A STUDY ON SAVINGS AND INVESTMENT PATTERNS OF ...

A STUDY ON SAVINGS AND INVESTMENT PATTERNS OF

FISHERMEN COMMUNITY IN KOZHIKODE DISTRICT

Minor Research Report

Submitted to the UGC in relation to 11th Plan Assistance

in Humanities.

By

JAYAPRAKASAN. P.P.

Assistant Professor

Department of Commerce

Govt. Arts and Science College

Kozhikode – Kerala

DECLARATION

I, JAYAPRAKASAN. P.P., hereby declare that this project

entitled “A Study on Savings and Investment Patterns of Fishermen

Community in Kozhikode District” is a bonafide record of research

work done by me in connection with UGC 11th Plan assistance in

humanities and no part of this work has previously formed the basis

for the award of any Degree, Diploma, Fellowship or other similar

title or recognition of any University or Institution.

Place : Kozhikode

Date : JAYAPRAKASAN. P.P.

CERTIFICATE

This is to certify that the PROJECT Report entitled “A study

on Savings and Investment Patterns of Fishermen Community in

Kozhikode District” is a bonafide record of research work done by

Sri. JAYAPRAKASAN. P.P. in connection with UGC 11th Plan

assistance in Humanities and it has not previously formed the basis

for the award of any Degree, Diploma or Fellowship to him or any

other person.

He is permitted to submit the project to the UGC.

Place: Kozhikode Principal Govt. Arts & Science College Date : Kozhikode

ACKNOWLEDGEMENT

First and foremost I express my whole hearted gratitude to the

Almighty for his care and mercy towards me in leading guiding and

protecting throughout my research.

I express my deep sense of gratitude towards Prof. P.M.

Raghavan, the former Principal and Prof. V. Vijayan, Principal,

Govt. Arts & Science College, Kozhikode, for their constant support

and advice.

I express my sincere thanks to Prof. Hansa. N.K., Prof.

Edakkotte Shaji and other staff of the Govt. Arts & Science College,

Kozhikode for their co-operation and support.

I, also thanks to Fishermen in the Kozhikode District for

providing relevant information.

I, owe my heartfelt thanks to my wife Divya. K. and to my

mother for their constant moral support and encouragement.

JAYAPRAKASAN. P.P.

CONTENTS

CHAPTERS CONTENT PAGE NO.

1 INTRODUCTION

1 - 7

2 REVIEW OF LITERATURE

8 - 11

3 SAVINGS AND INVESTMENTS

12 - 40

4 ANALYSIS

41 - 51

5 SUMMARY, FINDINGS AND SUGGESTIONS

52 - 54

6 APPENDIX – INTERVIEW SCHEDULE & BIBILIOGRAPHY

55 - 58

LIST OF TABLES

TABLE NO. TITLE PAGE NO.

3.1 Inland fisheries statistics – All India

22

3.2 Area and population of Kerala fisheries

26

3.3 Fish / Prawn Production

26

3.4 District wise distribution of coastline and Fishermen population

27

3.5 Export of marine products from Kerala 28

3.6 Annual fish production 2013-14

29

3.7 Fresh water resources of Kerala

29

3.8 List of backwaters in Kozhikode

29

3.9 List of inland fishing villages in Kozhikode

30

3.10 Details of inland fish landing centeres in Kozhikode

30

4.1 Educational level of Fishermen

41

4.2 Monthly income of the Fishermen

43

4.3 Level of awareness about various investment patterns

44

4.4 Purpose of savings and investment

45

4.5 Investment or savings patterns of Fishermen Community

46

4.6 Level of performance on the type of commitment

47

4.7 Factors affecting savings and investment

48

4.8 Range / Level of investment 49

4.9 Frequency of Investment 50

LIST OF FIGURES

TABLE NO. TITLE PAGE NO.

3.1 Investment alternatives

18

4.1 Educational level of Fishermen

42

4.2 Monthly income of the Fishermen

43

4.3 Level of awareness about various investment patterns

44

4.4 Purpose of savings and investment

45

4.5 Investment or savings patterns of Fishermen Community

46

4.6 Level of preference on the type of commitment

47

4.7 Factors affecting savings and investment

48

4.8 Range / Level of investment 49

4.9 Frequency of Investment 50

LIST OF ABBREVIATIONS

GDP - Gross Domestic Product

EU - European Union

IRR - Internal Rate of Return

NPV - Net Present Value

CSO - Central Statistical Organisation

NSC - National Savings Certificate

NFDB - National Fisheries Development Board

NABARD - National Bank for Agriculture and Rural Development IFCI - Industrial Finance Corporaton of India

IDBI - Industrial Development Bank of India

SCICI - Shipping Credit and Investment Company Of India SFCs - State Finance Corporations

NCDC - National Co-operative Development

Corporation

NIRD - National Institute of Rural Development

PDS - Public Distribution System

KSMTF - Kerala Swathantra Matsya Thozhilali Federation.

INTRODUCTION

The fishing industry includes any industry or activity concerned with taking,

culturing, processing, reserving, storing, transporting, marketing or selling fish or fish

products. Millions of people all over the world have been profitably engaged in fishing and

fish trading over the years. Fishing has been one of the oldest activity of human race.

Fishing is a important industry and economic corner stone of the Indian market.

These resources are one of the main sources of livelihood for the rural people, particularly

the fishermen community. In India ‘fisheries’ is considered to be a sub sector of agricultural

sector. The increasing trend in fish production place an important role in earning foreign

exchange. Fisheries have been recognized as a powerful income and employment generator

owing to the continuous growth of fish production.

The Five Year Plan are saying high priority to the development of fisheries because

of the necessity to raise the nutritional levels of protein deficient Indian diet and to earn

much needed foreign exchange. The fisheries programs have emphasized family based

labour intensive inland and brackish water fisheries and improving the harvesting from seas

by stimulating the growth of country boats, mechanized boats and deep sea trawlers.

Growing urbanization, globalization and rapidly changing social structures have had

a major impact on the fisheries sector in the country. Fisheries and aqua culture has

emerged as an important commercial activity from its traditional role as subsistence

supplementary activity.

FISHERMEN COMMUNITY

Fishermen community is a distinctive group of people geographically located in

coastal areas and have their own way of life and distinctive culture, and to understand the

special relationship, they share with the sea and the environment. The life of the fishermen

community is centered around the fishing seasons. They are the victims of middlemen and

money lenders.

Fishing communities in India, are not homogeneous, as they belong to different

castes. These communities have their distinct social, cultural governance structures and

traditional practices, depending on the coast, where they inhabit. The fishermen community

in Kerala belongs to the social categories of Mukkuva and Anjootty (Latin Catholic)

Dheevara (Hindu) and Pooislan (Muslim).

A large percentage of fishermen are involved in artisanal, small-scale fishing

operations in open water bodies including the sea, rivers and creeks as well as in fish

trading, processing and related activities.

FISHING IN INDIA

India has a vast and diverse potential of fishing resources comprising two million

square kilometers of exclusive Economic zone for deep sea fishing. 7250 Kilometers of

coast line, 29000 kilometers of rivers, 1.7 Million hectares of reservoirs, nearly one million

hectares of brackish water area and 0.8 Million hectares of tanks and ponds for inland and

marine fish production. All these resources are waiting to be exploited fully. India is the

third largest producer of fish in the world and second largest in inland fish production.

Fisheries sector plays an important role in the socio economic development of India,

generating employment for a large coastal population – about 14 Million fishermen draw

their livelihood from fisheries. The fisheries sector is not only an important source of direct

employment, but generates employment in down stream industries – the sector provides

employment to over 11 Million people engaged fully, partially or in subsidiary activities.

Fishing help in rising nutritional levels, augmenting food supply and being a major foreign

exchange earnings. Fishing industry in India contributes heavily to the GDP.

Fishing as an occupation is being practiced in India. It has been regarded as a

supplementary enterprise of the fishermen community on the subsistence level with little

external input. With the changing consumption patterns, technological developments and

emerging market forces, it has assumed added importance in India and is undergoing a rapid

transformation.

India has export competitiveness in exporting fishery products. Trade through

exports has bought prosperity to the sector. Since this export is largely dependent on

limited / specific species and only to 2 to 3 countries (Japan, USA and EU), the income of

the sector faces relatively high risk.

The economic returns from the fisheries sector have been found to be highly

attractive. On an average, the Internal Rate of Return (IRR) has been estimated as 42 to 55

percent, B-C ratio as 2.1 to 3.4 and Net Present Value (NPV) as Rs. 82 to 176 Billion.

FISHING IN KERALA

Kerala is situated on the south west coast of the Indian sub continent with an area of

about 38863 square kilometers, which makes about 1.27 % of the Indian territory. Kerala is

separated from the rest of India by the Western Ghats in the east and the Arabian sea in the

west. The territory of Kerala can be divided into three regions, the high lands, mid lands,

and the low lands. The low land lies close to the sea.

With 590 Kilometer of coastal belt, 4,00,000 Hectares of inland water resources and

about 2,20,000 active Fishermen, Kerala is one of the leading producers of fish in India.

Around 1.1 Million people earn their livelihood from fishing and allied activities.

A very rich marine wealth with a large variety of fish and a highly skilled

population of fishermen have made Kerala a leading producer and consumer of fish. The

high rain fall and a large number of rivers makes the Kerala coast especially fertile for fish.

Fish is a source of livelihood and of rich protein for the fishermen as well as people of

Kerala. The state has fish worker population of about 10 lakhs. The fisheries sector

provides occupation to people directly and much more indirectly, make it a significant

employment providing sector of the state.

FISHING IN KOZHIKODE

Kozhikode District is endowed with a coastline of 71 kilometers, stretching from

Chaliyar to Azhiyoor, and it offers enormous resources for development of fisheries. The

District is rich in brackish water area and there is great scope for shrimp farming too.

In the coastal belt, fishing is the main occupation of a large number of people.

Around 25000 fishermen are directly involved in fishing activities. The allied industries

such as ice plant, freezing and processing units also provide employment to around 5000

people in the District. The fishing industry makes a sizeable contribution to the economy of

the District as well as the State.

STATEMENT OF THE PROBLEM

Fisheries form one of the most important sectors of Kerala’s economy. A fishermen

is someone who captures fish and other animals from the body of water or gathers shell fish.

The savings of fishermen community is comparatively low than the other sections in the

society. The purpose of this study is to get an idea about the savings and the investment

patterns of fishermen community in Kozhikode District.

SCOPE OF THE STUDY

The Fisheries Sector has been playing an important role in the Indian economy by its

contribution to GDP, employment generation, income augmentation, foreign exchange

earning, providing food and nutrition security. This study covers fishermen community in

Puthiyappa, Beypore, Chemboa, Puthiyangadi, Koyilandi and Vellayil areas of Kozhikode

district in Kerala. This study gives due importance to the savings and investment patterns of

fishermen community in Kozhikode District.

OBJECTIVES OF THE STUDY

1. To study the savings and investment patterns of fishermen community.

2. To study the various factors influencing their savings and investment.

3. To create saving habits among fishermen.

4. To make awareness about various savings and investment schemes among them.

HYPOTHESIS OF THE STUDY

1. Most of the fishermen are using LIC as a major investment in their savings.

2. There is a significant relationship between income and savings of fishermen

community.

METHODOLOGY

The data were collected from 120 fishermen in the coastal area of Kozhikode

District. The simple random sampling technique was used to collect the sample to examine

the savings and investment patterns of fishermen community in Kozhikode District. The

Interview Schedule specially designed for the survey. Nearly 130 Interview Schedule were

prepared and issued to the fishermen.

DATA COLLECTION

Both primary and secondary data are used for the study. Primary data have been

collected from the fishermen with the help of Interview Schedule. The secondary data have

been collected from the records of Fisheries Department and other Government

Departments, books, magazines, journals, web sites, news papers and research studies in

related fields.

TOOLS OF ANALYSIS

Data collected through Interview Schedule and secondary data have been analysed

with the help of various statistical tools. Mathematical and statistical techniques like

percentages, averages, graphs, diagrams and chi-square test have been used to analyse the

data.

PERIOD OF THE STUDY

The study was conducted during the year 2013 – 2015 (2013 September – 2015

March). The survey for the study was carried out during the months April and May 2014.

LIMITATIONS OF THE STUDY

1. Some of the fishermen were resistant to give accurate information regarding their

income.

2. The secondary data has been obtained from various reports and publications.

Therefore, the accuracy of the study based on the reliability of the secondary

data.

3. Time period available for the study was limited.

In spite all these limitations an earnest attempt has been made to analyse the

available data tactfully and arrive at meaningful conclusion.

CHAPTER – 2

REVIEW OF LITERATURE

This portion is an evaluation of the available literature on the subject. A lot of

literature and academic study reports are available about the different aspects of fisheries

sector. A brief review of important studies are made below. Here both theoretical as well

as empirical studies are reviewed.

CMFRI (1997)1 points out that fishermen of our country have a distinct tradition of

their own. Majority of the fishermen belong to an economically weaker section. By and

large, they are perennially indebted to the middlemen who advance financial help to them in

times of need in return for their entire catch assessed at a low price. Several factors such as

low social status, poor economic conditions, literacy, heavy inter service of middlemen

traditional fishing equipments and methods of fishing, low production rate and income

influence the socio-economic conditions of fishermen.

Kurien (1981)2 pointed out that there are two reasons for the poverty of fishermen,

namely the inequality in the asset holdings among them and secondly the exploitation of all

of them by those who are involved in the process of buying what they produce. As a result

for the average traditional fishermen, saving from his income for investment is a painful

task. Indebtedness among the fisherfolk is high.

1. CMFRI, Indian Fisheries 1947-77. Issued on the occasion of the fifth session of the Indian Ocean Fishery Commission, Cochin, 1977.

2. Kurien, John, Socio-Economic conditions of Traditional Fishermen, CMFRI Bulletin 1981.

Paul Valiakandathil (1981)3 studied the socio-economic conditions of fishermen in

Poonthura, Kerala. He points out that since fishing is a seasonal occupation, majority of the

fishermen are actively employed for a period of 6 months in a year. Under employment is a

major problem in the area. The scanty income and the numerous demands upon it, keep the

fishermen in a permanent state of bondage to the money lenders.

Libero (1985)4 Investigated the economics of small fisheries particularly, total

catch, costs and returns, employment and income for the different types of crafts and gears

in the Philippine Municipal fishing.

Rajan (1990)5 in his article on Credit and Capital Structure of Small Scale Fishing

Units in Kerala had studies to what extent did fishermen depends on credit for investment in

fishing units and also the association between magnitude of investment and borrowings. He

had analysed the capital structure, debt equity ratio and solvency ratio. He had also

examined the correlation between investment and debt.

3. Paul Valiakandathil, SJ Poonthura, A case study of the socio-economic conditions of fishermen in Kerala.

4. Libero, Mechanisation: Its impact on productivity. Proceedings of the small scale fisheries in Asia Socio-Economic Analysis and Policy, IRDC, Canada, 1985.

5. Rajan J.P. Credit and Capital Structure of Small Scale Fishing Units in Kerala, Fishing Chimes 1990.

Shukla (1990)6 In his article had outlined the basic characteristics of the Indian

Fishery Sector and stated that the contribution of the Indian Fisheries to World Fisheries was

just three percent even though investment to employment ratio was very high. According to

him necessary provisions were to be made in regard to infrastructural, technological,

financial, managerial, policy strategy and other such inputs.

The CMFRI (1998)7 in a study on the socio-economic condition of fishermen in

north west coast of India points out that illiteracy was high (48 – 75%) in all the fishing

villages along the coast. Significant difference existed in the annual income between the

mechanized and non-mechanized groups and also between villages. The level of indebtness

was found to be high in Maharashtra. The Fishermen were not getting remunerative price

for their catch owing to the involvement of middlemen who advanced money and do

marketing of catches. Fishermen remained unemployed and were not able to meet even

their household expenditure during lean season.

Gupta (2006)8 In this work on “Challenges in sustaining and increasing fish

production to combat Hunger and Poverty in Asia” has concluded that while there are amble

opportunities for fish and fisheries to make a major contribution to food and nutritional

security and to contribution to the eradication of the poverty, the number of challenges that

need to be addressed, their requirements and political will, policy change and effective and

efficient implementation. Out fight against hunger is a long process and we need patients,

endurance and great commitment.

6. Shukla, S.M. Undertake Fishery Mahayagna Fishing Chimes 1990.

7. CMFRI special bulletin. And evaluation of Fishermen economy in Maharashtra and Gujarat.

8. Gupta, M.V. Challenges in Sustaining and Increasing Fish Production to Combat Hunger and Poverty in Asia, Naga World Fish Center, Quarterly, INTACT Communication (Pub), Vol. 29, No. 1 2006.

Namasivayam. N. (2007)9 in his article entitled ‘Indian Marine Exports, an

Overview’, observed that the marine food export fetches several crores of foreign exchange

to our country and provide employment opportunities for people directly and indirectly. To

increase of marine food products to various countries, the hurdles such as exim duties, over

tax in the exports is to be taken into consideration with immediate effect.

Chekutty, N.P. (2010)10 writes that the recent phenomena of globalization and

mechanization in fisheries leading to international subsidies, the stringent conditions of

global trade and intense competition for fishing have been a sharp decline in fish catch and

profits leading to poverty, deprivation and consequent anger and discontent amongst the

fisherfolk. This has led to increasing instances of communalism and violence among the

fisherfolk in Kerala over the last few years.

9. Namasivayam. N. Indian Marine Export, an overview, Southern economist, Bangalore 2007.

10. Chekutty, N.P. (2010) – Social and Communal Tensions along the Kerala Coast.

CHAPTER – 3

SAVINGS AND INVESTMENT

“Build today the world of tomorrow”

Saving is income not spend, or deferred consumption. Savings are excess of income

over expenditure for any economic unit. Savings is defined as “income that is not consumed

immediately by having goods and services”.

Savings is putting money aside so that it is readily available for any sudden financial

emergency. It encourages the investment through financial intermediation and flow of funds

in the capital market. The saver has a low risk and short time preference. People save by

abstaining from current consumption needs as a precaution for contingencies and for

increasing their wealth.

The Central Statistical Organisation (CSO) has defined savings as the excess of

current expenditure over income and is a balancing item on the income and outlay accounts

of producing enterprises and households, government’s administration and other final

consumers. For the purpose of estimating domestic savings, the economy in a closed set up

has been divided into three sectors: Household Sector, Private Corporate Sector and Public

Sector. The savings at house hold sector, which account for the bulk of savings, are

measured by the total of financial savings and savings in physical assets. The foreign sector

is the forth sector in an open economy contributing net savings.

INVESTMENT

An investment is a sacrifice of current money or other resources for future benefits.

Numerous avenues of investment are available today. Investment means parking of money

with banks and financial institutions and in certain assets, and earning income through it

during a specified period. It is a tool to meet the financial goals of an individual like buying

a house, buying a vehicle, children education, marriage, meeting unforeseen expenses and

leading a comfortable retired life.

Investment is the allocation of monitory resources to assets that are expected to yield

some returns over a period of time. It involves the commitment of resources which have

been saved with the expectation that some benefits will accrue in future. Investment is a

commitment of funds to derive the future income in the form of interest, dividend, rent,

premium or appreciation in the value of principal capital.

Investment means conversion of money into claims on money or use of funds for

productive and income earning assets. Investment means many things to many persons. For

a saver, investment is lending of funds for an income, capital appreciation or both. An

investment is the current commitment of money or other resources in the expectation of

reaping future benefits.

INVESTMENT ALTERNATIVES

There is a bewildering range of investment alternatives.

1. DEPOSITS

A good portion of the financial assets of individuals is held in the form of deposits.

They can be broadly classified as :-

Bank deposits

Post Office Deposits

Company Fixed Deposits

2. GOVERNMENT SAVING SCHEMES

Government of India offers a number of small saving schemes to individual

investors. These schemes are offered through the Post Office and selected

Banks. The important savings schemes are:-

Public Provident Fund

Senior Citizens Saving Scheme

National Savings Certificate

3. LIFE INSURANCE

Life insurance may be viewed as an investment. Insurance premiums represent the

sacrifice and the assured sum, the benefit. Life Insurance involves both the elements

of protection and investment.

4. MONEY MARKET INVESTMENTS

Debt instruments which have a maturity of less than one year at the time of issue are

called money market instruments. The major money market instruments are:-

Treasury Bills

Certificate of Deposits

Commercial Paper

Repos

5. BONDS OR DEBENTURES

Bonds or debentures represent long term debt instruments. Bonds may be classified

into the following categories:-

Government Securities

PSU Bonds

Debentures of Private Sector Companies

6. EQUITY SHARES

Equity Shares represent ownership of capital. Equity shares are classified into the

following broad categories by stock market analysts:-

Blue Chip Shares

Growth Shares

Income Shares

Cyclical Shares

Speculative Shares

7. MUTUAL FUNDS

Instead of directly buying equity shares and or fixed income instruments, we can

participate in various schemes floated by mutual funds which, in turn invest in equity

shares and fixed income securities. There are three broad types of mutual fund

schemes:-

Equity Schemes

Debt Schemes

Balanced Schemes

8. RETIREMENT PRODUCTS

The important retirement products are:-

Employees Provident Fund Scheme, 1952

Employees Pension Scheme, 1952

New Pension Scheme, 2004

Pension Schemes of Insurance Companies and Mutual

Funds.

9. REAL ESTATE

For the bulk of investors the most important asset in their portfolio is a residential

house. In addition to a residential house, the more affluent investors are likely to be

interested in the following types of real estate:-

Agricultural Land

Semi-Urban Land

Commercial Property

A Resort Home

A Second House

10. PRECIOUS OBJECTS

Precious objects are items that are generally small in size but highly valuable in

monetary terms. The important precious objects are:-

Gold and Silver

Precious Stones

Art Objects

11. FINANCIAL DERIVATIVES

A financial derivative is an instrument whose value is desired from the value

of an underlying asset. The important financial derivatives from the point of view of

investors are:-

Options

Futures

The household sector is the major saver in India and contribute to the bulk of

the total savings that flow into the financial assets which may take any of the forms

of currency, deposits with banks and companies, provident fund, insurance and

corporate shares, bonds etc.


Figure 3.1


ROLE OF SAVINGS AND INVESTMENT IN THE ECONOMY

Growth is a function of savings and investment in the economy, which along with

the capital – output ratio determines the level of income. By increasing investment in fixed

assets, plant, machinery etc., capital formation rises which results in a rise of output

depending on the capital – output ratio. The latter is a ratio of output to capital employed in

any industry. The total capital output ratio for the economy, speaking in macro terms, and

the total volume of investment in the economy would determine the growth of output and

incomes.

In India, the net savers are the household sector whose savings are higher than their

investment, leading to their positive contribution of savings in the economy. On the other

hand, business and government sectors are negative savers in that their investment is higher

than the savings leading to a net negative contribution to the savings of economy.

The economic performance is reflected in the growth of income or GDP and growth

refers to a rise in output and incomes. The rate of growth of income and the distribution of

income are the factors which influence the savings and are a function of the growth process.

STRUCTURE OF THE INDIAN ECONOMY

The structure of Indian Economy consist of primary sector, secondary sector and

tertiary sector. The primary sector consists of Agriculture, Forestry, Fishing, Mining and

Quarrying. The secondary sector comprises Manufacturing, Construction, Electricity etc.

The tertiary sector encompasses the rest of the economy viz., Transport, Communication,

Trade, Finance, Real Estate and other services.

FISHING INDUSTRY

Fishing Industry is one of the important part of the primary sector of the Economy.

Fisheries Sector in India has witnessed an impressive growth from a subsistence traditional

activity to a well developed commercial and diversified enterprise. The fisheries sector has

been playing an important role in the Indian Economy by its contributions to employment

generation, income augmentation foreign exchange earnings, providing food and nutrition

security. In recent years it has emerged as a vibrant sector and is being considered as a

strategic subsector for promoting agricultural diversification.

DEVELOPMENT OF MARINE FISHERIES IN INDIA

Despite the vast fishery resources, the production of fish in India is far from

adequate. India produces only 9% of total supply of fish in Asia, where as Japan contributed

to the extend of 43% and China coming next, to about 18%. The importance of developing

fishery resources lies in the fact that they can act as substitute to our land resources.

However, we have not exploited our marine resources fully.

The Indian Ocean Expenditure has estimated that only 1 to 8 per cent of the fish

available along the Eastern and Western coasts is being caught at present. If better methods

of catching fish are employed, it is possible to increase the fish catch by 10 times. This

indeed would make a tremendous impact on nutritional standards of the people and on

raising the standard of living of our poverty-sticken fishermen as also on our foreign

exchange earnings.

The Government of India has set up the National Fisheries Development Board

(NFDB) to reduce the untapped potential of the fishery sector with the application of

modern tools of research and development including biotechnology.

Even though the subject of fisheries is in the State list in the Indian Constitution

Government of India has launched a comprehensive marine policy in November 2004, with

the objective of boosting fish production so as;

(a) To increase exports of fish and increase per capita consumption of fish within the

country.

(b) To promote economic security of coastal fishermen.

While there has been remarkable improvement in inland fisheries there are some

disturbing trends as well. In the first place, there is danger to river line fisheries because of

growing river pollution. Discharge of untreated effluents from the industrial units located

near the rivers and of urban sullage destroy fish in thousands and millions. Secondly, the

construction of dams, weirs and barrage prevents the free migration of fish to their usual

breeding and feeding grounds and thus adversely affects the stock of fish in rivers.

Accordingly, fisherfolk who have depended on rivers and takes for their livelihood

for centuries, have been forced to give up their hereditary occupation and become land less

labourers in rural areas or migrate to cities and towns in search of employment.

Table 3.1

INLAND FISHERIES STATISTICS – ALL INDIA

Total inland water bodies (Lakh Ha) 73.59

Rivers & Canals (Km) 195210

Reservoirs (Lakh Ha) 29.07

Tanks and Ponds (Lakh Ha) 24.14

Flood plain lakes (Lakh Ha) 7.98

Brackish water (Lakh Ha) 12.40

Fish production in 2012-13 (Lakh tones) 56.32

POLICIES FOR FISHERIES DEVELOPMENT

Policy makers and planners visualize fisheries as an important sector in India. In

every Five Year Plans of India have set up some broad policies with regard to the production

in the fisheries sector and investment in it. The main objectives of fishery development

policies through different plans have been:-

1. Enhancing the production of fish and the productivity of fishermen and the fishing

industry.

2. Generating employment and higher income in fisheries sector.

3. Improving the socio-economic conditions of traditional fisherfolk and fish farmers.

4. Augmenting the export of marine, brackish and fresh water fin and shell fishes and

other aquatic species.

5. Increasing the per capita availability and consumption of fish.

6. Adopting an integrated approach to fisheries and aquaculture.

7. Conservation of aquatic resources and genetic diversity.

A glimpse at the strategies followed in different Five Year Plans reveals that up to

Third Five Year Plan the focus was mainly on enhancing the fish production with little

attention on issues like marketing, storage, transportation etc. However, in subsequent

plans, measures were initiated to create more facilities for ice-cold storage, processing and

canning.

CREDIT SUPPORT SYSTEM FOR FISHERIES DEVELOPMENT

The fishermen in general, are poor and practice traditional farming for want of

financial resources. The need for credit support for facing the emerging market forces and

harnessing the benefits of technological developments has been realized and some measures

have been evolved to enhance the flow of credit to the fisheries sector.

The National Bank for Agriculture and Rural Development (NABARD), as a

refinance agency for commercial banks, co-operative banks and regional rural banks has

been the measure facilitator of credit to the fisheries sector. In view of the brackish water

aqua boom in the early 1990s, many financial institutions like Industrial Finance

Corporation of India (IFCI), Industrial Development Bank of India (IDBI), Shipping Credit

and Investment Company of India (SCICI), State Finance Corporations (SFCs), and

National Co-operative Development Corporation (NCDC) also entered this sector to lend

credit.

Credit support from financial institutes is available for almost all the activities of

fisheries and for creation of infrastructure.

CONSTRAINTS IN FISHERIES DEVELOPMENT

Some weaknesses and threats to the fisheries sector that are hampering the growth of

the fisheries sector are:-

Decline in fish catch.

Depletion of natural resources.

Over exploitation of coastal fisheries.

Weak marketing and extension network.

Work multi-disciplinary approach in fisheries and aquaculture.

Unscientific management of fisheries and aquaculture activities.

Lack of reliable data base relating to aquatic and fisheries resources.

Non-availability of suitable fish yield models for multi-species fisheries.

Inadequate attention to the environmental, economical, social and gender issues

in fisheries and aquaculture.

ROLE OF FISHING INDUSTRY IN THE ECONOMY OF KERALA

According to the available estimates of the potential fishery resources of the West

Coasts. Kerala possesses the richest fishing grounds in the area. The State exports fish

products worth approximately Rs. 1200 crores and has domestic sales worth Rs. 600 crores

annually, accounting for roughly 3% of state revenue. Kerala’s share in the national marine

fish production is about 20%. The high rate of rain fall and the large number of rivers make

Kerala the most fertile for fish. One speciality of the Kerala Coast is mud banks known in

Malayalam as ‘Chakara’. The growing production of fish suggests that Fisheries Sector is

booming and contributing to the economic growth of the state.

GENERAL PROFILE OF KERALA FISHERIES

Table 3.2

Area and Population of Kerala Fisheries

Area of Kerala Population

(2011 census)

38863 Sq. Km.

334.06 Lakh

Fishermen Population (estimate) –

Active Fishermen Population (2013-2014)

10.13 Lakh

233206 Nos.

State Gross Domestic Product 2012-13

Current Prices:

GDP from Fisheries Rs. 511,479 Lakh

Contribution of Fisheries Sector to total State GDP 1.46%

Per Capita Income of Fishermen Rs. 50,491

Table 3.3

Fish / Prawn Production (In Lakh M.T.)

Year Fish Prawn Total

2009-10 6.20 .67 6.87

2010-11 6.15 .66 6.81

2011-12 6.23 .70 6.93

2012-13 6.10 .70 6.80

2013-14 6.41 .67 7.08

Table – 3.4

District wise Distribution of Coastline and Fishermen Population

Sl.

No.

District L

engt

h of

Coa

stli

ne

(Km

s.) Fisherfolk population 2013-14

Marine Inland

Pop

ulat

ion

Act

ive

Fis

herm

en

Pop

ulat

ion

Act

ive

Fis

herm

en

(1) (2) (3) (4) (5) (6) (7)

1 Thiruvanthapuram 78 166954 51274 1398 133

2 Kollam 37 92058 18654 34022 7875

3 Pathanamthitta … … … 2097 193

4 Alappuzha 82 127165 39237 61288 3394

5 Kottayam … … … 24678 4642

6 Idukki … … … 699 75

7 Ernakulam 46 71774 13397 63152 12857

8 Thrissur 54 55391 6101 19575 1076

9 Palakkad … … … 2563 464

10 Malappuram 70 88938 30948 4194 1834

11 Kozhikode 71 97520 21707 11861 1912

12 Wayanad … … … 234 …

13 Kannur 82 37447 5172 6292 1846

14 Kasaragod 70 42909 9903 981 511

TOTAL 590 780156 196393 233034 36813

Table – 3.5

Export of Marine Products From Kerala

Year Quantity

(in MTs)

Value

(Rs in (v.)

% Share of

Quantity

All India

value

2009-10 107293 1670.02 16 17

2010-11 124615 2002.10 15 16

2011-12 155714 2988.34 18 18

2012-13 166399 3435.85 18 18

2013-14 165698 4706.36 17 16

Table 3.6

Annual Fish Production 2013-14

Sl.

No. District

Marine

Quantity (in

MT)

Value (in

Rs. Lakh)

Inland

Quantity (in

MT)

Value (in

Rs. Lakh)

1 Thiruvanthapuram 41836 44199 3705 3042

2 Kollam 105009 111375 21877 21325

3 Pathanamthitta -- -- 2025 2337

4 Alappuzha 1161591 96657 24828 32216

5 Kottayam -- -- 8756 9166

6 Idukki -- -- 1344 3163

7 Ernamkulam 51997 69025 41449 70158

8 Thrissur 63905 80493 25564 24976

9 Palakkad -- -- 22036 16693

10 Malappuram 25155 32303 3543 3352

11 Kozhikode 80050 94347 4561 3788

12 Wayanad -- -- 1005 1659

13 Kannur 22320 29934 3139 2662

14 Kasaragode 15877 18342 22505 10169

Total 522308 576675 186337 204706

Table 3.7

Fresh Water Resources of Kerala

Sl. No. Type Number Area (Ha)

1 Rivers 44 85000

2 Reservoirs 53 42890

3 Irrigation Tanks 852 2853

4 Check Dams 80 260

5 Private Ponds 35763 21985

6 Quarry Ponds 870 341

7 Panchayat Ponds 6848 1487

8 Holy Ponds 2689 480

9 Village Ponds and other water holds 185 496

10 Fresh Water Lakes 9 1620

11 Bunds / Barrier / Shutter water holds 70 880

12 Puncha / Kole Lands 0 68000

Table 3.8

List of Backwaters in Kozhikode

Sl. No. Name of Backwater Area (Ha)

1 Kadalundi Kayal 83.85

2 Korappuzha 1038.08

3 Beypore Kayal 783.74

4 Payyoli Puzha 26.70

5 Kallayi Kayal 160.13

6 Kottappuzha 584.12

7 New Mahe Puzha 88.28

Table 3.9

List of Inland Fishing Villages in Kozhikode

Sl. No. Name of Fishing Villages

1 Karuvanthuruthy

2 Cheruvannur

3 Eranjikal

4 Vengalam

5 Vellur

6 Teragi

7 Ullokadavu

8 Akalappuzha

Table 3.10

Details of Inland Fish Landing Centers in Kozhikode

Taluk Panchayath Landing Centre

Koyilandi

1. Payyoli

2. Chemanchery

3. Ulliyery

1. Murad

2. Korappuzha

3. Kanayam Code Bridge

4. Kuniyilakadavu Palam

Kozhikode

1. Feroke

2. Perumanna

3. Chelannur

4. Thalakkulathur

1. Odassery

2. Petta

3. Manakkadavu

4. Mukkathu Thazham

5. Pulikkal Kadavu

MATSYA SAMRUDHI

(2012-13 to 2014-15)

“Matsyasamrudhi” is an integrated project for the development of inland fisheries and

aquaculture. The programme is being implemented in 14 districts of the State over the

period from 2012-13 to 2014-15 (3 years) by the Department of Fisheries with co-operation

of Local Self Governments. The main objective is to increase inland fish production of the

State. Through “Matsyasamrudhi” it is envisaged to implement diversified aquaculture

programmes for maximum utilization of water bodies of the State.

FISHING COMMUNITY IN KERALA - KOZHIKODE

Kerala’s fishing communities have shared the oceans resources and maintained close

social and economic ties despite cultural and religious differences since a very long time.

Fishing industry occupies an important role in the economy of Kerala.

Kerala’s fishing community has largely been left out of the general development

experience. The socio-economic condition of the fishermen in the State is pitiable, when

compared to the general section of the population. Backwardness is the hall mark of

fishermen. Lack of proper infrastructural facilities causes these religious and communities

to live in relative isolation from the main stream.

The state has a fish worker population of about 10 Lakhs. It is the only source of

livelihood of more than 8 Lakh marine fishermen and out of this, more than 2 Lakhs of

active fisherfolk are engaged in fishing along the coastline, who inhabit in 222 marine

villages.

Based on the definition of Poverty as the inability to secure a minimal standard of

living (National Institute of Rural Development – NIRD, 1998), the majority of coastal

fishers can be defined as poor. In fact, the nature of their livelihood and their living

conditions make them one of the poorest and most marginalized groups in the country.

The socio-economic condition of the fisherfolk in the State is pitiable when

compared to the general section of the population. Backwardness is the hall mark of the

fishermen community.

The main problems of fishing community in Kerala are:-

Low income

Poverty

Poor health conditions

Lack of education

Lack of access to basic services such as;

o Water

o Sanitation

o Electricity etc.

Over crowded living conditions

Malnutrition

Lack of earning opportunities

Depletion of fishery wealth.

The single factor most responsible for the increasing levels of poverty, food

insecurity and vulnerability in fishing communities is the steep decline in availability of fish

in terms of quantity, quality and variety over the last decade.

The seasonal availability of different varieties of fish has become uncertain.

Increased population and market demand on the shore have resulted in the spreading of

catches more thinly across a larger number of people and/or increasing prices to very high

levels and thereby reducing access to fish.

The geographical isolation of fishing communities has a strong bearing on their

poverty and vulnerability and is reflected in their limited access to infrastructure and

development assistance, poor transport and communication systems, alienation, extreme

poverty and vulnerability to natural disasters.

The poverty of fishers is reflected in their substandard housing and sanitation

systems, their meager access to basic amenities such as clean drinking water and health care,

and inadequate transport services. In the fishing sector, poverty and food insecurity are

determined not so much by the prevalence of seasonal unemployment as by the ability of

different sectors of fishers to cope with it. Food insecurity is primarily a seasonal feature

and leads to a host of other maladies. The prevalence of diseases related to hunger and

malnutrition is high in fishing villages, and the problem becomes more serious during the

monsoon period.

On key trend is that fishers cannot afford to eat the fish they catch. The fish species

that were traditionally consumed have become so expensive that fishers consume cheaper

varieties, which are often purchased from markets. Most fishers consume fish less often

than in the past.

Many fishermen families depend on the Public Distribution System (PDS) for their

food supplies. Many diseases are attributable to the unsafe, unhealthy and unhygienic

working and living environment fisher families, and to their poor-health care facilities. Early

marriages, large families and alcoholism contribute to poor health. The Government health-

care systems, though beset by many problems, are still the most important source of health

care for the people.

An outstanding characteristic of a livelihood based on fishing is its exposure to

seasonality. Seasonal unemployment is not a choice but a compulsion, and the ability of

people to cope with this often determines their socio-economic status. This ability in turn

depends on the surplus that the individual during the rest of the year. Where there is

sufficient surplus, the effects of seasonality are not very severe.

The Government and other agencies have already put forces in improving the social

aspect of the Fisheries Industry in Kerala by implementing schemes and programmes like,

Housing Schemes, Insurance cover for fishing implements, pension to Fishermen,

modernization of country crafts, purchase of fishing nets, saving cum relief scheme for the

poor fishermen. The Kerala Swathantra Matsya Thozhilali Federation (KSMTF) established

by the Kerala Fishermen Union works for the socio-economic, political development and

education of the Fishermen Community in Kerala, who are involved in fishing and

marketing of fish both of inland and marine species.

INCOME, SAVINGS AND INVESTMENTS OF FISHERMEN COMMUNITY

IN KOZHIKODE DISTRICT

The annual income, savings and investment and housing facilities are very low along with a

very high level of indebtness among the fishing community. Large sum of money are spent

by them on ceremonies such as births, deaths and marriages.

Fishermen always face a shortage of money. They have a high rate of dependence

on money lenders. They spend all their lives managing the burden of debts. The

standards of living and working conditions do not appear to be comfortable and safe. Their

incomes depend on the games of seasons and vagaries of nature. So savings are not possible

for many and debts are common.

The monthly earnings of fishermen depend greatly on their work, the volume of fish

and other items harvested and sold which are usually influenced by natural conditions and

the manifestations of the market morphology.

The current level of earnings or wages from fishing and trade leaves very little

surplus. Even those households that generate some surplus use it up during the lean periods

or for on going production and consumption needs. A majority of fishers are perpetually

indebted. Borrowings during lean periods has to become constitute a livelihood strategy for

many people. This borrowing from tomorrow may occur through pawning productive

assets, jewellery or family utensils, entering into trade agreements for next season’s catches

or removing children from school to put them to work.

The income of the fishermen is based on the category of the fishing unit they own.

Majority of the families borrow money to meet their expenditure during the lean season

even for buying food. The main reason for the indebtedness of the fishermen depends on

their income and expenditure pattern. The income earned per trip varies according to season

and the number and quality of nets used. During the peak season, they earn in surplus. This

surplus, however, is not sufficient to prevent indebtedness during the lean season when their

earnings are low.

The income of the fishing communities are generally below the poverty line,

especially during the lean period (December – June). Income is not evenly spaced

throughout the year due to seasonality in fishing. The uneven pattern of earnings and

expenditures leads to indebtedness. Earnings from fishing activities are the main source of

their income.

The fishermen family income is based on the size of the family. When the size of

the family increases, the income of the family also increases.

Fishing communities are notorious for their extravagances and lack of savings.

While this partly derives from the low surplus in their wages and the need to apply this

surplus to lean periods, it also has to do with the lack of a saving culture. This in turn may

be attributable to the nature of the fishing occupation, which traditionally – unlike

agriculture and other primary occupations – provided for fishers needs on a daily basis and

in relative abundance. Their investments were low and fishers had relatively few needs that

required cash.

As part of the catch on good fishing days is donated to old people, widows and children, it

can be assumed that even retired fishers had a sense of security. They had no reason to

believe that the future would be any different and so no need to save for a rainy day.

Fishermen get trapped in an endless and hopeless cycle of debt as their borrowing

progressively overwhelms their capacity to repay. Up to 90% of households in a typical

fishing village remain in debt for a good part of the year. As fishers face increasing days of

poor catches or no fishing opportunities at all, many fishing households report and increase

in the number of days that they go hungry.

There is a clear relationship between a family’s number of working person – days

(and more importantly daily earnings) and its food security. Fluctuations in daily earnings

are reflected in the quality, quantity, variety and frequency of food consumption. The

consumption of various food stuffs are determined by the earnings of family numbers at

different times. Cost of food as a percentage of income. In terms of percentage of income

spent on food, estimates varied between different poor groups in a village and also within

the same economic groups in different villages. In general, a large proportion of a poor

households income goes into meeting their food needs.

INVESTMENT PATTERNS OF FISHERMEN COMMUNITY IN

KOZHIKODE DISTRICT

The income of fishermen communities are generally below the poverty line. Their

incomes depend on the season. During the lean period their income is very low. So they do

not have any large sum for investment purpose. The following are the major investment

patterns of fishermen community in Kozhikode District.

1. Bank Deposits:-

Almost every Indian family has investment in the form of bank deposit at some time

or other. In the case of fishermen community also bank deposit is the major

investment. There are various kinds of deposits – Fixed Deposit, Recurring Deposit,

Savings Bank Deposit and Current Deposit. Saving Bank Deposit is the most

popular kind of deposit among fishermen. Savings Bank Deposits indented for

inculcating the habit of saving and developing the tendency of thrift among the

fishermen.

2. Life Insurance Policy:-

Life Insurance also may be viewed as an investment. Insurance premiums represent

the sacrifice and the assured sum, the benefit. Life Insurance policies with low

premium are preferred by the fishermen community in Kozhikode.

3. Chit Fund:-

A chit fund is a kind of savings scheme practiced among fishermen. These schemes

may be conducted by organized financial institutions, or may be unorganized

schemes conducted between friends or relatives. In Kerala chitty is a common

phenomenon practiced by all sectors of the society.

Fishermen community in Kozhikode using these schemes for savings in an

unorganized manner.

4. Post Office Savings:-

A Post Office savings account is similar to savings Bank Account. Small savings

schemes are designed by Indian Postal System to provide safe and attractive

investment options to the public and at the same time to mobilize reasources for

development . The fishermen community in Kozhikode District are rarely using this

scheme for investment.

Cooperatives or Sangams, Savings at Home or with friends etc. are other

forms of investment patterns of Fishermen Community in Kozhikode District.

Investors are savers but all savers cannot be good investors, as investment is

a science and an art. Savings are autonomous and sometimes induced by the

incentives like fiscal concession or income or capital appreciation.

CHAPTER -4

SAVINGS AND INVESTMENTS OF FISHERMEN COMMUNITY – AN ANALYSIS

In this chapter an analysis of data and information relating to the savings and

investments patterns of Fishermen Community has been made. A comprehensive field

survey has been conducted in selected coastal areas of Kozhikode District. A total of 120

fishermen were selected for the study.

Table 4.1

Educational Level of Fishermen

Educational level No. of Fishermen Percentage

Up to Primary 38 32%

Secondary 66 55%

Higher Secondary 10 8%

Degree 4 3%

Others 2 2%

Total 120 100%

As seen in the table out of 120 fishermen 38 fishermen fall in the category of up to

primary level of education. 66 Fishermen are in the Secondary level of education. The

educational level of fishermen community comparatively low with other communities.


55%

Figure 4.1


32%

55%

8%

3% 2%

Up to Primary

Secondary

Higher Secondary

Degree

Others

Up to Primary

Secondary

Higher Secondary

Degree

Others

Table 4.2

Monthly Income of the Fishermen

Sl. No. Monthly

Income

No. of

Fishermen

Relative

Frequency

1 Below 5000 64 0.53

2 5000 – 10,000 38 0.32

3 10,000 – 15,000 16 0.13

4 15,000 – 20,000 2 0.02

5 Above 20,000 0 0

Total 120 1.00

The above table shows that 64 Fishermen earn below Rs. 5,000 per month. 38 persons earn

below Rs. 10,000 per month. From the above table reveals that the fishermen’s income is

very low.

Figure 4.2

Monthly Income of the Fishermen

64

38

16

2 00

10

20

30

40

50

60

70

Below 5000 5000 - 10,000 10,000 -15,000

15,000 -20,000

Above 20,000

No

. of

Fish

erm

en

Monthly Income

Table 4.3

Level of awareness about various investment patterns:-

Sl. No. Types of Investment Level of awareness in %

Yes No

1 Bank Deposit 100% -

2 LIC 100% -

3 Chit Fund 100% -

4 Post Office Savings 88% 12%

5 KSFE 24% 76%

Above analysis reveals that most of the fishermen are knowing about various

investment patterns available in the area.

Figure 4.3

Level of awareness about various investment patterns

100% 100% 100%

88%

24%

0%

20%

40%

60%

80%

100%

120%

Bank Deposit LIC Chit Fund Post Office Savings

KSFE

Leve

l of

awar

en

ess

in %

Types of Investment

Table 4.4

Purpose of Saving and Investment

Sl.

No. Purpose

No. of

Fishermen Rank

1 Home construction / Modification 59 1

2 For purchasing any household product 24 2

3 Education for children 17 3

4 Marriage of daughter 15 4

5 To earn interest 5 5

As revealed by the table 59 fishermen out of 120 were using investment for home

construction or modification. Another important purpose of saving is to purchase any

durable household item in the future.

Figure 4.4

Purpose of Saving and Investment

59

2417 15

50

10

20

30

40

50

60

70

No

. of

Fish

erm

en

Purpose

No. of Fishermen

Investment or Saving Patterns of Fishermen Community

Sl.

No. Types of Investment

1 Banks

2 LIC

3 Chit Fund

4 Post Office

5 Co-operatives / Sangams

6 Others

Above analysis reveals that, Most of the Fishermen Communities in Kozhikode District

made investment in Banks. LIC is the second place in the investment patterns of Fishermen

Community. Post Office and Co


33%

13%

5%3%

Table 4.5


Types of Investment Frequency Cumulative

Frequency

52 52

40 92

16 108

6 114

operatives / Sangams 3 117

3 120



Community. Post Office and Co-operatives / Sangams are the other investment patterns.

Figure 4.5


43%

3%3%

Banks

LIC

Chit Fund

Post Office

Co-operatives / Sangams

Others


%

43%

33%

13%

5%

3%

3%



are the other investment patterns.


operatives / Sangams

Table 4.6

Level of Preference on the Type of Investment

Sl.

No. Types of Investment

Reference

1 Bank Deposits - 5 5 - VERY HIGH

2 Insurance - 4 4 - HIGH

3 Chit Fund - 3 3 - AVERAGE

4 Post Office - 2 2 - POOR

5 Gold - 1 1 - VERY POOR

6 Real Estate – 1

7 KSFE - 1

The above analysis shows that most of the fishermen are preferred Bank deposits as

the major investment. LIC is the second place in their preference on the type of investment.

Local Chit Fund is the another important type of investment among Fishermen Community.

Figure 4.6

Level of Preference on the Type of Investment

5

4

3

2

1 1 1

0

1

2

3

4

5

6

Re

fere

nce

Types of Investment

5 - VERY HIGH

4 – HIGH

3 – AVERAGE

2 – POOR

1 – VERY POOR

Table 4.7

Factors Affecting Savings and Investment

Sl.

No. Factors Frequency

Relative

Frequency

1 Changes in monthly income 38 .32

2 Changes in season 47 .39

3 Borrowings 8 .07

4 Diseases 12 .1

5 Children’s Education 7 .06

6 Unexpected Expenses 5 .04

7 Others 3 .02

Above analysis reveals that changes in season is the most important factor affecting the

savings and investment of Fishermen Community. Changes in the monthly income is the

another important factor affecting saving and investment with a relative frequency of .39.

Figure 4.7

Factors Affecting Savings and Investment

0.32

0.39

0.07

0.1

0.06 0.04 0.02

Changes in monthly income

Changes in season

Borrowings

Diseases

Children’s Education

Unexpected Expenses

Sl.

No. Range of Investment

1 Below 10% of Income

2 10% - 15%

3 15% - 20%

4 20% - 25%

5 Above 25%

The above table reveals that 62% of fishermen are saving only 10% of their income.

fishermen are saving below 15% of their income. Nobody save more than 20% of their

income.

40

Table 4.8

Range / Level of Investment

Range of Investment No. of

Fishermen %

Below 10% of Income 74 62

40 33

6 5

- -

- -

The above table reveals that 62% of fishermen are saving only 10% of their income.


Figure 4.8

Range / Level of Investment

74

6

0

0

Below 10% of Income

10% - 15%

15% - 20%

20% - 25%

Above 25%

Rank

1

2

3

-

-

The above table reveals that 62% of fishermen are saving only 10% of their income. 33% of


Below 10% of Income

Table 4.9

Frequency of Investment

Sl. No. Frequency of

Investment

No. of

Fishermen %

1 Daily 17 14%

2 Monthly 60 50%

3 Quarterly 25 21%

4 Half Yearly 6 5%

5 Annually 12 10%

Total 120 100%

The above table reveals 17 out of 120 fishermen make investment on daily basis.

60 Fishermen make investment on monthly basis. The rest of the fishermen make

investment on quarterly, half yearly and annually basis.

Figure 4.9

Frequency of Investment

17

60

25

6

12

Daily

Monthly

Quarterly

Half Yearly

Annually

TESTING OF HYPOTHESIS

FIRST HYPOTHESIS

Most of the Fishermen are using LIC as a major investment in their savings.

RESULT

This hypothesis was tested by using chi-square test. The chi-square value was 31.9.

The critical value of x2 at 5% level of significance with 5 d.f = 11.1.

Since x2 = 31.9 > 11.1, so this hypothesis was rejected. From the analysis and test

reveals that most of the fishermen are using Bank Deposits as a major investment in their

savings.

SECOND HYPOTHESIS

There is a significant relationship between income and savings of Fishermen

Community.

RESULT

The analysis and test reveals that there is close relationship between income and

savings. Most of the fishermen saves a small percentage of their income (Table No. 4.8), if

the income will increase, savings will also be increased. So there is a close relationship

between income and savings of Fishermen Community.

CHAPTER -5

SUMMARY, FINDING, SUGGESTIONS & CONCLUSION

Fisheries Sector plays an important role in the socio-economic development of our

country. The development of fisheries in India can go a long way to tackle the problem of

food as well as unemployment. An analysis of savings and investment patterns of

Fishermen Community in Kozhikode District reveals that most of the fishermen do not have

more amount of savings and investment. They do not tally their income with their

expenditure, it definitely affects their savings and investments.

FINDINGS:

The present study highlights some of the major findings are as follows:-

Most of the fishermen do not have large amount of savings.

The socio-economic conditions of the fishermen of Kozhikode District are very poor.

The amount of money saved depends on the income earned during the period.

Majority of the fishermen monthly income belonged to the income group of below

Rs. 5,000.

Bank deposits, LIC and Chit Fund are the important investments of Fishermen

Community in Kozhikode District.

Levels of Income of Fishermen Community influenced by the nature in terms of rain,

tides, storms etc.

Major part of the income is used for food, cloth and shelter and spending small

amount for education and health care.

The habits of savings and investment do not seen to be popular among fishermen

community of Kozhikode District.

Fishermen spends more amount for personal habits such as smoking and drinking.

Fishermen have not understood the importance and benefits of savings also.

Fishermen are getting disproportionate income per month during lean and peak

season.

SUGGESTIONS:

District authorities should arrange awareness classes relating to saving habits and

investment.

Banks and other financial institutions make necessary arrangements for collecting

the savings from Fishermen Community on daily or weekly basis.

Give more attention to post-harvest operations.

To promote the welfare of fishermen and their households.

To ensure social security and economic well being of fishermen.

Reduce fishing pressure in the traditional fishing area.

More markets and processing units should be open for the marketing of the fish.

Technological development in fisheries would make the fish available at cheaper

rates to the consumers.

Development of export market would be crucial to realize the gains from

technological progress.

More technical devices should be introduced in the fisheries industry. It will enable

the fishermen to catch more fish and it will help to earn more income.

CONCLUSION

Fisheries is a Sunrise Sector of our economy. Growing urbanization, globalization

and rapidly changing social structures had a major impact on the fisheries structure in the

country. Its role in increasing food supply, generating job opportunities, raising nutritional

level and earning foreign exchange has been important. Fish production plays an important

role in the socio-economic life of Kerala. Kerala is a leading fish producing state in the

country.

In spite of tremendous increase in the GDP income of the Government of India, from

the Fisheries Sector during the last two decades, the standard of living of the Fishermen all

over India still remains unchanged. In this situation it is essential to take steps to improve

their income and reduces their expenditure to obtain socio-economic balanced society. The

fishermen should be encouraged to get proper education in order to plan their budget and

flourish their life. They should be motivated and educated to save the surplus of their

income for their future and for the nation. It will boost up our economy.

--

INTERVIEW SCHEDULE

A study on Savings and Investment Patterns of Fishermen Community in Kozhikode

District:

1. Name :

2. Area / Place of residence :

3. Gender :

4. Age :

5. Marital Status:

Married Unmarried Others

6. Education:

Up to Primary Secondary

Higher Secondary Degree Others

7. Family structure:

Nuclear Extended Joint

8. Number of Earning Members in Family :

9. Monthly Income (Self)

Below Rs. 5000 Rs. 5000 – 10,000

Rs. 10,000 – 15,000 Rs. 15,000 – 20,000

Above 20,000

10. Do you have saving habit?

Yes No

11. Are you aware about various types of Investment Patterns?

Yes No

12. From the following list identify the type of investment options that you are aware of:

Sl. No. Type of Investment Yes No

1 Bank Deposit

2 LIC / Insurance

3 Chitti (Local)

4 Post Office Savings

5 KSFE

6 Gold

7 Mutual Fund / Securities

13. For what purpose do you save?

Home Construction Education for children

Marriage of daughter To earn interest

For purchasing any household items

14. Where do you save?

Banks Chit Fund

Insurance Post Office Savings

Co-operatives / Others

15. Please give appropriate score based on your level of preference on the following type

of investment patterns:

Bank Deposits Insurance

Chit Funds (Local) Post Office Savings

Gold Real Estate

KSFE

5 Very High

4 High

3 Average

2 Poor

1 Very Poor

16. What are the main factors affecting your savings and investment?

Changes in Monthly Income Seasonal changes

Diseases Children’s Education

Borrowings Unexpected Expenses

Others

17. How much of your income is used for investment purpose?

Below 10% of Income 10% – 15%

15% – 20% 20% - 25%

Above 25%

18. What is the frequency of your investment?

Daily Quarterly Annually

Monthly Half Yearly

19. Are you aware about new investment avenues?

Yes No

20. From where?

TV Internet Newspaper

Friends / Co-workers Financial Consultants

Business Magazines Others

Any other things you might like to mention regarding your investment pattern?

BIBLIOGRAPHY

GAURAV DATT Indian Economy ASHWANI MAHAJAN S. Chand Publications [2014] V. NEELAMEGAM - Business Environment Vrinda Publications [2014]

V.A. AVADHANI - Marketing of Financial Services Himalaya Publishing House [2014] M. MOTIHAR - Insurance Sharda Pustak Bhavan [2014] MOHAMMED ARIF - Security Analysis and Portfolio PASHA Management Vrinda Publications [2012]

DAVID G. LUENBERGER - Investment Science Oxford University Press [2012]

C. MURTHY - Research Methodology Vrinda Publications [2013] Dr. KRISHNASWAMY Methodology of Research in Social Sciences M. RANGANATHAM Himalaya Publishing House [2014] I.M. PANDEY - Financial Management Vikas publishing House [2014] RANJITH KUMAR - Research Methodology Pearson [2014]

PUNITHAVATHY - Security, Analysis and Portfolio Management PANDIAN Vikas Publishing House [2013] PRASANNA CHANDRA - Investment Analysis and Portfolio Management

TATA Mc. Graw Hill Education Pvt. Ltd. [2013] C.R. KOTHARI Research Methodology GAURAV GARG New Age International Publishers [2014] SATISH K. MATTA - Management of Financial Institutions and Services Vrinda Publications [2013] E. NARAYAN A. NADAR - Money and Banking PHI Learning Pvt. Ltd. [2013]

A STUDY ON SAVINGS AND INVESTMENT PATTERNS OF ...

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