1. NIKHIL . P
2nd SEMESTER

2. Introduction
India has vast potential for fisheries from both inland
and marine resources. It has a large marine product and
processing potential with varied fish resources along
the 8041-km long coastline, 28000 km of rivers and
millions of hectares of reservoirs & brackish water. The
wide variety of fish resources found in Indian inland
waters, coastal areas and deep seas comprising India’s
Exclusive Economic Zone has a large potential of
growth.

3. WHAT IS PROCESSING ?
Nutritionally, fish is a very important source of easily digestible, high
quality protein, vitamins and fats not obtainable in such high
concentrations elsewhere. Nonetheless, fish is a highly perishable foodstuff
and spoils very fast unless appropriate preservation and processing
techniques are applied for increasing shelf life of fish.

4. Global scenario
The net earnings rose from US $ 5200 millions in 1985 to
US $ 15600 million in ’99.
Thailand and Norway are the world’s major exporters of fish
products in value terms accounting for 16% each of total world
trade.
Europe is the leading region in sea food export with 40% of
total sea food production
Tuna, cephalopods, prawns are most exported globally.

5. Indian Scenario
India exports today marine products worth Rs 5124.6 Cr, covering 60
commodities. The share of marine products in total export earnings is around
3.4%. The share of Frozen shrimp in the export earnings is very high and
contributes about 65 –70 % of the total export earnings
Establishments connected with marine products export (as registered with
MPEDA, 1996), include 625 exporters (380 manufacturer-exporters and 240
merchant-exporters), 376 freezing plants, 13 canning plants, 4 in the agar-
agar industry, 149 ice plants, 15 fish meal plants, 903 shrimp peeling plants,
451 cold storage units, and 3 chitosan/chitin plants, with 95% of the seafood
processing units concentrated in 20major clusters in 9 states.
The total installed freezing capacity is 7 500 tons per day, and the commercial
production is mostly export oriented.

6. Technological changes in processing units
1) Developments of canning industry
2) New freezing techniques (IQF)
3) Changes in quality assessment & management process in quality control
4) Introduction of value added marine product
5) Development of subsidiary processing industries with fish by products

7. There are three types of costs in processing plant
3)Cost of initial investment
5)Operational cost
7)Fixed cost

8. Cost Sheet :
What are the production inputs?
A. Initial investment
Item Quantity Cost ( INR)
Land
Freezing plant
Cold storage
Canning retort
Electrification
Water supply
channels
Vehicles
Other Plant & Machinery
Total

9. B. Operational cost
Item Rate Value
Raw material cost
Cost of ice
Wages
Cost of packaging material
1) polythene
2)Straps clips
3)carton
4)Cost of fuel, electricity
5)Cost of freon
6)Inspection fee
Administrative expenses (salary)
Telephone charges
selling expenses
a)Flight charges
b)Advertisement charges
Total

10. C) Fixed cost
Item Rate Value
Depreciation of machinery
Depreciation of vehicles
Cost of finance
1)Interest on packing material
2)Interest on bank loans
3)Sales tax
Total

11. Final estimates
TOTAL INVESTMENT
TOTAL FIXED COST
TOTAL VARIABLE COST
TOTAL COST
TOTAL REVENUE
GROSS PROFIT
[Total Revenue- Total Variable cost]
NET PROFIT
[Total Revenue – Total Cost]
PAY BACK PERIOD
[Investment / Net profit]
RATE OF INVESTMENT
[Net profit/Investment]
BREAK EVEN SALES
[Fixed cost x Sales /(Sales – Variable cost)]

12. CONCLUSION
THE PROFITABILITY INDICATORS
ESTIMATED WERE
Total returns
Gross profit
Net profit
Return to capital
Input-output ratio