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Input Use Efficiency and Income Distribution of Small Scale Marine Fishing in Bangladesh

Asad Bin Rashid
Researcher
Researcher, `Impact, Monitoring and Evaluation Cell', PROSHIKA, Manobik Unnayan Kendra, Head Office, Dhaka

Rayhan Hayat Sarwer
Research Officer,
Research Officer, DFID-BAU LPP Project, Bangladesh Agricultural University, Mymensingh 2202.

Abstract/ Executive Summary:

The study was carried out to examine the input use efficiency of setbag net and longline marine fishing technologies and also to determine the sharing system and income distribution between the boat owners and fishermen. Two hundred fishing firms were randomly selected as 100 from setbag nets and 100 from longline fishing firms. Cobb-Douglas production function technique was employed to examine the input use efficiency. In the case of setbag net, all the explanatory variables were statistically significant and positive in increasing the revenue except the food cost which had a negative impact on fishing. In longline fishing, number of hooks, fuel and lubricant cost, and crew cost had negative impact on marine fishing while capacity of boat, ice and salt cost, experience of fishermen were positive to explain the variation in marine fish revenue. Small scale m2i-ine fishing generated large income for fishermen but the income distribution among the concerned fishermen appeared to be inequitable and exploitative. The fishermen have currently been facing some serious problems in fishing activities. Further steps such as rational sharing system favorable for crews, regulations on fishing to restore fish stock to maintain the level of fish prices, life insurance for fishermen and stopping the piracy of fishes and nets by law enforcing agencies and improvement of fishing techniques may be needed for sustainable fisheries policies in Bangladesh.

Keywords: Input use efficiency,Income distribution,Small scale, Marine fising

Location: Cox's Bazar and Chittagong from south-east as well as Barisal and Potuakhali from southwest coastal areas

Start Date: 00-00-2004

End Date:

Program Area: Socio-economic and Policy

Commodity: Marine fish

Objectives:

i. To justify the efficiency of inputs used in fish production of sethag and longline fishing in small marine fishing;

ii. To study the nature of income distribution and variation in the share system of distributing marine earnings

iii. To identify some basic problems and recommend some policy implications for the development of small scale marine fishing in Bangladesh

Methodology:

The data were collected from small scale marine fishing farms through field survey. Cox's Bazar and Chittagong from south-east as well as Barisal and Potuakhali from southwest coastal areas were purposively selected to collect required data. Considering all the small scale marine fishing technologies, two important gears such as setbag net and longline were selected and then 100 fishing firms for setbag net and 100 fishing firms for longline were randomly selected. Data were collected for the year of 2004.The Cobb-Douglas production function in a log linear form was employed to estimate the contribution of inputs in fish production by setbag net technique. The estimated equation was: In (revenue) =1n a + b1ln (capacity of boat) + b2ln (ice and salt) + b3 In (mouth of net) + b4 In (experience) + b5ln (food) + b6ln (crew cost) + Ui Another Cobb-Douglas productions function in a log linear form for longline fishing was employed to estimate the contribution of inputs in fish production and the equation was:In (revenue) = In a + blln (capacity of boat) + b2ln (fuel and lubricant) + b3ln (ice and salt) + b4ln (crew cost) + b5ln (hooks) + b6ln (experience) + Ui Where, revenue = revenue earned from catch (Tk); capacity of boat = holding capacity of boat (mt); fuel and lubricant = fuel and lubricant cost (Tk); ice and salt = ice and salt cost (Tk); crew cost = cost expended for crews (labour involved in fishing except boat owner) (Tk); hooks = number of hooks (No.); mouth of net = length of mouth of net (metre); experience = experience of fishermen (years); food = food cost (Tk); In = natural logarithm; a = constant or intercept value; b; = coefficients to be estimated and Ui= disturbance term with appropriate properties. To assess the efficiency of inputs for each type of technology, the assumptions such as (i) all the fishing units were exploiting the same fisheries in the same fishing ground or place at the same time and (ii) according to the minimum outlays of fishing, fishermen in each gear had to achieve and raise their catch as well as the revenue were considered. Simple tabular analysis was applied to deal with collected data from fishermen regarding income sharing systems in marine fishing areas in Bangladesh.

Source of Information: Bangladesh J. Agric. Econs XXVIII, 1 &2 (2005) 109-116

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The estimated production function of setbag net fishing reveals that the coefficients of capacity of boat, ice and salt cost, mouth of net, experience of fishermen, and number of crew are positive and significant in the function which declared a positive signal for scope of increasing revenue by more using those inputs, with the only exception of the variable named food cost which is negative but significant. In case of longline, the regression coefficients are negative for the variable of fuel and lubricant cost, crew cost, number of hooks but they are significant. So the farmers of longline fishing can take very careful plan for further use of these inputs in future which will increase their return for marine fishing. Cyclone and bad weather is the main of other problems and the highest number of fishermen expect a solution form government authority. Some basic and crucial problems in marine fishing are reported by fishermen and fishing concerned people need to solve shortly to enhance and strengthen this fishing sector in Bangladesh. Income sharing arrangement is interesting and peculiar as 50 percent of share is captured by boat owners though the crews did not claim it as problem. It is also evident from the study that the sharing arrangement between the boat owner and fishermen was not rational. Income sharing system is inequitable and exploitative for the labour fishermen. It is more claimable in case of income sharing of longline marine fishing since boat owners capture 60 percent share of total revenue.

Knowledge Management: Journal