
Galle
|
232,622
|
199,392
|
197,362
|
Kudawella
|
414,312
|
419,263
|
387,950
|
Trincomalee
|
261,230
|
318,400
|
341,680
|
All harbours
|
305,394
|
320,494
|
370,033
|
3.2 Fish landings and Fishing Revenues
3.2.1 Fish Landings
Apart from all uncertainties associated with
fishing, the quantity of fish landed by a multiday craft vary significantly
among individual crafts, due to variation in fishing location, fish
availability, and duration of fishing trip. Generally, a significant variation
among the landings of different craft categories was observed.
Table 15 gives average fish landings of different
craft categories. At the outset, it should be noted that, field studies in the
5 harbours were carried out during different periods, which introduce a
considerable amount of variability into the information obtained on different
aspects of fishing. For example, studies in Negombo were affected by the diesel
price hike, which prevented some fishers to engage in protests (rather than
fishing). During field studies in Trincomalee, most of the owners of multiday
crafts decided not to put their boats to sea because of the fear of smuggling
their crafts to transport refugees to Australia, which started to take place on
a large scale in Sri Lanka. Therefore, size variation among fish landings by
multiday crafts in different harbours does reflect the impact of these
situations on fishing.
Table 15.
Average fish landings by multiday crafts
Harbour
|
Average fish landings by type of
multiday craft (kg per trip)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
763.0
|
1570.0
|
2856.0
|
Beruwala
|
2700.0
|
4185.0
|
5072.0
|
Galle
|
2006.0
|
1824.0
|
1859.0
|
Kudawella
|
2696.0
|
3745.0
|
5233.0
|
Trincomalee
|
855.0
|
1445.0
|
2291.0
|
All harbours
|
1804.0
|
2553.8
|
3462.2
|
The average fish landings increase with the length
of the crafts, which is of course due to the variation in the duration of
fishing trip, location, and the fish storage capacity. Landings varied from
1804 kgs for 34-35 ft crafts, 2554 kgs for 36-38 ft crafts and 3462 for the
large >40 ft category. During the field studies, Kudawella and Beruwala
harbours recorded the highest fish landings by multiday crafts, which ranged
from 2,700 kgs (the smaller crafts) to 5,233 kgs (by large crafts).
3.2.2 Revenue
Revenue from fishing is simply the monetary value of
catches (catch x price of fish). Fishing
revenue of a particular catch landed by a craft was affected by the quality of
fish in that catch and the prices fetched by different quality fish. Quite
often, for large fish species such as tuna, shark, marlin, the catch was
divided into grades (depending on quality) such as A, B and C and, different
grades were paid different prices. Good quality tuna which could be exported
always fetched very high prices.
Table 16 gives the average revenue obtained from a
fishing trip multiday crafts. As in the case of fish landings, a significant
variation in revenues was observed among individual crafts, among craft
categories and among harbours.
Table 16.
Average revenue obtained from a fishing trip
Harbour
|
Average Revenues per trip by type of
multiday craft (Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
599,385
|
885,000
|
1,138,673
|
Beruwala
|
827,680
|
1,186,472
|
1,686,666
|
Galle
|
617,291
|
612,572
|
650,000
|
Kudawella
|
902,538
|
1,121,217
|
1,323,026
|
Trincomalee
|
355,000
|
506,250
|
801,851
|
All harbours
|
660,379
|
862,302
|
1,120,043
|
Average revnues varied from Rs. 660,379 (for smaller crafts)
to Rs. 1,120,043 (large crafts). Individual data revealed a signifiant
variation among revenues obtained by different crafts. In the 34-35 ft
category, it varied from Rs. 150,000 in Kudawella harbour, to Rs, 1,760,000 in
Galle. In the 36-38 category, reveunes varied from Rs. 241,000 (in Negombo) to
1,190,000 (in Beruwala). Revenues varied in the above 40 ft category, from Rs.
271,000 in Galle, to Rs. 2,400,000 in Kudawella. The maximum values are of
significant importance because these values are well noted by fishers in the
community, based on which some of them might make future investment decisions.
This is a common problem in fisheries, where some investment decisions are
likely to be based on ‘over-optimistic forecasts’.
3.3 Profitability
3.3.1 Gross profits
A fishing
unit obtaining positive gross profits is covering up all its variable costs
and, therefore, it is in a position to continue its fishing operations in the
short run. As it is evident from table 17, all the craft categories obtain
positive gross profits, and therefore, they are all viable in short run. Last
row of the table gives gross profits earned by multiday boats, excluding data
from Trincomalee harbor because, the number of fishing trips of crafts as
drastically reduced during the study period for fear of smuggling of crafts to
transport refugees to Australia.
Table 17. Gross Profits earned by
multiday crafts
Harbour
|
Gross profits by type of multiday craft
(Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
2,426,914.51
|
3,928,479.08
|
2,318,864.87
|
Beruwala
|
2,779,932.25
|
2,952,707.90
|
3,381,550.70
|
Galle
|
2,885,001.50
|
2,841,910.11
|
2,256,027.29
|
Kudawella
|
4,023,350.85
|
3,607,870.22
|
2,142,168.40
|
Trincomalee
|
125,603.96
|
764,617.09
|
816,575.03
|
All harbours
|
2,448,161
|
2,819,117
|
2,183,037
|
All harbours excluding Trincomalee
|
3,028,780
|
3,332,742
|
2,524,653
|
Gross
profits (excluding data from Trincomalee harbor) obtained by different crafts
were Rs. 3,028,780 for the 34-35 ft category, Rs. 3,332,742 for the 36-38 ft
category and Rs. 2,524,653 for the >40 ft category. Quite surprisingly, average
gross profits obtained by the 36-38 crafts were higher than those obtained by
the ‘above 40 ft’ category (see figure 5). In fact, gross profits obtained by
the larger craft category were the lowest recorded by all craft categories. This
is a point to which we need to pay more closer attention.
It is
however to be noted that, in respect of data for individual hatbours, the above
picture is strongly evident only in Negombo, which had a strong influence on
the average values for all harbours. In Beruwala (and Trincomalee), gross
profits have increased along with craft length, where as they have fallen with
craft length in Galle. Let us move further into the analysis of net profits,
before we make further deductions from our results.
3.3.2 Net Profits
Net
profits are obtained by deducting from gross profits the annual fixed costs. A
fishing unit will be viable in the ‘long run’ only if its earnings cover both
variable and fixed costs (total costs). Table 18 gives the annual net profits
of multiday crafts, by length category of crafts.
All
craft categories generate net profits, indicating their long term viability,
except those crafts in the Trincomalee harbor. The latter can be attributed to
the fact that many crafts in Trincomalee did not engage fishing during the
study period because of the fear of smuggling crafts to transport refugees to
Australia.
On
average terms, net profits increased up to the length category of 36-38 ft
(recording the highest net profits) and then they fell with increasing craft
length. In fact, the largest crafts (above 40 ft.) recorded the lowest net
profits. The latter could be attributed to the heavy investment on these
crafts, and therefore, the high annual fixed costs. This pattern was strongly
evident in Negombo (which had a strong influence on the average figures). However,
individual craft data revealed that more than 90 percent of the crafts in 34-35
ft category in Negombo belonged to 34 feet crafts, while in the above 40 ft
category, those crafts landing higher catches were those belonging to the 40-42
feet category. Although the net profits earned are negative, Trincomalee too
reveals the same pattern. In absolute terms, the 34-35 ft boats earned average net profits (excluding
data from Trincomalee harbor) amounting to Rs. 1.8 million while the 36-38
category earned Rs. 1.9 million. The >40 ft crafts earned an average net
profit of Rs. 0.64 million, which was quite low compared to the earnings of
smaller craft categories.
Table 18. Net profits earned by
multiday crafts
Harbour
|
Net profits by type of multiday craft
(Rs.)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Negombo
|
1,320,494.27
|
2,652,967.33
|
350,386.45
|
Beruwala
|
1,551,241.75
|
1,509,598.28
|
1,481,146.20
|
Galle
|
1,395,867.65
|
1,177,265.28
|
372,533.52
|
Kudawella
|
2,878,591.22
|
2,212,206.60
|
366,700.40
|
Trincomalee
|
(980,816.28)
|
(510,894.66)
|
(1,151,903.39)
|
All harbours
|
1,233,076
|
1,408,229
|
283,773
|
All harbours excluding Trincomalee
|
1,786,549
|
1,888,009
|
642,692
|
(given in parentheses are negative values)
Data
for individual harbours reveal that, in
Beruwala, Galle and Kudawella, Net profits are highest among the 34-35
ft crafts, and fall with increasing craft length (see also figure 6). This
prompted us to go back to individual data obtained for crafts, it was evident
from individual data that the more relevant length category falling into the
‘highest net profits’ category were the crafts belonging to 35 – 38 ft.
However, we can safely conclude that the highest profits are obtained by crafts
belonging to 34-38 feet category and that, profits fall thereafter with
increasing length of craft.
Since
management functions are generally carried out by the skipper of the craft, who
is paid an additional share (5% from owner share), and most of the multiday
craft owners and their family members are not involved in craft operations, net
profits can be considered as the net income of the owner-investor. Therefore,
the average monthly income of a multiday craft owner would be 1/12th of
the annual net profits, which work out to be Rs. 148,879 for owners of 34-35
ft crafts, Rs. 157,334 for owners of 36-38 ft crafts and, Rs. 53,558 for owners
of crafts above 40 ft. This can be compared with the mean monthly income of an
average Sri Lankan household, which is Rs. 36,451. In fact, the average monthly
incomes of an owner of a multiday craft belonging to the 34-38 ft. category is
extremely high, comparable to the salary of a professor employed in Sri Lankan
national universities, where as the average monthly income of a owner of a
large craft (above 40 ft category) is only Rs. 17,000 higher than the monthly
household income of an average Sri Lankan. It is to be noted that the ‘apparent
income’ is equal to gross profits (fishing income less operational
expenditure), which is not significantly different across craft categories
(varying from Rs. 2.5 m to Rs. 3.3 m). Thus all craft owners live well in the
short run. However, unless they pay off their fixed costs (interest in loans,
depreciation, etc.), they will be unable to survive in the long run.
Chapter 4
The Poaching Issue: Need or Greed?
4.1
Extent of Poaching
Poaching
is a common phenomena associated with multiday fishing. Almost every week or
so, there are reports of incidences of arrests of multiday crafts for poaching
in others’ territories. Field studies also revealed that many multiday bots
surveyed were engaged extensively in poaching. However, information on poaching
was not willingly revealed by craft owners. Such information was easily
obtained when the respondent felt safe and easy with the investigator.
Therefore, information obtained on poaching was not complete in certain
harbours, except in Negombo and Kudawella, where such information could be
obtained more easily and the sources could be considered as more ‘reliable’.
Tables
19 and 20 give information on area of operation of diverse fishing crafts in
Negombo and Kudawella and the average revues earned from fishing trips. It is
evident that about half of all crafts belonging to the 34-35 ft category fish
within Sri Lanka’s EEZ, in Kudawella, while in Negombo only 21 percent of such
crafts fish within Sri Lanka’s EEZ. Among the 36-38 ft boats, approximately
half of them fish within Sri Lanks’s EEZ in both harbours. In the >40 ft category,
only 21 percent of such crafts fish in Sri Lanka’s waters in Negombo, while
Kudawella reports double this number. Information reveals that poaching is generally
practiced by all multiday crafts to varying extent, irrespective of the length
category. What was evident in Negombo, compared to Kudawella is more easier
access to good fishing grounds in the Indian ocean, as it is evident from the
very high percentage of all crafts engaged in Indian waters (79 percent of
34-35 ft crafts, 50 percent of all 36-38 ft crafts and 62 percent of all >40
ft crafts).
The large
diversity of fishing locations is found in Kudawella, where poaching sites
included Maldive Islands (22-30 percent of all crafts), and Andaman Islands (19
percent of 34-35 crafts).
Table 19. Area of operation of crafts and
average revenues per fishing trip (Negombo)
Harbour
|
Percentage of multiday crafts operating
& Average Revenue per trip (within brackets)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Sri
Lankan waters (near Mannar)
|
21 (Rs. 560,417)
|
50 (Rs. 911,666)
|
21 (Rs. 1,482,750)
|
Indian
Waters
|
79 (Rs. 566,422)
|
50 (Rs. 991,666)
|
62 (Rs. 1,016,812)
|
Maldives
|
0
|
0
|
8 (Rs. 1,045,000)
|
Andaman
Islands
|
0
|
0
|
9 (Rs. 1,486,667)
|
Break Even Revenue
|
463,414
|
663,001
|
972,415
|
Table 20. Area of operation of crafts and
average revenues per fishing trip (Kudawella)
Harbour
|
Percentage of multiday crafts operating
& Average Revenue per trip (within brackets)
|
||
34-35 ft
|
36-38 ft
|
40 ft and above
|
|
Sri
Lankan Waters
|
52 (Rs. 661,781)
|
43 (Rs. 886,500)
|
42 (Rs. 1,230,625)
|
Indian
Waters
|
26 (Rs. 1,337,143)
|
28 (Rs. 1,497,000)
|
48 (Rs. 1,648,750)
|
Maldives
|
22 (Rs. 1,147,857)
|
30 (Rs. 1,005,429)
|
26 (Rs. 1,080,000)
|
Andaman
Islands
|
19 (Rs. 1,528,333)
|
0
|
0
|
Nicorbar
Islands
|
0
|
4 (n.a.)
|
19 (n.a.)
|
Madagascar
|
3 (n.a.)
|
4 (Rs. 2,400,000)
|
0
|
Lakshadweep
|
4 (n.a.)
|
0
|
|
Break Even Revenue
|
505,690
|
734,435
|
1,117,073
|
4.2 Need or Greed?
In
order to understand as to why multiday boats poach (or to answer the need or
greed question) the Break Even Revenue (BER) was first calculated for each
craft category, which was then compared with the average revenues obtained by
fishing within Sri Lanka’s EEZ and outside. BER is the revenue that is just
sufficient to cover the total cost of fishing operations (which is equal to the
total of variable and fixed cost of craft operations). The BER per fishing trip
for different craft types is also given in tables 19 and 20.
The
BER of all categories (as given in tables 19 and 20) could be obtained even of
these operate within Sri Lanka’s EEZ. Therefore, if these crafts poach, then it
is due to the ‘greed’ (for higher profits) rather than the ‘need’. Such greed
is better satisfied by poaching in Indian waters, and particularly, by fishing
around Andaman Islands (see tables 19 and 20). Compared to the smaller craft
categories, the BER of the above 40 ft category is quite close to the average
revenues earned by fishing within Sri Lankan’s EEZ, which may prompt them to
poach, than in the case of smaller craft categories.
It is
to be noted that, there is significant variation among catches and income among
individual fishing units within the same length category, which may be due to
the variations in ‘catchability’ of that fishing unit, which is a function of
the type and size of the gear employed, ability to locate fish, the skill of
the crew, etc. (see table 21 and 22).
Table 21. Variation in Fishing Revenues
between individual fishing units (Negombo).
Revenue
per trip (value of fish landings)
|
Revenues
Reported (Rs. per fishing trip)
|
||
32-35
|
36-38
|
>40
|
|
Average
(Rs.)
|
599,385
|
951,667
|
1,155,404
|
Maximum (Rs.)
|
880,000
|
1,380,000
|
2,405,000
|
Minimum (Rs.)
|
270,000
|
585,000
|
310,000
|
Standard Deviation (Rs.)
|
200,301
|
315,890
|
433,346
|
Table 21. Variation in Fishing Revenues
between individual fishing units (Kudawella).
Revenue
per trip (value of fish landings)
|
Revenues
Reported (Rs. per fishing trip)
|
||
32-35
|
36-38
|
>40
|
|
Average (Rs.)
|
937,855
|
1,121,217
|
1,323,026
|
Maximum (Rs.)
|
2,100,000
|
2,400,000
|
2,480,000
|
Minimum (Rs.)
|
150,000
|
450,000
|
500,000
|
Standard Deviation (Rs.)
|
609,708
|
511,783
|
659,721
|
Fishing units whose ‘catchability
coefficient’ is smaller, may be earning revenues below the BER, and may be
compelled to poach to remain economically viable.
4.3 Arrests for poaching
Those
multiday crafts which poach in others’ territories, do so with the risk of
arrest, although this risk appears to be low according to fishers. Information
obtained during field studies (see table 22) revealed that, percentage of
arrest among multiday crafts belonging to the above 40 ft category is the
highest (10 percent of the crafts in this category in Galle, Kudawella and
Trincomalee harbours, reported arrest during the past 5 years). Yet, this
picture is blurred by the fact that, 17 percent of the crafts belonging to the
36-38 ft category, in the Kudawella harbor, reported arrest during the past 5
years, although only 28 percent of these crafts reported poaching in Indian
waters.
Table
22. Incidence of arrest for poaching by
multiday crafts
Harbour
|
Percentage of multiday crafts reporting
arrest
|
|||
34-35 ft
|
36-38 ft
|
40 ft and above
|
All crafts
|
|
Negombo
|
0%
|
0%
|
0%
|
0%
|
Beruwala
|
n.a.
|
n.a.
|
n.a.
|
3%
|
Galle
|
0%
|
0%
|
10%
|
7%
|
Kudawella
|
0%
|
17%
|
10%
|
7%
|
Trincomalee
|
0%
|
0%
|
10%
|
5%
|
Information
obtained from official sources (Ministry of Fisheries, 2013) revel that there
has been a steady increase in the number of vessels and fishers arrested from
2006 to 2009 (24 vessels and 118 fishermen in 2006 to 138 vessels and 743
fishermen in 2009). In respect of vessels and fishers arrested for poaching in
Indian territory, 22 boats and 110 fishermen were arrested in 2006 and 128
vessels and 693 fishermen were arrested in 2009 (see table 23).
Table
23. Incidences of arrest - Official data
Area of arrest
|
2006
|
2007
|
2008
|
2009
|
||||
Boats
|
Fishers
|
Boats
|
Fishers
|
Boats
|
Fishers
|
Boats
|
Fishers
|
|
India
|
22
|
110
|
24
|
119
|
121
|
569
|
128
|
693
|
Myanmar
|
01
|
02
|
01
|
05
|
||||
Maldives
|
01
|
06
|
04
|
18
|
01
|
04
|
01
|
05
|
Bangladesh
|
01
|
05
|
03
|
15
|
||||
Egypt
|
01
|
04
|
||||||
Diego
Diegogarcia
|
02
|
11
|
05
|
25
|
||||
24
|
118
|
28
|
137
|
126
|
593
|
138
|
743
|
Table 24. Number of vessels and fishermen
arrested in Indian territory
Official
data on arrests by Indian authorities reveal a significant decline in the
number of vessels and fishermen arrested, from 2009 to 2012 (from 128 vessels and 693 fishermen in 2009 to 24
vessels and 120 fishermen in 2012). However, there appears to be an increase in
the number of arrests in the year 2013 (because for the first seven months of
the year, 21 vessels and 109 fishermen have been arrested) (see also figure 7).
Extrapolation of data indicate that, this will around 48 vessels by the end of
the year (see also table 25).
From
available information it is difficult to give the exact reasons for such a
decline. However, one amy assume that, the cessation of war and the resultant
peace process has allowed fishermen to fish more freely in Sri Lankan waters
(without the risk of being attacked by Tamil Tigers). Probably, the Indian
Coast Guard is also more vigilant and alert today and the risk of arrest has
increased. Whatever the reason, the fact remains that poaching is on the
decline.
The agony of arrest
Arrested
fishers and their families undergo tremendous suffering. Even when they are
informed of the arrest, not all boat owners inform the families of the affected
crew. Thus, it might take a long time before families become aware of the
incidence and the fate of their dear ones. In most cases, no assistance is
provided by boat owners to the affected families. The government sometimes
provides assistance, which is quite irregular and there are no standard
procedures. The wives of the affected
fishers often have to cope with crises of subsistence and they are subject to
harassment within the family circle and even outside. There are various stories
of pain and agony. “The stories of the fisherfolk are indescribably tragic –
and on several levels. They are tragic, of course because their livelihood is
converted into a crime. They are harassed by coastguards and jail authorities, weakened
economically and excluded from their only source of livelihood. But it is also
tragic in other, subtle ways. There is, for instance, the toll on their
families left behind.
Table
25 provide recent information on fishermen under detention in Indian prisons
during the 2013. It is quite evident that period of detention can extend from
14 days to about 70 days.
.
Table 25. Official information on arrests and
detention of fishers by Indian authorities-2013
4.4 Profitability and increasing craft length
Results
of the present study reveal that profitability of fishing operations by
multiday crafts decrease after the length category of 38 feet. It appears
therefore that, it is irrational for fishers to construct crafts exceeding 38
feet, although the current tendency is to construct longer crafts. Of course
the catches landed by larger crafts (above 40 ft category) are and annual
revenues are higher than smaller crafts (less than 40 ft) (see figure 8).
In
respect of profitability, what is more visible are the Catches and Revenues
(the earnings). When the revenues are higher, the crew payments too are higher
because they are paid a share of the revenue. Comparison of catches and
revenues are generally made on the beach, which is made on the basis of ‘returns to a fishing trip’. If such yard
sticks are used, the >40 ft category is always doing better than the smaller
crafts. Even if net returns per fishing trip is considered (revenue – Cost),
the >40 ft category is marginally above the 36-38 category. Therefore, to
the naked eye, the larger crafts appear to be doing better than the smaller
crafts, which explains the tendency to go for longer crafts.
It is
evident from figure 8 that average annual revenues too increase with the length of the
craft. But the fact remains that, such higher revenues are obtained by the
larger crafts at a higher cost (both variable and fixed) and, they are engaged
in a smaller number of fishing trips per year. Therefore, they are earning less gross and net
profits than the smaller crafts. The point is that, this is not quite visible
to an observer. The large number of multiday crafts that had been abandoned in
a number of harbours (see photo 3.1 & 3.2) provide proof of low net profits
earned by these crafts (therefore lacking long term viability).
Photo
3.1 and 3.2. Large Multiday Boats abandoned in the Trincomalee Harbour
Chapter 5
Conclusions and Policy Implications
5.1 Summary and Conclusions
Sri
Lanka moved into offshore fisheries in the latter part of 1950’s with the
introduction of the planked 3.5 ton day boat, 28 ft in length, with inboard
engine, which engaged in fishing operations beyond the continental shelf in
offshore waters. However, due to the fact that these crafts lacked fish
preservation facilities they engaged only in one day fishing trips. Efforts
made to insert a fibre glass tank into the deck of these crafts in 1980’s,
which could hold fish in ice, marks the emergence of multiday fishing in Sri
Lanka.
Fibre
Glass crafts with built in fish hold and fuel tank with a cabin to provide
accommodation for crew, were constructed in early 1990’s, marking the birth of
the multiday craft. The earlier crafts were smaller, length varying from 32-34
feet, exploiting the sea resources up to the edge of Sri Lanka’s EEZ. These
crafts were equipped with SSB radio for effective communication and GPS to find
their position in the sea. However, over
time, boat yards started constructing longer crafts with higher degree of
sophistication. These crafts started to fish beyond Sri Lanka’s EEZ and
venturing into the territories of India, Maldives, Madagascar, etc. and
poaching by these crafts became a common practice. Today, the tendency is to
construct large crafts, some crafts reaching lengths beyond 50 ft. powered by
engines of 110 hp or more.
Arrests
of multiday crafts for poaching in Indian waters and in other territories is
common and became a serious political, economic and social issue. While the Ministry
of Fisheries had to spend time, effort and money in getting the arrested boats
and fishers released, the human suffering was tremendous. In dealing with the
issue of poaching the Ministry of Fisheries is now planning to introduce a VMS
(Vessel Monitoring System). The other side of the coin is that, poaching in
Indian waters by the Sri Lankan multiday crafts is also keeping the issue
Indian Trawler intrusion issue in Palk Bay on the balance, because both
countries have their ‘bad boys’ poaching in each others’ territories. This
prevents Sri Lanka, in pointing its finger at Tamil Nadu, asking its trawler
fleet not to cross the International Maritime Boundary Line (IMBL).
The
present study was undertaken in the above context. While this study attempted
at finding out the profitability of fishing operations by multiday crafts, it
also attempted at addressing the issue of poaching by these crafts. An
important issue that this study attempted at addressing was, why Sri Lankan
multiday crafts poach: was it due to the need to remain economically viable, or
the greed for higher profits. Addressing this issue was considered important by
the REINCORPFISH project, because the study was expected to provide important
inputs, especially into the possibility of introducing ‘deep sea fishing’ to the
state of Tamil Nadu, as an alternative to trawling, shifting fishing effort
from heavily exploited Palk Bay area, into the Indian deep seas.
Results
of the study revealed that, multiday fishing is quite costly, which required
heavy investment on crafts. Value of a multiday craft with accessories and gear
ranged from Rs. 5 m to 6.3 m. These crafts are equipped with a fish hold which
could store fish in ice, a fuel tank that could hold a large volume of fuel a
water tank, radio communication equipment and location finding devices such as
GPS. They have a cabin to provide accommodation for crew and facilities for
cooking. These crafts generally target tuna, shark, billfish, and mackerel
resources, using fishing gear such as long lining and gillnetting. They are
usually engaged in long fishing trips, often 1 week to 1 month in duration. A
good number of these crafts fish beyond Sri Lank’s EEZ, in territories such as the Arabian sea, Bay of Bengal, other
Indian waters, Andaman Islands, Nicorbar Islands, Maldive Islands, Lakshadweep
Islands, Bangladesh, Madagascar Indonesia and Australian Islands. The duration
of some of these fishing trips exceed 45 days.
Average catch volumes landed by these
crafts from a fishing trip range from 1,800 to 3,500 kg, the maximum reported
catches exceeding 5,000 kg. The landed fish vary in quality, and about a
quarter of the catches consist of poor quality fish. This is attributed to long
fishing trips and the use of gill nets. Some crafts land small quantities of
dry fish, which are made from fish caught earlier in the trip. Revenues range
from Rs. 0.7 m to 1.2 m per fishing trip. Both catch volumes and revenues
increase with the length of the craft; the >40 ft crafts earning the highest
revenues.
Variable costs of fishing operations
include those incurred on fuel, food, crew labour, medicine, ice, water, etc.
Labour accounts for half of the variable cost while fuel accounts for nearly a
fourth. Variable costs of a fishing trip range from Rs. 0.34 m (smaller crafts)
to Rs. 0.7 m (crafts above 40 ft). Annual fixed costs of multiday fishing
involve the costs of depreciation of the hull, engine, accessories and fishing
gear, which range from Rs. 0.6 m to Rs. 1 m. All multiday crafts enjoy positive
gross and net profits, indicating both short-term and long-term viability of
multiday fishing. Gross profits ranged from Rs. 2.5 m to Rs. 3.3 m. They increased from Rs. 3.0 m
(34-35 ft category) to Rs. 3.3 m (36-38 ft category) and decreased to Rs. 2.5 m
( >40 ft crafts). The same trend was observed in respect of net profits too.
They increased from Rs. 1.8 m (34-35 ft crafts) to Rs. 1.9 m (36-38 ft crafts)
and then decreased to Rs. 0.64 m (>40 ft category). However, taking into
account the high variability of profits worked out for crafts operating from different harbours, the
present study safely conclude that, the highest profits are earned by crafts
belong to the 34-38 ft length category and that profits decrease thereafter.
Although highest revenues are earned by crafts belong to the >40 ft
category, they do so at a higher cost, therefore earning low gross and net
profits.
Net profits earned by a craft
owner-investor can be considered as his net income from operating a multiday
craft. Monthly net income of an owner of a multiday craft belonging to the
34-38 ft craft category is about Rs. 150,000, which is comparable with the
monthly salary of a university professor. However, the monthly income of an
owner of a larger craft (above 40 ft category) is around Rs. 53,000, which only
marginally above the mean monthly income of an average Sri Lankan household. If
apparent income is considered as the fishing income less of operational costs,
then fishers do not see a significant variation among their incomes. They all
could live lavishly in the short run.
Poaching by multiday crafts is a common
phenomenon. The most common poaching grounds are in Indian waters. Irrespective
of the length category, up to about 50 percent of all crafts found in the study
harbours poach. Evidently, by poaching, crafts could earn higher revenues. Break Even Revenue (BER) estimated for
different crafts indicated that, poaching was not necessary for Sri Lankan
multiday crafts to remain economically viable, because by fishing within Sri
Lanka’s EEZ, all types of crafts could earn revenues which could pay off all
costs. However, the revenues earned by larger crafts above 4o ft, were only
marginally covering up the costs, which could have forced them to poach and
earn higher revenues. Nevertheless, it was quite evident that, if multiday
crafts poach, they do so to earn higher profits, rather than to remain
economically viable.
Poaching entails the risk of arrest.
Very few crafts reported arrest during the past five years. Incidence of arrest
has been highest for the >40 ft category of crafts. While the number of
vessels and fishers arrested increased up to the year 2009, there has been a
significant decline since then. Among others, improved security situation after
the cessation
of war in 2009, allowing fishermen to fish more freely in Sri Lankan waters
and, more vigilant surveillance operations by the Indian Coast Guard could be
two reasons behind the recent decline in the incidence of poaching.
5.2 Policy Implications
The
results of the present study have certain important implications for policy, in
respect of craft standards and the future of multiday fishing in Sri Lanka.
Failure
to establish craft standards by the Ministry of Fisheries and Aquatic Resources
has certainly resulted in the continuous drive towards building lengthier
crafts. This has not resulted in any increase in net returns to fishing but a
wastage of society’s resources. Boat yards build crafts to meet the demand of
the owner-investors, rather than crafts which maximize returns to investment.
We therefore, strongly emphasize the need to establish standards for multiday
boats. Probably, profit margins earned by boat yards by constructing larger
crafts are higher. As the results of the study indicated, construction of
multiday crafts, with lengths exceeding 38 ft, should be discouraged, unless higher investments in longer crafts is
accompanied by technological developments, which facilitate higher
‘catchability’. Yet, with their more spacious crew cabins, better cooking
facilities, availability of TV, Hi-Fi, ability to carry more freshwater on
board, etc. the process of constructing longer crafts has definitely led to an
improvement in the standards of work in the fishing sector.
Our
findings reveal that, in general, there is no need for multiday crafts to
‘poach’ in others’ territories because they could remain economically viable by
fishing in Sri Lankan waters. The failure to establish craft standards will
push some crafts into poaching probably to cover up their costs and earn
profits that will allow them to remain ‘in the game’. However, it was quite
evident during field studies that some crafts only fish in ‘others’
territories’ and, poaching is the general practice, which is purely due to the
greed for higher profits. In fact, there seems to exist a ‘vicious cycle’ of
investment and poaching. Heavy investment push crafts to poach and look for very
rich fishing grounds, while potentially higher profits from poaching push
investors to construct longer crafts to travel longer distances and stay longer
at sea. Therefore, one cannot justify the SOS calls of the poachers, demanding
the government to intervene in their release, when they willingly engage in
poaching out of greed. In this respect, the recent efforts by the Ministry of
Fisheries and Aquatic Resources to introduce a Vessel Monitoring System (VMS),
to keep poaching under control, cannot be considered as a move that will bar
multiday fishers from earning profits that will keep them economically viable
in the long run.
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