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Fish Market Systems Study
Chapter I
DESIGN OF THE STUDY
1.1 Background
The Study was conducted for the requirements of the Organisation Traineeship Segment
(OTS) in the Post Graduate Programme in Rural Management (PGPRM) of Institute of
Rural Management Anand (IRMA).
SIFFS is an apex federation of fishermen societies mandated at providing marketing

support to traditional fishermen. From all the 90 member societies, the total catch comes
to an amount worth Rs 36.5 crores annually (SIFFS records, 2003-04). This means, on an
average, the total daily catch comes to around Rs.10 lakhs. So SIFFS has a strong
procurement system in hand The only marketing activity that is done right now is
providing assistance in auctioning the catch- the intermediation with the appointment of
an auctioning agent there by facilitating the selling to local agents or suppliers. This often
leads to exploitation of fisher folk by the middlemen, resulting in obtaining of lesser
prices to the fishermen.
With this system in practice, SIFFS wants to enter the wholesale marketing by supplying
fish directly into the markets, thus avoiding middlemen. The organisation, without any
direct marketing experience or knowledge about the wholesale markets and the systems
prevailing there wants to have a detailed study and profiling of these markets.
1.2 Decision Problem

The decision problem facing SIFFS in this context can be framed as “Whether SIFFS
should intervene in wholesale fresh fish marketing or not?”
1.3 Research Problem

The research problem formed as the basis for this study therefore is “to understand the
wholesale fish markets and the systems prevailing in these markets”.
1 James Abraham, Rajesh. R.

1.4 Research Objectives

The major objectives of this study were
1. To study the wholesale fresh fish market systems in Kerala and Tamil Nadu
2. To profile select wholesale fish markets
3. To analyse the potential of SIFFS in entering wholesale fresh fish marketing.
1.5 Working Definitions

1. Wholesale fish market – It is the geographic area where suppliers, commission
agents and retailers are assembled together to carry out trade of fresh fish
2. Supplier – the party who brings in fish to the market directly from the shore
3. Commission agent – a person or group of persons involved in facilitating the
trading of fish from the supplier to the retailer by charging a certain rate of
commission
4. Retailer- One who buys fish from the supplier through the commission agent to
sell it in smaller markets or directly to houses.
5. Absorption capacity – the maximum amount of fish that can be sold in a market,
expressed in terms of the number of boxes or the weight of fish.
6. Auctioning – the process of selling fish by quoting competitive prices for a certain
quantity
7. Value addition – process of increasing time utility of fish by employing methods
like drying, salting etc.
8. Species – the various items or varieties of fish sold in the market
9. Sourcing – the process through which fish is brought into the wholesale market.
10. Handling – all those physical processes that are involved in transferring fish from
the wholesaler’s yard to the market
11. Delivery – the process whereby fish is transferred from the commission agent to
the retailer
12. Price discovery – the method and the factors that determine the fixing of prices in
the market.

1.6 Sources of Data

1.6.1 Primary Sources
i) Commission agents and their staff, vehicle drivers and head load workers of
Wholesale fish markets
ii) Suppliers and retailers associated with the wholesale markets
iii) Marketing executives and Field staff of SIFFS
iv) Exporters and their agents
1.6.2 Secondary Sources
i) SIFFS documents
ii) Other related literature – from CDS
iii) Internet
1.7 Information Requirements

1. Fish procurement levels and facilities of SIFFS from its member societies
2. Location of wholesale markets and distances to other major markets
3. Timings of major wholesale fresh fish markets
4. Number of Commission agents in each market
5. Percentages of Commission
6. Sales system
7. Absorption capacity of markets
8. Species identification of markets
9. Value addition possibilities
10. Payment systems prevailing
11. Auction procedures followed
12. Icing facilities
13. Seasonal fluctuations in supply and prices of varieties
14. Sources of supply and areas of delivery
1.8 Methodology
The methodology included both primary and secondary data collection techniques.
Unstructured and semi structured tools of data collection were employed for primary data

collection. In depth interviews with the commission agents, wholesale fish merchants and
transporters were conducted. Semi structured interview by using a checklist of items for
information collection was used. Market systems were observed by visiting the wholesale
markets at their respective working hours.
1.9 Sampling Plan

The sampling method used was non-probability snowball sampling. Initially a list of the
major markets was given by SIFFS. After that, other markets were selected based on the
opinion from the respondents of the initially surveyed markets. A total of 15 markets
were studied – 10 from Kerala spread almost uniformly across south, north and central
regions of the state and 5 from various regions of Tamil Nadu.
1.10 Scope of the study

1. The study was limited to marine fresh fish only
2. The study was limited to the 15 select wholesale fish markets of Kerala and Tamil
Nadu
1.11 Limitations of the Study

1. Lack of proper documentation of the sales and other details in the entire
wholesale marketing chain
2. Time was a major limitation – One month was not enough for a comprehensive
study covering 15 markets, which are geographically dispersed all over Kerala
and Tamil Nadu.

Chapter II
FISHERIES SCENARIO IN KERALA AND TAMILNADU
Indian fisheries’ is an important component of the global fisheries, with India being the
third largest producer of fish in the world and second in inland fish production (FAO
1998). India’s share in the world production of fish has increased from 3.2 per cent in
1981 to 4.5 per cent at present. Fishery sector occupies an important place in the socio-
economic development of the country.
India has a coastline of 8118 km and an EEZ of 2.02 million sq km. About a million
people are involved in fishing operations. Marine capture fisheries play a vital role in
India’s economy. The growth in marine fish production over the recent years has been
rather slow (an average of 2.2 percent during the period 1991-1992 to 1999-2000) as
compared previous two decades. Most of the major commercially exploited stocks are
showing signs of over exploitation. On the contrary, demand for seafood has been
growing. The present scenario suggests that the marketing efforts should be improved to
have an efficient supply system in order to cope up with the growing demand without
severe price hike for fresh fish.
Kerala ranks second behind Gujarat in marine fish production during 1999-2000,
followed by Maharashtra and Tamil Nadu. In India the marine products export is less than
10 percent of the production, showing that a substantial quantum of fish moves to the
domestic market and is consumed here. By adopting entrepreneurial development of the
fisherfolk in processing, marketing and transporting, substantial portion of the fish landed
could be utilized for small scale enterprise or can be supplied to distant interior markets
thereby avoiding the numerous middlemen and this would definitely go a long way in
improving the socio-economic condition of this sector.
Demand and supply are the major factors determining the price of any commodity.
Unlike other agricultural commodities where demand decides the price, in marine
fisheries, supply plays a major role in price determination.

Marine fisheries have a seasonal character everywhere and a good fishing season is a
synonym of glut. The high operational cost associated with mechanization has proved
fishing uneconomical during the lean season. Lean fishing season is of starving days and
days of glut and non-remunerative prices. In short the primary producer is always
subjected to exploitation. The fishing industry in our country is mainly export oriented
and the primary producer has no involvement in modulating the domestic sector either.
But an exception is the mostly household owned ‘masmin’ production from
Lakshadweep.
The fish caught by traditional fishermen fall into two groups – the export grade and non-
export grade. As more and more items are going into the export basket due to the
increased export demand for fish the quantity available for domestic consumption
declining despite increased fishing efforts. Consequently the domestic demand for fish
and fishery products is on the rise. Since the fish export trade is a well organized sector
with a strong infrastructure there is nothing much the fishermen household can do other
than trying to get reasonable price to that portion of the catch which is handled over for
export.
It is the remaining quantity of catches which is channelised into the domestic market over
which the fisherman household should try to gain better control. Out of 6.5 lakh tones of
fish landed annually in Kerala, 6.6 per cent is only exported. This leaves over 6 lakh
tones of fish to be available for domestic consumption. In addition approximately several
tones of fish comes into Kerala from neighbouring states like Tamil Nadu, Andhra
Pradesh, Karnataka, Goa etc.
Earlier belief that the fish is accepted only in fresh fish condition, which results in
making the greater than per unit cost due to processing, preservation, and transportation a
waste of money, is totally discarded now. Right from milk to meat an array of products is
now widely consumed by public in frozen / chilled form.

Another development in recent years in the marketing of fresh fish is the growing ‘super
market culture’ in Kerala and Tamil Nadu. This resulted in emerging small kiosks
supplying fresh fish within or adjacent to supermarkets. Independent outlets distributing
fresh fish also proved to be a success in these states. Fisheries Co-operatives in this
regard are having a high brand reputation if proper packing and assurance of quality is
maintained.

Chapter III
MARKETING CHANNELS OF FRESH FISH IN KERALA AND TAMIL NADU
3.1 Introduction
Infrastructure facilities in developing countries are not so advanced when compared to
that of developed countries in solving the perishability problems of commodities like
fish. Deep freezers and cold storages as well as hi-tech roads are present minimal, which
is a handicap to the entire fish-marketing sector in underdeveloped nations. This results in
moving the commodity from the point of production to the point of final consumption
within the time limit of its perishability period. Thus a well developed system has
evolved in the marketing of fresh fish over a period of time as discussed in this chapter.
3.2 Marketing System Components
The major constituents of this marketing system can be listed out as follows
1. Fishes - Catches fluctuate across years, seasons and variety.
2. Fishing crafts and gears – basic inputs in production.
3. Fishermen – the producer.
4. Beach level, wholesale and retail market places
5. Small and large financiers
6. Ice merchants
7. Wholesale traders
8. Transporters
9. Commission agents
10. Retail traders
11. Dry / salted fish merchants
12. Exporters
13. Consumers
Even though the perishability problem necessitates fast movement of the commodity
from producers to consumers, one can notice the presence of a number of actors in the

entire marketing chain, emerged and systematically functioning over a period of time.
The haste with which the entire chain operates in a pre-planned programme makes
possible to overcome the problem of perishability. More over the problem arises with
anyone of these parties can temporarily or even permanently makes the entire chain
defunct
3.3 Marketing Channels
Marketing of fresh fish can be bifurcated into two – domestic marketing and export
marketing. There are different channels followed in the domestic marketing of fish, as is
the case of any perishable commodity. The major players involved in the marketing
channel of fish include fishermen (producer in this context), wholesale fish merchant,
commission agents, retailers and consumers. In export marketing fishermen / producer,
wholesale merchant / supplier, exporting agency and foreign consumers are forming the
links in the supply chain. . The major markets and the actors in this chain can be depicted
as in the following figure.
Commission Agent Retailer
Wholesale Consumer Domestic
market market consumer
Fishermen Wholesaler
Beach level Assembly
market place
Exporting Export Foreign

agency market market
Fig 3.1 Marketing Channels of Fresh Fish

The three major markets involved in the marketing chain are (i) Beach market (ii)
Wholesale market and (iii) Consumer market.
(i) Beach market is a place where the producer (fishermen) sells off his produce to the
wholesale fish merchant or his agent through the process of beach level auctioning. Fish
from the boat is transferred into baskets and auctioning is generally made for individual

baskets. Rarely at the time of bulk landings (like ‘Chakara’) fish is auctioned for a
boatload as such without transferring into baskets. And for high valued items such as
sharks or big fishes like emperor fish, Seer fish etc., auction can take place for individual
fishes also.
(ii) Wholesale market is the place where the wholesale fish merchant / trader sells off fish
he bought from various beach markets to retailers with the help of a facilitator known as
commission agents. This was the main area of interest for this study and so is discussed in
detail in the following chapters.
(iii) Consumer market is the place where the end consumers or general public purchases
fish from the retailers who took the commodity from the wholesale market.
3.3.1 Domestic Marketing Channels
More than ninety per cent of the fish produced in our country is consumed domestically.
A number of channels were developed over the years due to the presence or absence of
some or other players in the marketing chain. The major channels in domestic fresh fish
marketing are discussed in detail below.
(i) Producer Retailer Consumer
Cycle vendors or head load vendors purchase fish directly from the landing centre (beach
market) and sell to consumer either at a market place or at doorstep of houses and hotels.
This is the only channel in which the presence of wholesalers is totally avoided. Thus it
helps in reducing the cost considerably and supplying fresh fish. But this channel only
helps in delivering fish to the markets, which are with in a small radius of 50 – 100 Km
of the beach market.
(ii) Producer Wholesale merchant Retailer Consumer

Fish from the beach market is taken over by the wholesale fish merchants through auction
from the fishermen. These wholesalers have their own assembly places for fish with some
processing facilities where they do some primary processing, grading etc. The good
quality and high valued fish items are sold to the exporting companies. The remaining
fish is then transported to distant markets where retailers purchase it from them. The
retailers then supply it to rural and urban consumers.
(iii) Producer Wholesale merchant Commission agent Retailer

Consumer
The major market in the entire supply chain of fish is the wholesale fish market operating
in and around major towns and cities. Usually wholesalers in these markets, as
middlemen between them and retailers, engage commission agents. These agents get a
percentage of fish value (usually 5 – 10 per cent) from the wholesaler. They usually do
not take the ownership of the lots. In fish marketing the transaction is mostly done on
credit basis. At wholesale market, the wholesale merchant hands over the truckload of
fish to commission agent and the retailers purchase fish from this agent. The retailers
make the payments after one or two days and sometimes after one week or several weeks,
depending upon the personal relationship existing between the agent and retailer. But the
agent had to make the payment to the wholesaler with in the allowable time period, many
a times one or two days maximum. It is found that for each commission agent in all the
wholesale markets in Kerala and Tamil Nadu, there exist huge outstanding debts from
retailers, which ranges from few thousands to many lakhs.
(iv) Producer Commission agent Wholesale merchant Commission

Agent Retailer Consumer
In some cases commission agents are involved either at landing centre or at the wholesale
markets or even at both centres. The commission agents operating from the beach market
is responsible for providing the necessary quantum of fish requirements to the
wholesalers. For this they charge commission at a rate of Rs. 2–4/per Kg of fish

auctioned in the name of the wholesaler. The wholesalers will be in constant touch with
these agents at beach markets to get vital information about the status of day-to-day catch
and price range.
3.3.2 Export Marketing Channel
Even though less than ten per cent of the fish produced in our country is only exported,
the value realization from export marketing channel is substantially high to give specific
attention to this channel. Around 4 per cent of our export earnings are coming from
seafood exports alone. The major actors in the export fish-marketing channel are depicted
below.
Producer Wholesale merchant Exporting agency Foreign Consumer
The produce from the beach market is taken over by the wholesale fish merchants
directly or through commission agents. This fish from several such beaches are
assembled in the assembling yard of the wholesaler. There it is graded into export variety
and domestic market grade according to the quality specifications and export demand.
The exporters employees will check the items for quality parameters in the assembling
yard itself and then the lot is transported to the exporter’s factory for further processing
and exporting.
3.4 Exporters’ Procurement System
The procurement of fresh fish for exporting by exporters can be referred as an ‘enquiry
system’. The exporters are in touch with a number of wholesale suppliers in various parts
of the State. As and when export demand arises the exporters contact these wholesale
merchants and enquires about their procurement details and places open offer for them
for supplying required quantum of specific varieties of fish with quality parameters. If the
wholesaler is interested in supplying the requested quantum, they will accept the offer
and inform as soon as the days lot reaches their yard. The employees of the exporter may

or may not inspect the lot at the wholesaler’s yard before dispatching the lot to the factory
of exporter.
The major varieties demanded for fresh fish exports include large fishes like Seer fish,
Emperor fish, Pomphret, Barramundi, Cobia, Prawns, Squids and Cuttlefish. The
availability of these varieties is maximum in southern coast of Kerala and southwestern
coast of Tamil Nadu.
It was found that the wholesale merchants are not so interested in supplying fresh fish
varieties to export market unless and until a bulk landing happens and a threat of nose
diving of prices occurs. The major reasons they point out for this includes (i) domestic
market prices for fresh fish items excluding Prawns, Squids and Cuttle fish are always
found to be higher when compared to the net realization accrues from export marketing
(ii) The money realization from exporters against the value of the consignment will take a
longer period when compared to that of domestic marketing channel which discourages
wholesale merchants from opting for export marketing unless there is a contingency. The
domestic channel covering the commission agents in wholesale markets and retailers in
consumer markets are required to remit the money within a limited period of one or two
days. The need for quick money in wholesale marketing due to very high working capital
requirement makes export marketing less favourable for wholesalers.

Chapter IV
WHOLESALE FISH MARKETING SYSTEMS
4.1 Introduction
As discussed in previous chapters, the marketing chain of fish involves a number of
members starting from the fisherman (producer) till the final consumer. In this chain, the
points where transactions take place between the supplier (wholesaler or trader) and the
retailer are called wholesale fish markets. Geographically, wholesale fish markets will be
spacious enough to provide entry for a large number of vehicles which bring in and take
out fish in the form of suppliers and retailers. The perishability of the commodity, its day-
to-day fluctuations in supply and demand, the bulkness in transactions and the huge sales
turnovers make the fish one of the fastest moving consumer goods and the wholesale
markets a very dynamic avenue of business. To make these dynamic systems work, a
number of elements act together. The major elements of any wholesale market are the
suppliers, the commission agents, the head load workers, the commission staff and the
retailers.
4.2 Market Systems

The presence of certain peculiar systems in the wholesale markets makes each market
different from others. The various systems include systems of trading and commission,
storage, supply, demand etc.
4.2.1 Commission system

Business in a wholesale market is done by the commission system. A commission agent
is an individual or an agency who or which carries out selling of fish for the wholesale
supplier at a fixed percentage of commission. They are the facilitators of wholesale
trading. A market will have a number of commission agents (mostly 3-10, though rarely
less than 3 and more than 10 will be present). They have connections with various
suppliers who bring fish into the market. The agents will have a number of people as their
staff who helps in carrying out trading. The commission agents will deduct a certain
percent of the total daily sales amount as their commission.

4.2.2 Market timings

The timings of the wholesale markets are a peculiar one of its kind. Most of the
wholesale fish markets operate during late night or early morning hours. This is to take
care of the distance between wholesale and the retail markets. Retailers are always in a
position to make the product reach the consumer during early morning hours.
4.2.3 Market types

Wholesale markets can be of two types – transit and terminal markets. The division is
based on their mode of operation, the dependent markets, timings and geographical
location. Usually most of the markets in Kerala are located in areas forming the part of a
chain. Suppliers bringing fish to one market have the opportunity of taking it to another
market, if they are not getting the price they wanted. These are transit markets where bulk
arrivals are fragmented and redirected. The transit markets will have late night timings
(1–4 a.m.) and they will have a lot of sub markets as outlets. On the other hand, terminal
markets operate late, mostly during early morning time (4-8 a.m.). As they are the end
markets, almost all the items coming to these markets will be sold off.
4.2.4 Market processes

There are four main processes that are involved in the wholesale marketing of fish. These
processes include all the major things that happen to the flow of fish right from the beach
to the buyer in the market. These four processes are the Sourcing, Handling, Delivery and
Price discovery.
i) Sourcing
This is the process through which fish is procured by the wholesaler from the beaches
and transported to the wholesale market places.
Flow of Information - The arrival of mobile phones and wireless communication has
extended the limits of wholesale business touch the sky. The suppliers have good
connections with all the beaches and landing centers. They have got their own agents in
those beaches. Hence the levels of fish catch, the varieties and the prices each day will be
conveyed to the wholesalers. This will help the wholesalers to take decisions on

procurement from those beaches. Also the wholesalers have got good contacts and timely
communication with the commission agents of each market through which they get to
know the prices, demand and supply of each market. This will help the supplier control
his business by sitting in his far away office. The most dynamic utility of this is that a
supplier can decide whether to go to one market or the other instantaneously, according to
the prices. For export markets, the prices will be priorly fixed through telephonic
negotiations which are different from the domestic markets where prices are fixed
through auctioning. The commission agents in each market also have their own
established contacts with their counterparts of other markets. The flow of information
prevailing in the system is extremely vital for all the parties concerned for carrying out
smooth business.
Physical flow of the good – As discussed earlier, the wholesalers have agents in various
beaches. They procure the catches through their agents and take it to their common yard.
Grading, sorting and re-icing are done in the wholesalers’ yard. The wholesaler has a list
of markets to be covered each day according to the level of catch and the variety of fish.
The fish is filled in boxes of standard sizes and transported to various markets in lorries.
Relationship among parties involved - The wholesale marketing is a complete trust-based

business. The supplier who sends fish to the market has a trust in his drivers and staff
who carry the fish. Also the commission agent has a trust on his auctioneers and money
collectors. The ultimate trust is paid on the retailers who take the fish away daily and
return money only after a long period. Credibility is the key to business in the wholesale
markets. Regularity and bulkness in transactions are the means to set up long term
business and hence credibility with the actors. The supplier-commission agent-retailer
relationship is built on this credibility, which makes the business smooth and strong.
ii) Handling
The catch from the beaches is taken to the wholesaler’s yard. Further handling is to be
done before it is transported to markets. The catch will be a mix of various varieties and
sizes. So one has to sort them according to the sizes, grade them according to variety and

quality. Re-icing has to be done and fish is packed in boxes and loaded on vehicles. The
level of supply of various markets will depend on the level of procurement, the varieties
available, the demand of the market, its species preferences and the absorption capacities.
Once the vehicles reach the market, the unloading of boxes are done by the head load
workers belonging to various trade unions. After the sale, the boxes are loaded on to the
buyers’ vehicles.
Icing - The problem of perishability of the commodity is taken care by the presence of
icing facilities. Most of the wholesale markets will have the presence of ice plants nearby.
This will help retailers maintain the freshness of fish till they reach retail markets or
consumers. These are found to be of immense use for terminal markets where all the
unsold fishes can be kept in ice for the next day’s sale.
Value addition - Some of the wholesale markets have the facility of limited value
addition, like salting and drying facilities, which will improve the time and form utilities
of the product. They are found to be present with almost all terminal markets. Salting and
drying facilities are available in some markets where as wholesale markets for dry fish
items are present adjacent to the fresh fish markets in some other places.
iii) Delivery
Typology of buyers- the buyers who take fish out of the wholesale market belong to
different types. Though broadly called as the retailers, there are sub wholesalers, retailers,
domestic sellers, exporters and consumers who fall in this category. As the number of
actors in this chain increases, the prices increase accordingly till the godd reaches the
final consumer.
Sales System - There are two types of sales systems- sales through auctioning and sales
through weighing. Auctioning method is followed for smaller varieties of fish like
Sardine, Mackerel, Anjovi etc., whereas weighing method is followed for the larger and
costly items like Seer fish, Emperor fish, Pearl spot, Prawns, etc. The auctioning is a very
active process wherein the fishes are auctioned for individual boxes. Each box of fish

containing on an average 30-50 kg depending upon the weight of the item will be quoted
a particular floor price, which is the prevailing price on that day. Retailers will agree to
that price if it is satisfactory, and if they feel the price is high, they will wait till the price
gets reduced. In that manner, all the boxes are sold to the retailers one by one. The
auctioning is carried out by persons appointed by the commission agents. There will be
separate staff to write down the sales amount to each retailer. They will report the sales
for each retailer to the accountant or clerk in the commission shop. The auctioneers, the
persons to report the sales and the accountants together form the commission staff, who
are salaried employees of the commission agents. In the weighing system, prices will be
fixed per kilogram initially and the items are sold off.
Payment System - The commission agents pay ready cash to the suppliers as and when
their sales in that market are over. In rare cases a credit of up to 2 days will be taken. The
retailers are given credit, starting from one day till one month in various markets. They
are supposed to remit their dues in the commission agent’s office.
In addition to the commission, the suppliers will have to pay a certain amount of money
towards the loading charges. They are usually charged per box. They will also have to
pay the market fees to the Local Self Governments, calculated per vehicle entering the
market. The market fees refer to the fees charged by the person who has taken the market
place for lease from the respective Corporation/Municipality/Panchayat as the case may
be. This charge will directly be paid by the commission agents and will be deducted from
the bill later. But in certain markets, all the burden of paying the loading charges, market
fees etc will be taken by the commission agent himself and the supplier should not be
bothered to pay anything other than the commission. These kind of systems are
traditionally fixed and followed and varies across markets.

iv) Price discovery

The prices of various fish items are dependent entirely on the supply on that particular
day and hence prices fluctuate widely across the days and even within a particular day.
There is no mechanism to control the supply of fish coming into the market. All the
prices are quoted according to the shore prices which come out of the levels of daily
landings.
In the domestic markets, the prices are fixed through auctioning procedure. No actor in
the market has the ability to decide prices on his own. For export marketing, the
wholesalers or suppliers fix the price through telephonic negotiations. Hence the actors
have a kind of price determining power. One more difference with the export market is
that prices are fixed prior to sales whereas in domestic market, they are fixed at the time
of sales.
There is a high element of risk involved in price discovery of the wholesale fish markets.
In certain markets, the demand may be constant but the supply levels fluctuate. This will
cause fluctuations and unpredictability in prices. The perishability of the commodity also
brings in the effect of quality and variation in prices among similar species. The
important point to be noted is that, in the long run, all the price variability will be
accounted for. The loss incurred to the wholesaler due to lower prices on a particular day
will be compensated by the gains made in the other day.
4.2.5 Other Strategies

 Competition among the commission agents is what which maintains the business
healthy for the suppliers and the retailers. Commission agents offer a certain
amount of money to the suppliers as advance in order to fetch and retain their
business with them. This amount may vary from a few thousands to lakhs,
depending on the business potential and the credibility of the supplier. There are
commission agents within the state who offer lot of money to suppliers and
retailers to prevent them from carrying out business with his competitors.

 Intense competition exists in between suppliers in supplying fish to these

wholesale markets, many a times whom tries to prevent new comers from
entering into this area of business
 The retailers conducting business in the wholesale markets operate with an
intelligent strategy. Many of them have the problems of large amount of dues with
the commission agents, which are normally allowed for some period of time.
Some retailers who used to take fish from a particular market, has a default in
payment, after that time, will shift to an entirely different market and start buying
fish from there. This may continue for some time and he may switch over to
another. Though this cannot be hold on permanently, many of the retailers are
following this.

Chapter V
WHOLESALE FISH MARKETS OF KERALA AND TAMIL NADU
The following section discusses the observations of the wholesale markets that were
visited during the course of the study.
5.1 Wholesale Markets of Kerala
1. The wholesale fresh fish markets can be broadly classified into southern, Central
and Northern Kerala markets based on the geographical dispersion and location –
the southern markets comprising of Pangode, Nedumangad, Alangode, Parippally
and Karunagappally. The Central Kerala markets comprising of a chain starting
from Perumbavur to Thiruvalla through Muvattupuzha, Ettumanur, Kottayam and
Changanacherry. They also cover the markets of Chambakkara (near
Tripunithura), Vaikom, Kayamkulam, Alappuzha and Cherthala. Markets of
northern kerala are those starting from Aluva and to the north of it which include
Thrissur, Calicut, Kondotti, Thalassery, Kannur, Payyannur and Kanhangad.

Fig. 5.1 Wholesale fish markets of South Kerala

2. The wholesale markets of Kerala are geographically spacious in order to provide
entry for a large number of vehicles, which bring in and take out fish.
3. Sardine and mackerel are the common species found in all markets of Kerala.
They have an almost steady demand throughout all seasons.
4. Majority of the fishes are sold through auctioning only. Auctioning is done for
individual boxes. Weighing system is not so prevalent and is practiced only in the
case of larger and valuable varieties of fish.
5. The chain of Central Kerala markets is peculiar with the presence of larger fish
items including Emperor fish, Parrot Fish, Pomphret etc., and inland fishes like
Cutla, Pearl spot, Rohu etc., which are sold through weighing. There is also a
system of weighing-cum-auctioning where auctioning is made for a bundle of 50
kg of fish.
Fig. 5.2 Wholesale fish markets of Central Kerala

6. The timings of the Central Kerala markets are very peculiar. All of them are
located at around equal distances, which take around an hour on an average to
travel from one market to another. The first market in Kerala, Perumbavur starting
at 1’o clock, then Muvattupuzha at 2’o clock, Ettumanur 3’o clock,
Changanacherry, Kottayam and Thiruvalla at 5-6’o clock time. This gives the
suppliers an opportunity to travel from each market to the next, if the boxes are
not completely sold.
7. The preference for fresh water fishes is always found to be secondary in the
Kerala markets. The reason being pointed out is that the taste of fresh water fish is
not preferred by Keralites. But of late, up to 10-20 per cent of the wholesale fish
market is cornered by fresh water fish varieties.
8. June to mid August is the period of trawling ban in Kerala shores. This results in a
heavy in flow of fish from our neighbouring states like Tamil Nadu and Andhra
Pradesh. Transportation and infrastructure facilities becoming highly advanced,
the inflow of fish from Gujarat, Goa, Maharashtra, Orissa etc., during recent years
became prominent.

Fig. 5.3 Wholesale fish markets of North Kerala

9. Kadalur, Rameswaram, Thoothukudy, Nagapattanam and Kanyakumari supplies
the maximum amount of out of state fish to Southern Kerala fish markets.
Chennai, Kakinada. Visakhapatanam etc., supplies a sizeable quantum of fish to
the north Kerala markets.
10. Though there is a variation in the rates of commission ranging from 6 percentage
to 12 percentage, majority of the market has the uniform rate of 10 percentage.
This is subjected to a concession up to 2 percentage to the credible suppliers who
have a long and healthy relationship with the commission agents. Suppliers are
paid ready cash uniformly in all the markets, though rarely a credit up to a couple
of days is allowed.
11. The main strategy followed by the commission agents uniformly in all the
markets is the advance system of payment to the suppliers. To fetch and retain the
business with the suppliers, the commission agents offer a particular amount of
money as advance at the starting. This amount ranges from Rs 10,000 to 5 lakh,
depending on the business volume capability and credibility of the supplier. This
amount will be re imbursed to the agent through smaller installments during each
time of sales. The important thing is that the amount of advance and installment
rates will be fixed based on the choice of the supplier and not on compulsion by
the commission agent.
12. The retailers are allowed a credit in payment starting from one day to about two
weeks. This is a conventional system practiced everywhere in Kerala. No retailer
is prompt in his repayment and the system produces a huge quantum of bad debts
to the commission agents.
13. In the Southern markets of Pangode, Kalikaavilai, Nedumangad and Parippally,
there are special groups of people appointed by the respective commission agents
for the collection of dues from the retailers. Since they are exclusively appointed
for this purpose, they will trace the retailers and extract the maximum from them.
This system, though increases the cost to the commission agents, reduces the
quantum of bad debts considerably, compared to the other markets.

14. Except in a few markets, all the wholesale markets have the facility of icing. Ice
plants are situated either adjacent to the markets or in nearby areas. In markets
like Aluva, Calicut and Vaikkom, the commission agents themselves run ice
plants. Icing facilities help the retailers retain the shelf value of fish till they reach
their terminal points of delivery. It also helps in storing those fishes which are not
sold, for the next day.
15. Certain markets have the presence of a dry fish market adjacent to the wholesale
market. This will facilitate the value addition in terms of increasing the time and
form utility. Merchants have the opportunity of selling the unsold fresh fish in the
dry fish market.
16. The presence of head load workers affiliated to various trade unions is a feature of
Kerala wholesale markets. They will have a fixed loading and unloading charges
in each market. The unloading charges will be paid per box by the commission
agent which he will reduce from the sales bill of the supplier. The loading charges
per box will be directly paid by the retailer. In addition to this, in certain markets,
the head load workers have a welfare fund towards which the commission agents
contribute a certain share of their income.
17. In the southern markets of Kerala, the commission agents pay a definite amount
of money to his auctioneers as auctioning charges. This will range from Rs 40 –
200, based on the size of the vehicle. The commission agent also pays a fixed
amount as market fees, which again varies with the size of the vehicle.
18. Though the markets are having the presence of commission agents ranging from
3-10, two markets in Kerala are peculiar for the presence of a single commission
agent- Perumbavur and Thiruvalla. These commission agents have monopolised
the sale in these 2 markets. Hence, to a certain extent, they have a say and control
in the prices prevailing in these markets, compared to all other markets. The
commission agent in Perumbavur market, Mr. Aboobecker runs his own retail
supply system. He takes fish from the wholesale market in about 10 vehicles and
supplies it to the retail markets of the high ranges in Idukki district, procuring a
better margin than others.

19. There are a number of local and external suppliers who bring fish into the Kerala
markets. Around 90 percent of the markets we visited have the supply from
Kanyakumari Fisheries (KKF), who is the market leader. According to
commission agents, KKF ensures a regular and bulk quantity of supply which is
premium in quality. There is a reduction of around 2-3 percentage in commission
to KKF in every market. Another supplier from kanyakumari, the Sahayamatha
Fisheries (SMF) is also a major supplier. Suppliers from other states bring fish
from the areas like Tuticorin, Nagapattanam, Pondicherry, Rameswaram,
Chennai, Vizag, Goa, Mangalore, Mumbai, Varavel, Porbander, Puri, other coastal
areas of Orissa etc. The local supply is mainly from Vizhinjam, Neendakara,
Alappuzha, Munambam, Calicut, Thalassery, Kannur and Kasaragode.
20. The auctioning procedure is similiar in majority of the markets. Boxes in the
vehicles are auctioned on a first come- first served basis. Boxes are auctioned on
the vehicle itself one by one. In the larger markets of Pangode, Muvattupuzha and
Calicut, the auctioning is a very active and quick process. In Perumbavur market,
which is a ‘commission agent monopolised market’, auctioning is done for a set
of boxes together and sold rather than for each box. Aluva market has a different
system. Here, though the market time start at 4’o clock, auctioning will start only
at 6.30. All the boxes will be unloaded from the vehicles and kept on the floor in
separate places, by the respective commission agents. By 6.30, auctioning starts
and the agents auction boxes one by one, starting from one end till all those boxes
are auctioned.
21. There is seasonality in fish catch and supply and hence there are peak and lean
seasons prevailing in the wholesale fish markets of Kerala. June, July and August
are the lean months of supply of fish into Kerala markets. This is mainly because
of the ban on trawling in Kerala during this period. During these months, the main
supply is from Tamil Nadu, Andhra Pradesh and Orissa. The peak period of fish
supply in Kerala markets starts from the middle of August and lasts till
November-December. During these months, supply mainly comes from with n
Kerala, and the West Coast covering Karnataka, Goa and Maharashtra. Anyway,
the high demand for variety of fishes and the high consumption pattern of fish

among the people of Kerala makes a reasonably steady and good amount of
supply throughout the year, from various sources in the country.
22. There is peculiarity in Species preferences among the markets. A brief description
of these preferences is given as follows.
Table. 5.1 Species Identification of Kerala Markets

Region Species Preferred
Sardine (Kari-Chala) and mackerel are highly demanded. Also
Southern Ray fish (Thirandi), cuttle fish (Kanava), Tuna (Kera choora),
Kerala Anchovi (Netholi) False Trevally (Parava) have good demand
Central Large fishes like Emperor fish, Pomphret,

Kerala Barramundi (Kalanchi), Cobia (motha),
Seer fish, prawns and shrimps
Northern Oil Sardine, Mackerel and Bludger (kozhuva)

Kerala are in high demand. Sole (Manthal), shark
and fresh water fishes like Rohu and Eri have good demand
23. Each market has its own absorption capacity. This is the maximum amount of fish
that can be sold in the market, which is dependent on the demand of the product,
the species preferences and the geographical span of delivery.
Table. 5.2 Ranking of Markets based on Absorption Capacities

Name of Market Rank Absorption Capacity
(in boxes)
Calicut 1 Above 4000
Pangode (Trivandrum) 2 3000-3500
Muvattupuzha 3 2000-2500
Parippally 4 2000-2500
Ettumanur 5 2000-2500
Alwaye 6 1500-1800
Changancherry 7 1400-1750
Perumbavur 8 1000-1200

Kottayam 9 1000-1200
Vaikom 10 800-1000
5.2 Wholesale Markets of Tamil Nadu
1. The major wholesale fresh fish markets in Tamil Nadu are geographically located
faraway when compared to those markets in Kerala. This results in high per unit
cost of transporting fish to these wholesale markets when the supply is low. More
over this results in less flexibility to the suppliers in changing markets, in the
event of getting low prices, as seen in Kerala wholesale fish markets.
2. The markets in Tamil Nadu are less spacious when compared to the markets of
Kerala. Hence they can accomodate the entry of relatively less number of vehicles
in the market.
3. Chennai and Madurai are having the peculiarity of the presence of two wholesale
markets within the city premises.
4. The major system of fish sales in Tamil Nadu wholesale markets is through
weighing only. The commission agents decide a floor price for various varieties of
fish and if the price is agreeable to the retailer, he will buy the quantum which he
feels he can sell off that day. And if the price decided by the commission agent is
not agreeable for the retailer, no sales will takes place and the agent will be forced
to reduce the price to lower levels. Auctioning system exists only in a few
markets.
5. The fish consumption rates of the people of Tamil Nadu is lesser compared to that
in Kerala. Per capita monthly consumption of fish in Tamil Nadu is 0.17 kg
whereas in Kerala, it is 1.5 kg (2003 statistics-www.indiastat.com). Hence the
demand being low, the supply of fish is less. This is also one reason for the lesser
absorption capacities of the Tamil Nadu markets.

6. The quantum of fish a single retailer purchases from a commission agent also is
too less when compared to his counterpart in Kerala. A retailer purchasing a box
full of fish for his day’s business is a rare scene in Tamil Nadu markets.
7. The presence of larger and costly items of fish is a peculiarity of the Tamil Nadu
markets. Emperor fish, pomphret, Vatta shark etc are in good demand in the
wholesale markets there.
8. The demand for fresh water fish is very high when compared to the Kerala
markets. Katla, Rohu and Mrigal, and Mushi are the most common items coming
to the Tamil Nadu markets. A major chunk of these are coming from the inland
culture fisheries of Andhra Pradesh. At times and mainly during off-season for
marine fisheries, the ponds of central and southern Tamil Nadu also produce a
good lot of inland fish.
9. Two mostly demanded marine fish varieties are lizard fish and kilimeen in Tamil
Nadu markets. These two varieties are seen mostly on Kerala shores especially on
Cochin and Neendakara harbours. Lizard fish is found to have less or no demand
in Kerala markets. Even though Kilimeen has some demand in here, it is been
found bulk transported to Tamil Nadu due to the better price earned there.
10. One of the advantages of Tamil Nadu wholesale markets is the absence of any
strong and organised trade union culture. This results in comparatively low cost
for the suppliers to sell off their fish in these markets when compared to their
counterparts in Kerala.
11. The species preferences of the markets in Tamil Nadu are given as below.
Table 5.3 Species identification of Tamil Nadu markets

Sl.No Market Items highly demanded
1. Chennai Seer fish (Vanjram), Lizard fish (Arana), Bludger
(Kozuva), Anchovi
2. Villupuram Kilimeen, Lizard fish (Arana)
3. Thiruchirappalli All varieties of fish are sold here. Large fishes like
emperor fish, seer fish etc and Fresh water fishes

like Rohu, Katla and cat fish
4. Madurai Fresh water fishes like Rohu and Katla in great

demand
5. Kaliakkavilai Sardine (Karichala), Tuna (Kera Choora), Anchovi

(netholi)
5.3 Seasonality of major fish varieties in Kerala and Tamil Nadu markets
Table 5.4 Seasonality of major fish varieties in Kerala and Tamil Nadu markets
Name of Peak Season Lean Season
the Item
Period Sources Price Period Sources Price
range range
(per Kg)
1. Sardine Sept- May Kerala, Rs.2.50/-
June - Kerala Rs. 10/-
Southern to 12/-
August to 30/-
Tamilnadu
Mangalore
2. Mackerel Mid Kerala, Rs. 10/- to May to Chennai, Rs. 35/-
August to Andhra, Rs. 18/- Mid kadalur, 50/-
April Chennai August Goa,
Andhra
3. Tuna August- Goa, Rs.15/- to June- Tamilnadu Rs. 30/-
may Ratnagiri, Rs.20/- July and East Rs. 50/-
Karnataka coast
4. Anchovi Sept to Kerala Rs. 8/- to July- Kerala, Rs. 20/-
June Rs. 12/- August Tamil Rs. 30/-
Nadu
5. Seer fish December South Rs.40/- to June- Andhra Rs. 90/-
- April Kerala, Rs. 70/- Nov and Tamil to 140/-
southern Nadu
Tamil
Nadu

6. Emperor January to Kanya- Rs. 35/- to June to Tamilnadu Rs. 80/-

Fish may kumari 65/- Dec 120/-
coast and
south east
Tamil
Nadu
7. Pomphret June to Southern Rs. 40/- to Dec to East coast Rs. 80/-
November Kerala Rs. 80/- may to 150/-
and
Karnataka
8. Rohu, Feb to Tamil
Katla June Nadu Rs. 20/- to July to Andhra Rs. 30/-
Rs. 30/- January Rs 40/-
Chapter VI
ANALYSIS
Having studied the wholesale markets and the various systems prevailing in those
markets, one needs to look into the capabilities of an organisation vis-à-vis the
requirements needed for it to enter the wholesale marketing. An attempt here is made to
analyse the advantages of SIFFS in terms of resource requirements for wholesale
marketing. SIFFS, before entering the wholesale marketing has to understand its
strengths and weaknesses so as to utilise the opportunity.
6.1 Wholesale Marketing Requirements

The major requirements for becoming a wholesaler in the fish marketing chain have been
studied and is tried to critically compare and contrast these requirements of a wholesaler
with that of the capabilities of SIFFS and summarised as follows.
6.1.1 Information
The major input from which any wholesaler makes advantage in the wholesale fish
marketing system is the availability of information. Basic details about the wholesale
markets, the systems prevailing in those markets including the commission agency

system, the species preferences in these markets, the seasonality in catch in various
beaches, the trawling ban period in different states and its implications for fish arrivals,
the export demand varieties and a number of other details about each point of production
(beach market) and point of sale (wholesale markets) is to be owned by a wholesaler for
operating his business.
SIFFS has an excellent network of its member co-operatives all along the south Kerala
and Tamil Nadu coast, which enables it to have all the relevant market knowledge from
the point of production (beach market). But being a new comer to the field of wholesale
marketing, it falls short of information regarding the point of sales (wholesale markets).
This study was an attempt to provide that knowledge and hopes to equip SIFFS with all
relevant details in this regard.
6.1.2 Infrastructure
Fish is a highly perishable commodity and its value lies in improvements in time and
place utility. Even though processing of marine fish products is showing an increasing
trend, domestic market still prefers to have fresh fish in its diet rather than processed
products. So investment in infrastructure is a must for a wholesale dealer of fresh fish to
improve time and place utility.
Time utility can be increased by chilling the fresh fish or by cold storage. Chilling is
generally done by mixing the fresh fish with ice cubes at a ratio 1:1, and packing it in
plastic boxes averaging 40 Kg each. The proximity of an ice plant for the easy
availability of ice is a minimum requirement in this regard. It has been observed that most
of the wholesale merchants in Kerala and Tamil Nadu owns and operates ice plants for
ensuring the easy and cheaper availability of ice. SIFFS in this regard is better off since it
owns and operates two ice plants, one each in Kerala and Tamil Nadu. Another
requirement for the wholesaler is the stock of plastic boxes for easy handling, storage and
transportation of fresh fish. The quantum of boxes depends upon various factors like the
quantum of fish one plans to handle, the distance to which it attempts to carry fish etc. A
good amount of investment is required for SIFFS to generate the necessary stock of
boxes.

Place utility creation is the next step. For this the fish need to be carried to distant
markets. Therefore transportation facilities including vehicles and drivers become a must
for wholesale merchants in doing their business. SIFFS needs fresh investment to create a
transportation network in this regard (financial implications for these investments have
worked out later).
6.1.3 Expertise
Being one of the fastest moving consumer commodities, fish marketing necessitates a
handful of skills for anyone involved. An up to date market intelligence which includes
knowledge about trends in prices, seasonality of both supply and demand, species
preferences, competitor strategies are all gained over a period of time by real time
involvement in marketing. In addition to this, a wholesaler should essentially have skills
of relationship building, negotiation and fast decision making.
Compared to what mentioned above, SIFFS currently possess direct marketing

experience in Out Board Motor engine supply and maintenance and a limited exposure to
direct fish sales through a retail outlet in Trivandrum city. This demands induction of
experienced people from the industry for carrying out business with relevant marketing
knowledge.
6.1.4 Market Linkages

One of the most important strengths of a wholesaler is his widespread contacts in all the
major wholesale markets as well as landing centres. This enables him to be equipped with
the latest market information. These linkages are developed over a period of time.
The contacts of SIFFS are pretty good with beach markets, but in the wholesale markets
they are relatively weak or absent. Considering the wide fluctuations in price, supply and
demand of fish even within a single day, the conveyance of information between different
actors is an important element in carrying out efficient business. Therefore, establishing

good linkages with all the actors in the fish marketing system by the organisation is
indispensable.
6.1.5 Financial Requirements

Wholesale fish marketing is a business which requires investment to the tune of lakhs and
crores. The major fund requisites include the investment in infrastructure, human
resource, advance payments to beach level agents etc. The present marketing budget of
SIFFS for the financial year 2003-04 is limited to the extent of Rs. 24 lakhs - which
involves all the allocations for the existing ice plants and other marketing activities -
where in the minimum level of investment required for starting a wholesale marketing
business ranges from Rs. 50 lakhs to few crores (industry sources). Being an NGO, the
funding agencies of SIFFS were also seemed not so much interested in investing in
commercial activities of SIFFS like marketing of fish in the recent past. So channeling of
huge amounts of funds will be the major constraint for an organisation like SIFFS in
entering wholesale marketing business.
So far we have discussed the essential requirements of a wholesaler to carry out the
business. SIFFS while thinking of entering into the wholesale fish marketing business
should consider fitting its current resources/capabilities into these requirements. In order
to analyse this possibility, SIFFS should understand its own strengths and weaknesses. A
SWOT analysis has been carried out in this respect.
6.2 SWOT Analysis

A detailed analysis of Strengths, Weaknesses, Threats and opportunities (SWOT) of
SIFFS in entering wholesale fish marketing is carried off as follows.
6.2.1 Strengths
 Strong Procurement System in hand
SIFFS has a strong procurement system in its custody. The total annual catch of
fish comes to around rupees 3.65 crores, spread over the 90 member societies.
That gives an average daily catch of 10 lakh rupees. If it can utilise at least one

tenth of this catch to supply in various markets daily, the supply system can be
strengthened. As discussed in the business plan earlier, SIFFS can assure a steady
supply to the major markets of Kerala and Tamil Nadu.
 Presence of geographically dispersed societies
SIFFS has a wide network of primary village societies, a total of around 90 which
are geographically spread from the Malabar area to the Tarangampady area, both
on the West and East coast on the southern part of the country. So SIFFS has its
members at all these landing centres. This will give a good opportunity of
updating the shore prices and catching variety of fishes. This kind of an
opportunity, if properly utilised can enormously contribute towards good
business.
 Experience of SIFFS in other marketing activities

Though not in wholesale marketing, SIFFS has an experience over years in the
trade of Out Board Motors and spare parts. It is the sole dealer of Suzuki engines
in Kerala. SIFFS also holds an export licence of fish, with which it has exported
various fish items to foreign countries in the past. Such a kind of exposure and
expertise in marketing will help the organisation to a limited extent.
 Own facilities
In order to enter as a supplier in the major markets, transportation and storage of
fish will be the main issues. Fish needs icing facilities for storage and maintaining
the freshness while transporting over distances. It is the pre requisite for every
wholesaler to have icing facilities. SIFFS, owning ice plants in the areas of
Vizhinjam and Enayam can meet the icing requirements.
6.2.2 Weaknesses
 Limited budget
In order to go for full fledged wholesale marketing, there needs a supply of
logistics and human resources. This will require a good marketing budget.

Currently SIFFS cannot afford such a huge budget and hence will have to go for
external assistance in finance.
 Lack of human resource
The entry in to the wholesale markets requires as a supplier requires a fair amount
of human resource to be utilised. The organisation will require marketing and
accounting staff, people to transport the product to the markets. There is the need
of a full-fledged marketing department which SIFFS lack at present.
 Anti trawling policy
SIFFS as a movement to protect the rights of traditional fishermen is technically
against the use of trawlers and the method of fishing by trawling. But the major
portion of fish coming to Kerala and Tamil Nadu wholesale markets is from
trawlers. Without procuring the catch from the trawlers, regular and bulk
supplying in markets is not possible. With the anti trawling policy, SIFFS is not in
a position to take trawler catches and hence it may not ensure a good steady
supply.
 Non involvement in Inland fishing
From the understanding of the markets in Kerala and Tamil Nadu, we know that
inland fishes play a major role in the wholesale fish trade. The entire markets in
the Central Kerala chain are having a high demand of inland fishes and on an
average, nearly 20-40 percent of the species sold in various markets of Kerala and
around 50 percent of the species sold in Tamil Nadu markets are inland fishes.
Supply of inland fishes forms a major chunk of the business. But SIFFS presently
has no involvement in inland fishing. It can supply only the marine fishes. This
cannot help it sustain for a long time particularly during the lean seasons of
marine fish, during which the other suppliers resort to inland fishing.
 Lack of direct marketing experience
SIFFS has no previous experience in wholesale marketing. The lack of this
experience and the knowledge about various systems prevailing in the markets
and the nature of the business will be a major weak point and an impediment.
 The NGO framework

Business cannot be pure business for NGOs. Working with a development

perspective, the business motives of SIFFS cannot be fulfilled. It is always aimed
at providing welfare to fishermen. Business is always a strategic playground and
for emerging out as a major player, one may have to play extreme tactics. The
prices offered to fishermen will always depend on the market prices, but SIFFS,
with its welfare motive, cannot offer lesser prices to fishermen beyond a limit,
even I if the market prices are still lower. These situations will lead to losses. The
development objectives and the business objectives cannot travel on the same
boat. There should be a compromise between the two at a particular level. More
over as an organisation upholding certain values and ethics, SIFFS cannot resort
to all the negative strategies played by other private suppliers. Thus with NGO
framework in practice, serious threats of losses are awaiting SIFFS in the
business.
6.2.3 Opportunities
 Growth in Wholesale industry
The wholesale marketing is growing with an upward trend. Statistics indicate that
the consumption rates of fish in Kerala and Tamil Nadu are increasing year by
year. The overall fish production is increasing and fisheries sector contribute
much to the economy. People are demanding more and more quantities of
different varieties of fishes. Markets are expanding in terms of their absorption
capacities and in recent period, new markets have been forming in many parts of
the state. The competition among commission agents is also getting increased and
they are welcoming new suppliers to the market. Hence there is a good scope for
wholesale business and markets are positive towards the entry of new players.
 Competition among major market players
As the industry goes up, the competition among the major market players is also
getting severe. The wholesale markets of Kerala and Tamil Nadu are largely
controlled by two main suppliers – KKF and SMF. In the recent time, there has
been very tight competition between these two. For fetching good business, they
are competing in offering the maximum prices to fishermen, prices much higher

than the market rates. So currently, they are facing severe loss. The smaller
players have an opportunity to enter at this point of time when the big players are
‘tired’.
 Export using export license in hand
Previously, SIFFS has made attempts in chilled fish and frozen fish exporting. It
is in possession of a valuable export license, which if utilised can help it in
elaborating its export business.
 Success of direct sales shops
The growth of fish industry and the growing demands of the consumers has led
the expansion of the business in the form of direct sales retail shops mushrooming
in various parts of the state. There are a number of such shops operated by private
parties, which are running at reasonable profits. SIFFS also earns one shop in
Trivandrum city to sell frozen fish items. The growth of the ‘fish consuming niche
segment’ of consumers and the success of such direct sales shops is a good
opportunity for SIFFS to enter in a similar kind of marketing.
6.2.4 Threats
 Reactive attack by major players
As already explained, a few major players dominate the wholesale markets in
Kerala and Tamil Nadu. These players are so strong that they will play strategies
to any extent for expelling the new comers in the business. They will go to all the
landing centres and offer very high and unfamiliar prices to fishermen in order to
procure all their supply and this will give the new entrant hardly any chance to
procure fish. SIFFS as a new entrant will have to face this serious threat of pro-
active attack by these major suppliers. The past stories of small wholesalers
exiting the business due to this reason are examples to this.
 Adverse government policies
Currently, the main competitors of SIFFS in wholesale marketing will be the
major private wholesale suppliers operating business in Kerala and Tamil Nadu.
The new fisheries policy for the year 2004 gives indications of the state
government’s priorities to strengthen the activities of Matsyafed. This will be

mainly done by providing assistance to fishermen in marketing. Matsyafed, also

working on similar lines as SIFFS, with an assured procurement form its member
societies may enter wholesale fish marketing also, according to the new policy.
This will pose a major threat to SIFFS in the form of a major competitor.
Chapter VII
FINDINGS AND SUGGESTIONS
Each of the wholesale fresh fish markets in Kerala and Tamil Nadu differ from each other
in terms of the systems prevailing there and the species preferences it has. The market
study proved that there exist absences of a proper producer–wholesaler interface, which
increases the inefficiency in the marketing channel. Moreover wholesale fish marketing
scenario is peculiar in the existence of a ‘task environment’ around the wholesaler, which
enables him to market the proper variety of fish in the proper market in the right timing.
Based on the observations of the wholesale markets and the various systems prevailing
in those markets, we have tried to compare the strengths and weaknesses of SIFFS
against the major wholesalers. A comparison is made between wholesalers and SIFFS to
find out ‘what the wholesalers have that SIFFS do not have and the reverse’. Also an
attempt is made to analyse the opportunities and threats that SIFFS have to face while
entering the wholesale business. The synthesis of these analyses yields a conclusion for
this study in a brief manner. With the weaknesses and the threats dominating over the
strengths and opportunities, entering the market as a small player will not be beneficial at

all. The resources available with SIFFS currently do not favour the possibility of it
entering wholesale marketing in a full-fledged manner. To conclude with a one liner,
“SIFFS has a long way to go before testing the waters of wholesale fish marketing…”
But the opportunities for SIFFS will remain wide open for further exploring the
possibilities in entering wholesale marketing business.
7.1 Suggestions and Recommendations

The following suggestions and recommendations are formulated based on our study on
fish market systems in Kerala and Tamil Nadu.
7.1.1 Entry into Wholesale Fish Marketing

The decision whether SIFFS should enter the wholesale marketing or not, should be taken
only after a thorough analysis of its rationale and capability. If entering the wholesale
marketing scenario, it should be in a full-fledged manner ensuring its regular presence in
all the major markets of Kerala and Tamil Nadu. In order to do that, it has to have a
detailed business plan, make sure availability of human and financial resources,
transportation arrangements, contacts with the major commission agents in the markets,
ensure a steady and strong supply through healthy procurement arrangements, meeting
the seasonality and price fluctuations etc. In this regard a detailed business plan is put
forward for consideration.
7.1.2 Strategic Conception of Business

SIFFS has to come out of the developmental framework and become flexible enough to
realise the strategic conception of business. It should view business as business and
separate its business motives from welfare motives. There should be a compromise
between the two. It has to play all the strategies operated by private players in order to
emerge as a market winner.
7.1.3 Linking of Procurement and Marketing Systems

Elaborate efforts are required in linking procurement and marketing systems. Bringing
about an efficient linkage between these two systems, demand a proper understanding of

the procurement levels, the patterns of seasonality of varieties in landing centres, the
fluctuations of it etc. It should also be able to link this procurement system with the
market through the supply levels and patterns. This will help SIFFS to understand the
pattern of procurement in terms of the quantum and variety across various regions and
hence undertake supply accordingly to the wholesale markets.
7.1.4 Establishing market linkages and gaining expertise

SIFFS should establish contacts with the commission agents operating in all the major
wholesale markets of Kerala and Tamil Nadu where it wants to operate. Moreover,
inducting professionals who have sufficient expertise in fish marketing is to be done. The
important role of information and communication in the wholesale business should be
well taken care of.
7.1.5 Expanding into Commission agency business

Once SIFFS itself establishes as a strong player in wholesale fish supply, it can expand its
portfolio of operations into a commission agent. Even though it necessitates bulk
investment, it will ensure SIFFS to have a better control over the entire marketing system
and ultimately help the fishermen to obtain maximum share in consumers’ price.
7.2 Proposed Business Plan

In order to better understand the requirements in entering wholesale fish marketing, a
business proposal has been prepared for SIFFS with the help of the observations and
learning gained through first hand experience in the wholesale markets.
Area of operation: The existing wholesale merchants procure fish from almost all the
beaches in Tamil Nadu and Kerala. To compete with the existing private merchants, it is
proposed to procure fish from nearly 60 centres, starting from Vizhinjam coast in Kerala
to Nagappattinam in Northern coast of Tamil Nadu. The sales should be carried out in all
major wholesale fresh fish markets of Kerala and Tamil Nadu.

Procurement system: Procurement is done through agents nominated by SIFFS in every

village. Other than the sales agents of co-operative societies present now, additional
persons must be appointed to procure fish through auction. They will be given 3 per cent
of the purchase value as commission.
Kinds of fishes: All kinds of fishes except anchovy sardine and leather bag will be
procured (due to their low market demand). Brackish water fishes and trawler catch
should also be taken.
Commission: 3 per cent of the total procurement must be given as commission to the
local agents in addition to the labour charge while procuring fish from the beach market.
In whole sale market 10 per cent of the total sales is given as commission to the
commission agents. But the percentage can be reduced once regular supply of fish with
quantity and quality could be ensured.
Daily expected quantity of fish arrivals and ice requirement: 15 tonnes of fish from all
the procurement centres and 20 tonnes of ice.
Land: One acre of land for building the assembling yard of the wholesaler for grouping
the fish. The land should be Kanyakumary based.
Staff Requirements:
Designation Number
Manager 1
Supervisors (vehicle, loading,sopt,budle) 4
Helpers (icing, loading,) 35
Purchase man- through auction 10
Grade makers (ladies) 4
Driver 12
Vehicle: For local purchase from beach markets, hired tempos will be used. For the
supply to the whole sale markets own vehicles must be used. One lorry and five tempos
(Swaraj mazda) are needed in this respect.

7.2.1 Volume of Operations

Wholesale fish marketing business is found to be low margin - high volume market,
wherein to some extent the quantum of sales determines the level of profit. So a
minimum procurement of fish is required in all seasons to conduct the business. A rough
estimate of the cost-volume- profit analysis is given as follows.
Table 7.1 Break Even Volume of Operations

Wholesale Fish Marketing - Break Even Analysis
Daily purchase (tonnes) 15.00

Purchase rate (per kg) 25.00
Market rate (per kg) 35.00
Total sales(Rs) 525000
Variable cost/day Amount/day
Fish purchase 15*25000 375000.00
Trans-charges 20*500 10000.00
Fuel charges 6*3200 19200
Daily Allowance 6*150 1200
Commission(purchase agent) 3% 11250
Commission(wholesale market) 10% 52500
Ice 20*800 16000
Labour charge 15*500 7500.00
Miscellaneous 5000.00
Total 492650.00
Variable cost/MT 32843.33
Fixed Cost
Depreciation/Year
Building 80000.00 266.67
Vehicle 660000.00 2200.00
Tools &
machinery 56000.00 186.67
Salary(per month) 173900.00 6956.00
Repairs & maintenance 30000.00 1200.00
Total 10809.33
Contribution/MT 2156.00
Break-even Qty / day 5.01tonnes
7.2.2 Financial Resource requirements

Wholesale fresh fish marketing is one of the businesses in which daily transactions worth
millions of rupees has been carried off. More over investments ranging from few lakhs to
several millions are required to enter in to the wholesale marketing scenario as a
wholesale dealer. Investments in infrastructure, human resources and market intelligence
necessitate huge inflow of funds.
A rough estimate of the financial requirements for a wholesaler is prepared based on the
minimum expected volume of operations discussed earlier and is presented in the
following table.
Table 7.2 Financial Estimate for Wholesale Operations

Infrastructure needed for marketing intervention of SIFFS
(Proposed area for operation- Vizhinjam to Nagappattinam - 60 Centres)
Description
Particulars (Quantity * Cost/Unit) Amount (Rs)
Land 1 acre 1500000.00
Building Shed for pooling fish 800000.00
Lorry 1*800000 800000.00
Tempo(S-Mazda) 5*500000 2500000.00
Crates 1500*300 450000.00
Crusher 2*45000 90000.00
Weighing balance 2*10000 20000.00
Total 6050000.00
Staff Requirements
Number * Expected
Designation Salary Salary
Manager 1*10000 10000.00
Supervisor 4*4000 16000.00
Grade making(ladies) 4*1600 6400.00
Helpers 35*2500 87500.00
Purchase man 10*3000 30000.00
Drivers 12*2000 24000.00
Subtotal For a month 173900.00
Total For a year 2086800.00

(Prepared with help of Marketing Department, SIFFS)
7.3 Conclusion
The Organisational Action Component (OAC) of the OTS was an excellent opportunity
to work for the host organisation along with understanding the organisation in depth. As
the basic nature of our project demanded a lot of travelling throughout Kerala and Tamil
Nadu, it was really a nice experience for us to understand the various systems and
behaviour of business. Studying the wholesale fish business in depth, we were able to
analyse SIFFS as an organisation in terms of its strengths and weaknesses in comparison
to the major competitors. The learning experience and the value addition obtained
through the informal interactions with the major actors of the fish marketing channels are
of utmost importance to us. We could learn comprehensively about the fish marketing
channels, and concepts of business involved in it.
Though we have various studies regarding fish marketing and the channels associated, a
comprehensive study covering the wholesale fish markets of Kerala and Tamil Nadu has
not been done previously. The study being one of the first of its kind leaves out avenues
for further research.

REFERENCES
1. Kotler.P Marketing Management, Singapore: Pearson Education Pvt Ltd (2003)

2. Aaker.D.A, .Kumar and Day Marketing Research, Singapore: John Wiley & Sons
Asia Pvt Ltd (2001)
3. Johnson G, Scholes Exploring Corporate Strategy, Singapore: Pearson Education
Pvt Ltd (2002)
4. SIFFS Annual Report 2002-03
5. Society wise fish catch data, SIFFS, 2003-04
6. www.indiastat.com
7. www.marketingteacher.com

APPENDIX I
Proforma Data Collection Sheet
Name of Market:
Sl. No. Characteristics Details

1. Exact location
2. Market Timings
3. Nearby markets reachable (timings)
4. Market holidays
5. Number of Commission agents
6. Major Commission agents
7. Percentage of Commission
8. Sales System
9. Absorption capacity of the market
10. Species Identification of the market
11. Value Addition
12. Payment System
13. Auction Procedure
14. Icing facilities
15. Seasonal fluctuations
APPENDIX II
Profile of the Select Markets of Kerala
1. Name of Market: ETTUMANUR

Sl.
No. Characteristics Details

1. Exact location Near private bus stand, Ettumanur,

Kottayam district.
2. Market Timings 3 AM – 4.30 AM
3. Nearby markets reachable 1. Changanacherry – 28 km south (5.30 am)
(timings) 2. Thiruvalla – 45 km south (6 – 7.30 am)
3. Vaikom – 14 Km north east (6 – 7.30 am)
4. Market holidays Only on Good Friday
5. Number of Commission 8
agents
6. Major Commission agents Joy, Jose, Appachan, Jaison
7. Percentage of Commission 10-11 percentage
8. Sales System Small fishes by auctioning and larger fishes by
Weighing
9. Absorption capacity of the 2000-2500 boxes
market
10. Species Identification of Sardine and mackerel are the main items. Larger
the market fishes like Pomfret, Seer fish, Baramundi (kalanchi),
Cobia (modha) are having good demand compared
to southern markets. Almost all the common species
including fresh water fishes are sold here.
11. Value Addition No salting or drying, but a wholesale dry fish
market is existing nearby at Athirampuzha (7 km)
12. Payment System Ready cash to suppliers and credit extending
from one day to one month for retailers
13. Auction Procedure The auctions start by 3 am and will be done on
first come-first served basis. The suppliers are linked
to various commission agents and their auctioning
staff will conduct auctions on the respective vehicles
itself. Auctions are done for individual boxes for
small fishes and for large fishes it is done for a
bundle of 50 kilograms. The prices will be quoted
based on the shore prices of fish. There will be
separate persons to write down the quantity of fish
sold to retailers.
14. Icing facilities No ice plants nearby. Ice is taken from

Kottayam (14 km away)

15. Seasonal fluctuations Price of fish fluctuates according to the supply
into the market. The prices can change within a day
itself. Normally June, July and August are lean
months of supply and September to November is the
peak supply season. But this year, supply is not low
in June. Sales are very high during the periods of
Christmas and Easter and less during the period of
fasting for Christians (February-March and
December)
Strategies of commission agents

1. This is a one among the markets in the central Kerala chain markets and is one of
the biggest in terms of its daily turnover in fish sales.
2. Severe competition in between commission agents is observed in this market.
Even though the normal commission rate is 10-11 per cent, 2 per cent of this
commission is given to the retailers to sustain the business with that retailer.
3. To retain a supplier, an advance payment ranging from Rs.10,000-5,00,000 is
made to him according to his business volume and this money is taken back by
cutting a fixed amount of each bill. This is made through an agreement between
the commission agent and the supplier.
4. If the supplier is credible enough through his long-term business with the
commission agent, the agent offers a concession in commission up to an extent of
2 per cent.
5. Though the retailers are given credit facility for payment, this will be provided
only after a certain period of regular business with the agent. Newcomers and
those coming from other markets are subjected to pay ready cash for their
transactions.
Specialties of the market

1. A normal day has a business of about rupees 10-13 lakhs. This may go up to
rupees 30 lakhs during peak business seasons.

2. Though this market operates 7 days a week, the supply and demand is less on
Mondays.
3. The market offers flexibility to the suppliers because those coming to this market
have an option of taking the fish to other markets even without selling, if the
prices are not agreeable since this is a link in the chain of wholesale markets of
central Kerala operating at one-hour interval each.
4. The market has a good demand of larger species like Pomfret, Emperor fish
(kalanchi), seer fish (nenmeen), Cobia (modha) etc, which are not having a
demand in the markets of southern Kerala.
5. Ettumanur market is a nodal point of trade in the fresh fish segment. Suppliers
coming from the south come up to this market, start selling here and then go
down. Those coming from North pass through this market and go to markets of
Changanacheri and Thiruvalla.
6. This market is a major centre of trade for the retail markets of Idukki district and
eastern parts of Kottayam district. So the demand and prices remain more or less
steady irrespective of supply, compared to southern markets of the state.
II. Name of Market: KOTTAYAM
S Characteristics Details
l.No
1. Market Timings 3 am-4am
2. Exact Location Kodimatha, Kottayam
3. Market holydays Only on Good Friday
agents
5. Major Commission agent Mankada Thankachan
6. Percentage of commission 11 percentage for small fishes
9 percentage for large fishes

weighing
market
9. Species Identification of Almost all the common species are sold. Sardine and
the market mackerel are the main items, larger fishes like
Pomfret, Seer fish (nenmeen), Barramundi (kalanchi)
Cobia (modha), prawns, shrimps are special items of
this market.
10. Value addition Nil
11. Payment System Ready cash to suppliers in cases of small fishes and
for larger fishes, mostly credit payment is made. For
the retailers, credit payment extending from one day
to one month is available.
12. Auction Procedure The auctions start by 3 am and will be done on first
come supplier-first served basis. The suppliers are
linked to various commission agents and their
auctioning staff will conduct auctions on the
respective vehicles itself. Auctions are done for
individual boxes for small fishes and for large fishes it
is done for a bundle of 50 kg. The prices will be
quoted based on the shore prices of fish. There will be
separate persons to write down the quantity of fish
sold to retailers.
14. Icing facilities 1 ice plant nearby
15. Seasonal fluctuations Price of fish fluctuates according to the supply into
the market. The prices can change within a day itself.
Normally June, July and August are lean months of
supply and September to November is the peak supply
season. But this year, supply is not low in June. Sales
are very high during the periods of Christmas and
Easter and less during the period of fasting for

Christians (February-March and December)
Strategies of Commission agents

1. To retain a supplier, an advance payment ranging from Rs.1 lakh to 10 lakh is
2. If the supplier is credible enough through his long-term business with the
commission agent, the agent offers a minimum commission rate of 9 per cent for
all his transactions.
3. In addition to the unloading charges of Rs. 6.50 per box, the head load workers
are given a bonus of 25 percentage of the total amount on daily basis. The
unloading charges and the bonus amount are included in the commission charges.

1. One of the first markets established in Central Kerala. Later lost prominence due
to the emergence of Ettumanur and Muvattupuzha markets.
2. Though this market operates 7 days a week, the supply and demand is less on
Mondays.
3. This market has the more or less same timings as of the nearby Ettumanur market
and hence those vehicles coming from Ettumanur do not enter this market and
directly go to other markets. This market thus stands separate in the wholesale
market chain of Central Kerala and hence it is a relatively small market.
4. The market is famous for certain special large items of fish like Pomfret,
nemmeen, kalanchi (vilameen), vatta, prawns, shrimps and Moda, which makes it
different from the species profile of the south Kerala markets.
III. Name of Market: CHANGANACHERY
Sl.No Characteristics Details

1. Market Timings 5.30 - 7 am

agents
3. Major Commission agents Paul Cheerankavil, Thomas Koyippally
4. Percentage of commission 10 percentage
weighing
6. Absorption capacity of the 1400 - 1750 boxes
market
7. Species Identification of the Pearl spot, Emperor fish (Vilameen), Pomphret,
market Seer fish (nenmeen), parava, Parrot fish(thatha),
Cobia (modha), and kuruvala are the specially
demanded items.
8. Value addition Salting and Drying facilities available within the
market. Wholesale dry fish market adjacent to
fresh fish market.
9. Payment System Ready cash to suppliers and credit extending
from one day to one month for retailers
10. Auction Procedure The auctions start by 5.30 am. The suppliers are
linked to various commission agents and their
auctioning staff will conduct auctions on the
respective vehicles itself. Auctions are done for
individual boxes for small fishes and for large
fishes it is done for a bundle of 50 kgs and by
small lots if demand is not there for big bundles.
The prices will be quoted based on the shore
prices of fish. There will be separate persons to
write down the quantity of fish sold to retailers.
11. Icing facilities 1 Ice plant within a distance of 2 Km from the
market
12. Seasonal fluctuations Vilameen, Vatta and nenmeen are having a good
supply during summer, whereas pomphret and
parava are supplied mostly during rainy season.
But sardine and mackerel are the items of
constant demand.
Lean months of supply - June, July and

August.
Peak supply season - September to November
Strategies of commission agents

1. Even though the normal commission rate is 10 per cent, if the supplier is credible
enough through his long-term business with the commission agent, the agent
offers a concession in commission upto an extent of 2 per cent.
2. To retain a supplier, an advance payment ranging from Rs.10,000 -1,00,000 is
3. Though the retailers are given credit facility for payment, this will be provided
only after a certain period of regular business with the agent. Newcomers and
those coming from other markets are subjected to pay ready cash for their
transactions.

1. The market offers less flexibility to the suppliers when compared with other
central Kerala markets, because this is one of the terminal markets and hence
those coming to this market do not have an option of taking the fish to other
markets.
2. The presence of a wholesale dry fish market is an advantage. If the suppliers are
not able to sell off their fish, they can either freeze it for the next day market or
can sell it off to the dry fish merchants operating within the wholesale market.
IV. Name of Market: PERUMBAVUR

1. Market Timings 1am-2.30am
agents
3. Major Commission agents Aboobacker
4. Percentage of commission 10 percent

5. Sales System Auctioning

6. Absorption capacity of the 1200 boxes
market
7. Species Identification of the Sardine is the most common species. Other items
market like Mackerel, anchovy (kozhuva) etc are also in
high demand since these items are the most
preferred ones in the high ranges, which are the
major outlets of this market.
9. Payment System Ready cash to suppliers. Rarely, one day credit is
also given by suppliers. Retailers are given a
credit of 2 days to 2 weeks
10. Auction Procedure Auctioning is done for a batch of boxes together
and loaded into vehicles. Only lorries and tempos
take fish from this market, no individuals come
here with bicycles or scooters and hence bulk
auctioning is practiced.
11. Icing facilities Nil
12. Seasonal fluctuations Mostly oil sardine and Mackerel supplies to this
market during off season (June – September)
arrives from neighbouring states

1. The market is monopolised by a single commission agent and he has a certain
degree of discretion in deciding and bargaining on the prices.
2. The Commission agent himself undertakes supply of fish to retail markets from
this wholesale markets. So he has the opportunities to decide prices and margins
of fish sold in those retail markets.
3. There are concessions in commission offered to major commission agents as in
other markets, based on the credibility in the business and the duration of the
business.

Specialties of the Market

1. This market is the first market in Kerala in terms of its timings. It is the stating
point in the chain of markets in Central Kerala.
2. The market acts as one of the major transit markets for Idukki District.
3. The market is monopolised by a single commission agent, which is rarely seen in
the state (only 2 markets, the second one being Thiruvalla), which reduces
competition and increases bargaining power to the commission agent. This makes
this market an unfavourable one for the suppliers. Many major suppliers to other
markets are found missing here. Unless bulk landings happen suppliers like to
keep way from these kinds of monopolised markets.
4. Only large vehicles take out fish from this market and the near absence of
individual retailers coming in bicycles and scooters is a specialty.
5. Due to its timings and the presence of a single commission agent, the suppliers
have always an opportunity and at times a tendency to move to other markets, if
the prices are not favourable.
V. Name of Market: MUVATTUPUZHA

1. Market Timings, Location 2.30 AM –4 AM, Pulimood Junction
agents
3. Major Commission agents Kareem, Pareed
5. Sales System Auctioning
market
7. Species Identification of the Sardine is the major species. A good market for
market Kozhuva and Mackerel. Large fishes like Tuna,
Emperor fish, Vatta, Para etc also have a good
demand. Sharks are also found to be in demand
here.
9. Payment System Suppliers – Ready cash, Retailers- credit upto a

period of 10 days
10. Auction Procedure Same as other markets

12. Seasonal fluctuations All seasons market. Commission agents are
having wide contacts in western and eastern
coasts to ensure regular supply.

1. Even though the normal commission rate is 10 per cent, if the supplier is credible
enough through his long-term business with the commission agent, the agent
offers a concession in commission up to an extent of 2 per cent.
2. There is an advance system of payment to the suppliers ranging from Rs 25,000 –
5 lakhs depending upon the caliber of the supplier. This amount will be taken back
in installments during each period of sales.

1. Large number of commission agents results in a very high competition here.
2. The market has a high demand for larger fishes, sharks and other valuable items
and also for freshwater fishes.
3. The marketplace is geographically spacious and hence provides room for the
entry of large number of vehicles.
4. It is one of the main entry points of the highly demanded and famous backwater
fishes of Kumarakom area.
5. Being convenient in the timings, this market acts as the entry point of the
suppliers from Tamil Nadu and southern Kerala as they often find delayed to go to
the much early Perumbavur market.
VI. Name of Market: VAIKOM

1. Market Timings 6 AM –7.30 AM

agents
3. Major Commission agents Soman
5. Sales System Auctioning and weighing
6. Absorption capacity of the 1000 boxes
market
7. Species Identification of the Sardine is the major species. Mackerel and
market Kozhuva are also preferred. Backwater fishes like
Pearl Spot, Prawns etc also highly demanded
8. Value addition Salting and drying
9. Payment System Suppliers – Ready cash, Retailers- credit up to a
period of 10 days
10. Auction Procedure Same as other markets
11. Icing facilities 2 ice plants-one nearby and one at
Udayanapuram
12. Seasonal fluctuations Fish supply is generally less during seasons of
trawling Ban. During bulk landings all suppliers
arrives here, and otherwise an ignored one.

1. Retailers are mainly women and their daily turn over is very less. So the
commission agent divides a single box into 4 – 5 equal lots and auctions it.
2. Commission agents here run ice plants.
3. It takes a longer time for auctioning in this market and the quantum even after this
lengthy period is not sizeable.
1. The market acts as a terminal market due to its late timings and those fishes which
are not sold in this market, will be taken to the market at Champakkara (nearby
Tripunithura) operating during the noontime.
2. About 50 percent of the items reaching this market belong to inland fish species,
mainly from the nearby Vembanad Lake.
3. A retail market is attached to this wholesale market and the presence of very small
retailers, mainly the women who buy a single box of fish in groups of 4-5 and
share among themselves, is a peculiarity of this market.

VII. Name of Market: CALICUT

1. Market Timings, Location 5.30 AM –8.30 AM,
Railway Stn. Road (Nr. Mathrubhumi office)
2. Number of Commission More than 20
agents
3. Major Commission agents PPC (Mammootty), Thomas, KPMK
4. Percentage of commission 6-10 percentage
5. Sales System Majority by auctioning and larger items like
sharks by weighing
6. Absorption capacity of the More than 4000 boxes
market
7. Species Identification of the Sardine and mackerel are the major species.
market There is a good demand for shark in this market
period of 2 weeks
10. Auction Procedure Same as the above market
11. Icing facilities 2 ice plants
12. Seasonal fluctuations All Season Active Market

1. Though the Commission rate is low compared to all other markets, the agents will
take an additional 5 percent of the sales from the suppliers to offer to the retailers
in order to retain their business. Thus even though the ruling commission rates are
6-8 per cent in effect the suppliers are charged at a rate of 12-14 per cent.
2. An advance amount of Rs 10,000-2 lakhs is given to the suppliers to retain their
business and this will be taken back in installments.

1. Calicut market is one of the oldest and biggest wholesale fish markets in Kerala,
in terms of the varieties of fish and the absorption capacity..
2. This market has a strong demand for larger fishes and is one of the biggest
markets of sharks in the state.

3. The market caters to the needs of the retail markets of Calicut city, nearby places
and the entire high ranges of Wayanad district.
4. This is an early morning market and has the opportunity of selling the unsold fish
in Kondotty market, which operates during noontime.
5. The salting and drying facilities and the presence of a wholesale dry fish market
adjacent to the fresh fish market is helpful in selling off all the varieties coming
here.
6. Since there is a bulk sale of sharks in this market, it generates transactions of
enormous revenue, as there is a good demand for the shark fins in and outside the
state.
VIII. Name of Market: ALWAYE

1. Market Timings, Location 5 AM –8 AM, Beside NH-47 (Nr. Vegetable Mkt)
agents
3. Major Commission agents VFA (Baby & Paulose)
5. Sales System Majority by auctioning and larger items like
vatta, nenmeen, rohu etc by weighing
market
market Larger fishes like Vatta, nenmeen, Rohu, Kalanji,
Eri etc also are highly demanded
period of 2 days to 2 weeks
10. Auction Procedure Auctioning will start only at 6.30. Boxes will be
arranged together by various commission agents
at respective places and auctioning will be done
for boxes starting from one particular end, within
around one hour, complete auctioning is done

11. Icing facilities 3 ice plants, run by commission agents

12. Seasonal fluctuations Depending upon the supply from Tamil Nadu

1. An advance amount of Rs 50,000 – 10 lakhs will be paid to suppliers to earn their
regular business, which will be taken back in installments from each bill.
2. Those suppliers supplying fish regularly and in larger quantities will be given a
concession in the rate of commission, after establishing a long term credibility
and relationship.

1. The market is famous for larger items of fishes and those, which are caught from
backwaters, which are sold through weighing.
2. The auctioning procedure is different from other markets. Though the market
starts at 5 am, auctioning will start only after 6.30. Vehicles coming will unload
all the boxes and go back. A few retailers coming in small lorries and tempos will
take fish by quoting a certain price, which will be adjusted later after prices are
fixed by auctioning. Each commission agent will start auctioning his boxes from
one end and the whole process will be completed within about one hour.
3. Retailers or individuals have the opportunity of buying fishes sold through
weighing even in smaller quantities, which in other markets, are sold only for
larger quantities.
4. The unloading charges come to around Rs 11 per box and the market fees is Rs 4
per box. These charges are to be paid by the supplier. The commission agents will
contribute 25 percent of their daily income towards the loading workers’ welfare
board.
5. Sunday is a holiday for this market and Monday is a low supply day.
6. One of the commission agents of this market is the owner of the Velankanni
Fisheries (VFA), which is one of the major fish suppliers in Kerala. So the market
has a good regular supply of fish.
7. The presence of a wholesale dry fish market nearby gives chances of value
addition in terms of Salting and drying.

IX. Name of Market: PANGODE, TRIVANDRUM

1. Market Timings 5.30 AM –8 AM
agents
3. Major Commission agents Shahul Hameed, Christy, Mariadas
4. Percentage of commission 7-10 percentage
5. Sales System Majority by auctioning
market
market Other items like tuna, vankada, parava , thirandi,
cuttle fish etc also have good demand
9. Payment System Suppliers – Ready cash, Retailers- credit from
one day till one month
10. Auction Procedure Done on the vehicle itself, only inside the market
place. Auctioning is very active and involves 3
persons per commission agent for each vehicle.
11. Icing facilities 2 ice plants, not nearby
12. Seasonal fluctuations Tamil Nadu suppliers have a prominence during
the months June to August. Other time fish from
south-central Kerala beaches rules the market

1. Advance payment of Rs 10,000-5 lakhs will be offered to suppliers based on their
regularity in supply, quantity and long-term credibility with the agent. This will be
taken back in installments from each bill.
2. The rates of commission also vary with the suppliers. Those having a healthy and
credible relationship with the agent get a concession up to 3 percent in
commission from the regular 10 percentage.


1. Pangode market is one of the largest wholesale terminal markets in southern
Kerala, supplying fish to entire Trivandrum city and adjacent areas.
2. The market is having a huge strength of workers in terms of head load workers,
commission staff and box keepers who are organized politically. Hence the
supplier as well as the commission agent has to bear higher costs compared to
other markets.
3. The loading charges comes to around Rs 8.90 per box, the market fees around Rs
40 per vehicle and the box keeping charges are about Rs 40-100 per vehicle. All
these charges are to be paid by the supplier. The commission agent will pay Rs
2.50 per box to the staff workers as auctioning charges.
4. The presence of collection agents who collect money from the retailers directly is
a peculiarity of this market. While in other markets, when the retailers have to pay
their cash in the commission agent’s office, here these specially recruited people
takes the responsibility of finding the retailer and collecting money from him.
This mechanism though increases the cost of the agent, reduces the bad debts,
relatively.
5. This is a terminal market and those items not sold here will either be put in ice
and sold on the next day or at times, taken to Kaliakkavilai noon market.
X. Name of Market: PARIPPALLY

1. Market Timings 4 am – 5.30 am
agents
3. Major Commission agents K.A.Vaheed, Shahul Hameed
4. Percentage of commission 9 percent
5. Sales System Majority by auctioning only
market
7. Species Identification of the Almost all species are sold in the market. High
market value species have less demand

9. Payment System Ready cash payment to suppliers and 2-3 days

credit for retailers
10. Auction Procedure Same in case of other markets
11. Icing facilities 2 ice plants in the market premises itself
12. Seasonal fluctuations August mid-November is he peak season of
supply whereas from June to mid August, the
supply is less. This is same in the case of almost
all species.

1. To avoid the suppliers going to other commission agents, a certain amount of
money is offered to the major suppliers by the agents.
2. An advance amount is paid to the major suppliers which ranges from Rs 50,000 to
5 lakhs and the amount is taken back in installments each time the supply is made.
3. A reduction in commission is offered to the major suppliers to a rate of 2
percentage, only after establishing a credible relationship with the agent.
Specialties of the Market

1. Though the market had dominance among those in south Kerala, the growth of
other markets like Alangode (10 km South) and Karunagappally (45 km north)
has reduced its importance.
2. The loading charges are Rs 7 per box, the auction charges range from Rs 50-200
and the market fees range from Rs 50-200 per vehicle, which are given by the
commission agents.

APPENDIX III
Profile of the select markets of Tamil Nadu
I. Name of Market: CHENNAI – KOYAMPEDU (MADURAVAI)

1. Market Timings 5.30 AM – 8.30AM
2. Number of Commission 19 authorised, numerous un authorised
agents
3. Major Commission agents -
5. Sales System Majority by weighing based on a pre decided
floor price
market
7. Species Identification of the Large and high value species are preferred. Seer
market fish, Tuna, Mackerel, Anchovi (Kozhuva) and
Lizard fish are of great demand
9. Payment System Ready cash to suppliers, Retailers on credit up to
two – three weeks
10. Auction Procedure Auction is very rare, but if made made for small
lots
11. Icing facilities 2 Ice plants nearby
12. Seasonal fluctuations Koyampedu market (Maduravai) is specialized in
selling Kerala bound fishes like Kilimeen and

Lizard fish during September to may season.

From June- August Sindadiripet market serves as
the major market.
II. Name of Market: VILLUPURAM

1. Market Timings 1.30 AM – 3.30 AM
agents
3. Major Commission agents Sundaram
5. Sales System Weighing system for all fishes
market
7. Species Identification of the Kilimeen, Arana, fresh water fishes like rohu and
market katla has got a good demand here. At times more
than 75 % of the entire supply is Kilimeen
8. Value addition Very rarely salting and drying
9. Payment System Suppliers – Ready cash (1-2 days credit also
rarely)
Retailers- credit up to a period of 5-10days
10. Auction Procedure Auction very rare
12. Seasonal fluctuations May-June Season is bad season and it may go
upto August – September. Major supply of
Kilimeen is from Kerala and is affected by
trawling ban during June - August
III. Name of Market: TRICHY

1. Market Timings, location 5 AM – 7 AM except on Sundays, Saturdays and
Wednesdays (3 AM – 5 AM), Pudur
agents

3. Major Commission agents Aboobacker

5. Sales System Sales by weight and auction
market
7. Species Identification of the Larger fishes like Vatta, nenmeen, Kalanji, Eri etc
market also are highly demanded. Naimeen and Lizard
fish also sold here. Fresh water fishes like Rohu,
Katla and Catfish are found to have a good
demand here
period of 2 days to 2 weeks
10. Auction Procedure For small lots of medium / small sized fish
auctioning is made. Large fishes sold on weight.
11. Icing facilities Ice plants not nearby
12. Seasonal fluctuations Peak season: August _ November
Lean season: January - July
IV. Name of Market: MADURAI

1. Market Timings, Location 2 AM – 4AM (Monday and Friday 3AM),
Karimedu
agents
3. Major Commission agents -
4. Percentage of commission 8 % and Rs. 5/- per box also collected for other
expenses
5. Sales System Majority by weighing especially the large
varieties of fish
market
7. Species Identification of the Fresh water fishes like Rohu and Katla dominate
market the market. Seer fish Seelavu, Uluvachi,
Kilimeen also are the preferred items.
9. Payment System Credit Business exists here. Suppliers are paid

within 2-3 days while retailers are required to pay

within a week
10. Auction Procedure No auction at all
11. Icing facilities 5 Ice factories within 2 km range
12. Seasonal fluctuations Supply from Kerala minimal during June- August
The inflow of fresh water fish from central and
southern Tamil Nadu is maximum during January
– June period. Other times fish from Andhra
dominates the market.
V. Name of Market: KALIYIKKAVILA

1. Market Timings 5 AM – 7 AM and 1.30 –2.30 pm
agents
3. Major Commission agents Nazer, Ambi, Manalmatha
5. Sales System Majority by Auctioning
market
7. Species Identification of the Same as south Kerala markets like Pangode and
market Parippally. Sardine (karichala), Anchovy (Kozhu
chala) and Mackerel are most sold. This market
has a special preference to Tuna (Kera Choora)
9. Payment System Credit up to one week to retailers and ready cash
to suppliers
10. Auction Procedure For individual Boxes in vehicle itself
11. Icing facilities Not nearby
12. Seasonal fluctuations Arrivals are less during June – August due to
Trawling ban in Kerala shores. Tuna arrives from
Tamil Nadu shores like Thoothukudi,
Rameswaram and Kanyakumari.


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Fish Market Systems Study

SIFFS is an apex federation of fishermen societies mandated at providing marketing

1.2 Decision Problem

1.3 Research Problem

1 James Abraham, Rajesh. R.

1.4 Research Objectives

1.5 Working Definitions

2 James Abraham, Rajesh. R.

1.6 Sources of Data

1.7 Information Requirements

3 James Abraham, Rajesh. R.

1.9 Sampling Plan

1.10 Scope of the study

1.11 Limitations of the Study

4 James Abraham, Rajesh. R.

5 James Abraham, Rajesh. R.

6 James Abraham, Rajesh. R.

7 James Abraham, Rajesh. R.

MARKETING CHANNELS OF FRESH FISH IN KERALA AND TAMIL NADU

3.2 Marketing System Components

8 James Abraham, Rajesh. R.

3.3 Marketing Channels

Exporting Export Foreign

Fig 3.1 Marketing Channels of Fresh Fish

9 James Abraham, Rajesh. R.

3.3.1 Domestic Marketing Channels

(i) Producer Retailer Consumer

(ii) Producer Wholesale merchant Retailer Consumer

10 James Abraham, Rajesh. R.

(iii) Producer Wholesale merchant Commission agent Retailer

(iv) Producer Commission agent Wholesale merchant Commission

11 James Abraham, Rajesh. R.

3.3.2 Export Marketing Channel

Producer Wholesale merchant Exporting agency Foreign Consumer

3.4 Exporters’ Procurement System

12 James Abraham, Rajesh. R.

13 James Abraham, Rajesh. R.

4.2 Market Systems

4.2.1 Commission system

14 James Abraham, Rajesh. R.

4.2.2 Market timings

4.2.3 Market types

4.2.4 Market processes

15 James Abraham, Rajesh. R.

Relationship among parties involved - The wholesale marketing is a complete trust-based

16 James Abraham, Rajesh. R.

17 James Abraham, Rajesh. R.

18 James Abraham, Rajesh. R.

iv) Price discovery

4.2.5 Other Strategies

19 James Abraham, Rajesh. R.

 Intense competition exists in between suppliers in supplying fish to these

20 James Abraham, Rajesh. R.

21 James Abraham, Rajesh. R.

Fig. 5.1 Wholesale fish markets of South Kerala

Fig. 5.2 Wholesale fish markets of Central Kerala

22 James Abraham, Rajesh. R.

23 James Abraham, Rajesh. R.

Fig. 5.3 Wholesale fish markets of North Kerala

24 James Abraham, Rajesh. R.

25 James Abraham, Rajesh. R.

26 James Abraham, Rajesh. R.