CMAPTEE -

RESEAECfl
METHODOLOeif
 C H A P T E R III R E S E A R C H METHODOLOGY

3.1 INTRODUCTION

This chapter describes the research strategy and methodology followed to

achieve the objectives of the study and explains the choice for selecting research tools
and the methods for data collection. It also describes the selection of the research site,
the identification of survey targets within and associated with the shrimp farming
sector, the consequent sanq)ling structure and strategy. Finally, it describes the
process of negotiating to obtain information and gather the necessary data, the major
tools used to analyse the data, the constraints encountered in these, and the means
en^loyed to overcome them.

3.2 RESEARCH

India is focusing on gaining knowledge in the field of aquaculture and several

research institutes have been founded. For instance, the Indian Council of Agricultural
Research (ICAR) has eight fisheries research institutes of which three focus on
aquaculture: The Central Institute of Freshwater Aquaculture (CIFA) in Bhubaneswar
focuses on fi-eshwater aquaculture, the Central Institute of Brackish Water
Aquaculture (CIBA) in Chennai deals with brackish water aquaculture and the Central
Marine Fisheries Research Institute (CMFRI) in Kochi researches marine fisheries.
Additionally, the National Research Center for Coldwater Fisheries in Bhimtal
focuses on cold water fisheries and aquaculture, Mumbai has a Central Institute of
Fisheries Education (CIFE) and several other universities have separate fisheries
colleges that undertake aquaculture research. In Hyderabad, the National Fisheries
Development Board (NFDB), part of the Ministry of Agriculture, is active on
providing training, production, storage and transport in the field of aquaculture and
fisheries. Additionally, the Aquaculture Foundation of India is a non-governmental
organization promoting fisheries and aquaculture. Opportunities for knowledge
sharing may exist here. Specifically Wageningen University indicates that it can
contribute to improvement of genetics and has a large expertise on the production of
catfish, a priority of the Indian government. For knowledge and research institutes, it
is worthwhile to mention that different Indian research organisations are examining
the development of sustainable aquaculture. Opportunities for international

54
 knowledge institutions can therefore be found in cooperation with Indian
counterparts. France and AustraHa have cooperated with the Central Institute of
Brackish Water Aquaculture (CIBA) and Norway (AKVAFORSK) cooperated with
CIFA on a breeding programme for a carp species in fresh water aquaculture.
Additionally, the introduction of Recirculation Aquaculture Systems and the
necessary institutional reforms can offer opportunities for foreign involvement.

3.3 RESEARCH PROBLEM

Gujarat had ranked second in terms of area available for brackish water culture
but in terms of area under cultivation it lags far behind other states as of the total
estimated potential brackish water area of over 3.7 lakh ha available in Gujarat, the
state had brought only 0.5 per cent i.e. about 1,916 ha of area under brackish water
culture, noted the study prepared by The ASSOCHAM Economic Research Bureau
(AERB). However, Gujarat is the only coastal state where area under brackish water
culture has increased by about 48 per cent i.e. from 1,297 hectares (ha) in 2005-06 to
1,916 ha as of 2009-10, added the study.
In spite of the enormous potential and the revenue generation, the sector is
facing unevenness in the marketing price. The supply chain study will reflect the price
gap and the benefit incurred by different marketing channels.
The basic problems in developing Fishing business in this area are:
v^ Lack of indigenous expertise, technology, trained skilled personnel.
^ The entrepreneurs' interest in high capital investment is very poor.
^ The standard infrastructure facilities for fish processing and marketing is below the
standard level,
^ The export knowledge among the fishing community is low.
•^ The transportation plays a vital role in export, essentially on perishable goods like fish
and fish products.
Prime Minister Narendra Modi quoted as "after Green and White Revolution
in India, it is tune for Blue revolution to exploit the huge potential in fisheries sector"
at 86th ICAR foundation day. Aquaculture has increased the supply of fish for
consimiption and contributed to improving livelihood for thousands of household in
Gujarat. (Bhalerao, 2011) reported that although the aquaculture industry has grown
significantly over the years its full potential has not yet been realized and fast

55
 development is required to keep pace with the growing demand of fishery products.
According to (Patel, 2009) shrimps are traditionally cultured along the coast for a long
time and are of great importance in the economy of fishermen along coastal areas of
Gujarat State. At present, shrimp farming areas are rapidly expanding horizontally
due to the increasing demand of shrimps in the international market. The fish being
highly perishable item, needs cleanliness and hygiene at all stages, from catching,
transportation, processing, exporting and till it is consumed. The success of fishermen
depends on skilful management in the area of production, processing and marketing
of fishes. All private or cooperative fishing enterprises are not running on successful
lines, some of them are being weak and others being strong due to above mentioned
reasons.
Fish fanning will have three benefits firstly, increase in the farmers income
secondly, there will be progress in the country's export and GDP and thirdly it will
ensure nutritional and food security in the country. India has first place in the world in
the area of shrimp fish and it is the largest exporter of shrimp fish.

3.4 RESEARCH OBJECTIVES

3.4.1 PRIMARY OBJECTIVES

1. To study the demographic profile of the shrimp farmers in four districts.

2. To study the association between demographic profile and income of the shrimp
farmers.
3. To study marketing functions and marketing margin of supply chain.
4. To study marketing efficiency of different value chains.

3.4.2 SECONDARY OBJECTIVES

1. To study the factors affecting shrimp harvesting, pricing and selling.

2. To identify the constraints as perceived by the farmers and various intermediaries in
the market supply chain.
3. To suggest suitable strategies to enhance the efficiency in shrimp marketing.

56
3.5 SIGNIFICANCE OFTHE STUDY

This study is deeming significant and helpfUl for aquatic cultured farmers,
processors, customers and for academic purpose. Developing of cultured shrimp
creates employment, generating revenue through export the produce and ultimately it
could affect the economy. Industry can generate money in dollars through export of
produce. It could also affect society upliftment by giving healthy food, employment,
industry expansion through processing units and traders. Non vegetarian people could
get sea foods in a convenient way instead of poultry items which are very harmful for
health due to some reasons. Among all the sea food items, frozen shrimp played a
vital role for generating revenue. Even farmers should focus on by products of
shrimp. Shrimp shells can be used for manufacturing plastic bottles which are used for
packaged drinking water, glasses, tea and ice cream cups and plates which are used
during marriages and other functions. From the result of the study, the shrimp farmers
can derive a better understanding about the marketing of shrimp in domestic or export
level towards their business. Hence, the study triggers producers to improve and
ultimately gain profitability as improvement may lead to higher prices.

3.6 SCOPE OFTHE STUDY

The study in its scope includes supply chain practices adopted by shrimp
farmers of 4 districts of South Gujarat namely Bharuch, Suraty Valsad and NavsarL
The study will cover all the supply chain processes from the production to export. The
shrimp supply chain in South Gujarat was studied by visiting each and every village
^- —
where farming is going on._
he over exploitation of shrimp from coastal waters and the ever increasing
demand for shrimp and shrimp products in the world market has resulted in the wide
gap between the demand and supply in the International market. This has necessitated
the need for exploring newer avenues for increasing shrimp production. The estimated
brackish water area suitable for undertaking shrimp cultivation in India around 11.91
lakh ha spread over 10 states and union territories viz. West Bengal, Orissa, Andhra
Pradesh, Tamil Nadu, Pondicherry, Kerala, Kamataka, Goa, Maharashtra and Gujarat.
Hence lot of scope exists for entrepreneurs to venture into this field of activity. The
figure of scope for fisheries in Gujarat states as shown in table 3. It clearly indicates

57
that brackish water area is nearby south Gujarat and Saurashtra regions are suitable
for cultured fishing. Develop that area more so that our economy can improve.
Fisheries Resources

^ ^ R«ervior
B B ConiniMid Are*
'''-' RannofKachcKh
-h
FIGURE 3. 1; BRACKISHWATER AREA IN GUJARAT.

SOURCE: [COMMISSIONER OF FISHERIES , 2012-13)

Shrimp farming has been practiced in India for centuries on a traditional

manner in certain coastal state. Scientific shrimp farming was developed during the
early 1980s. Thousands of hectares of coastal lands were converted into shrimp
farming. Shrimp farming activities in Gujarat state are also not uncommon at present.
Gujarat is having 1,600 km long coastline and a vast stretches of brackish water area
throughout the coastline which is ideal for shrimp culture. Shrimp farming activities
developed fast in the last decade. Numbers of shrimp farms have been constructed in
the coastal districts of state. The information gathered on shrimp supply chain
followed with reference to marketing channels, storage, grading, and marketing will
be useful in successful management of shrimp farming. These observations will also
be useful to improve the marketing of shrimp and to sustain the shrimp aquaculture
business in the state. Marketing of aquaculture products in South Gujarat is becoming
diverse and enhancing aquacuhure production and rural livelihoods.

58
3.7 SELECTION OF THE STUDY AREAS
Shrimp farming has been practiced in India for centuries on a traditional manner in
certain coastal state. Scientific shrimp farming was developed during the early 1980s.
Thousands of hectares of coastal lands were converted into shrimp farming. Shrimp
farming activities in Gujarat state are also not uncommon at present. Gujarat is
having 1,600 km long coastline and a vast stretches of brackish water area throughout
the coastline which is ideal for shrimp culture. Shrimp farming activities developed
fast in the last decade. Numbers of shrimp farms have been constructed in the coastal
districts of state. Major activities have been carried out in South Gujarat coast than on
Saurashlra coast.
TABLE 3. 1: NUMBER OF REGISTERED AQUATIC CULTURED FARMERS IN GUJARAT [AS ON
2014)

Name of ^'
District

m
1
Bharuch

Surat VR
flB|
I
i Navsari ^^jj
i
k Valsad *^^S

r-
1
Junagadh
Amreli

i_ Total
Porbandar

HI ^^1
Source: (Coastal Aquaculture Authority, 2014)
The present study has been undertaken with the objective to gather
information on supply chain of shrimp farming followed by the shrimp farmers of the
state. The shrimp supply chain in South Gujarat was studied by visiting each and
every village where farming is going on. The shrimp farming activities were mainly
carried out in the districts of South Gujarat like Valsad, Navsari, Surat and Bharuch.
Gujarat had ranked second in terms of area available for brackish water culture but in
terms of area under cultivation it lags far behind other states as of the total estimated
potential brackish water area of over 3.7 lakh ha available in Gujarat, the state had
brought only 0.5 per cent i.e. about 1,916 ha of area under brackish water culture,
noted the study prepared by The ASSOCHAM Economic Research Bureau (AERB).

m
However, Gujarat is the only coastal state where area under brackish water culture has
increased by about 48 per cent i.e. from 1,297 hectares (ha) in 2005-06 to 1,916 ha as
of 2009-10, added the study.
TABLE 3. 2: STUDY PROCESS OF SUPPLY CHAIN

IPIRSS^ Step 1 ^^^^^1^Step 2 ^ ^ ^ B Step 3 ^ ^ 1Hitep4 Step 5 WM

Process Literature Review In-depth PRA Quantitative Data
J "^ Qualitative Survey Analysis
Survey ^
Tools Secondary Key Informant Stakeholders, Field Tabular
literature, Key Interview, Field Local People Survey, Key analysis,
informant Survey Consultation Informant frequency
Interview, Project Interview distribution,
^H documents review SPSS
software
Output Comprehensive In-depth Validation of Quantitative Quantify
checklist of analysis of the the fmdings data on the finding as
^ ^ ^ ^ probable value chain. from in- value chain, per report
^^^H bottlenecks, In- value chain depth production objectives
^^^H depth competitiveness qualitative and
^^^H questionnaire for , its constraints survey marketing
^^^H preliminary and market practices
^^^B assessment potential 'fli
3.8 TARGET GROUPS ASSOCIATED WITH THE SHRIMP FARMING
SECTOR

A large number of people's livelihoods are associated with shrimp farming,

including shrimp farmers, shrimp traders and others (Kendrick, 1994) (Rutherford,
1994). Individuals and families are involved, and the role of women is also
significant.
To examine the hypothesis of the study, the following groups of people were
identified:

3.8.1 SHRIMP FARMERS

In the study area, a large number of people earn their livelihood in shrimp
farming and its associated activities. Farmers culture shrimp in their fields, which are
modified to make the typical pond systems. It is reported that a few farmers are from
solvent families who own land, but other have very little cash, and almost all 'small
and marginal's shrimp farmers are poor. According to (Sinha & Sampath, 1994)
small-scale prawn farmers were generally the poorest and the most disadvantaged

60
sector of the society. Most of these farmers live in the rural areas and also work as
seasonal labourers or as part-time farmers or occasional wage earners in order to
supplement their family Income.
According to (Chandrasekera, 1994), prawn farmers have traditionally been a
socially neglected class in both Muslim and Hindu society. (Rahman, 1994) noted that
fishing was considered as a low-class profession. The standard of living of these
farmers is commonly very low and they are considered to lack basic needs such as
sanitary facilities, housing, electricity, drinking water supply, education, health and
medical facilities. According to (Hannan, 1994), many prawn farmers are highly
dependent on middlemen. According to (Kendrick, 1994) small and marginal farmers
are those who have less than 1 ha land, while (Rutherford, 1994) noted that small
farmers are those who have less than 0.8 ha (two acres) land or moneylenders who
provide money and take the lion's share of total earnings. They are in a chain of
indebtedness to those moneylenders, because the farmers are reluctant to approach
commercial banks for credit, as the procedures involved are too complex and
cumbersome (Chandrasekera, 1994). Moneylenders have therefore developed strong
bonds with the prawn farmers and are reported to have a strong hold on them.

3.8.2 WOMEN

The role of women in the prawn related activities is potentially very important,
and as gender issues are commonly a key area of understanding in terms of social
impact and the potential for changing livelihoods, it is important to consider the role
of women in the areas. According to (Kendrick, 1994), women are involved in a great
variety of agricultural activities.

3.8.3 TRADERS

Prawn traders are locally known (owners) who are small prawn businessmen.
According to (Rutherford, 1994), their premises are modest - they might have a small
rented tin-shed warehouse-cum-office equipped with a portable ice chest in a market,
and few handle large amounts of capital. Many traders are engaged in prawn trading
during the season (November to January). Their role is to collect prawns from farmers
and supply them to larger processing and export companies within 1 to 2 days of

61
harvest. Their role as suppHers of income, and often credit, to small farmers, may be
crucial in the overall social and economic network.
It was the aim of the study to understand more clearly how these groups are
identified, how they interact, and what implications this has for the hypothesis stated
earher. The broad approach has been to develop estimates of the numbers of each
category (cross checking with each group), and to structure data collection to ensure
that representative responses are obtained.

3.9 DATA COLLECTION PROCESS

Data can be collected mainly by observation, documentary-historical methods,

and survey methods. Surveys may be of different types, such as personal interviews,
telephone interviews, mail survey, and panel or group surveys (Lin, 1976). The
importance of interviewing as a research technique has come about as a result of the
need by researchers to come into contact with respondents, to obtain access to the
facts and opinion and to receive them directly. This technique of data collection is
particularly useful in gathering data on issues such as past experience and motives,
which is not possible using contemporary observation (Snow & Thomas, 1994).
The primary data is collected by interviewing the farmers, who are presently
doing the culture and also from the farmers who have abandoned the culture recently.
The opinions of the stake holders including, feed manufacturers, seed suppliers,
hatcheries operators, farm labourers, operators and owners of processing and storage
plant units are also taken. Certain information is also gathered from the shrimp
exporters. The secondary data is collected from the Department of Fisheries (DoF),
Government of Gujarat, Marine Products Export Development
Authority, (MP ED A), Ministry of Commerce and Industry Govenmient of India,
National Centre for Sustainable Aquaculture (NaCSA), a society of MPEDA,
National Fisheries Development Board (NFDB) Department of Animal Husbandry &
Dairying and Fisheries, Ministry of Agriculture, Govenmient of India, Food and
Agricultural Organisation (FAO) of United Nations Organisation, college of
Fisheries, Navsari Agricultural University, Navsari.

62
3.9.1 QUESTIONNAIRE INTERVIEWS

According to (Theis & Grady, 1991) "questionnaire survey research is the

most popular social research method, and is commonly used by universities and
research institutions, as well as government and non-governmental organisations". It
derives much of its popularity from its formal and standardised research techniques,
which produce quantifiable, representative, verifiable, and comparable data, which
can be statistically analysed. Questionnaire surveys are still the most common method
used for "central uppers" to learn about the lives and conditions of "peripheral lowers"
(Chambers, 1997). (Casley & Lury, 1981) defined "questionnaires" as a group or
source of questions designed to elicit information upon a subject, or sequence of
subjects, from an informant". Unless very carefully designed and conducted,
questionnaire surveys used to gain insights, especially for project formulation, may
select and simplify reality, often mislead, and can simply reconfirm the realities of
uppers, missing local complexity and diversity (Guijit & Pretty, 1992).
Questionnaire interviews may either be structured or unstructured depending on the
degree of standardization imposed on the interview schedule. Hence, a highly
structured interview is one where the questions asked and the responses permitted are
completely pre-determined i.e. 'closed', while in a highly unstructured interview, the
questions to be asked are only loosely pre-determined, and respondents are free to
respond in their own words. In practice, the choice is not between these two extremes,
but between many degrees of formality. Some researchers have advocated the semi
structured or focus interview, where questions are mainly open-ended, but in which
closed questions can also be included (Maccoby & Maccoby, 1976).
For this study the personal interview using semi-structured interview
schedules were employed as the primary method of collecting data from different
groups. This technique was preferred to others for the following reasons:
1) More detailed qualitative information was required, that could not have been
achieved through structured interviews. Due to practical and cultural constraints, it
was also inappropriate to use mail or telephone surveys. Personal interviews also offer
the most potential for the use of open-ended questions and questions requiring visual
aids, whilst in telephone interviews, for example, open-ended questions are difficult to
use and questions requiring visual aids are impossible to use (Neuman, 1994).

63
2) Personal interviews have the highest response rates and permit the use of long
questionnaires. They also enable researchers to use extensive probes (Neuman, 1994).
3) The personal face-to-face interview technique was deemed appropriate for studying
in developing countries, where the level of education attained by most of the
population is basic (Kholo, 1991), and clarifications of questions are necessary to
obtain a conplete response. (Kelmer & Noy, 1990) noted that the personal interview
allows the interviewer an opportunity to clarify the interpretation of the terms being
used. Structured and closed questionnaires could be utilized relatively successililly in
more educated communities where the respondents themselves were capable enough
of understanding questions and when they realise the responsibility to respond truly
and fiilly. These conditions are unlikely to prevail in many developing countries
(Kholo, 1991).
4) Face-to-face interviews with mostly open-ended questions are also effective in
developing and exploring issues which might not have been apparent in initial stages.
Suggestions for using more uncontrolled techniques for data gathering are available in
the literature on collection strategy ( (Mintzberg, 1994) (Snow & Thomas, 1994)).
Personal interviewing, however, has some limitations, of which researcher and
interviewee biases are considered to be the most serious (Duhaime & Grant, 1994).
The technique of standardizing interviews across sample groups, as suggested by
these authors, was used to minimize the researcher bias in the study. The interviewee
bias was at least partially controlled by questions posed as probes during the
interview. Cross check questions were also incorporated in the interview schedule. In
many instances, it was necessary to take supplementary notes for responses, to gain a
better qualitative understanding of the main issues of the research.

3.9.2 PARTICIPATORY RAPID APPRAISAL [PRA)

Participatory Rapid Appraisal (PRA) is a specific form of Rapid Rural

Appraisal (RRA), a research technique developed in the late 1970s and early 1980s by
researchers in the international development as an alternative and con^lement to
conventional sample surveys (Theis & Grady, 1991). PRA is a reversal of
conventional, researcher-driven process of enquiring to aiming learn from rural
people, directly, on the site, and face-to face, gaining from local physical, technical
and social knowledge (Chambers, 1992). PRA is an intensive, systematic but semi-

64
structured learning experience carried out in a community, and has a range of
potential applications in aquaculture (Muir, Brugere, Young, & Stewart, 1999).
(Chambers, 1997) stated that PRA is a group of methods to collect information from
rural communities in a participatory fashion. The advantage of PRA over other
methods is that through wider participation of the community, the information
collected is likely to be more accurate.
PRA methods usually engage the commitment and analysis of local people,
enable the expression and sharing of their diverse and complex realities, give insights
into their values, needs and priorities, and can also lead on into participatory action
(Guijit & Pretty, 1992). (Townsley, 1996) noted that PRA allows local people to
present their own priorities for development and get them incorporated into
development plans. Where aquaculture is identified as a priority during the course of a
PRA, planners can be more certain that this responds to a real need among local
people, whether that is for increased income, better fish supply or more intensive
water use and management.
For this study, PRA tools such as Focus Group Discussion (FGD) were used
to get an overview of particular issues from all target groups. In this method, small
groups of people who are knowledgeable or who are interested in the topics are
invited to participate. According to (Theis & Grady, 1991), FGD is a group meeting
where people from the target communities discuss selected topics. The participation
of a range of people from the community provides an opportunity for cross checking
individual opinions as well as allowing the community to discuss the issues that they
feel are important, rather than responding to a questionnaire.

3.10 QUESTIONNAIRE DESIGN AND DEVELOPMENT

3.10.1 SURVEY DESIGN

The interview schedule for shrimp farmers was divided into 4 sections, which
mainly addressed the issues of personal and family details, socio-economic status, and
shrimp farming information and marketing or selling of their produce. The first
section of the interview schedule was for personal information of the respondents and
their families. The second section explored detailed information about farmer's
conditions, including income, expenditure, housing condition, drinking water, health
and other facilities. The third section related to shrimp farming, culture systems,
_
production technology, production, finance of shrimp farming, credit, production
costs, return, profit etc. The fourth section related to place of selling shrimp, grading,
pricing, market information, supplier of seeds, buyer of shrimp, constraints, export
standard etc. The other two sets of questionnaires for intermediaries and exporter cum
processors were divided into 3 sections, which mainly addressed the personal details,
market related information and constraints. The first section of the interview schedule
was for personal information of the respondents and their families. The second section
explored detailed information about suppliers, buyers of shrimp, distribution channels,
expenditures of transportation etc. The third section related to constraints faced by
them individually.
The other one questionnaire for women was simpler, focusing in only one
section about the respondent's social and economic conditions. The last questionnaires
for consumers and super stores/restaurants were simple. They were fi"om domestic as
well as international markets about the detailed consumption pattern. All the
questionnaires were constructed in English and then translated to Gujarati during
face-to-face interview. As suggested by (Easterby-Smith, Thrope, & Lowe, 1991) a
translated copy of the interview schedules was carried during the interview mainly to
present to the interviewees in case they might ask for it. Although the questions in all
five sets of the interview schedules were open-ended, there were some closed
questions as well, with a number of alternative replies. Closed questions were divided
into questions of fact and questions of perception, and were designed to obtain
responses easily and quickly. Some questions were also designed as cross-references.
A study of methods used in previous research studies on shrimp as well as fish
farming ((Nuruzzaman, 1989) (Hannan, 1994) (Nuruzzaman A. , 1994) (Rahman,
1994)) was conducted before setting the questions on the interview schedule.
However, some modifications of questions and phrases were done after first phase
field visit and pre testing of the interview schedule; this was normally done in the
course of a pilot survey.

3.10.2 PRE-TESTING OF INTERVIEW SCHEDULES

Pilot testing of the interview schedules was carried out with 10 shrimp
farmers, 5 intermediaries, 1 exporter, 2 experts, 3 vendors and 5 women. The aim of
the pilot test was to ensure that the questions and issues regarding the subject of the

66
study were included in the schedules and cleared from any ambiguities and that the
respondents could answer questions without significant constraint. The sophistication
of the respondents, the level of enumerator, and the wording of the questions were
matched (Casley & Lury, 1981). Some of the respondents, in the first instance, did not
show any interest in taking part in the interview. Reactions of respondents to some of
the questions suggested that they would not talk freely unless they conpletely trusted
the interviewer. Attention was therefore paid to communicating well with potential
respondents to guarantee as many positive interviews as possible.
However, some respondents were suspicious about the identity of the
researcher and were reluctant to talk unless the association of farmers, experts and
traders gave the respondents a 'green light'. This happened mainly with those who had
no formal education. Co-operation from the association was therefore sought,
whenever possible, for interviewing these respondents. Although the reactions and
responses of the farmers and intermediaries were generally positive, this was not
always so when they were asked questions on costs, returns or incomes, with data
supplied based mainly on 'guess-work'. Most farmers and other related people in
shrimp farming did not have any proper notebooks of account, and therefore, great
care had to be taken in compiling financial information. It was also observed during
the pre-testing that a few questions were not clearly understood by the respondents.
Hence, some questions were dropped, and a number of additional questions added.
The sequence, phrasing and language of some questions were also changed.

3.11 SAMPLE SIZE

According to McMillan and Schumacher (1989), the determination of sample

size should take into consideration several factors; such as - the type of research,
research hypothesis, financial constraints, the importance of the results, the number of
variable studies, the method of data collection, and the degree of accuracy needed. For
this study, the san^^le sizes for different groups were selected in following ways:
Shrimp Farmers:
To identify the Shrimp farmers sample size, the fnst stage was purposive
sampling and the second stage i.e. convenience sampling method carried out. The
population of shrimp farmers was finite and registered applicants were 753 as per
report. Some of the registered applicants were from the same family, just names were

67
different but operator and handler was same person of the family. Sometimes, one
family had 3 or 4 registered applicants. In that case, researcher counted as 1. Because
they had same pattern of pond preparation, marketing, seed suppHers and buyer of
shrimp. From the above condition, shrimp farmers san^)Ie size was determined at 105
where the samples for each zone distributed as minimum number (25).

TABLE 3 . 3 : DATA COLLECTION METHODS AND SAMPLE SIZE FOR TARGET GROUPS

Target Groups Zone/ area Sample Size Data collection methods

Shrimp Valsad 27 Questionnaire interviews
Farmers Navsari 27 PRA tools such as FGD
Surat 26 Transect walk
Bharuch 25 Cross check interviews
Totall05 with key informants
Exporters cum Bilimora & 2 ^ Questionnaire interviews
Processors Surat v" Cross check interviews
with key informants
Intermediaries Valsad 5 ^ Questionnaire interviews
Navsari 5 y Transect walk
Surat 5 V Cross check interviews
Bharuch 5 with key informants
Total 20
Vendors Navsari 12 Questionnaire interviews
Valsad PRA tools such as FGD
• Transect walk
Women Valsad 5 • PRA tools such as FGD
Navsari 5 • Interviews with a list of
Surat 5 questions (not
Bharuch 5 questionnaire)
Total 20
*Sample numbers are indicated only for questionnaire interviews
Exporters cum Processors:
For other associated groups, considerable numbers of samples were selected
after discussion with Experts, MPEDA and Fisheries Officers where sample numbers
were 2. There were only 2 processors in south Gujarat region that shrimp farmers
were connected. Other big group shrimp farmers and associations were directly
contacted processors from Mumbai whoever given best prices.

68
Intermediaries:
Intermediaries sample size were 20 where the samples for each zone
distributed as equal number (5). Sonie of the shrimp farmers were acted like
intermediaries in some cases.
Vendors:
Vendors sample size was 12. They were interviewed because of domestic
marketing functions of shrimp. Sometimes shrimp farmers were selling low grade
shrimp in domestic market.
Women:
There was no data for the participation of women in shrimp farming.
Therefore the sample size for women was selected at 20, where the samples for each
zone distributed as equal number (5).
Others:
For other associated groups, considerable numbers of samples were selected
after discussion with experts, technical expert, agricultural officers, fisheries
^
department, MPEDA and CIBA. ~
3.12 SAMPLING TECHNIQUE

The researcher used Non Probabilistic Sampling Technique to collect the data.
This technique was used as registered fishermen Ust was not available. On this basis
the researcher collected data from 4 districts.

3.13 SURVEY OPERATIONS

3.13.1 DATA COLLECTION METHODS _

1. SHRIMP FARMERS
Shrimp farmer data were collected by using transect walk, questionnaire
interviews, PRA and cross check interviews with key informants (Figiu*e 3.2).

Cross check
Questionnaire PRA tools such interviews
Transect walk
interviews asFGD with key
informants

FIGURE 3. 2: STEPS OF DATA COLLECTION METHODS FROM SHRIMP FARMERS.

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First stage: Transect walk
Transect walk is a data collection method to know about a village by walking
through the village as far as practicable in a straight transect line, allowing
investigators talking with villagers and through observation (Chambers, 1997). As it
was difficult to know the complete study area by walking, due to the large distances
involved, a motorbike and a guide were used to cross a zone by cross section along
the possible roads. The motorbike was stopped about half kilometer from shrimp
farming areas to allow walking into the area, and discussion with farmers as well
other community people. During discussions, lists of questions were asked to the
people. At every stopping place, around 5 to 10 people, including shrimp farmers
were spontaneously presented, where at least 30 minutes was spent for discussion.
Approximately numbers of discussions were conducted in this step for each zone with
one week required for a zone, and a month for the four zones. This method was used
to get a quick picture of the shrimp farming areas and their farming systems. This step
was also useful for building up rapport with shrimp farmers, to assist in the next
stage's data collection.
Second stage: Questionnaire interviews

For questionnaire interviews, two sampling methods were followed for 100
farmers by purposive sampling and convenience sampling methods. Shrimp farmers
were classified in to four zones by districts. In each zone, 25 shrimp farmers were
selected by convenience sampling method. Farmers were interviewed at their houses
and/or farm sites. In a given day approximately 2 to 5 interviews were conducted,
where each interview required about an hour. Therefore two weeks needed to fill up
25 questionnaires in each zone, a total of two months for four zones.
Third stage: PRA

PRA tools such as focus group discussion (FGD) was used to get an overview
of particular issues such as social and economic conditions, social impact, constraints
of shrimp fanning etc. FGD sessions were held on shrimp sites, farmer's houses
wherever there were spontaneous gatherings and where participants can sit, feel
comfortable and are easily observed. A total of 2 FGD sessions were conducted in
each zone, where each group size of FGD was 4 to 8 members and duration was
approximately an hour. (Theis & Grady, 1991) noted that small groups of people (6 to
12) are most suitable for focus group discussions.

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Fourth stage: Cross check interviews with key informants
Cross check interviews were conducted with key informants such as school
teachers, local leaders, Fisheries Officers, Project staff and workers, where
information was contradictory or requested further assessment. The interviews of
respondents were conducted in their offices and/or houses. The time required for this
stage was two weeks for the four zones. According to (Theis & Grady, 1991), a key
informant is anyone who has special knowledge on a particular topic. Key informants
are expected to be able to answer questions in a relatively important way about the
knowledge and behavior of others, and especially about the operations of the broader
systems. Valuable key informants are outsiders who live in the community or people
from neighbouring communities, including people who have married into the
community. Though preferred groups with specific status (e.g. school teachers) may
be particularly useful care has to be taken to ensure that their own bias may not
influence descriptions. During pilot survey, it was observed that people did not wish
to take part for more than an hour.
2. EXPORTERS CUM PROCESSORS
There were only 2 processors in south Gujarat region; they were contacted by
mail or telephone. Even though, Researcher used some references for interview.
Interviews were conducted at the office with their officers by questioimaire
interviews. One is West Coast in Surat and other one is Shri Dutt, Bilimora. The time
taken for an interview was about 15 minutes. After data collection, cross check
interviews were conducted with key informants.
3. INTERMEDIARIES/MIDDLEMEN
For Intermediaries/Middlemen, questionnaire interviews were conducted.
Some of were acted shrimp farmers as well as middlemen. They were provided seed,
feed, and guidance to the small farmers with some percentage commission or contract
of selling the produce with them only. They were played big role in this shrimp
supply chain.
4. VENDORS
For vendors, questionnaire interviews and PRA tools such as FGD were
conducted at their own auction sites or domestic/local market. They were only
available in the morning on their sites with their busy schedule. 12 vendors were
interviewed by convenience sampling method at Navsari and Valsad district. The

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time taken for an interview was about 20 minutes. Generally they were dealt with the
wild cultured shrimp, very less with the pond cultured shrimp.
5. WOMEN
Data were collected by using list of questions, PRA and cross check
interviews with key informants. Women were interviewed at their houses.
Approximately 2 interviews were conducted in a day, where each interview required
45 minutes to an hour. One week was required for questionnaire survey in a zone,
total four weeks for four zones. For PRA, 1 FGDs were conducted in each zone, held
in women's houses. Each group size of FOD was 3 to 5 members and the duration was
approximately an hour. Cross check interviews were conducted with key informants.
For PRA and cross check interviews, time required one week in a zone, total four
weeks for four zones.
6. OTHERS
Non probability sampling approaches were used for data gathering from other
groups associated with the shrimp sector. Interviews were conducted with experts,
technical staffs and fisheries officers. A list of questions (not questionnaire) was used
for interviews, covering shrimp farmmg, shrimp processing, market, price, export etc.
Interviews were conducted at a time convenient to them.

3.13.2 PROBLEMS ENCOUNTERED

Several problems and difficulties can be noted:

1) Poorer road facilities: village roads are unfinished, making transportation difficult
and time consuming, especially during the monsoon, and walking long distances
caused unnecessary delays. This problem was partially overcome by using boats.
2) Partly stemming from the above, it was not always easy to locate sanple shrimp
farmers. The database of formers contains many errors as to the names and address.
Coupled with road access problems, this caused the researcher additional loss of time.
The assistance of local people was useful in correcting database.
3) As mentioned in pre-testing the questionnaire, it was very difficult to obtain
reliable financial data. This was also found in previous research. For example, (Uimi,
1981) wrote "Though confidentiality of responses was assured, the pre-testing of the
questionnaire revealed an unwillingness of small businessmen to specify their profit
and sales over the last few years."

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(Harriss, 1981) quoted the following from studies of Indian traders which reflected
similar problems: "they lie when it came to statements about wealth, business, capital,
turnover and so forth which they never correctly told to anyone" (Fox, 1969). Even if
some farmers provided financial data, this was based on their 'guess-work' which
might not be accurate. Extra attention was therefore paid and great care had to be
taken in compiling financial information during using different data collection
methods.
4) External communications difficult due to lack of mobile network and e-mail in the
study area, requiring travel to nearby places, etc.

3.14 TOOLS AND METHODS OF DATA ANALYSIS

3.14.1 TABULATION AND CLASSIFICATION OF DATA

The data was collected through a questionnaire and tabulated. The data has
been classified on the basis of age, education, annual income, gender, land holdings,
family size, family type etc held by the respondents. Cross tabulation has been done
according to different variables.

3.14.2 FRAME WORK OF DATA ANALYSIS

Statistical package for social science (SPSS. 16) was used to analyse the data.
SPSS is the one of the most widely used of statistical software packages. It covers a
broad range of statistical procedures that allows summarizing data, determining
whether the differences between groups are statistical significant or not. SPSS also
contains several tools for analyzing data, including functions for recording data and
confuting new variable as well as merging and aggregating data files. To arrive at
different marketing efficiency measures different cost and income measures farm
business analysis was carried out by following Shepherd's and Acharya's methods.

Chi-Square Test was applied for testing the hypothesis at 5% level of

significance. Data was analyzed with the help of tables, charts and diagram. Statistical
technique like percentile was used to analyze the data. Descriptive analysis has been
used. Multiple regression analysis and factor analysis testing was applied. Non
parametric tests Kruskal Wallis was applied for testing the hypothesis.

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Garrett's Rank technique was conducted to determine the most important factors
about the constraints. Likert's scale technique was also used for analysis. SWOT
analysis was used for the strength, weakness, opportunities and threats.

3.14.3 COSTING TERMS

1. Total Fixed Cost (TFC): A cost that doesn't change with an increase or decrease
in the level of production is known as total fixed cost and has to be borne by shrimp
farmer in long run. This is also considered as Initial Cost (IC) of the farm.
2. Total Variable Cost (TVC): Variable cost is the part of the total cost and changes
with a change in output level. This is also considered as Operational Cost (OC) of the
farm.
3. Total Cost (TC) = Total Fixed Cost +Total Variable Cost
4. Yield or Production: It is defined as the production of shrimp per hectare per year
and expressed in kg/ ha/yr.
a. Feed Conversion Ratio =Feed Intake/ Weight Gain
b. Feed Conversion Efficiency =Feed Intake / Weight Gain* 100
5. Gross Income (GI) =Quantity of Produce *Selling price
6. Net Income (NI) =Gross Income-Total cost
7. Gross Profit (GP) =Total Return -Total Operational Cost
8. Net Profit (NP) =Total Return -Total Cost
9. Pure Profit (PP) =Net Profit -Opportunity Cost of Family Labour
10. Return to Capital = Net Profit -Unpaid family labour / Total Cost* 100
11. Output-Input ratio = Total Returns/ Total Cost
12. Benefit Cost Ratio = Gross Income / Total Cost
13. Net Benefit Cost Ratio=Benefit Cost Ratio -1
14. Pay-Back- Period =Number of years required to recover the investment
15. Rate of Return on Investment =Gross Farm Income / Total Investment * 100
16. Rate of Return on Variable Cost =Gross Farm Income / Variable cost* 100

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3.14.4 COST OF MARKETING

The total cost incurred on marketing, in cash or in kind, by the farmers,

producers and various intermediaries involved in the sale and purchase of the shrimp
till the commodity reaches the ultimate consiuner will con:q)uted as follows (Singh &
Toppo, 2010):.
EQUATION 1: C = CF + CMI + CM2 + + CMN

Where,
C = Total cost of marketing of shrimp;
Cf = Cost paid by producer till sale;
Cmn = Cost incurred by the n* middleman in the marketing process of shrimp.

3.14.5 MARKETING MARGINS

The marketing margin will calculate by using the following equation:

EQUATION 2: AM = PM - (PB + Mc)

Where,
Am = margin of the middlemen;
Pm = selling price of the trader;
Pb = buying price of the trader;
Mc = marketing costs borne by the trader.

3.14.6 PRODUCER'S SHARE IN CONSUMER'S RUPEE

The producer's share in the consumer's rupee will calculate by using the following
equation:
EQUATION 3: P = ( P F / P R ) * 100

Where,
P = producer's share in consumer's rupee;
PF = price received by the farmer;
PR = price paid by the consumer.

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 3.14.7 MARKETING EFFICIENCY

Marketing efficiency was calculated using both (Shepherd, 1972) and Acharya's
modified marketing efficiency (Acharya & Agarwal, 1999) which is as follows.
Conventional Method:
EQUATION 4: Index Of Marketing Efficiency (E) = O/I

Where,
0 = value added by the marketing system
1= cost of market intermediaries
Calculation of Marketing Efficiency by Using Achaiya*s Method: Marketing
efficiency by using Acharya's Method will calculate by using following equation:
EQUATION 5: MME = FP/ (MC + MM)

Where,
MME = modified marketing efficiency;
FP = price received by the farmers;
MC = total marketing cost;
MM = net marketing margin.
Calculation of Marketing Efficiency by Using Shepherd's Approach: Marketing
efficiency by using Shepherd's Approach will calculate by using following equation:
EQUATION 6: ME = RP / MC

Where,
ME = marketing efficiency;
RP = retailer's sale price or consumer's purchase price;
MC = total marketing costs.

3.14.8 GARRETT'S RANKING TECHNIQUE

In order to analyze the constraints faced by the producers at the production and
marketing stage, and also to analyze any other constraints faced by them, the Garrett's
ranking technique will use. Garrett's Ranking Technique gives the change of orders of
constraints into numerical scores. The major advantage of this technique as compsned
to simple frequency distribution is that, constraints are arranged based on their
importance from the point of view of the respondents. Hence, the same number of
respondents with two or more constraints is given different ranks (Kumar et al..

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1999). Garrett's formula for converting ranks into percent will given by the following
equation:
EQUATION 7: Percent Position = 100 * (Rij - 0.5) / Nj
Where,
Rij = rank given for i'^ factor (constraint) by j'^ individual;
Nj = number of factors (constraints) ranked by j'*' individual.
The relative position of each rank will obtain from the above formula will convert into
scores for each factor; scores of all individuals will add and then divide by the total
number of respondents for the specific fector. Finally, mean scores for all the factors
will arrange in descending order and the ranks will give.

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