Fishing sector caught between lockdown and unkind govts

Around 95% of boat owners, fishers, vendors and others in the sector are facing a serious crisis
Fishing vessels docked at Thoppumpady harbour. They will return to sea only after the trawling ban is lifted |  Albin Mathew
Fishing vessels docked at Thoppumpady harbour. They will return to sea only after the trawling ban is lifted |  Albin Mathew

KOCHI: "This is the worst misfortune we ever encountered. It is very difficult to claw back to normal life. We are not thinking of suicide as it is against our religion,” said Mohammed Haneefa Haji, a fishing boat owner at Beypore, holding a bunch of attachment notices served by banks.

“I have six fishing boats and three of them are financed by banks. Everything went normal till the announcement of lockdown in March 2020. If one boat doesn’t get enough fish another will compensate and I could repay the loan EMI on time. However, we are not able to operate for the past 15 months and there is no income. The authorities talk about a moratorium but the banks don’t bother. I had
pledged my house as surety for the loan and the banks may attach it any time,” said Haneefa Haji in a broken voice.

This is not a one-off incident. The crisis triggered by lockdown has turned catastrophic for the fishing sector. Around 95 per cent of the mechanised fishing boat owners, traditional fishermen, vendors, fish processing unit owners and exporters are facing an unprecedented crisis.

“The price of diesel has touched Rs 93 per litre. For a week-long fishing expedition, we need diesel worth Rs 5 lakh. The wages, daily bata, ice blocks and food supplies are other expenses. The repair and maintenance of boats and fishing gear are additional expenses. We should get a catch worth Rs 8 lakh to get some returns, which is only a dream nowadays. Last year we operated boats for just
sixty days and this year there is no improvement,” said Munambam - Vypin Fishing Sector Protection Committee chairman P P Gireesh.

The fishing boat operators association has approached the Union Fishing Ministry demanding to include diesel under the GST regime.

“The biggest challenge is the rising price of diesel now. Besides the anti-fishermen attitude of the Kerala government has added to the crisis. While the annual license fee in neighbouring states like Karnataka and Tamil Nadu is only Rs 3,500, it is Rs 52,000 in Kerala. Besides, the fisheries authorities impose a hefty fine in the name of juvenile fishing. If the situation continues the fishing industry may migrate to other states,” said Gireesh.

Loan sharks prey on traditional fishermen

The situation is even more pathetic in the traditional fishing sector, which is the livelihood of 10 lakh people. "We had availed a Rs 6 lakh bank loan to purchase a motorised country craft worth Rs 12 lakh. We are not able to venture into the sea due to the lockdown restrictions. The bank may attach out property any time,” said Shaji, a fisherman at Arthungal in Alappuzha.

The fishermen had repaired their boats ahead of monsoon fishing season, but the harbours are declared containment zones and they are not able to venture into the sea. “The fishermen in Arthungal have to go to Vypin in Ernakulam district to launch their boats as there is no harbour in Alappuzha district. They hire trucks to take the craft to Vypin, but the police stop them and slap hefty fine in
the name of lockdown. The government has provided kits, but is it enough to survive? We need money to meet our medical expenses,” said Swatantra Matsya Thozhilali Federation Alappuzha district president Raju Asrayam.

The biggest menace in the coastal hamlets is the exploitation by loan sharks. Most of the fishermen have taken loans from auctioneers who take away a portion of the daily catch and collect exorbitant rates of interest. As the catch and prices fluctuate, the fishermen are forced to depend on private money lenders.

“The fishermen in Alappuzha got a good catch of shrimps on Monday. However, the prices plunge from Rs 250 per kg to Rs 110 per kg. There is no demand for fish due to the lockdown. We have urged the government to provide some monetary support through the Fishermen Welfare Board,” said Swatantra Matsya Thozhilali Federation state president Jackson Pollayil.

Export sector in shambles

The fish processing and export sector have incurred huge loss due to the global lockdown that has disrupted supply chains. Many fish processing units in Kochi are on the verge of shutdown unable to bear the mounting losses. “There is a steep decline in the availability of fish as almost all the harbours are closed. The peeling units have been shut and the processing units are forced to store raw fish. The hopes of revival have suffered a blow as many of the buyers are bankrupt and have shut down their units. We have to find new buyers to restore business after the lockdown,” said Seafood Exporters Association of India Kerala region president Alex K Ninan.

The exports have been affected by the steep rise in freight charges, which went up to Rs 7.5 lakh per container from Rs 2.5 lakh in November 2020. As the export turnover has come down, the banks are refusing to renew credit facilities to the units. The banks have started threatening to declare the loan accounts of exporters as nonperforming assets (NPA). “We have approached the Union Commerce ministry seeking to declare a moratorium on loans. Many processing and export units have incurred huge losses and are struggling to survive,” he said.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com