Economics of Motorised Traditional Craft

Motorization of traditional fishing craftis one of the fast spreading technological innovations in Indian fishing villages. The present stu dy on the economic performance ofthe innovation shows that there is substantial increase in the gross earnings after moto- rization, the increase being more pronounced in the case of small (below 7.5 m) and medium (8 to 10 m) sized craft. However, the rising fuel cost and high prices of spares of motor and repair charges cut deeply into the operational profit. Rate of return on investment is generally very low and large class of craft (above 10.5 m) show the least return at 11 %. The far reaching impact ofmcterization is to be found in the monetisa- tion of craft operation. Only those fishing units having financial backing to carry on operation during long spells of poor harvest can remain viable in the long run and the rest are forced to fold up.