Fish Farming Project Proposal; Fish Farming Loan, Subsidy

Fish Farming Project Proposal/Business Proposal

Today, we discuss the Fish Farming Project Proposal; Types of fish farming along with subsidy and loan.

Introduction of Fish farming:

Fish farms or fish farming is a type of aquaculture. Fish farming is the cultivation of fish for commercial purposes in man-made tanks & other enclosures. The most general types of farmed fish are catfish, tilapia, salmon, carp, cod, and trout. With the increase in over-fishing & the demand for wild fisheries, the fish-farming industry has grown in order to meet the demand for fish products.

Fish is the cheapest and simplest digestible animal. The proceeds of fish farming are about raising fish commercially in tanks or enclosures for human consumption. Fish farming in controlled or under artificial conditions has become the easiest way of increasing fish production & its availability for consumption. Farmers can easily take up fish culture in village ponds, tanks or any new water body & can improve their financial position substantially. It also creates gainful employment for skilled & unskilled youths. The technology developed for fish culture in which more than one type of compatible fishes is cultured simultaneous is the most advanced & popular in the country. This technology is called Composite Fish Culture.

Importance of Fish Farming in India:

Fish is one of the mainly favorite dishes of Indians. India is the second largest country in producing fish & fish farming. More than sixty percent of Indians prefer fish to eat in their daily lives. So the demand for fish is very high in the Indian market. Not only in India but also throughout the world the demand for fish is high.

Methods of Fish Farming:

Fish farming could range from ‘backyard’ subsistence ponds to large scale industrial enterprises. Fish farming systems can be expressed in terms of input levels.

1. In extensive fish farming, economic & labor inputs are usually low. Natural food production plays a very important role, & the system’s productivity is relatively low. Fertilizer may be used to increase fertility & thus fish production.
2. Semi-intensive fish farming needs a moderate level of inputs. Fish production is increased by the use of fertilizer and supplementary feeding. This means higher labor and feed costs, but higher fish yields generally more than compensate for this.
3. Intensive fish farming involves a high level of inputs & stocking the ponds with as many fish as possible. The fish are fed supplementary feed, while natural food production plays a small role. In this system, difficult management troubles can arise origin by high fish stocking densities (increased susceptibility to diseases & dissolved oxygen shortage).

The high production costs force one to fetch a high market cost in order to make the fish farm economically feasible.

Fish Farming supplies:

Fish farming supplies are required for the aquaculture industry. The supplies can range from feed & feeders, filtration systems, hatchery supplies, heating and cooling systems, lighting, hydroponics equipment, plumbing, predator control, tanks & water treatment products just to name a few.

Feed and feeders: Feed quality is very important in fish farming and is vital to fish health. Depending on the feed that is given, it can help with desirable color, growth & overall health and well-being. There is a wide range of different feeds that are suited to different types of aqua-farming methods and species.

Water Filtration Systems: Water filtration systems are very important when attempting to mitigate environmental impacts. Filtration involves the deduction of waste products from the water. There are a number of different types of filtering methods that can be used, but it often depends on the state of the filtration process. It is important to have a staging filtration method that will ensure the most optimal results.

Hatchery supplies: Hatchery supplies include anything from fish graders, shipping supplies to spawning & handling containers.

Predator control: Predator control tools are used in the fish’s habitat, which often includes the use of physical deterrents which may include visual & audio deterrents.

Types of Fish farming:

There are different types of fish farms that develop different aquaculture methods.

Cage method: The first system is the cage systems that use cages that are placed in lakes, ponds, and oceans that contain the fish. This process is also widely referred to as offshore cultivation. Fish are kept in the cage-like structures & are “artificially fed” and harvested. The fish farming cage system has made numerous technological advances over the years, especially with reducing diseases and environmental concerns. However, the number one concern of the cage method is fish escaping & being loose among the wild fish population.

Irrigation ditch or pond systems: The second method is an irrigation ditch for raising fish. This fundamental requirement for this method is to have a ditch or a pond that holds water. This is a unique method because at a small level, fish are artificially fed & the waste produced from the fish is then used to fertilize farmers’ fields. On a larger scale, mostly in ponds, the pond is self-sustaining as it grows plants & algae for fish food

Composite fish culture: This type of fish farming that allows both local fish species and imported fish species to coexist in the same pond. The number of species depends, although it is sometimes upwards of six fish species in a single pond. The fish species are always carefully chosen to ensure that species can coexist & reduce competition for food.

Integrated recycling systems: In these integrated recycling systems which are considered the largest scale method of “pure” fish farming. This approach uses large plastic tanks that are located inside a greenhouse. There are hydroponic beds that are located near the plastic tanks. The water in the plastic tanks is circulated to the hydroponic beds, where the fish feed waste goes to give nutrients to the plant crops that are grown in the hydroponic beds. The majority of the types of plants that are grown in the hydroponic beds are herbs such as parsley & basil.

Classic fry farming: The last type of fish farming process is known as classic fry farming this method is also known as a “flow-through system”. This is when sport fish species are raised from eggs & are put into streams and released.

Nutrition: The lack of diversity in the cereal-based diets of the poor, particularly women and children, has important consequences for health & development. Fish is subject to considerable postharvest losses, with 27%–39% of all caught fish going to waste. These losses excessively impact women because of the women’s concentration in postharvest parts of fish value chains. Poor storage, handling & processing also contribute to the lost value and pose a risk of foodborne infections & mycotoxins. Key challenges are to enable fish production method to reach their full potential to deliver nutrients and healthy foods; reduce inefficiencies in value chains, including waste, nutrient losses & restricted access of poor consumers, while enhancing gender-equitable returns for poor women & men value chain actors; and address barriers that divert fish from the diets of mothers, infants & young children, where it can contain the greatest impact.

Site Selection for Fish farming:

Considerable thought & planning should go into selecting sites for commercial fish production ponds. Construction costs ease and cost of operation and productivity can be really affected by the site selected. Selection of a site at times would seem to be an easy matter, but after considering all of the variables involved it rarely is as simple as it would seem.

One of the first factors to think is the availability of water at your proposed site. There are various sources of water including wells, springs, reservoirs, streams, & runoff water. In the commercial fish-farming process, a well or spring with about 700 gallons per minute capacity is the optimal choice for a 20 water acre fish farm. With the use of streams & reservoirs, there is a possibility of wild fish entering ponds and herbicide or pesticide contamination problems that can be avoided with a well. Another option is to build what is known as a watershed pond, which utilizes hilly areas in the watershed & natural valleys that are dammed for ponds. For this style of the pond, a watershed area of 5 to 15 acres is necessary for each water acre of ponds. Another abundant source of water in some areas is the surface coal mine final cut lakes that were left behind from mining operations. They are becoming a popular alternative to standard ponds when used in combination with net pens or cages to have the fish.

Soil characteristics are next considered. Clay-type soils are most desirable due to their capacity to hold water. Soil core samples should be taken to make sure adequate clay content. In many states, your local Soil Conservation Service Office can support with this procedure.

The topography of the area will find out the type of pond you can build and how much earth moving will be necessary. In a hilly area, runoff ponds tend to work the best, whereas, on flat land, it is less expensive & easier to build a levee-type pond. When selecting a site, considerations regarding drainage must be prepared for all ponds, as they must be drained by gravity flow for pond management purposes.

If the business plan is to be used to maintain the purchase or expansion of an existing fish farm, a history of the business is required. Details should consist of years in existence, the current owner, current location, types of species raised, market share, strengths, weaknesses, & financial information for the past three to five years.

Selection of Pond:

The main criteria to be kept in mind while selecting the ponds that the soil must be water retention, adequate supply of water is assured & that the pond is not in a flood-prone area. Derelict, semi-derelict and swampy ponds can be renovated for fish culture by dewatering, desilting, repair of the embankments & provision of inlet and outlet. The pond could be owned by the individual or taken on lease in which case the lease period should be more or coterminous with the repayment period. The eligible items of pond improvement are as follows:

1. i) Desilting of existing ponds
2. ii) Deepening of shallow ponds.

iii) Excavation of new ponds.

1. iv) Impoundment of marginal areas of water bodies.
2. v) Construction or repairs of Embankments.
3. vi) Construction of Inlets or Outlets.

vii) Any other item like civil structures, watchmen huts, water supply arrangements and electricity supply arrangements, etc. depending on the requirements of the scheme based on its size etc.

Prestocking:

In the case of new ponds, pre-stocking operations start with liming & filling of the pond with water. However, the existing pond requiring improvement deals with clearing the pond of unwanted weeds & fishes either by manual, mechanical or chemical means. There are different methods are employed for this.

1. i) Removal of weeds by Manual or Mechanical or through Chemical means.
2. ii) Removal of unwanted & predatory fishes & other animals by repeated netting or using mahua oil cake @ 2500 kg/ha meter or by sun drying the pond bed.

iii) Liming – The tanks which are acidic in nature are less productive than an alkaline pool. Lime is used to take the pH to the desired level. In addition to lime has the following effects –

1. a) Increases the pH.
2. b) Acts as a buffer & avoid fluctuations of pH.
3. c) It will increase the resistance of soil to parasites.
4. d) Its toxic effect destroys the parasites, and
5. e) It will hasten organic decomposition.

The normal doses of the lime preferred ranges from 200 to 250 Kg/ha. However, the actual dose has to be calculated based on the pH of the soil & water as follows:

Soil pH	Lime (kg/ha)
4.5-5.0	2,000
5.1-6.5	1,000
6.6-7.5	500
7.6-8.5	200
8.6-9.5	Nil

The pond is essential to be filled with rainwater or water from other sources after liming in case it is a new pond.

iv) Fertilization:

Fertilization of the pond is an important means of intensifying fish culture by raising the natural productivity of the pond. The fertilization schedule has to be prepared after learning the quality of the pond soil. A combination of both Organic & Inorganic fertilizers may be used for best results. The fertilizer programmed has to be properly modified depending on the growth of the fish, available food reserve in the pond, physical-chemical conditions of the pond & climatic conditions.

Manuring:

1. i) Organic manuring could be made in monthly installments @ 1000 kg/ha.
2. ii) Inorganic fertilization can be done at monthly intervals alternating with organic manuring. However, the monthly rate of fertilization will depend on pond productivity & the growth of the fish. It must be ensured that excess fertilization does not take place which may result in eutrophication.

Harvesting of Fish:

Harvesting is normally done at the end of the first st year when the fish attain an average weight of 750 grams to 1.25 kg. Production of 4 to 5 tons/ha can be gained in a year. However, for the purpose of working out economics a construction level of 3 tons/ha/year may be considered. Harvesting is done by partial dewatering & repeated netting. In several cases, complete dewatering of ponds is resorted to.

Fish species involved in composite fish culture:

Depending on the compatibility & type of feeding habits of the fishes, the following types of fishes of the Indian, as well as Exotic varieties, have been identified for culture in the composite fish culture technology:

Species Feeding habit Feeding zone:

Indian Major Carp:

Name	Type of Feeding habit
Catla	Zooplankton feeder	Surface feeder
Rohu	Omnivorous	Column feeder
Mrigal	Detritivorous	Bottom feeder

 Exotic Carps:

Name	Type of Feeding habit
Silver carp	Phytoplankton feeder	Surface feeder
Grass carp	Herbivorous	Surface, column and marginal areas
Common carp	Detritivorous/Omnivorous	Bottom feeder

Management and Operations:

The purpose of this section is to describe the legal form & organization of the business, skills available within management to successfully run the business, employee wages or salaries, employment schedules, & other considerations necessary to successfully operate & manage the business.

Business Organization:

Discuss the legal form of the company (Sole-Proprietorship, Partnership, Corporation, Limited Liability Company (LLC) & the reasons for choosing this form of organization). Refer to the Fact Sheet, Organizational Structures Available to Agriculture Businesses for useful information. Include the “Assumed Name Act” registration, Partnership Agreements, Limited Liability Company (LLC), or Incorporation Certificate(s) as appropriate.

Insurance Needs

Identify the potential risks of loss inherent to the business. These risks form the origin of your business insurance needs. Some of the usual types of business insurance are listed below:

• Workers Compensation
• Fire or Structural Damage
• Business Liability
• Vehicle Coverage
• Loss & Theft of Building Contents
• Glass & Sign Breakage
• Business Interruption
• Care, Custody & Control

After considering your insurance needs & regardless of whether you deal with independent agents, insurance brokers or work directly with insurance companies, be definite that you’ve done some comparison shopping before you sign up. Some sources of information on business insurance are programmed below.

• Your State’s Department of Insurance Maintains experience information on insurance companies.
• Maintains financial strength information on insurance companies.
• Local insurance agencies

Provide a list of required licenses, permits, & registrations

Provide information required on special licenses, permits, & registrations if applicable (e.g., EPA permit, state professional license, vehicle license, food handler’s certification, Name Act Registration, etc.). Provide a copy of the necessary Licenses/Permits/Registrations if available.

Subsidy for Fish Farming

The subsidy is obtainable for various items like Pond Development, construction of New Ponds, first-year inputs, etc. under a centrally sponsored subsidy plan implemented by a majority of the State Governments through FFDA’s for different categories of farmers, details of which could be obtained from concerned Fisheries Departments.

Eligible Borrowers

The following category of borrowers is suitable to avail credit.

1. a) An Individual.
2. b) A company.
3. c) A Partnership firm.
4. d) A co-operative society.
5. e) A group of fish farmers.

Training in fish farming is being presented by the FFDA’s to the eligible borrowers & it is essential that the borrower has prior knowledge of fish farming before an ailment of bank loan.

Financial Outlay:

The details of Capital Cost & Recurring Cost have been indicated in Annexure – II. As per Annexure the capital cost for excavation of 1 Ha pond works out to be Rs 1, 75,000/- & the recurring cost as Rs 26,000/-. However, the cost is an indicative & actual assessment of the cost parameters has to be done while submitting the project to the bank.

Repayment:

Repayment of bank loan is possible in 6 to 8 years in equating annual installments with a moratorium on repayment of principal for the first year.

Rate of Refinance

NABARD provides refinance assistance for fish culture to commercial banks, cooperative banks & Regional Rural Banks. The charge of refinancing is fixed by NABARD from time to time.

The rate of interest:

The interest rate to be charged to the critical borrowers would be as indicated by the bank or RBI or NABARD from time to time depending on the quantum of loan amount & the agency providing the loan.

Security:

Security for the ultimate beneficiaries could be obtained as per the guidelines of RBI issued from time to time.

Advantages of Fish Farming:

• Fish provides very high-quality animal protein for human consumption.
• Fish development in ponds can be controlled: the farmers themselves choose the fish species they wish to raise.
• The fish farming in a pond is the owner’s property; they are secure & can be harvested at will. Fish in wild waters are free for all & make an individual share in the common catch uncertain.
• Fish in a pond are generally close at hand.
• Effective land use: effectively utilize marginal land, e.g. land that is too poor, or too costly to drain for agriculture can be gainfully devoted to fish farming provided that it is suitably prepared.

Read: Integrated Farming of Fish and Livestock.

Last Updated: March 22, 2019