MODEL SCHEME ON INTEGRATED FISH

FARMING WITH DAIRY IN BIHAR

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

BIHAR REGIONAL OFFICE, PATNA

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1. Introduction
The inland fisheries and aquaculture contributes about 68 per cent of the total fish production
of the country. Fisheries and aquaculture is one of the important allied sectors in Bihar in
terms of providing livelihood, nutritional security and employment opportunities to the rural
poor. The agro-climatic conditions of the State are suitable for fish farming. It is envisaged to
produce 10 lakh tonnes of fish per annum by 2022 as per the Agriculture Road Map prepared
by the Govt. of Bihar. The State ranks 4th position in inland fish production in the country. The
annual domestic demand of fish in the State is 6.42 lakh tonnes and majority of people in the
State prefer fresh water fish. The State depends on supply of fish from Andhra Pradesh and
West Bengal (about 1.42 lakh tonnes per annum) to meet the growing demand in towns and
cities.

Integrated fish farming system is based on the principle of undertaking supplemental

activities, where output (waste or by-products) of one system acts as input for other system.
In the integrated fish farming system, fisheries is the nucleus activity and supplemented by
other suitable activities. The integration of aquaculture with livestock helps in efficient
utilization of space for maximum production, reduction of risk by crop diversification,
additional income from same unit of land. In the integrated fish farming system the
application of feed and fertilizer is almost nil and hence promotes organic farming.

Integration of dairy with fish culture is suitable and economically viable practice in which the
dung containing undigested feeding material is used as feed and organic manure in fish ponds.
Both cattle dung and urine is utilized in the integrated farming system. The cattle dung
contains 14 per cent organic matter, 0.3 per cent nitrogen, 0.2 per cent phosphorous and 0.1
per cent potash.

2. Scope for Integrated Fish farming with Dairy

For doubling of farmer’s income, there is need for increasing returns per unit of land by
adopting suitable farming practices viz: - integration of fisheries with livestock. Dairy is an
important allied activity in the State, especially for small and marginal farmers.

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Dairy is an important allied activity in the State, especially for small and marginal farmers. For
doubling of farmer’s income, there is need for increasing returns per unit of land by adopting
suitable farming practices viz: - integration of fisheries with livestock.

There is demand for locally produced fish in the State. The locally produced fish fetches
premium price in the markets than the ice preserved fish supplied from other States. With
growing urbanization, increased purchasing power and change in food habits, there is also
growing demand for dairy products in Bihar. Dairy is a traditional activity for the farmers in
the State. The integrated fish farming with dairy is an ideal activity to get higher returns. The
existing fish ponds or new ponds can be developed for taking up integrated fish farming with
dairy.

3. Technical Parameters
For integrated fish farming with dairy, fast growing and compatible species of IMC (Rohu,
Catla & Mrigal) and other exotic carps like Common Carp, Silver Carp and Grass Carp are
preferred. The seeds of these variety of fishes are available from the hatcheries existing in the
State. The culture of a combination of 3 to 6 species of carps in the pond ecosystem helps to
utilize the natural fish feed available and thus increases production as well as productivity.
The biological oxygen demand of cow dung is lower than other livestock manures as it is
already decomposed by the microorganisms in rumina. The application of cow dung results
in growth of natural food organisms of fish in the pond. The cow dung and urine are extremely
beneficial for fishes like Catla and Silver Carp.

3.1 Site Selection

The selection of site plays a pivotal role in integrated fish farming unit as the management
measures to be adopted depends on the site conditions. The aspects to be considered for fish
farming are soil type, availability of quality water, approach road, etc. The site selected should
be free from regular occurrence of high floods and free from pollution. The site selected
should also have surface or ground water supply source for filling the pond or water exchange
in case of need. The cowshed is required to be constructed on the embankment or close to
fish pond in such a way that the dung along with urine can be flushed back to the pond, saving
time and labour. The green fodder of nutritious variety can be grown on the top and slopes
of the embankments. The water required for bathing the animals can be drawn from the

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pond. The left over grasses can be utilized to feed grass carp in the pond. The waste grain/
feed of cows can be used in the fish pond.

3.2 Soil

The quality and texture of the soil have great bearing on the productivity of pond water and
construction of embankment. The ideal soil quality for culture of carps should be clay, clay
loam, silty clay and sandy clay with good water retention capacity. The pH of the soil should
be in the range of 6.5 to 7.5. The soil pH affects the productivity of ponds. The acidic soils are
less productive than alkaline soils. Based on soil pH, application of lime is recommended.
Besides moderating the soil pH, lime acts as a buffer and avoids fluctuations of pH, increases
the resistance of soil to parasites, kills parasites and fastens the process of decomposition of
organic matter.

3.3 Water

Adequate and good quality of water free from pollution is required for integrated fish farming.
The water depth of 1.2 m should be maintained throughout the culture period. The optimum
water quality parameters for culture of IMC and exotic carps are as under:-

Temperature : 25 -32 0C
Dissolved oxygen : 5-7 ppm (5-7 mg oxygen per liter of water)
Visibility : 40 cm
Color : Light Green/Brown
pH : 7 to 7.5
Salinity : 0-5 ppt
Total alkalinity : 50-100 ppm
Ammonia : not more than 0.1 ppm

The water quality needs to be monitored regularly, for which ready to use kits are available.

3.4 Pond Construction

Rectangular ponds are suitable considering operational convenience, particularly for

harvesting of the fish. A convenient width of 30 to 50 m is recommended, whereas length of
the pond depends on site, topography and farm layout. The length should be from east to
west direction. Normally pond size of 0.4 to 1.5 ha is found suitable. The average depth of the
pond should be minimum 1 m and maximum of 1.5 m. Dyke slope may be kept at 1.5:1 outside
and at 2.1 inside. The minimum top width of dyke should be about 1 m. The embankments

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must have a free board of atleast 60 cm above the high water level in the pond. Design and
layout of the farm may be prepared, keeping in view the water intake and discharge facilities.
The drainage system should be designed carefully to prevent mixing of outlet water with
incoming water. The pond construction may be done by earth moving equipment i.e.
Proclainer, Dumper/Tractor. While constructing pond embankment, berm of maximum upto
6 feet length needs to be provided. The top soil should be kept aside and placed in the pond
bottom after excavation of the pond. The detailed layout plan of the pond needs to be
prepared by engaging engineers or technical persons for submission to bank along with the
project report. Low cost thatched roof cowshed to be constructed on the embankment should
be of 3-4 meters high and the shed should be well ventilated.

3.5 Water Supply

The tube well and pumping system may be arranged for water intake and exchange in the
absence of perennial surface water supply. Water exchange as required is to be made and
provisions have to be made accordingly. The water inlet needs to be provided at suitable
height above the water level and outlet at suitable height below water level needs to be
provided. For the year round maintenance of optimum water level and water exchange, the
shallow tube well with pump set may be installed near the site.

4. Farm Management
The type of pond preparation to be adopted before stocking is based on the type of culture
and its intensity and nature of the culture period. The stocking density of fish is maintained
at 5000 numbers per ha. The seed obtained should be of healthy and good quality. The
culture period would be around 11 months. The stunted yearlings should be stocked and
average growth of 700 to 800 gram would be possible. It is advisable to plan stocking of
fingerlings so as to get higher culture time in growing period. The trial netting should be done
every month to monitor growth and health of the fish. Good quality CB cows of Jersey or HF
breed, freshly calved cows in the first or second lactation should be purchased. Out of 5 cows
required in the integrated system of 1 Ha farm, in the first phase 2 or 3 CB Cows are to be
purchased and after 5-6 months another 3/2 CB Cows are to be purchased. Care needs to be
taken to select animals with milk yield of 8-10 litres per day. The animals should be provided
adequate green fodder, dry fodder and the concentrated feed. The equipment to be used and

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cattle should be insured. The farm records may be maintained to facilitate insurance claim, if
required.

5. Extension Services
The borrower should have experience in fish farming and cross bred milch cattle rearing or
received training for management of fish farms and dairy farms. The officers of Fisheries Dept.
and Animal Husbandry Dept. are available in the District/block headquarters. The block level
training programmes may be arranged periodically for the groups of farmers. The fish Farmers
Club or Producer Groups may be formed in a cluster to get the required extension services,
procurement of seed, health care facility for dairy animals, fishing equipment and also to
support in marketing of fish/milk. The line depts. in the district/block would provide required
extension support to farmers and assist the bankers in appraisal of the project.

6. Marketing
In Bihar, there is huge demand and supply gap for fish and milk. The local fishes are preferred
by the consumers over the ice preserved fishes brought from West Bengal and Andhra
Pradesh. The fish produced locally fetches higher price in the local market and there would
not be problem with marketing of fish. The units developed in a cluster of 1-2 villages may
form Producer Groups to market the fish and milk directly to the wholesalers in the markets,
avoiding the intermediaries and this would facilitate higher returns to farmers.

7. Eligible Borrowers
The scheme may be sanctioned to individuals/groups of farmers/SHG members/JLG
members, etc. The selected borrower should have received training on fish farming and dairy
or having experience of fish farming and dairy. The borrower should have clear title of land
or land taken on long term lease of 10 years or more. The loan application available with
banks along with project report needs to be submitted by the prospective entrepreneurs to
the local Commercial banks, Gramya banks and Cooperative banks for financing.

8. Financial Outlay
The details of the financial outlay for integrated fish farming in new pond along with dairy are
indicated in Annexure - I. The capital cost for one ha of fish pond along with five CB cows has

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been estimated at Rs.6.53lakh and the operational cost for one cycle has been estimated at
Rs.1.87 lakh and capitalized. The details of investments and costs worked out are indicative
and it may vary with the field situations. Accordingly, required changes have to be made in
the field conditions, if required.

9. Margin money and Bank loan

As per the guidelines of RBI, the borrowers are required to spend for development of activity
from their own resources at the rate of minimum 5 per cent for small farmers, 10 per cent for
medium farmers and 15 per cent for other farmers. The margin money contribution of 25 per
cent is assumed in the model scheme prepared.

10. Refinance
The refinance facility is available from NABARD to commercial banks, cooperative banks and
RRBs for financing integrated fish farming with dairy. Under Long Term Rural Credit Fund
(LTRCF), the concessional refinance is available to cooperative banks & RRBs for on lending to
farmers. The quantum and rate of interest under normal refinance and LTRCF window to
banks varies from time to time.

11. Subsidy

Under Blue Revolution scheme of GoI, the subsidy assistance is available for development of
new ponds@ 40 per cent of the unit cost for general category and 60 per cent of the unit cost for the
category of SC/ST/women and their cooperatives. Under Dairy Entrepreneurship Development
Scheme (DEDS) of GoI implemented through NABARD, the subsidy assistance @25 per cent
for general category and 33.33 per cent for SC/ST category is available for milch cattle rearing
of 2 to 10 animals.

12. Financial Viability

The financial viability of integrated fish farming with dairy has been assessed with the
assumptions mentioned below.
Sl. Parameters Assumptions
No.
i Pond size 1 ha
ii Grow out period of Fish 11 months

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 iii Stocking density of fish 5000 nos.
iv Grow out period - Dairy Throughout the year
v Total no. of CB cows 5
vi Purchase of cows On first calving in two phases
vii Average milk yield per cow 8 litres
viii Stocking size of fish 50 g-60g
ix Production - Fish 3000 kg – first year and 3500 kg
second year onwards
x Farm gate price -Fish Rs.125.00 per kg
xi Farm gate price - Milk Rs. 25.00 per litre

The scheme is financially viable and bankable with the above assumptions having BC ratio of
2.07, NPW of Rs.1366717.00 at 15 % DF and IRR of more than 15 %.

13. Rate of Interest

The interest rate to be charged to the beneficiaries is as per the individual bank/RBI guidelines
from time to time.

14. Repayment Period

The borrower of the unit would be able to repay the bank loan in 6 years with 5 equated
annual instalments of principal and interest thereon with grace period of first year for
repayment of the principal. The details of repayment schedule are given in Annexure - II.

15. Security
The security to be provided by the by the beneficiaries would be as per guidelines of RBI issued
from time to time.

16. Conclusion
Since the State has large untapped potential for fisheries and there is growing demand for
fish and milk, integrated fish farming with dairy would be an ideal activity for financing by
banks so as to provide higher returns to farmers, create employment opportunities for the
people in rural areas and make the State self-sufficient in fish and milk production.

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DISCLAIMER
The views expressed in this model project are advisory in nature. NABARD assumes
no financial liability to anyone using the report for any purpose. The actual cost and
returns of the projects will have to be taken on a case by case basis considering the
specific requirement of projects

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Annexure - I: Details of Financial Outlay for Integrated Fish farming in new pond with Dairy

(Unit Size: 1 ha & 5 CBC)

Sl. Particulars Unit Rate (Rs.) Amount (Rs.)

No.
A Capital cost
1 Land Cleaning / Development 2500.00 Lump 2500.00
Sum (LS)
2 Construction of pond (digging 100 hr 1500.00 per hour 150000.00
& bund construction) by
machine (using Proclainer) -
1.5 m depth
3 Earth movement using 500 trips 125.00 per trip 62500.00
machines (Dumper/Tractor)
4 Sectioning, consolidation and 70 mandays 250.00 per day 17500.00
compaction of bunds
manually
5 Shallow Tube well (100 mm x 1 No. 70000.00 70000.00
45 m depth) with pump set of
5 hp
6 Pump House cum Store room 120 sq. ft. 250.00 30000.00
cum Watchman room - AC
sheet roofing
7 Cost of animals (CB cows) 5 nos. 50000.00 per 250000.00
animal
8 Cost of shed (Thatched roof) 325 sq. feet 100.00 per sq. 32500.00
for 5 animals feet
9 Cost of equipment for dairy LS 10000.00
10 Inlet and outlet (sluices) LS 10000.00
11 Sampling Nets, plankton net, LS 10000.00
water testing kit, plastic
buckets, secchi disk, etc.
12 Miscellaneous expenses LS 8000.00
Sub Total 653000.00
B Operational cost
1 Lime 500 kg 12.00 per kg 6000.00
2 Fish seed (stunted Yearlings 5000 nos. 7.00 per piece 35000.00
of 50-60 g size)
3 Fodder cultivation for dairy 5 nos. 1000.00 per cow 5000.00
4 Cattle feed (one month) - 150 kg 18.00 per kg 8100.00
Formulated
5 Cattle feed (one month) - 150 kg 3.00 per kg 1350.00
Paddy straw

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6 Insurance cost for animals @5% of 7500.00
(First phase of 3 animals) cost of
animals
7 Medicines and chemicals LS 12000.00
8 Harvesting expenses - Fish 3000 kg 2.00 per kg 6000.00
9 Labour 1 12 8000.00 per 96000.00
month
10 Miscellaneous cost LS 10000.00
Sub Total 186950.00
Grand Total (A+B) 839950.00
Rounded off to nearest thousand 840000.00
Income Parameters
1 Culture period - Fish 11 months
2 Production - Fish 3000 kg First year
3500 kg Second year onwards
3 Farm gate price (Rs.) of 125.00 per kg
harvested fish
4 Lactation days (Average) 1375
5 Average milk yield per animal 8.00 litre
6 Farm gate price of milk (Rs.) 25.00 per litre

7 Annual milk production 11000.00 litres

8 Annual income (1st year) - 375000.00
Fish (Rs.)
9 Annual income (2nd year 437500.00
onwards) - Fish (Rs.)
10 Annual income from Milk sale 275000.00
(Rs.)
11 Total Annual Income - First 650000.00
year (Rs.)
12 Total Annual Income - 2nd 712500.00
year onwards (Rs.)

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Annexure II: Financial Analysis & Repayment Schedule - Integrated Fish Farming with Dairy
(Unit Size: One ha & 5 CBC)
(Amt. in Rs.)
Years
Particulars I II III IV V VI
Capital Cost 653000.00 0 0 0 0 0
Operationa 186950.00 186950.00 186950.00 186950.00 186950.00 186950.00
l Cost
Total Cost 840000.00 186950.00 186950.00 186950.00 186950.00 186950.00
Total 650000.00 712500.00 712500.00 712500.00 712500.00 712500.00
Benefit
Net Benefit -190000.00 525550.00 525550.00 525550.00 525550.00 525550.00
(Total
benefit -
Total cost)
Discounting 15.00%
factor
NPW of 1275379
cost at 15%
DF
NPW of 2642096
benefit at
15% DF
NPW at 15 1366717
% DF
BCR 2.07
IRR >15%
Means of Finance
Total 840000.00
Financial
Outlay
(TFO)
Margin 210000.00
Money (25
%)
Bank Loan 630000.00
Repayment 6 years with 1 year grace period
Period
Rate of 12.00 %
interest
Repayment Schedule
Year Net Income Repayment Bank loan Net Surplus
Interest @ Principal Total outstanding
12 % per Repayment Outgo at the end of
annum year
1 75600.00 0.00 75600.00 630000.00
2 525550.00 75600.00 126000.00 201600.00 504000.00 323950.00

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3 525550.00 60480.00 126000.00 186480.00 378000.00 339070.00
4 525550.00 45360.00 126000.00 171360.00 252000.00 354190.00
5 525550.00 30240.00 126000.00 156240.00 126000.00 369310.00
6 525550.00 15120.00 126000.00 141120.00 0.00 384430.00

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