SHRIMP FARMING 
                
              INTRODUCTION  
                India  is endowed with a long coastline and hence offers scope for large exploitation  of marine wealth. Till a few years back, fishermen in India were involving  themselves in traditional marine fishing. In the seventies fishermen started  concentrating on catching prawns more commonly known as `shrimps' due to high  profitable return on the same on account of their export value. Brackish water  prawn farming started in a big way during 91-94 especially in the coastal  districts of Andhra Pradesh and Tamil Nadu. Subsequently due to disease  problems, litigation in supreme court and other social and environmental  problems the sector suffered a huge set back and most of the corporate farms  were closed. However, the small units continued to do farming and adopting extensive  prawn farming systems. The shrimp farming has now been regulated with the  establishment of Aquaculture Authority of India as per directions of Supreme  Court for issuing licenses and overall supervision. It is commonly said that  after Green and White Revolution in India, it is time for Blue Revolution to  exploit the huge potential in fisheries sector. Shrimps are called the  "Pinkish Gold" of the sea because of its universal appeal, unique  taste, high unit value and increasing demand in the world market.  
   
  2. Scope for brackish water shrimp farming  
                The over exploitation of  shrimp from natural sources and the ever increasing demand for shrimp and  shrimp products in the world market has resulted in the wide gap between the  demand and supply shrimp in the International market. This has necessitated the  need for exploring new avenues for increasing prawn production. The estimated  brackish water area suitable for undertaking shrimp cultivation in India is  around 11.91 lakhs ha. spread over 10 states and union territories viz... West  Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Pondicherry, Kerala, Karnataka,  Goa, Maharashtra and Gujarat. Of this only around 1.2 lakhs ha. are under  shrimp farming now and hence lot of scope exists for entrepreneurs to venture into  this field of activity. The following table gives the state-wise potential and  present level of development as on March 1996.  
              
                
                  Sr. No  | 
                  State  | 
                  Estimated brackish water area   
                    (ha.)  | 
                  Area under cultivation (ha.)  | 
                 
                
                  1  | 
                  West Bengal  | 
                  405,000  | 
                  34,660  | 
                 
                
                  2  | 
                  Orissa  | 
                  31,600  | 
                  11,000  | 
                 
                
                  3  | 
                  Andhra Pradesh  | 
                  150,000  | 
                  50,000  | 
                 
                
                  4  | 
                  Tamil Nadu  | 
                  56,000  | 
                  2,879  | 
                 
                
                  5  | 
                  Pondicherry  | 
                  800  | 
                  37  | 
                 
                
                  6  | 
                  Kerala  | 
                  65,000  | 
                  14,657  | 
                 
                
                  7  | 
                  Karnataka  | 
                  8,000  | 
                  3,500  | 
                 
                
                  8  | 
                  Goa  | 
                  18,500  | 
                  650  | 
                 
                
                  9  | 
                  Maharashtra  | 
                  80,000  | 
                  716  | 
                 
                
                  10  | 
                  Gujarat  | 
                  376,000  | 
                  884  | 
                 
                
                     | 
                  1,190,000  | 
                  118,983  | 
                 
               
                
              Location of the project  
                The  first and foremost requirement for entering into this venture is the  acquisition of suitable land. The details of land identified/surveyed in  coastal districts are available with the department of fisheries of the  concerned State Governments and with the Regional offices of the MPEDA  functioning in the coastal states of India. A suitable site is one that can  support optimum conditions for the growth of shrimps at targetted production  level. Most of the lands available along the coastline are owned by the State  Governments. In some cases, the entrepreneur has to get it on long term lease  from the revenue authorities of the State Government. If it is a private land,  one has to preferably purchase on outright basis. While selecting the site for  the project, the entrepreneur should ensure the following :  
                i)  Area should be accessible preferably by a road even during the monsoon season.  
                ii)  Mangrove area with large tree stumps should not be selected.  
                iii) Site should have good  pollution free water supply of both freshwater and brackish water. Water  quality parameters required for maximum feed efficiency and maximum growth of  Penaeus monodon are given below 
              
                
                  S.No  | 
                  Water Parameters  | 
                  Optimum level  | 
                 
                
                  1  | 
                  Dissolved Oxygen  | 
                  3.5-4 ppm  | 
                 
                
                  2  | 
                  Salinity  | 
                  10-25 ppt  | 
                 
                
                  3  | 
                  Water Temperature  | 
                  26-32 (C 0)  | 
                 
                
                  4  | 
                  pH  | 
                  6.8-8.7  | 
                 
                
                  5  | 
                  Total nitrite nitrogen  | 
                  1.0 ppm  | 
                 
                
                  6  | 
                  Total ammonia (less    than)  | 
                  1.0 ppm  | 
                 
                
                  7  | 
                  Biological Oxygen    Demand (BOD)  | 
                  10 ppm  | 
                 
                
                  8  | 
                  Chemical Oxygen Demand    (COD)  | 
                  70 ppm  | 
                 
                
                  9  | 
                  Transparency  | 
                  35 cm  | 
                 
                
                  10  | 
                  Carbon dioxide (less    than)  | 
                  10 ppm  | 
                 
                
                  11  | 
                  Sulphide (less than)  | 
                  0.003 ppm  | 
                 
               
              iv) The areas should be flood free  
                v)  Location with a natural slope, for proper drainage should be selected.  
                vi)  Social problems due to competing use of water resources and drainage of waste  water should be properly taken care of.  
                vii)  Availability of necessary infrastructure namely electricity, ice factory, cold  storage, communication facilities etc., are necessary for successful  management.  
   
                4. Borrowers'  profile  
                Complete  details of the entrepreneurs, partnership firm, registered company should be  given. Qualification and experience of the promoters, net worth of the  borrowers, other activities undertaken by them, financial ability etc., have to  be furnished.  
   
                5. Technical  feasibility of the project  
                As  the project envisaged new technologies, the borrowers may take the help of a  competent outside agency to prepare the technical feasibility report on the  project. However, to serve as a guidelines to the entrepreneurs in this regard  the technical parameters are given in Annexure-I. However, the first and  foremost requirement of the project is to get a license from Aquaculture  Authority as per the existing norms and as per guidelines issued by Supreme  Court.  
   
                6. Physical  and financial outlay  
                Details  of the physical and financial outlays involved for setting up of 5 ha. Brackish  water prawn farm are furnished in Annexure No.II. It can be seen therefrom that  the total cost including working capital expenses for raising the first crop  for a 5 ha. Prawn farm works out to Rs.37.60 lakhs. While submitting the  project to the banks for sanction of loan entrepreneurs are expected to submit  detailed plan and estimates for all the civil works to be undertaken as also  invoices of various items to be purchased from the suppliers. 
   
                7. Margin  money and bank loan  
                The entrepreneur has to  bring in 25% of the project cost out of his own resources and the balance of  75% will be provided by banks as bank loan. However, NABARD could consider  providing margin money loan assistance in suitable and eligible cases as per  the guidelines contained in circular no. DPD 67/92-93 dated 24.2.1993.  
              8.Marketing  
                Because  of huge gap between supply and demand of shrimps in local as well as  international market, there may not be any problem in marketing the same.  Shrimps can either be sold directly by the farmers in the market or sold to  exporters for processing before export. Shrimps can be exported in frozen form  with head on , head less, battered and breaded, or IQF products or any other  form with value addition. The prawn has to be packed as per requirements of  importing countries and therefore this should be decided after a detailed  market survey. It is always advisable to get in touch with local distributing  agents of the customer country. Hygienic packaging, display and appearance of  the packet are key factors to attract consumers of importing countries.  
              
                
                  Technical Parameters for establishing a extensive shrimp farm  
                     
                    A -1. Design and Construction of shrimp farm :  
                    An extensive shrimp farm should be of the size 0.4 - 0.5 ha. and    preferably drainable from the management point of view. The ponds generally    should have concrete dikes, elevated concrete supply canal with separate    drain gates and adequate life supporting devices like generators and    aerators.  
                     
                    The design, elevation and orientation of the water canals must    be related to the elevation of the area with particular reference to the mean    range of tidal fluctuation. The layout of the canals and dikes may be fitted    as closely as technically possible to existing land slopes and undulation for    minimizing the cost of construction.  
                     
                    2. General Earth Work  
                    It is normally carried out in the following order :  
                    1. Site clearing  
                    2. Top soil stripping  
                    3. Staking of centre lines and templates  
                    4. Preparation of dike foundation  
                    5. Excavation of drainage canals  
                    6. Construction of dikes (peripheral and secondary)  
                    7. Forming and compaction of dikes.  
                    8. Excavation of pits for gates.  
                    9. Levelling of pond bottom.  
                    10. Construction of gates and refilling of pits  
                    11. Construction of dike protection.  
                    The top soil may be set aside and should again be spread later    to preserve pond bottom fertility.  
                     
                    3. The essential components of a shrimp farm are :-  
                    1. Ponds  
                    2. Water intake structure  
                    3. Store room for feed and equipments  
                    4. An area for cleaning of the harvest  
                    5. A workshop and pump house  
                    6. Watch and ward room , office and a mini laboratory.  
                     
                    B. Ponds  
                    From the management point of view it is better to go in for    ponds of 0.4 ha-0.5 ha size. These ponds should be preferably completely    drainable. The ponds are partitioned by secondary dykes. In order to render    over all protection to the cultured stock and all related structures a    perimeter dyke also can be constructed.  
                    The height of the perimeter dyke will depend upon the following factors,    such as :  
                    1. Height of water level in the area.  
                    2. Elevation above mean sea level.  
                    3. Height of free board.  
                    4. The percentage allowance for soil shrinkage.  
                    The partition dykes determine the size and limit of each grow    out pond and its height is determined by the following factors namely :  
                    1. The height of water column in the pond  
                    2. Free board  
                    3. Wave action  
                    4. Shrinkage factor  
                    The shrinkage factor is decided by the type of soil like heavy,    medium and light soils.  
                     
                    C. Gates  
                    They regulate the inflow and outflow of water into the pond and    also are responsible for maintaining the desired water column in the pond.    The main gates are constructed on the perimeter dyke and are usually located    on the partition dykes and they regulate the water column in the individual    ponds. It can be made out of concrete or PVC or Asbestos piping.  
                     
                    D. Drain canals  
                    They are generally trapezoidal in cross section and its    discharge capability is decided by area of cross section and velocity of    water flow.  
                     
                    E. Pond preparation  
                    Proper pond preparation will ensure higher production. The main    objectives of pond preparation are :  
                    1. To eradicate weed fishes and orgnaisms  
                    2. To remove abnoxious gases  
                    3. To improve the natural productivity of the pond eco system  
                    4. To maintain high water quality for proper growth and higher    survival percentage.  
                    Eradication of unwanted organisms is usually carried out by    draining out the entire water and drying the pond bottom till it cracks. This    also helps in removal of obnoxious gases and oxygenation of the pond bottom.    It also improves the fertility of the soil.  
                    Liming is done for correcting the pH and to kill pathogenic    bacteria and virus. In undrainable ponds mahual oil should be applied @ 200    ppm to eradicate the weed fishes. After around two weeks time organic and    inforanic fertilisers are applied to enrich the soil and water. Once the    thick lab-lab is formed the water level is raised and the pond is made ready    for stocking.  
                      
                     
                      F. Selective stocking :  
                      The most suitable species for culture in India are the Indian    white prawn Penaeus indicus and tiger prawn P. Monodon. The stocking density    varies with the type of system adopted and the species selected for the    culture. As per the directives of Supreme Court only traditional and improved    traditional shrimp farming can be undertaken within the CRZ with a production    range of 1 to 1.5 tonnes/ha/crop with stocking density of 40,000 to    60,000/ha/crop. Outside CRZ extensive shrimp farming with a production range    of 2.5 to 3 tonnes/ha/crop with stocking density of 1,00,000/ha/crop may be    allowed.  
                      In order to have uniform growth of the cultured animal it is    always advisable to go in for hatchery reared seeds.
  | 
                 
                
                     | 
                 
                
                  G. Food and feeding  
                    Shrimp diets may be supplementary or complete. In a extensive    system the shrimps need a complete diet. Although natural food items have    good conversion values but they are difficult to procure in large quantities    and maintain a continuous supply.  
                     
                    At present most of the aquaculture farms depend on imported feed    with a FCR of 1:1.5 - 1.8. The feeding could be done by using automatic feed    dispensers, or by broadcasting all over the pond. If feeding trays are    employed in selected pockets in the pond wastage in feed can be reduced.  
                     
                    H. Harvesting :  
                    Complete harvesting can be carried out by draining the pond    water through a bag net and hand picking. The average culture period required    is around 120-150 days during which time the prawns will grow to 20-30 gm    size (depending on the species). It is possible to get two crops in a year.    Harvested shrimps can be kept between layers of crushed ice before    transporting the consignment to market.  
                     
                    Estimated physical and financial outlay involved for setting up    of a shrimp farm  
                       | 
                 
               
              
                
                  A.  | 
                  CAPITAL COST  | 
                  Rs. lakhs  | 
                 
                
                  a)  | 
                  Earth work for    construction of ponds, drainages and feeder canals etc. (20000 m 3) Rs.25/m3   | 
                  '5.0  | 
                 
                
                  b)  | 
                  Lining of feeder canal  | 
                  0.7  | 
                 
                
                  c)  | 
                  Water inlet structure    for ponds (2 Nos.)  | 
                  0.5  | 
                 
                
                  d)  | 
                  Water outlet structure    for ponds (10 Nos.)  | 
                  1  | 
                 
                
                  c)  | 
                  Main outlet sluices (2    Nos.)  | 
                  0.3  | 
                 
                
                  d)  | 
                  Pump House, generator    shed cum workshop etc  | 
                  1  | 
                 
                
                  g)  | 
                  Office, laboratory and    stores  | 
                  2  | 
                 
                
                  h)  | 
                  Watchman shed  | 
                  0.2  | 
                 
                
                  i)  | 
                  Drinking water storage    and supply network  | 
                  0.75  | 
                 
                
                  j)  | 
                  Pumps (3 Nos. Mixed    flow pump of 25 HP each)  | 
                  2.55  | 
                 
                
                  k)  | 
                  Aerators (10 Nos. 1    HP)  | 
                  2  | 
                 
                
                  l)  | 
                  Electrical    installations  | 
                  2  | 
                 
                
                  m)  | 
                  Generators (7 nos. X    30 KVA)  | 
                  4  | 
                 
                
                  n)  | 
                  Lab and farm    equipments`  | 
                  1  | 
                 
                
                  o)  | 
                  Miscellaneous    expenditure  | 
                  1  | 
                 
                
                   | 
                  TOTAL  | 
                  24  | 
                 
                
                  B.  | 
                  OPERATIONAL COST FOR    THE FIRST CROP  | 
                     | 
                 
                
                  a)  | 
                  Seed @ Rs.300/1000    Nos. For 2 lakh  | 
                  3  | 
                 
                
                  b)  | 
                  Feed @ Rs.40/kg for    15,000 kg  | 
                  6  | 
                 
                
                  c)  | 
                  Chemicals and manures    for pond preparation (@ Rs.15,000/ha)  | 
                  0.75  | 
                 
                
                  d)  | 
                  Fuel and electricity  | 
                  1.5  | 
                 
                
                  e)  | 
                  Repairs and    maintenance  | 
                  0.5  | 
                 
                
                  f)  | 
                  Harvesting  | 
                  0.25  | 
                 
                
                  g)  | 
                  Labour for pond    preparation  | 
                  0.2  | 
                 
                
                  h)  | 
                  Staff salary  | 
                  0.92  | 
                 
                
                   | 
                  1 Farm manager 10,000    x 4  | 
                     | 
                 
                
                   | 
                  1 Mechanic 5,000 x 4  | 
                     | 
                 
                
                   | 
                  Farm hands (2) 4,000 x    4  | 
                     | 
                 
                
                   | 
                  Watchman (2) 4,000 x 4   | 
                     | 
                 
                
                  i)  | 
                  Office expenses and    Misc. expenses  | 
                  0.5  | 
                 
                
                   | 
                     | 
                  13.62  | 
                 
                
                   | 
                  Total outlay for 5 Ha  | 
                  Rs.37.62 lakh Say    37.60  | 
                 
                
                     | 
                  Total outlay per Ha.  | 
                  Rs.7.52 lakh appx.  | 
                 
               
              Note  : 1) Detailed plan and estimates are to be furnished alongwith the project.  
                2)  Invoices for purchase of various items to be enclosed.  
              Statement showing Financial Analysis for Shrimp Culture in 5 ha. Farm  (Rs. lakhs)  
               
              
                
                   | 
                     | 
                  I year  | 
                  II to VIII years  | 
                     | 
                 
                
                  A  | 
                  COST  | 
                     | 
                     | 
                     | 
                 
                
                  1  | 
                  Fixed Cost  | 
                  24  | 
                  --  | 
                     | 
                 
                
                  2  | 
                  Recurring Cost  | 
                  13.6  | 
                  27.2  | 
                     | 
                 
                
                   | 
                  TOTAL COST  | 
                  37.6  | 
                  27.2  | 
                     | 
                 
                
                  B.  | 
                  BENEFIT  | 
                  25  | 
                  50  | 
                     | 
                 
                
                   | 
                  NET INCOME  | 
                  -12.6  | 
                  22.6  | 
                     | 
                 
                
                   | 
                  Discount Factor at 15%  | 
                  0.87  | 
                  3.17  | 
                     | 
                 
                
                   | 
                  Net Present worth of    cost  | 
                  -32.71  | 
                  86.22  | 
                  = 118.936  | 
                 
                
                   | 
                  Net Present worth of    benefits  | 
                  21.75  | 
                  158.5  | 
                  = 180.25  | 
                 
                
                   | 
                  NPW at 15% discount    factor  | 
                  61.314  
                    BCR = 1.515  | 
                     | 
                     | 
                 
                
                   | 
                  Discount factor at 50%  | 
                  0.67  | 
                  1.25  | 
                     | 
                 
                
                   | 
                  NPW at 50%  | 
                  -8.44  | 
                  28.25  | 
                  = 19.808  | 
                 
                
                   | 
                     | 
                  Internal Rate of    Return is more than 50%  | 
                     | 
                     | 
                 
               
              Source: www.nabard.org 
                |