Rising diesel prices and labour costs, which increased by 200 per cent and 50 per cent respectively in the last two years, have put the fishing boat owners' margins under pressure.
While raw material costs are skyrocketing, the cost of fish and other sea-related species increased only by 30 per cent, and in some cases rates have in fact dropped by 60 per cent.
Till two years ago, boat owners spent around Rs 5,000 for a single trip, which included both diesel and labour costs. This has now increased to Rs 10,000. Earlier, profit margin was over 100 per cent but currently, this is less than 10-15 per cent, said Carl Marx, a boat owner.
For a single trip, a boat needs 150-200 litres of diesel. Till five-six years ago, a barrel of diesel cost Rs 150 to Rs 200, which has increased to Rs 6,000-7,000, he noted.
Similarly, salaries paid to the drivers and others too have gone up by 30 per cent to 50 per cent. A couple of years ago, the daily salary of a driver was Rs 500, now it’s just doubled, said Anbe Raj another fishing boat owner.
On the other hand, the price of prawn, which fetches huge sums for the fishermen community in Rameswaram district, has dropped 33 per cent to Rs 500 from Rs 750 two years ago.
Fishermen attribute the drop in price to poor infrastructure and less competition. There are no cold storages in the district.
“Since fish is a perishable item we have to sell as soon as we catch it,” said U Arulanandam, a fisherman.