Economic Viability of Pangasius Aquaculture in HDPE-Lined Farm Ponds: Evidence from Belagavi District, Karnataka, India

Abstract

Belagavi district of Karnataka witnessed establishment of more than 22,000 HDPE (high-density polyethylene) lined farm pond across the district since last decade. These farm ponds range in size from 400 sqm to 8000 sqm provides good opportunity for farming fish. Having greater demand in and around the district, Pangasius farming was introduced by ICAR-Krishi Vigyan Kendra, Belagavi-1 and found to be gradually adapted by local farmers. A comprehensive study on economic feasibility of Pangasius farming in farm ponds were undertaken keeping Carps (Catla, Rohu, Common carp and Mrigal) as control.  The socio-economic pattern reveals that younger age group with higher education tend to adapt the newer ventures like aquaculture. Larger families with greater land and financial resources exhibited greater interest to adapt fast growing species like Pangasius that involves significant investment. Though the cost of production of Pangasius (₹. 4,12,788.12/-per acre) was significantly higher than Carps (₹.1,74,498.79/-per acre), the gross return from Pangasius was ₹.6,16,377.05/-which is substantially higher than the gross income from Carps. The financial feasibility studies showed that Payback period for carps at 2.82 years compared to just 1.65 years in Pangasius. Net Present Value of @12% in carps were ₹. 13,560 compared to ₹. 2,05,548 in Pangasius.  Pangasius have also shown greater IRR at 34.04% compared to 15.65% from Carps. The sensitively analysis by increasing feed value 10% and reducing market price of fish by 10% also confirmed that Pangasius is more resilient, profitable, and hence suitable for farming in HDPE lined farm pond compared to carps.