A statement of cost elements in running mechanical trawlers in Kerala

Abstract

Economic viability or economic efficiency is equally an important aspect in fishing industry in addition to technical efficiency. Even if a fishing unit is technically efficient but economically not viable, it is not considered suitable for long running. Reduction in fleet size of mechanised trawlers since 2000 might be associated with the decreased economic viability of trawl units which would be resulted in termination of the units. An estimation of capital investment and annual expenditure, details of elements of each type of cost and a comparison of all these among different size category are the results described. Role of fuel cost in operational cost is also portrayed.Through the study, it is proved that capital cost and other annual expenditure are in linear relationship with the size of trawler. The capital investment of mechanised trawlers in Kerala found to be ranged from 0.45 to 13.74 million rupees depending on the size. Comparing the components of capital investment of wooden and steel trawlers, cost of vessel is the major contributor in steel vessels but in wooden trawlers, it is contributing less compared to trawl nets and accessories. Annual fixed cost of mechanised trawlers in Kerala ranged from 0.3 to 2.5 million rupees. It is higher in large and very large trawlers and decreasing with respect to size of the trawler. The contribution of trawlers towards insurance found to be negligible as Matsyafed is giving insurance to fishing vessels at a very low cost ranging from 250 to 350 rupees. Operational cost, which is the most significant economic factor in case of trawlers found to increasing with size of trawlers depending on the rate of fuel consumption. Annual operational cost of trawlers in Kerala ranged from 1.21 to 14.52 million rupees during the study period. Among the components of operational cost, fuel cost found to be major contributor followed by fishermen share, repair and maintenance cost and other remaining costs. Operational cost found to be the major contributor in total annual cost of mechanised trawlers contributing 73 to 85% depending on their size.