BANKING TRADE AND COMMERCE

STATE-AID TO FISHERIES

The Kolaba district has a coastline of about ninety miles, indented by a number of creeks and estuaries. Fishing, therefore, forms an important industry of the people. The number of persons employed in the fisheries was 8,146 according to the 1951 Census. Most of the fishermen are engaged in small boat fishing. There are no large-scale fishing units in the district.

In most fishing villages the middlemen supply credit to fishermen. They generally bind the fishermen's catches though not at fixed rates. In many fishing villages there are co-operative societies which now meet part or all the credit requirements of fishermen. Some societies market the fishermen's catches and recover the loans thereby.

Long-term credit is not available from co-operative societies. The same has to be obtained from the money-lenders. The rate of interest charged by the money-lenders is sometimes as high as 37½ per cent. Taking into consideration the financial needs of the fishermen as well as the growing importance of fisheries, the Government of India set up in 1945 a full-fledged Directorate of Fisheries under which a number of schemes have been operating. The fisheries schemes have a dual importance. Firstly, they serve as supplementary to the programme of Grow More Food campaign and secondly, they help in ameliorating the conditions of the fishing community which are generally very backward.

The Department of Fisheries grants loans and subsidies to fishermen and their co-operative societies for various purposes such as purchasing of engines, mechanisation of fishing crafts, purchasing and repairing of fishing equipments such as boats, nets, engines, trucks, ice-plant, etc.

The principal terms and conditions governing the financial assistance are as follows:―

(1) Tangible security valued to the extent of 2½ times the loan amount has to be furnished by the loanee. If not, a personal surety solvent to the extent of twice the amount of the loan with a letter of consent from surety has to be furnished.

(2) The loan exceeding Rs. 1,000 is generally paid in two equal instalments, the first instalment being payable immediately after a mortgage-deed is executed and the second instalment after vouchers for the expenditure from the first instalment are produced.

(3) Loans for engines are granted in one instalment.

Besides loans, fishermen are granted a subsidy on the specific condition that they should form a group of five to ten fishermen who should be members of a local fishermen's co-operative society and do fishing collectively. The amount of subsidy in each case is generally 33 to 50 per cent. The repayment of the loan commences three months after the loan is disbursed. The loan is repayable in equal monthly instalments over a period of five years. The loanees are required to furnish securities, either collateral only, equal to 1½ times the loan amounts, or both personal and collateral securities each equivalent in value to the loan amounts.

Following statement [These figures are for all the districts in Maharashtra and not for Kolaba district alone.] will show the amounts of loans advanced to fishermen and their co-operative societies during 1952-53 and 1956-57. These also include loans granted for purchase of engines: -

Besides substantial financial assistance as indicated above, the State has also undertaken to start a Marine Biological Research Station at Ratnagiri, a number of fisheries schools, etc.

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