Does commercial small-scale aquaculture drive inclusive agricultural transformation in Odisha?

This mixed methods analysis of the status of small-scale aquaculture in Odisha and its potential to induce inclusive agricultural transformation yields the following key findings:

Most of Odisha’s population eat fish, but widely observed religious customs limit fish consumption to three days per week for most people. This means that aggregate demand for fish is about 60 percent lower than it might be in a fish-eating state with a similar population and no dietary restrictions, resulting in low derived demand for aquaculture development to serve local markets.

Odisha faces a “second mover” disadvantage in farming fish. Most of the farmed fish in Odisha’s markets is ‘imported’ from neighboring Andhra Pradesh, which has a long-established, highly productive medium- and large-scale commercial freshwater aquaculture sector that can outcompete farms in Odisha on price, even after accounting for transport costs.

Aquaculture growth in Odisha is concentrated along the coast, in capital-intensive shrimp farming clusters linked to global export markets. Intensive shrimp farming is difficult for small-scale producers to enter or participate in successfully and has been linked to a variety of exclusionary outcomes including soil salinization, and conflicts over land.

There is very little commercial small-scale freshwater aquaculture in Odisha. We found no evidence of major spontaneous clusters of inland aquaculture farms comparable to those found in neighboring West Bengal and Andhra Pradesh, suggesting that aquaculture plays a limited role in driving agricultural transformation in Odisha at present.

Government schemes have doubled the number of community tanks and small private fishponds in some areas of Odisha over the past decade, but the spatial pattern of development atomized, and fish farming is mainly oriented toward subsistence production. Only 0.5 percent of farm households in six surveyed districts had a fishpond.

Small-scale inland aquaculture in Odisha makes localized contributions to food and nutrition security. Households in rural areas with more ponds are more likely to have eaten fish recently. This is valuable for those households who benefit directly.

Climate stress poses significant and growing challenges to aquaculture in Odisha’s semi-arid and cyclone-prone environment. These challenges are likely to intensify over time.