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Agricultural Economics Research Review
Year : 2005, Volume : 18, Issue : 2
First page : ( 167) Last page : ( 186)
Print ISSN : 0971-3441.

Demand for fish by species in India: Three-stage budgeting framework*

Kumar Praduman1,2Former ProfessorConsultant, Dey Madan M.3Portfolio (Regional) Director, Paraguas Ferdinand J.3Senior Research Analyst

1Agricultural Economics, Indian Agricultural Research Institute, New Delhi

2Policy Economics and Social Science Discipline, The WorldFish Center, Penang, Malaysia. E-mail: pkumariari@rediffmail.com

3The WorldFish Center, Penang, Malaysia. E-mail: M.Dey@cgiar.org, F.Paraguas@cgiar.org

*The paper is drawn from the India study under the multi-country project on “Strat egies and Options for Increasing and Sustaining Fisheries and Aquaculture Pro duction to Benefit Poor Households in Asia”. RETA 5945, Asian Development Bank and WorldFish Center, February 2005.

The authors acknowledge Dr Mruthyunjaya and Dr S. Ayyappan with thanks for their constructive and inspiring comments on the earlier draft of the paper. They are thankful to the anonymous referee also for his/her suggestions.


The demand studies for the fish sector are limited by their high degree of aggregation, and the lack of empirical basis for estimating the underlying elasticity of demand. In this study, the three-stage budgeting framework with quadratic almost ideal demand system (QAIDS) model has been used for fish demand analysis by species, using consumer expenditure survey data of India. Income and price elasticities of fish demand have been evaluated at mean level for different economic groups and have been used to project the demand for fish to a medium-term time horizon, by the year 2015. The domestic demand for fish by 2015 has been projected as 6.7–7.7 million tonnes. Aquaculture would hold the key to meet the challenges of future needs. Among species, Indian major carps (IMC) would play a dominating role in meeting the fish demand. Results have shown that the estimated price and income elasticities of demand vary across species and income classes. Fish species have not been found as homogenous commodities for consumers. All the eight fish types included in the study have been found to have positive income elasticity greater than one for all the income levels. Hence, with higher income, fish demand has been projected to increase substantially with change in the species mix. The own-price elasticities by species have been found negative and near to unitary.


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