An assessment on fish value chain dynamics and finance in the eastern Uttar Pradesh

In this study, the fragmented and integrated value chains of fish have been analysed on the basis of various performance indices. The study examined the cost and returns in fish farming, pattern and access of the finance in the value chains. The study is based on extensive field survey and interaction with fish farmers and value chain actors. A multi-stage purposive-cum-stratified random sampling design was adopted to select study areas and respondents. The findings of the present study show that the fish cultivation had a high-cost orientation and hence, greater investment. The fragmented value chains were found efficient than integrated chains but depended on indirect formal ‘outside the value chain’ finance. The integrated value chains provided direct informal “within the value chain” finance that was buyer driven signifying economic opportunities to the downstream chain actors (commission agents, wholesalers, retailers) as these received comparatively higher proportionate share than actors up the value chain (fish producers). Hence, study suggested that there was a need to develop “producer-driven” financing model as alternative of the “buyer-driven model” which was prevalent for financing the value chains of fish promoting fish farmers organizations as a long terms financing strategies of financing institutions.