Model Bankable Project

on
Pangassius Fish Culture

National Bank for Agriculture and Rural Development

1. Introduction:

Pangassius species is commonly called as river or silver stripped catfish, Siamese shark,
sutchi catfish, or swai catfish. This fish species live in freshwater and endemic to the
Mekong basin. It is a riverine catfish belonging to the members of the family Pangassidae.
It exhibits fast growth when cultured given a good environment.

It is cultured due to its good market demand, fast grower, few countries dominate the
culture production, and being the third most important freshwater fish group within
aquaculture sector. Pangassius is now cultured in several countries in the world like
Thailand, Nepal, Pakistan, India, Bangladesh, Vietnam, Laos, Myanmar, Indonesia, and
Cambodia.

Pangassius is an air-breathing fish that can tolerate low Dissolved Oxygen (DO) content
in the water and can be cultured in ponds, concrete tanks, fish cages or pens.

2. Culture of Pangassius hypophthalamus in India:

The exotic freshwater catfish Pangassius hypophthalamus was first introduced into India
in the year 1997 in the state of West Bengal from Thailand through Bangladesh. Initially
farming was carried in limited area in the states of West Bengal and Andhra Pradesh. But
since 2004 the farming of Pangassius has spread due to the commercial importance and
by 2008 it is estimated that Pangassius is being farmed in about 40,000 ha with an
expected production of 1.80 to 2.20 lakh tons. There is a growing interest among the
farming community in other states as well to take up Pangassius culture in a larger extent,
thus paving way for demand for its seed and for establishment of commercial scale
hatcheries. Pangassius is farmed under monoculture or polycuIture with carps.

3. Technical Parameters:

Technical parameters of Pangassius fish culture includes site selection, items of pond
development, pre and post stocking operations, stocking, fertilisation, feeding etc.
Annexure I

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4. Margin:

The margin money may be considered @ 5, 10 & 15% for small, medium and large farmer
respectively and 25% for companies and partnership firms.

5. Subsidy:

Subsidy is available for various items like Pond Development, construction of New Ponds,
first year inputs etc. under a centrally sponsored scheme on blue revolution implemented
by majority of the State Governments for different categories of farmers, details of which
may be obtained from concerned Fisheries Departments/National Fisheries Development
Board ( NFDB).

6. Eligible Borrowers

The following categories of borrowers are eligible to avail credit.

 An Individual
 A company
 A Partnership firm
 A co-operative society
 A group of fish farmers/SHG/ JLG
 Producers organisations / companies

Training in fish farming is being provided by the FFDAs to the eligible borrowers and it is
prudent to have prior knowledge of fish farming before availment of bank loan for the
purpose.

7. Financial Outlay:

The details of Capital Cost and Recurring Cost is indicated in Annexure II. As per the
annexure, the capital cost for excavation of one hectare pond works out to be Rs. 8.97 lakh
and the recurring cost as Rs. 23.86 lakh. However, the cost given is indicative and actual
assessment of the cost parameters based on the specific region/area will have to be done
while submitting the project proposal to the bank.

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8. Repayment:

Repayment of bank loan is possible in 8-10 years in annual instalments with moratorium
on repayment of principal for the first year.

9. Financial Analysis:

As per financial analysis shown in Annexure III the scheme is financially viable. The
financial parameters are as follows

NPW @ 15% Rs. : 8.60 lakh

BCR @ 15% 1.12 : 1
IRR > 50% (52.8%)

10. Rate of Refinance

NABARD provides refinance assistance for fish culture to commercial banks, cooperative
banks and Regional Rural Banks, Small finance banks, NBFC, MFI etc. The rate of
refinance is fixed by NABARD from time to time.

11. Rate of interest

Interest rate to be charged to the ultimate borrowers would be as indicated by the

bank/RBI/NABARD from time to time depending on quantum of loan amount and the
agency providing the loan.

12. Security

Security from the ultimate beneficiaries may be obtained as per the guidelines of RBI
issued from time to time.

13. Registration

Farmers who intend to take up Pangassius hypophthalamus culture shall apply to the
State Fisheries Department for permission and registration (in case required).

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 Annexure I

Technical parameter of Pangassius hypophthalamus culture

1. Commonly Cultured Pangassius:

Scientific name: Pangassius hypophthalamus. English name: Striped catfish.

2. Potential of Pangassius hypophthalamus:

P. hypophthalamus has tremendous potential in India for its culture due to following
advantages:

3. Fast growth:

The fish has rapid growth rate and attains 1.0 to 1.5 kg in 8 - 10 months culture period in
ponds.

4. Adaptability:
 P. hypophthalamus depends mostly on supplementary feeding and is amicable for
culture with least animal management practices.
 The fish being compatible can be cultured along with carps in poly culture.
 The fish under monoculture can be farmed at high densities.
 The fish can even be cultured in areas of low salinity (brackish water and
abandoned shrimp farms).
 The fish being non competitor for food with other cultured fishes it is considered
to be environment friendly in culture condition.
5. Culture area:

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P. hypophthalamus can be cultured in ponds, seasonal tanks, abandoned shrimp ponds,
fish pens / cages, canals, reservoirs and other deep landlocked water bodies. Suitable
water bodies namely ponds, seasonal tanks, canals, lagoons and reservoirs, brackish water
areas especially low saline waters. Abandoned shrimp ponds having potential for fish
culture can also be utilized. Besides canals, lagoons and reservoirs may also be utilized
once the cage culture technology for P. hypophthalamus in India under biosecurity is
developed and standardized.

6. Diseases:

P. hypophthalamus is prone to diseases such as haemorraegic septicemia, bacillary

diseases, and Flavobacterium columnarae, Trichodine which can impact farmed and
wild stocks. However, there are no reports on occurrence of serious diseases during
culture but red disease and dropsy reported.

7. Marketability:

Since the fish doesn't have intramuscular bones, the flesh can be easily filleted. The fish
has tremendous potential for domestic market India with its large infrastructure of fish
processing unit and vast experience in shrimp processing & exports can exploit the
international market.

8. Site Selection: Location

The farm should not be located adjacent to rivers and areas prone to floods. Seepage
channel around the culture pond is suggested to avoid infiltration of pond water into
adjacent paddy/other crops. Inlets and outlets of culture ponds should be provided with
screens to prevent escape of fishes from the pond into the natural environment. The other
vital parameters to be borne in mind are;
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  Efficient source of water
 Free from pollution
 Free from any disturbance
 Free from poachers
 Availability of uninterrupted power supply

9. Size of Culture Pond & Depth of water:

 The ideal pond size 1 ha area
 The ideal water depth is 1.5 -2 meter.

10. Pond Preparation and Management:

 Pond preparation is the same as general preparation for fish ponds.

11. Draining and sun drying:

 Sun dry the pond until the pond bottom cracks to eliminate unwanted fish species
and condition the pond.

12. Repairing of dykes and gates:

 Dykes and gates should be repaired to avoid entry of other fishes and escape of
stocks.

13. Eliminating predators:

 Predatory fish species should be eliminated to promote better yield and harvest.

14. Liming:
 Liming is done primarily to the condition pond soil, since Pangassius spp. can
tolerate pH ranging from 5 7.5.

15. Filling of water:

Fill the pond with water to about 1.5 to 2m, to provide a wide aquatic environment for the
stocks.

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16. Type of culture intensity and stocking density:

P. hypophthalamus could be cultured both under mono and poly culture systems.
Monoculture could be restricted up to semi intensive with a stocking density of less than
20,000 advanced fingerlings (15-20 gm/ha aiming at a production target of 20-25
tons/crop. Under poly culture the stocking density of Pangassius hypophthalamus
should not be more than 10,000/ha with a target production of 12-14 tons/ha. Pangassius
sp. can be stocked at a rate of 12500 per ha depending on the culture environment.
Stocking should be done early morning or late afternoon. Survival rate of Pangassius spp.
is estimated to be 80-90%.

17. Feed management:

Pangassius spp. can be fed with kitchen waste, rice bran or pelleted feeds (recommended
for faster growth and better flesh quality) at a rate of 2.5 - 3% of the Average Body Weight
(ABW) and will be monitored and adjusted bi-weekly. Feed Conversion Ratio (FCR)
averages to 2.35:1, which makes it a suitable for culture. Pangassius is omnivorous (eat
both plants and animals) during their first year and become herbivorous for the following
years. Wet feeds should be totally discouraged in the culture. Use of floating pellets is
desirable for better growth, better meat quality, better health and better pond water and
soil management in order to achieve the FCR of less than 2.35: 1. In case of poly culture
mashed feeds of good quality may also be used through bag feeding in addition to floating
pellets

18.Feed storage:

Proper feed storage facility should be provided at the farm site with proper, ventilation
and fumigation. The feed should be stacked on raised wooden platforms without touching
the walls to avoid moulding. The feed should be used within three months from the date
of production.

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19. Water Management:

Quality water is important for all fish culture. Water quality parameters like pH (6.5 - 7.5),
Dissolve Oxygen (DO) (0.1 mg/l), Temperature (25-30° C), Salinity (< 2 ppt) and water
depth (1.5 - 2m). Efforts should be made to maintain these parameters to get a better yield
levels. Pangassius spp. is an air breathing fish thus, they don’t need to have a much higher
Dissolved Oxygen in the water.

20. Sampling:

Sampling is done to monitor the growth of stocks and to monitor feed usage to the stocks.
This is also done to see and decide the marketable/harvestable size and time. Since
Pangassius spp. is fast growing fish, sampling is mandatory.

Each pond should not be more than 1 hectare in area and an average depth of 1.5 - 2
m for better monitoring and management. Grow out culture period for ponds could be 8
to 12 months depending upon stocking density and the targeted size of harvest. Cage
culture could be done in about 6 months. Generally the marketable size is 1-1.5 kg.

21. Harvesting:

Harvesting can be partial (selective harvesting) or total harvesting. Pangassius spp. can
be harvested for about 8 - 10 months of culture period. It can reach the weight of 1-1.5
kilogram in 8-12 months of culture given the proper pond management.

22. Post-harvest and transport:

Harvested fish should be immediately iced and transported for domestic

markets/processing plants in reefer / refrigerated vans.

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 Annexure I

Estimated Cost - Pangasius hypophthalmus culture in 1 ha area

A) Capital Cost
Total
Sl. Rate
Particulars Units Quantum Amount
No. (Rs.)
(Rs)
1 Site clearance LS 10000 10000
2 Construction of pond including hr. 800 hr. 1000/hr. 800000
digging, bund construction and
compaction and consolidation
Diesel Pump Set (Solar+
3 5HP 1 60000 60000
Electricity)
4 Inlet/outlet sluices LS 7000

5 Nets and other implements LS 10000

6 Miscellaneous LS 10000

Total A 897000

B) Operational cost for one crop

1 Drying, desilting and ploughing LS 5000 5000

2 Lime Kgs 5000 5 25000

3 Pangassius Fish Seed Nos 20000 3 60000

4 Fish Feed (FCR 2:1) Oil cake & Kgs 30000 30/kg 900000
Rice bran ( 6.0tonnes of GN Oil
cake & 24 tons of Rice bran @ Rs.
25000 per ton/- and Rs.
12000 per ton respectively)
5 Pumping charges ( electricity / Months 12 10000/ 120000
diesel) month

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 6 Watch and ward Months 12 5000/ 60000
month
7 Probiotics & Minerals Months 12 5000/ 60000
month
Miscellaneous including
8 Kgs 20000 Rs. 2/Kg 40000
harvesting charges
Total B 1270000

Total Cost ( A +B) 2167000

C) Production Norms:

1 Survival (%) 90 18000 nos

2 Average weight at harvest (gms) 1000 18000

3 Total production (Kg) 18000

4 Farm gate price (Rs.) 85

5 Number of Crops per annum 1

6 Income during 1st year ( Rs ) 1530000

Income during 2nd year onwards
7 1615000
( Rs )

Financial analysis (Amount in lakhs)

Year 1 2-8 9 10

Capital Cost 8.97 0 0.60 0

Recur ring Cost 12.70 12.70 12.70 12.70

Total Cost 21.67 12.70 13.30 12.70

Gross Benefit 15.30 16.15 16.15 16.15

Net Benefit (B-C) (6.37) 3.45 2.85 3.45

Present Worth of Costs at 15% DF 71.67

Present Worth of Benefit at 15% DF 80.27

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 Net Present Worth (PW Benefit - PW Cost) 8.60

Benefit Cost Ratio (PW of Benefit / PW of C costs) 1.12 :1.00

Internal Rate of Return > 50 %≈( 52.8%)

Repayment Schedule:
Total Financial out lay 21.67
Margin @ 15% 3.25
Bank loan 18.42
Rate of Interest 12%

Year Net Interest Principal Total Bank Net DSCR

Income outgo loan o/s surplus
1 (6.37) 2.21 0.00 2.21 18.42 (4.61) (2.88)
2 3.45 2.21 2.05 4.26 16.37 (0.81) (0.81)
3 3.45 1.96 2.05 4.01 14.32 (0.56) (0.86)
4 3.45 1.72 2.05 3.77 12.27 (0.32) (0.92)
5 3.45 1.47 2.05 3.52 10.22 (0.07) (0.98)
6 3.45 1.23 2.05 3.28 8.17 0.17 1.05
7 3.45 0.98 2.05 3.03 6.12 0.42 1.14
8 3.45 0.73 2.05 2.78 4.07 0.67 1.24
9 2.85 0.49 2.05 2.54 2.05 0.31 1.12
10 3.45 0.25 2.05 2.30 0.00 1.15 1.50
Repayment 10 years with one year grace

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 DISCLAIMER

The models have been prepared based on information gathered orally or otherwise
from various sources and no financial responsibility is accepted by NABARD for
accuracy of facts and figures. The views expressed in this model project are advisory
in nature. The actual costs and returns will have to be taken on a case by case basis
considering the specific requirements of projects. The banks, government
departments and other users are advised to use it only as a reference document and
use their own judgment for sanctioning or execution of the projects.

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