Aquaculture which includes the rearing and rearing of fish in a pen is called pisciculture. These fish are sold as food and at present, fish farming is emerging as the fastest growing sector in the production of animal feed. Fish from the sea and rivers alone are not sufficient for human consumption and half of the fish consumed in the world are raised in these unreal environments. The most common varieties of farmed fish are salmon, halibut, cod, tuna and trout.
Due to the extreme demand for fish in India, starting a fish farming business can be a good option for the Indian people. At present, fish farming is not limited to only fishermen and people living in coastal areas, but many businessmen and entrepreneurs from all kinds of sectors are entering the country’s fishing industry. New technologies such as aquaponics and fish tank farming have made it easy for us to start fish farming in the smallest space. The country’s main banks finance fishing activities such as sea, inland and brackish fishing.
What is NABARD and what programs are available for fish farmers
NABARD is the acronym used for the National Bank of Agriculture and Rural Development, which is a financial institution established by the government to support and promote rural development and sustainable agriculture in the country. The functions include the generation of new technologies, financial solutions, non-financial solutions and the development of institutions.
The main activities and functions undertaken under NABARD include:
– Support for the financing and refinancing of the improvement of rural infrastructure
– Preparation of the credit plan at district level and administration of rural banks and cooperative banks.
– Provides funds for the development of food parks and food processing units for certain food parks. Apart from that, it also lends its services to warehouses, cold chain and storage infrastructure.
– Assists marketing federations by providing credit facilities and also provides specialized irrigation and long term infrastructure development funds for rural India.
– Develop good banking practices for the backward regions of India and provide training to artisans in the country and also help in the marketing of products.
– NABARD developed the SHG Bank Linkage project and is considered one of the most remarkable microfinance projects at the international level.
– NABARD has financed nearly a fifth of India’s rural population and infrastructure. The Kisan credit card is also developed by NABARD.
Fishing varieties in India:
India sits at 2sd place in inland fish production relative to the global level. Few states like Andhra Pradesh and West Bengal produce the highest numbers. In PA, cooperatives are created to get into fish farming. The varieties of fisheries include: inland fisheries (fresh water like ponds, rivers, etc.) and marine fisheries (brackish water and sea).
Credit granting from banks and eligible activities for fish farming:
The directives already in force suggest that the formulation of the project and its financing within the framework of the investment credit; the cost of operations as well as the recurrent cost of the very first operational cycle will be included in the investment cost. As for the surplus that will be generated during the first cycle, it should ideally be sufficient for the following recurring expenses. Another scenario is where the borrower has already benefited from a bank investment loan could require additional additional credit to increase working capital operations. Yet another scenario, where the fisherman has not used investment credit but needs working capital assistance. In view of all these situations, banks assess the need for credit in real time and only real or genuine cases are given priority according to the funding scales provided by the DLTC (District Technical Committee).
List of eligible activities financed by banks:
– Aquaculture related to inland fisheries such as fish farming, tank fishing, integrated farming, shrimp farming, shrimp hatchery, ornamental fish farming, hatchery and fish farming Pisces.
– Brackish water aquaculture such as aquatic shrimp farming, shrimp hatchery, brackish water fish culture and fish hatchery.
– Aquaculture linked to marine fisheries such as the culture of edible oysters, the culture of pearl oysters and the culture of mussels, algae and fish.
– Marine or continental capture fisheries.
Renewal of fishermen’s credit accounts:
The fisherman’s cash credit account is renewed if the operations of this account are deemed satisfactory. Nothing is past due for more than a year, and the total repayments made are not less than the maximum amount outstanding below the credit limit in a year.
Eligibility standards for programs under NABARD:
The person who wishes to benefit from the program must own or rent one of the items below:
– Lake, pond or reservoir
– Open water bodies
– Hatchery and runway
– Livestock farms
– Fishing properties that are allowed
The beneficiaries can be the professionals or associations below:
– Marine fisheries that have associations with state fisheries and related activities, have a fishing license in the bay and have chartered or registered boats
– Individual or association of fish farmers
– SHG (Support group)
– Joint and several liability groups
– Women’s groups
Security for the bank:
Banks may require collateral from individual fishermen or a group of fishermen, in accordance with guidelines issued by the RBI.
Interest rate (NABARD) within the framework of fish farming systems:
The financing solutions offered by NABARD include a minimum interest rate of 4.5% per year. Short and long term refinancing as well as the direct loan option are offered by NABARD. The duration of the refinancing is between 1 and a half and 5 years.
– Projects sanctioned by the state government. terminate other entities supported by the state government. will bear an interest rate as applicable under the RIDF (Rural Infrastructure Development Fund) of NABARD, the discount rate applicable at the time of the sanction will be less than 1.5%, the RBI will decide the rate of ‘discount every time.
– With regard to the other categories, the interest rate applied on the term loan will be linked to the PLR (Prime Lending Rate) of NABARD, the risk premium on the borrowing entity will be the basis of the risk taking. If a project’s risk score is less than 60 (minimum rate of return), then loan aid is not provided for such projects. The rating of the agency is based on the total number of ratings obtained by the entity. On this applicable risk premium will be added beyond the PLR of NABARD. The risk premium can increase from 0.01 to 0.03% per year depending on the risk taking. NABARD’s current PLR is 7.45%.
Grants and loans granted by NABARD for fish farming:
A grant is provided for several works such as landscaping the pond, building a new pond, inputs for the first year, etc. Implemented by most state governments. as part of a centralized sponsor subsidy program through FFDAs (Fish Farmers Development Agency).
The borrowers eligible for a loan include: – Individual – Company – Partnership company – Cooperative company – Group of fish farmers and – Companies or organizations or groups of producers depending on the amount of the bank loan and the agency granting the loan. ready. All banks have free will to decide their interest rate under guidelines issued by the RBI. Regardless, the final borrowing rate has been kept at 13%, so that the bankability of the model project is not affected. Refinancing rate: NABARD refinancing can be used for the establishment of cold storage facilities taking into account its feasibility and financial viability. Refinancing is available to be entered in accordance with applicable regulations and standards. NABARD offers fish farming refinancing aid to cooperatives and commercial and rural banks. The refinancing rate is not fixed and changes from time to time.
Most government cases. subsidized loan programs supported, it is mandatory to obtain a bank loan to qualify for the subsidy. Promoters should be careful when deciding how to fund. Bank loans covering around 75-90% of the total development cost will be available from financing institutions. For this kind of models, bank loans cover about 75%.
Other NABARD services:
– Monitoring and evaluation of different projects
– Support for the implementation, monitoring and evaluation of projects benefiting from external aid
– Management of the auction and fishing cooperatives