Economic Viability and Profitability of Inland Fish Farming in West Godavari District of Andhra Pradesh, India

Abstract

The study assessed the economic viability and profitability of inland fish farming in West Godavari district, Andhra Pradesh, India. Primary data were collected from 90 inland fish farmers selected through a multistage random sampling procedure. Cost concepts, farm efficiency measures and discounted cash-flow indicators were used to evaluate the financial performance of inland fish production under the prevailing cost and price conditions. The estimated Cost C2 was Rs. 5,97,042.94 per hectare. Variable costs accounted for Rs. 4,07,025.85 per hectare, representing 68.17 per cent of total cost, whereas fixed costs accounted for Rs. 1,90,017.09 per hectare, representing 31.83 per cent. Feed cost was the largest expenditure component, contributing 39.35 per cent of total cost, followed by the rental value of owned land and human labour. The average yield was 7,343.06 kg per hectare, with gross income of Rs. 7,29,600.44 per hectare and net income of Rs. 72,853.20 per hectare. Farm business income, family labour income and farm investment income were estimated at Rs. 3,41,334.50, Rs. 1,79,462.50 and Rs. 2,34,725.20 per hectare, respectively. The net present value was positive at Rs. 3,08,056.10 per hectare, while the benefit-cost ratio was 1.09 and the internal rate of return was 31.12 per cent. The findings indicate that inland fish farming was financially viable for the sampled farmers, subject to effective management of input costs and market price fluctuations.