Top

Policy tsunami wrecks fisheries sector totally in Kollam

The owners transact with different sets of people and as they change every day, they do not accept credit.

Thiruvananthapuram: The fisheries sector, absolutely dependant on cash for its daily transactions, has come to a virtual standstill post demonetisation. In Kollam, which has the highest density of fisherfolk in the state, more than 50 percent of the boats have not taken to the sea after the cash withdrawal. Fish prices have dropped and wages have fallen.

The decimation of the fisheries sector by what has been termed a 'policy tsunami' was one of the major findings of the Committee to Study the Impact of Demonetisation on the State Economy. The bidders (wholesale buyers) obtain their supplies at auctions of the catch at harbours and pay the required amount to the boat owners and operators who use the money to meet their various expenses. “The bidders are not able to carry out business in high volumes as the amount that one person can withdraw from banks has been restricted,” the study noted.

As a consequence, the expected price for the fish is not realised as the fish are sold only to those with cash and not the highest bidder who offers to pay by cheque or against credit. “Payments are made to the people who are at the harbour with cash, and boat owners are unwilling to sell fish for a deferred payment. The owners transact with different sets of people and as they change every day, they do not accept credit. Even if cheques were in use, clearing cheques takes two to three days, and affects the sector as a whole adversely,” the study noted.

The market value of fish, not surprisingly, has fallen. “On an average fish worth Rs 1,000 are now sold for Rs800. Those who generally buy fish for Rs 50,000 are now making total bids of Rs 10,000 to Rs 15,000,” the study noted. Most of the boats have been beached. On an average only about 20 to 30 boats come to the harbour for business. The number of boats that did business prior to November was about 200 to 300. The number of boats registered in Kollam is 1,179. Post demonetisation, only around 500 boats are in operation after demonetisation.

Wages have also dropped. As business has declined, a worker who used to get work for 50 to 60 fish boxes a day in the harbour now gets work for only 5 to 6 boxes a day, and workers are getting increasingly pushed into debt.

( Source : Deccan Chronicle. )
Next Story