Sri Lankan Blue Swimming Crab Fishery Assessment

Transcription

1 Sri Lankan Blue Swimming Crab Fishery Assessment Final Report by Dr. Steve Creech Submitted to Co-financed by National Fisheries Institute Crab Council on 25 th November 2013 revised on 28 th May 2014

2 List of Abbreviations BSC CAB CASS CEPA CPUE CSO CW DCD DFAR DFF DFO EPF ETF ETP FAO UN FCS FCSU FI FIP g GOI GOSL GPS HACCP ILO UN IMBL IOM IUU JAF KIL l lb LEED LKR LTTE MAN MFAR MSC N NAFSO NAQDA NARA NEM NFI CC NP OSH PUT RFO SC SEASL SFP SLBSC SRL SWM Blue Swimming Crab (Portunus pelagicus) Conformity Assessment Body (MSC) Conservation Alliance for Sustainable Seafood Centre for Poverty Analysis Catch Per Unit Effort Civil Society Organisation Carapace Width Department of Cooperative Development Department of Fisheries and Aquatic Resources District Fishermen s Federation District Fisheries Office Employees Provident Fund Employees Trust Fund Endangered, Threatened and Protected Food & Agricultural Organisation of the United Nations Fishermen s Cooperative Society Fishermen s Cooperative Society Union Fisheries Inspector Fishery Improvement Project grams Government of India Government of Sri Lanka Geographic Positioning System Hazard Analysis and Critical Control Points International Labour Organization of the United Nations International Maritime Boundary Line International Organisation for Migration Illegal Unregulated Unreported Jaffna District Kilinochchi District litre Imperial Pound Local Economic Empowerment through Enterprise Development Sri Lankan Rupee Liberation Tigers of Tamil Eelam Mannar District Ministry of Fisheries & Aquatic Resource Marine Stewardship Council North National Fisheries Solidarity Organisation National Aquaculture Development Authority National Aquatic Resources Research Agency North East Monsoon National Fisheries Institute Crab Council Northern Province Occupational Safety & Health Puttalam District Rural Fishermen s Organisation Steering Committee (FIP) Seafood Exporters Association of Sri Lanka Sustainable Fisheries Partnership Sri Lankan Blue Swimming Crab (Portunus pelagicus) Sri Lanka South West Monsoon

3 t TOR UNDP UOJ US$ W WU Metric Tonne Terms of Reference United Nations Development Programme University of Jaffna American Dollar Weight Wyamba University List of Tables Table 1 Evaluation matrix for the assessment of the SLBSC fishery Table 2 Summary of interviews conducted with participants during the fishery assessment Table 3 The type and estimated number of fishing craft engaged in the SLBSC Fishery, by district Table 4 Summary of the Relationship between Mesh Size, Crab Size and Markets Table 5 Key Seafood Companies Purchasing, Processing and Exporting SLBSC Table 6 Grading Systems, Weight and Prices Paid for SLBSC in Operation during the Survey Table 7 Export Destinations for Sri Lankan Crab Products January 2011 to March 2012 Table 8 Marine fauna and flora observed or reportedly caught in bottom-set gill nets, together with observations on endangered, threatened and protected species. Table 9 Estimated incremental losses incurred by catching smaller and smaller sized crabs Table 10 Summary of the MSC Guidepost Scores for the SLBSC Fishery List of Figures Figure 1 Size and weight relationship for SLBSC in Pallikuda (Kalpitiya) and Mandaitivu (Jaffna) Figure 2 Annual Sri Lankan crab production for all crab varieties Figure 3 Comparative increases in crab production in four districts since 2009 Figure 4 Export destinations and value (LKRs) of crab exports 1990 to 2011 Figure 5 Sri Lanka marine fisheries value chain map (USAID 2008) Figure 5 Schematic representations of supply chains for SLBSCs Figure 6 Relative Contributions of Crab Products to Exports, by Weight (kg) and Value (LKR) Figure 7 Relative Contributions of Crab Export Products, by Weight (kg) and Value (LKR) Figure 8 Estimated Increase in Fishery Income by Catching Larger and Large Sized Crabs List of Annexes Anne A Annex B Annex C Annex D Annex E Annex F Annex G Comparative analysis of the current status of FIP for four swimming crab fisheries in Indonesia, Philippines, Mexico and Russia Consultant s Terms of Reference Main assessment criteria and sub criteria used during the field survey List of the scientific papers, technical reports and guidelines reviewed during the assignment Consultant s completed work schedule for the assessment of the SLBSC Fishery List of the agencies, organisations and individuals who generously contributed information, comments and suggestions to improve the SLBSC Fishery Schematic representation of the FIP Steering Committee to improve the SLBSC fishery

4 Table of Contents Executive Summary... 1 I. Introduction... 4 II. Scope of Work... 6 III. Fishery Assessment Methodology & Criteria... 7 IV. Implementation & Data Analysis... 8 V. Key Findings a. Biology of the Fishery b. Physical Profile c. Social Profile 21 d. Economic Profile e. The Ecology of the SLBSC Fishery f. Management of the Fishery VI. Conclusions Principle 1: Biological Status of the Fishery SLBSC Resource SLBSC Management Principle 2: Ecological Impacts of the Fishery Retained Bycatch Species Discarded Bycatch Species ETP Bycatch Species Marine Habitats Marine Ecosystems Principle 3: Management of Fishery Governance & Policy Fishery Specific Management System VI. Recommendations Recommendations to improve the biological status of the fishery Recommendations to improve / reduce the ecological impacts of the fishery Recommendations to improve management of fishery... 63

5 Executive Summary 1) The Seafood Exporters Association of Sri Lanka (SEASL) represents and promotes the interests of Sri Lankan companies engaged in the export of seafood products from Sri Lanka. The SEASL provides a common platform for Sri Lankan seafood companies to discuss challenges and concerns affecting seafood exports, as well as issues affecting the fisheries industry as a whole in Sri Lanka. 2) In May 2013, the SEASL convened a meeting of participants engaged in the Sri Lankan blue swimming crab (SLBSC) fishery in Negombo, so explore ways to improve the fishery. The Negombo meeting was convened with the support of the National Fisheries Institute Crab Council (NFI CC). At the end of the meeting the SEASL took a decision to initiate a Fisheries Improvement Project (FIP) for the SLBSC fishery, to improve the fishery in accordance with the principles set out by the Sustainable Fisheries Partnership (SFP). 3) The aim of a FIP is to bring together all those associated to a fishery i.e., fishing communities, traders, seafood companies, regulators, scientists and civil society organisations (CSO), as well as international importers and distributors, to create and implement a local plan that will improve the economic, social and ecological sustainability of a fishery. A key step in the process of initiating a FIP is undertaking an assessment of the fishery. 4) The assessment of the SLBSC fishery was conducted between August and November The assessment commenced with a review of technical reports, scientific papers and guidelines pertaining to blue swimming crabs (BSC) in general. The processes and frameworks associated with the design and development of various FIPs, including other crab FIPs were also reviewed, along with the Marine Stewardship Council s principles, criteria and principal indicators for sustainable fisheries. 5) A field survey of the SLBSC fishery, which is located off the north western and northern coast of Sri Lanka, was completed over a period of six weeks beginning from the 1 st August The last interviews with participants in the fishery were conducted with a CSO in Colombo on 16 th September. A total of 36 interviews were conducted with 112 individuals associated with the SLBSC fishery in five coastal districts, as well as in the capital Colombo. 11% of the participants in the field survey were women. 6) The experiences, knowledge, opinions and comments gathered from key participants in the SLBSC fishery form the basis of the SLBSC fishery assessment report. The findings of the assessment indicate that the SLBSC fishery is likely to fail to meet the requirements necessary to pass 23 out of MSC s 31 performance indicators for sustainable fisheries. The assessment suggests that the fishery may pass seven performance indicators, but would subsequently need to meet conditions applied by the independent MSC assessor. 7) The principal deficiencies in terms of achieving sustainable management of the fishery relate to principles 1 and 2. The fishery is likely to fail all seven performance indicators associated the biological status of the SLBSC resource. The fishery is likely to fail 13 of the 15 performance indicators associated the ecological impacts of the fishery (Principle 2). A summary of the MSC Guidepost Scores for the SLBSC fishery is given overleaf. 8) Twenty four recommendations to improve the biological status of the fishery (12 recommendations); to improve (i.e., reduce) the ecological impact of the fishery (2 recommendations) and to improve the management of the fishery are proposed. 1

6 Summary of the MSC Guidepost Scores for the SLBSC Fishery MSC Fishery Assessment Principles, Criteria & Performance Indicators Fishery Assessment Guidepost Score Result Principle 1 Biological Status of the Fishery 1.1 SLBSC Resource Stock Status SG <60 FAIL Reference Points SG <60 FAIL Stock Rebuilding Plan SG <60 FAIL 1.2 SLBSC Management Harvest Strategy SG <60 FAIL Harvest Control Rules & Tools SG <60 FAIL Harvest Strategy: Information & Monitoring SG <60 FAIL Assessment of Stock Status SG <60 FAIL Principle 2 Ecological Impacts of the Fishery 2.1 Bycatch: Retained Species Status SG <60 FAIL Management Strategy SG <60 FAIL Information / Monitoring SG <60 FAIL 2.2 Bycatch: Discarded Species Status SG <60 FAIL Management Strategy SG <60 FAIL Information / Monitoring SG <60 FAIL 2.3 Bycatch: ETP Species Status SG <60 FAIL Management Strategy SG <60 FAIL Information / Monitoring SG <60 FAIL 2.4 Marine Habitats Status SG <60 FAIL Management Strategy SG <60 FAIL Information / Monitoring SG <60 FAIL 2.5 Marine Ecosystems Status SG 60 PASS with conditions Management Strategy SG <60 FAIL Information / Monitoring SG 60 PASS with conditions Principle 3Management of Fishery 3.1 Governance & Policy Legal / Customary Framework SG 70 PASS with conditions Consultation, Roles & Responsibilities SG 60 PASS with conditions Long Term Objectives SG 60 PASS with conditions Incentives for Sustainable Fishing SG <60 FAIL 3.2 Fishery Specific Management System Fishery Specific Objectives SG <60 FAIL Decision Making Processes SG 60 PASS with conditions Compliance & Enforcement SG 70 PASS with conditions Research Plans SG <60 FAIL Management Performance Evaluation SG <60 FAIL Recommendations to improve the biological status of the fishery I. Regular monthly monitoring of CW and W should commence from two or more locations by a recognised government agency / institution. Field data should be analysed together with production data gathered by seafood exporters purchasing & processing SLBSC. II. Discussions should be held with the Department of Customs to explore the possibility of disaggregating crab export data for SLBSC. III. IV. A research project should be commissioned to investigate the population biology of the SLBSC A study should be commissioned to investigate the effectiveness of measures promoted to mitigate the impact of harvesting ovigerous females 2

7 V. A study should be commissioned to investigate the selectivity of bottom-set gill nylon gill nets, with a view to establishing a minimum mesh size for the SLBSC fishery VI. The GOSL should be lobbied and there should be advocacy among fishing communities, against the use of illegal monofilament nets. VII. There should be continued support for and promotion of measures to mitigation or reduce the harvesting of ovigerous females VIII. A regulation should be introduced for the SLBSC fishery IX. The GOSL should continue to be lobbied and there should be continued advocacy with SLBSC fishermen to stop illegal trawling by IND and SRL trawlers X. Technical and financial assistance should be provided to DFAR / MFAR to improve the collection and analysis of field data and information to monitor the exploitation of Sri Lankan marine resources. XI. The assessment report and recommendations should be validated by an MSC approved independent conformity assessment body (CAB) XII. Preparations should be made to undertake or commission an assessment of the status of the SLBSC stock after the improvements to the SLBSC fishery outlined in the assessment report have been satisfactorily achieved Recommendations to improve / reduce the ecological impacts of the fishery XIII. A study should be commissioned to further investigate the nature and quantity of the bycatch (retained, discarded and ETP species) from the SLBSC fishery, with emphasis on the role of mesh size on bycatch composition XIV. A study should be commissioned to further investigate the interaction between the SLBSC fishery and key marine habitats in the vicinity of the fishery. Recommendations to improve management of fishery XV. A Steering Committee (SC) for the SLBSC FIP (see Annex G) should be established comprising representatives of the fishing communities, seafood companies and government authorities, to facilitate dialogue and decision making between participants in the SLBSC fishery. The roles and responsibilities of participants should be clearly defined. XVI. Long term objectives - resource, ecological, social and economic and management - for the SLBSC fishery should be reviewed, discussed and agreed. XVII. Key incentives for sustainable exploitation of the SLBSC resource should be formulated, discussed, agreed and promoted XVIII. Specific policy objectives for the SLBSC fishery Committee should be formulated, discussed, agreed and promoted XIX. The GOSL should continue to be lobbied and there should be further advocacy to ensure better compliance with the regulations that that govern the exploitation and management of the SLBSC fishery, including stronger enforcement of regulations pertaining to the use of illegal monofilament nets and trawling by Indian and Sri Lankan trawlers XX. Financial support should be provided through local universities and to the NARA to conduct research into key aspects of the SLBSC fishery XXI. A mechanism to monitor and evaluate the performance of the SLBSC fishery management system should be developed XXII. A study should be undertaken to assess the extent of seafood companies compliance with internationally recognised Decent Work Standards. XXIII. A study should be undertaken to assess the feasibility and constraints pertaining to promoting producer organisation engagement in marketing / processing of SLBSC. XXIV. A study should be undertaken to assess the equity of trading relations between producers, traders and seafood companies purchasing and exporting SLBSC 3

8 I. Introduction The Sri Lanka Seafood Exporters Association of Sri Lanka 9) The Seafood Exporters Association of Sri Lanka (SEASL) was established to represent and promote the interests of Sri Lankan companies engaged in the export of seafood products from Sri Lanka. The SEASL provides a common platform for Sri Lankan seafood companies to discuss challenges and concerns affecting seafood exports, as well as issues affecting the fisheries industry as a whole in Sri Lanka. 10) The SEASL acts as an important focal point for engagement between seafood companies and the Government of Sri Lanka (GOSL). The SEASL lobbies and advises the government on policy and practices related to seafood exports, including inspection, licensing and certification of seafood products. The SEASL is also a forum for dialogue within the seafood community in Sri Lankan and between the Sri Lankan seafood sector and the international seafood community. 11) The SEASL s goal is to ensure the long term economic, social and environmental sustainability of the seafood sector in Sri Lanka. To achieve this goal, the SEASL and its member organisations work in close collaboration with producers and suppliers, as well as with the agencies and authorities of the GOSL. The SEASL promotes and seeks to improve the sustainable exploitation and management of Sri Lanka s marine resources. Fishery Improvement Projects 12) The aim of a fishery improvement project (FIP) is to bring together all those associated to a particular fishery i.e., fishing communities, traders, seafood companies, regulators, scientists, civil society organisations (CSO) and foreign importers and distributors, to create and implement a local plan that will improve the economic, social and ecological sustainability of a fishery. 13) The driving force behind the desire to improve local, national and international fisheries is the increasing global concern about the long term future of fish stocks. Over 80% of the world s fish stock are either fully or over exploited. When fish stock crash, everyone associated with the fishery is affected. The Sustainable Fisheries Partnership (SFP 1 ), a seafood business orientated non government organisation based in the United States of America, is at the forefront of encouraging FIPs. 14) The SFP brings together representatives of fishing communities, national and international seafood companies, government authorities and researchers to generate and share information that can be used to improve local, national and international fisheries. 15) There are now more than 40 FIPs in operation around the world, four of which, in Russia, Mexico, Philippines and Indonesia, are for swimming crab fisheries. A comparative analysis of these four swimming crab FIPs, is presented in Annex A. 16) A single FIP is under implementation in Sri Lanka, for Sri Lankan yellowfin (Thunus albacare) and bigeye (T. obesus) tuna (see which is managed by the SEASL

9 A FIP for the Sri Lankan Blue Swimming Crab 17) The decision to initiate a FIP for the Sri Lankan blue swimming crab (SLBSC) was made by the SEASL after receiving requests from representatives of Sri Lankan seafood companies, government authorities, researchers and civil society organisations associated with the SLBSC fishery in the north of Sri Lanka. A meeting of seafood companies, agencies and individuals associated with the SLBSC fishery was convened by the SEASL in Negombo, in May 2013, with the support of the National Fisheries Institute Crab Council (NFI CC). 18) The NFI CC is an American CSO that comprises representatives from the leading importers and distributors of blue swimming crab in the USA. The NFI CC is dedicated to improving standards and practices that will enhance the seafood industry s management of blue swimming crab fisheries around the world: based on sound ecological and economic principles. About Blue Swimming Crabs 19) The blue swimming crab (BSC) Portunus pelagicus (see image below) is a tropical marine crustacean that occurs in large shoals in shallow coastal water overlying sandy or muddy substrates. It is common throughout the Indo-pacific region, from the eastern coast of Africa, throughout South Asia, Southeast Asia and Australia, to the western coast of North and South America. Populations of BSC are also found in the Mediterranean Sea. 20) The lifecycle of the BSC is short: crabs typically live for only three to four years (Dineshababu et al., 2008). Adults reach a maximum size of around 190mm (carapace width) and a maximum weight of around 550g (Sukumaran & Neelakantan 1996). Female crabs become sexually mature towards the end of their first year, at sizes ranging from 33mm to 177mm (body weight 65g to 150g) (Kamrani et al., 2010). Female crabs produce between 0.10 million to 1.1 million eggs at a single spawning, depending on their size (REF). Larger female crabs produce proportionally more eggs than smaller female crabs (Kumar et al., 1999)). Females spawn once a year. Female crabs brood their eggs, incubating the eggs for five to seven days before the larvae hatch. A male Blue Swimming Crab (Portunus pelagicus) 21) BSC populations typically have a distinct, peak spawning season. In warmer climates a small number of individual spawn throughout the year. After hatching and joining the plankton, BSC larvae drift with the wind and tides. BSC larvae undergo a series of morphological changes over a period of 21 to 25 days before they become juvenile crabs, measuring 15 mm 35 mm (Anand & Soundarapandian, 2011). SLBSC are voracious hunters and scavengers. BSC eat small shrimps and other crabs (including other BSC), finfish, cuttlefish, shellfish, squid and worms, as well as seaweed and dead and decaying matter (Menon, 1952). 22) The growth of BSC is closely determined by water temperature. In warmer climates BSC grow quickly reaching close to their maximum size and weight by the end of their second year. A variety of pelagic and benthic fish species including jacks and bream are known to prey on BSC populations. 5

10 II. Scope of Work 23) The Scope of Work for the assessment of the SLBSC fishery off the northwest and northern coast of Sri Lanka, was set out in a contractual agreement signed between the between the Consultant and the SEASL on 1 st August 2013 (see Annex B). The sub activities proposed in respect of the assessment included, but were not restricted to; a) A review of other comparable FIPs worldwide b) A review of secondary data pertaining the BSC fishery in Sri Lanka c) The identification and collection of primary data from relevant stakeholders d) Drafting and finalising the fishery assessment report 24) The Scope of Work for the assessment was informed by the procedures and methods promoted by the SFP for the formulation of FIP 2 and guided by the criteria endorsed by the Marine Stewardship Council (MSC) vis-a-vis the certification of sustainable fisheries 3. The conclusions and recommendation set out in the first draft of the final report were therefore presented in accordance with the SFP s two principal components for fishery improvement i.e., FIP 4: measurable and positive social and economic changes and FIP 5: measurable and positive biological and ecological change. The sub activities identified by SFP under FIP 3.0 were assigned to the relevant FIP principal component. 25) Following a review of the first draft of the final fishery assessment report and changes in the NFI CC s perspective on fishery assessment reporting, the NFI CC requested the SEASL and the Consultant to submit the final report in accordance with the MSC s Fishery Standard: Principles and Criteria for Sustainable Fishing. The conclusions and recommendations presented below are thus made in accordance with MSC s three core principles (i.e., biological status of the fishery; ecological impact of the fishery and management of the fishery), rather than in accordance with the SFP s two principal components for fishery improvement impact on the environment and fishery as originally agreed. 26) This report represents the first of a series of deliverables agreed in the aforementioned contract. Other deliverables that have been achieved during the course of the fishery assessment include: a) A web page for the SLBSC FIP ( b) A Scoping Document for the SLBSC FIP c) A FIP Development Plan ( ) d) A FIP Implementation Plan and budget for the SLBSC FIP ( ) e) A Logic Model for the SLBSC FIP, based on the Development Plan and Implementation Plan

11 III. Fishery Assessment Methodology & Criteria 27) The methodology adopted for the assessment of the SLBSC fishery was based on the collection and analysis of both quantitative data and qualitative information. The methodology sought to gather quantitative data from secondary sources (i.e., published and unpublished reports and studies), while the sources of qualitative information were gathered from participants in the SLBSC fishery. Qualitative information was collected by means of semi structured interviews (see images below), the duration of which was designed not to last more than 45 minutes. 28) Four main groups of participants were identified as forming the basis for the assessment, as follows: a. producers (i.e., fishermen and women) b. traders and seafood companies (i.e., local buyers and processors / exporters) c. regulators (i.e., government ministries, departments, agencies and authorities) d. civil society (both national and international organisations) 29) Four main criteria biological, socioeconomic, ecological and management - were delineated by the Consultant, following the guidelines set out by the SFP s FIP process and the MSC s Fishery Standard. These criteria were used as the basis for the assessment of the SLBSC fishery. Each criterion describes an aspect of the SLBSC fishery. 30) The biological aspects of the fishery evaluated included data and information pertaining to geographic range, population biology and reproductive biology. Socio-economic aspects of the fishery included location and seasonality of the fishery and landing centres; types of boats and gear; productivity; history, culture and social organisation, supply and value chain economic and the relative social and economic importance of the fishery. The assessment of ecological aspects of the fishery focused on the bycatch from the fishery (i.e., commercial / non commercial; retained / discarded and endangered, threatened and protected (ETP) species), as well as the habitat and ecosystem impacts of the fishery. 31) The last of the four evaluation criteria - fishery management - was designed to assess the nature, level and effectiveness of the management of the SLBSC fishery. The management of the fishery was assessed based on formal and informal data collection procedures; estimates of abundance; formal and informal (traditional) fishery management legislation, regulations and conventions; stock enhancement programmes; local compliance and effective of any such controls and the prevalence (if any) of illegal, unreported or unregulated (IUU) catch. A detailed description of sub questions explored during the course of the evaluation, for each of the four main assessment criteria, is presented in Annex C. 32) An evaluation matrix was developed by the Consultant to minimise the duplication of data collection and information gathered from secondary and primary sources. Table 1 provides a summary of the evaluation matrix developed for the assessment of the SLBSC fishery. 7

12 Table 1 Evaluation matrix for the assessment of the SLBSC fishery Assessment Criteria Sri Lankan Blue Swimming Crab Fishery I. Biological II. Socio-economic III. Ecological IV. Management Assessment Tools 2 Data Sources XXX XXX XXX XXX 1 Data Sources a. Producers XXX XXX XXX XXX Kalpitiya, Mannar, Kilinochchi, Jaffna b. Trade/Processors/Export XXX XXX SEASL, TSF, Phillipsfoods, Alpex Marine, Western Lanka, PN Fernando, Ceylon Foods, Prawn Ceylon c. Regulators XXX XXX XXX XXX MFAR, DFAR, NAQDA, NARA d. Researchers XXX XXX Universities (Wyamba, Jaffna, others) e. Civil Society XXX XXX CEPA, FAO UN, NAFSO, ILO UN, IOM, UNDP IV. Implementation & Data Analysis 33) A number of scientific papers, technical reports and studies and guidelines pertaining to either BSC or FIPs and fishery management reviewed during the course of the assessment (see Annex D). 34) The field survey assessment of the SLBSC fishery off the north western and northern coast of Sri Lanka was completed by the Consultant over a period of six (6) weeks beginning on the 1 st August The last interviews were conducted with CSO in Colombo on 16 th September. The completed schedule of interviews in five districts and in Colombo with producers, processors, regulators and CSO is set out in Annex E. A list of the agencies, organisations, and individuals met by the Consultant during the course of the assessment is provided in Annex F. 35) A total of 36 interviews were conducted with 112 individuals associated with the SLBSC fishery during the course of the assessment (see Table 2). Twelve of the participants in the field survey were women (11%). Participants in the SLBSC fishery shared their experiences and knowledge of the fishery with the Consultant during the course of the field survey. Their opinions on the key initiatives necessary to improve the SLBSC fishery were also sought during the assessment. 36) Qualitative data collected during the course of the field survey was analysed by coding each observation and opinion. 47 sub codes were used by the Consultant to disaggregate the qualitative data, under each of the four principal assessment criteria. In addition to the four main assessment criteria, qualitative data describing respondents suggestions to improve the SLBSC fishery was also analysed by coding the suggestions. A summary of the sub codes used by the Consultant to analyse and interpret the qualitative data collected during the course of the field assessment is present in Table 3. 37) Once all the information collected had been coded, the information was sorted by sub code. The key findings presented in the following section, are based on the Consultant s analysis of the coded and sorted data. 38) A copy of the first draft of the SLBSC fishery assessment report was submitted to the SEASL for comments on 10 th October As noted above, the NFI CC requested structural changes to the presentation of the conclusions and recommendations in the first draft of the SLBSC fishery assessment 8

13 report. The final assessment report on the SLBSC fishery off the north western and northern coast of Sri Lanka was submitted to and approved by the SEASL on 23 rd November Table 2 Summary of interviews conducted with participants during the assessment Interviews Target Achieved Fishing Communities in 4 districts 7 8 Crab traders in 4 districts 4 3 Seafood Companies 3 7 DoFAR in 4 districts 4 4 NARA (Colombo / Kalpitiya) 1 1 Civil Society Organisations (CS) 2 3 Universities 2 1 Fishermen s Cooperative Society Unions 0 4 District Fisheries Federations 0 4 Other 0 1 Totals Table 3 Codes used to disaggregate qualitative data collected from producers, processors, regulators and CSO with regard to each of the four main assessment criteria Principal Fishery Assessment Criteria Biology Ecology The Fishery Management & Regulation Codes used to disaggregate qualitative data (Alphabetical) Life Cycle Bycatch Physical Profile Fishery: DFARD Spawning Environment Fishery Area Fishery: Regulation No. Eggs Fishing Season Fishery: Data Fishing Craft Fishery Management Fishing Gear Management Concerns Fishing Gear: Mesh Size Small Crabs Fishing Gear: Monofilament Females with Eggs History of the Fishery Fishing Pressure External Issues Political Pressure Social Profile Fishing Community Women in the Fishery PH Processing Social Issues Fishing Community Women in the Fishery PH Processing Social Issues Economic Profile SLBSC Catch Fishing Expenditure Supply Chain Supply Chain: Traders Supply Chain: Exporters Supply Chain: FCS Supply Chain: Demand Grading PH Processing 4 The Final Report was revised and updated in May

14 V. Key Findings a. Biology of the Fishery 39) Chitravadivelu s paper describing aspects of the fishery and species composition of edible crabs in Jaffna Lagoon (1993) is the only published record of the BSC in Sri Lanka. Two others Sri Lankan research papers (Sivanathnan, S., & de Croos M. D. S. T.; Nadaraja, T.) were in preparation at the time of the assessment. Neither paper was in available in draft form. None of these papers deal with aspects of the biology of the SLBSC. As noted by Jayamana very little scientific research has been undertaken on this species (Portunus Pelagicus see right) in Sri Lanka (2011). 40) In contrast a number of papers have been published describing the biology of the BSC in South India. These include Prasad, R. R. & Tampi, P R S (1952) in the Palk Bay; P. T. Sarda off the coast of Calicut (1998); Dineshababu, A. P., et al (2008) off the southern Karnataka coast and Anand, T. & Soundarapandian, P. (2011) in the Palk Bay. 41) Aspects of the biology of the BSC off the south coast of India reported in these papers are consistent with the global research on the BSC described in the Introduction above. Accordingly, the lifecycle of the BSC in India is short: crabs typically live for three years. Adults reach a maximum size of around 170 mm for female carapace width (Dineshababu et al., 2008). Female crabs become sexually mature towards the end of their first year. Size at 50% maturity is 96 mm - carapace width (CW) - according to Dineshababu et al., (2008), while the majority of ovigerous females caught are between CW 115 mm and CW 159 mm (Prasad & Tampi 1952). Female crabs produce between 0.10 million to 0.90 million eggs at a single spawning (Anand & Soundarapandian 2011), depending on their size. Larger female crabs produce proportionally more eggs than smaller female crabs. Females spawn once a year. Larval duration is around 25 days (Anand & Soundarapandian 2011). 42) In Kalpitiya (Puttalam District), field evidence was advanced by fishing communities to suggest that two populations of SLBSC may be present, one located in the main body of Puttalam Lagoon and Dutch Bay and the other in the adjacent open sea (see map below). It was suggested that the two populations were separated due to environmental conditions including high salinities and temperatures experienced by SLBSC caught from Puttalam Lagoon and Dutch Bay. This argument was advanced to explain the relatively smaller size of SLBSC caught from the southern end of the lagoon, compared to the open sea. 43) No indications were observed or suggestions made to suggest the existence of more than a single population of BSC on the Sri Lanka side of the Palk Bay, through to the Gulf of Mannar (see map below). The peak spawning season for SLBSC caught in Puttalam, Mannar, Kilinochchi and Jaffna districts was similar. Peak spawning takes place in April and May and continues through to June. Females with eggs becoming more common in the fishery from February onwards each year in all four locations. At the same time, all four locations reported the presence of females with eggs throughout the year. A small sample (N = 33) of CW width versus total weight measurements of SLBSC collected from Palakuda (Kalpitiya / Puttalam District) and Mandaitivu (Jaffna District) indicated a similar width / weight relationship for the crab populations in the two locations (see Figure 1). 10

15 Figure 1: Size and weight relationship for SLBSC in Pallikuda (Kalpitiya) and Mandaitivu (Jaffna) 44) SLBSC mature and begin to reproduce during their first year, commencing at around six months of age. Females as small as 68g were observed with eggs (see image right). Preliminary field observations indicated that the majority of females BSC commence spawning at slightly large size 120g 150g. 45) Field observations indicated that the weight of eggs carried by a female crab 5 is highly dependent on the weight of the female crab. Very large SLBSC (i.e., > 250 g see image below right of a 460 g male crab on the same scale right) were noted to bear as much as 50 g of eggs. Females weighing 200 g to 250 g were considered to be normal sized adults by local fishermen. 46) A note was made of an observation by one participant, who alleged that the SLBSC fishery off the eastern coast of Trincomalee District comprises mainly male SLBSC. No field evidence was gathered to corroborate this claim. 47) No evidence of specific nursery grounds for SLBSC was observed during the field survey. Jayamana notes that juvenile crabs are commonly associated with mangrove roots and sea grass beds (2011), which are found extensive in the Gulf of Mannar and Palk Bay. 48) Considerable stands of fringing mangrove are found in Dutch Bay (>250 ha) and Puttalam Lagoon (>750 ha), together with extensive sea grass beds. Fringing mangroves and sea grass beds are also present throughout the Sri Lanka side of the Palk Bay and in Jaffna Lagoon. 5 Also referred to as ovigerous crabs 11

16 b. Physical Profile 49) The physical profile of the SLBSC fishery described in this report encompasses the geographic scope for the fishery and the fishing season. The physical profile also includes a description of the fishing craft and gear used by Sri Lankan fishermen 6 to harvest SLBSC. Reference is also made to legal and illegal fishing gears use to harvest SLBSC, including mesh sizes. The history of the SLBSC fishery is also examined as recounted by older fishermen (oral history), as well as from the records of crab fish catch data collected by the Department of Fisheries and Aquatic Resources (DFAR) extension staff. The physical profile of the SLBSC fishery concludes with an examination of external issues that are perceived as having a negative impact on the SLBSC fishery and a brief description of fisheries other than the SLBSC that fishermen engage in. 50) Geographic Scope: The SLBSC fishery extends from Negombo on the southwest coast, 40 km north of the capital Colombo, to an unidentified location off the coast of Trincomalee District (possibly Pulmoodai) on the northeast coast, a distance of approximately 600 km (see map right). The core area of the SLBSC fishery is located on the Sri Lankan side of the Palk Bay. A smaller fishery for BSC operates in Portugal Bay, while SLBSC are also caught as part of a multi species lagoon fishery in Puttalam Lagoon. The SLBSC fishery in all these locations operates in shallow seas of between 3 7 fathoms (18 ft 42 ft / 6 m 14 m). Fishing for SLBSC takes place in coastal waters up to a distance of 2 km to 10 km from the shoreline and in two large lagoons - Puttalam Lagoon in Puttalam District and Jaffna Lagoon in Jaffna district. Jaffna Core Area Puttalam Negombo Pulmoodai 51) Puttalam Lagoon, which comprises Puttalam Lagoon and Portugal Bay and covers an area of 32,680 ha is technical not a lagoon, but a bar built estuary. Jaffna Lagoon is low lying area of land submerged by a combination of the diurnal rise and fall of the sea (average tidal amplitude is around 0.7 m) and seasonal run off of rainwater from the surrounding land during the northeast monsoon. Puttalam Lagoon and Jaffna Lagoon undergo marked changes in salinity during the course of the year, from brackish to hypersaline. 52) SLBSC are most common within the geographic range of the fishery over soft substrates i.e., and or mud. SLBSC are less commonly found over hard substrates such as coral and sandstone reefs as found off the coast of Puttalam District and the north coast of the Jaffna Peninsula. Three spot swimming crabs (P. sanguinolentus), for which there is little commercial demand, are more common over coral and sandstone reefs. SLBSC caught in Jaffna Lagoon mainly form part of the bycatch of the prawn stake net fishery (see external issues below) and the bottom-set baited trap fishery. The small size of the SLBSC caught in these fisheries (<80g) ensures that they do not enter the main export orientated - supply chain for SLBSC (see supply chain below). As such, BSC caught in stake nets and baited traps are considered part of the SLBSC fishery, for the purpose of the assessment. 53) Each fishing village along the northwest and northern coast has its own fishing area. The range of each local fishing area is likely to be determined primarily by fuel cost incurred in reaching and returning from the fishing grounds (for mechanised fishing craft), as well as the boundaries of local fishing grounds claimed by neighbouring villages or villages in adjacent districts. Local fishing areas are located 2 km to 10 km from an individual fishing community s landing centre. It was evident that these local fishing areas, although informal were recognised and adhered to by SLBSC fishing communities. The traditional right to SLBSC from the fishery is thus shared among fishing communities, by means of smaller local fishing areas in the Palk Bay, Portugal Bay and Puttalam Lagoon. 6 Almost without exception individuals catching SLBSC are men, hence the use of the term fishermen throughout. Woman may occasionally be boat owners, for example when husband has died during the conflict. 12

17 54) Fishing Season: SLBSC are present in the fishing area throughout the year in all four of the districts. The duration of the fishing season for SLBSC in any one area depends on the location of the individual fishing community, the weather, the type of fishing gear used and economic returns from alternative fisheries (see Alternative Fisheries below). The main fishing season for SLBSC starts as early as August in Portugal Bay, the sheltered, northern tip of Puttalam Lagoon. In Jaffna District the fishing season starts in September each year, while in Mannar and Kilinochchi districts October is the month when fishermen focus their fishing effort on harvesting SLBSC. The peak fishing season occurs over a period of three to four months in each location. March to June in Kalpitiya; January to April in Jaffna and November to February in Mannar. The fishing season ends in April, May or June, depending on the location. July, August and September forms the core of the offseason for the SLBSC fishery in all four districts. 55) The BSC fishing season is closely aligned with the strongly season weather patterns along the northwest and coast of Sri Lanka. There are two main monsoons - the northeast monsoon (NEM) and the southwest monsoon (SWM) as well as two distinct two inter monsoon seasons associated with convectional and depressional weather systems. The SLBSC fishery commences with the onset of the second to the two inter monsoonal rains in October, which are caused by cyclonic depressional meteorological processes in the Bay of Bengal. The SLBSC fishery continues throughout the NEM, which begins in December and continues through to February every year. The peak fishing season is associated with the end of the NEM and the commencement of the second inter monsoonal rains, which begin in March each. The second inter monsoonal rains are the result of convectional meteorological processes. The offseason is associated with the SWM rains in June, July and August. The SWM begins in the southwest of the country and gradually travels up the western coast, but does not reach the core area of the SLBSC fishery, off the north western coast. 56) The offseason is likely to be a consequence of the calm weather systems off the northwest coast and the fishermen s use of nylon net to harvest SLBSC. As the turbidity of the water gradually declines after the end of the second inter-monsoons, nylon nets becomes increasingly more visible to the SLBSC. As a result the crabs are better able to avoid becoming entangled in the nets. The converse is true for the start of the fishing season, as the turbidity of the sea increases with the onset of the second intermonsoon in October each year. Strong winds during the NEM hinder but to not prevent fishing activities in December through to February. The relatively weaker weather systems associated with the second inter monsoon enable fishermen to fish more frequently. The increased turbidity prevents SLBSC from avoiding the fishermen s nylon nets. One of several advantages of fishing with illegal monofilament gill nets is that these nets are invisible to SLBSC when water turbidity is low. This greatly increases the efficiency of illegal monofilament gears (see below). 57) Fishing Craft: The SLBSC is conducted from traditional Sri Lankan outrigger canoes (oruwa), log rafts (theppam 7 ), canoes (vallams) and fibre reinforced plastic (FRP) boats (17½ and 23ft). The larger vallams and all of the FRP fishing craft (see right) are powered by small, kerosene fuelled, outboard motors (8.8 hp and 9 hp). 58) Data describing the total number of fishing craft registered in the four districts was used to estimate the total number of fishing craft engaged in the SLBSC fishery (see Table 3). The analysis suggests as many as 7,000 fishing craft may be involved in the SLBSC fishery. As much as 80% to 90% of fishermen in SLBSC fishing villages engage in the fishery during the peak fishing season. An analysis of landing site specific boat registration details and fishing licences issued for crab fishing by the respective district level offices of the DFAR, was not possible during the course of the assessment. 7 Oru and theppams are found in Portugal Bay and Puttalam Lagoon only 13

18 Table 3: The type and estimated number of fishing craft engaged in the SLBSC Fishery, by district Non Mechanised Traditional Craft Type of Fishing Craft Mechanised FRP Craft Traditional Craft Estimated No. of SLBSC Fishing Craft Puttalam District 1, ,028 Mannar District ,687 2,292 Kilinochchi District Jaffna District , ,301 7,001 59) Fishing Gear: Bottom-set gill nets (crab nets), made of nylon twine or monofilament plastic, are the main fishing gear used by fishermen to catch SLBSC (see right). Since 2006 the use of monofilament nets has been illegal in Sri Lanka 8. The mesh size of both nylon and monofilament crab nets ranges from 2½ to 7. The smaller mesh sizes are used in lagoons and shallow area by fishermen fishing from non mechanised traditional craft. The larger mesh sizes are used in deeper coastal waters by the mechanised FRP fishing craft. The commonest mesh sizes are 3½, 4½ and 5. The thickness of nylon nets ranges from 1ply to 21ply twine. Three ply is commonly used during the NEM, while 6ply and higher is used after the monsoon due to the increase in debris in the water. 60) A single nylon crab net set comprises between 10 and 25 pieces (rolls) of nylon net. Depending on the size of the fishing craft a fishermen may set two to five crab nets per fishing trip, equal to around 50 net pieces. Crab nets are set on the seabed, by the use of weighted poles (see below right) in the early evening. Crab nets are hauled by fishermen after eight to ten hours. Many fishermen now use geographic positioning systems (GPS) to record the location of their crab nets. The use of GPS enables fishermen to dispense with the need to use surface buoys to identify the location of their nets. 61) There appears to be a strong positive correlation between mesh size both nylon and monofilament crab nets - and the minimum size of crabs that are caught in the nets. As mesh sizes increase, the minimum size of the SLBSC caught in the crab nets decreases (see Table 4). 62) A small number of fishermen harvest SLBSC using baited traps. Two varieties of baited traps: bottom set box traps and suspended lift net traps are used. A new type of fishing net, known locally as neela valai (blue net), has recently come into use in Jaffna District / Monofilament Nets Prohibition Regulations Prohibiting the use, possession, import, transport, purchase and sale of Monofilaments nets. 14

19 Table 4 Summary of the relationship between mesh size, crab size and markets Size of SLBSC Caught Market Other Species Caught Mesh Size 2½ SLBSC is bycatch Local Target Lagoon Finfish 3½ Small crabs 100g 150g. <200g Local & Export Finfish 4 Small crabs 100g 150g. <200g Local & Export Bycatch 4½ Broad range 100g 500g; Not many 120g - 150g Export Market Bycatch g 400 g Export Market Bycatch g 400 g Export Market Bycatch 63) Illegal Fishing Gear: Although monofilament nets are prohibited under the Fisheries & Aquatic Resources Act in Sri Lanka, monofilament crab nets are used to harvest SLBSC, most notably in Puttalam Lagoon and in Jaffna District (see right). In Jaffna District is possible that as much as 75% of the catch is landed using monofilament nets. Monofilament nets are preferred by fishermen because of their higher catching efficiency, which in turn is a result of the invisibility of monofilament nets in the water. As noted above, SLBSC are unable to avoid the nets, even when the visibility is good (i.e., when turbidity is low) in contrast to nylon nets which are more visible. 64) Monofilaments nets are a little less durable than nylon nets two to three months compared to three to four months for nylon nets and have to be replaced more often. However, monofilament nets are less expensive than nylon nets. According to fishermen less bycatch is caught using monofilament nets compared to fishing with nylon nets and monofilament nets are also easier to clean. The higher incidence of monofilament crab nets in Jaffna District can be partly explained by the fishing restrictions that were in place during most of the recently concluded conflict. For long periods during the past 30 years, Jaffna fishermen were only permitted to fish between 6 am and 6 pm each day. The use of monofilament nets during this period was the only means by which fishermen were able to harvest fish during the daytime. 65) Political patronage also plays a part in the continued use of illegal monofilament nets in both Jaffna and Puttalam districts. The assessment was conducted while provincial council elections were being held in the Northern and North Western provinces. The DFAR was subjected to political pressure in both districts, not to take action against fishermen using monofilament nets during the election period. When free to dos so, newspaper reports over the past year highlight the actions taken by the DFAR office in Puttalam, against the use of illegal monofilament nets. The DFAR office in Jaffna District has also taken action prior to the provincial council election, to confiscate monofilament nets and arrest the owners of illegal fishing gears. 15

20 66) SLBSC Production: The production data collected by the DFAR s extension officers from the SLBSC fishery does not discriminate between commercial crab species. Thus the annual crab production data presented in Figure 2 below, includes not only SLBSC, but also the landings of other commercial crab species in Sri Lanka, principally the mangrove crab (Scylla serrata) and the three spot swimming crab (P. sanguinolentus). Despite these limitations, it is clear from DFAR s data that the production of crabs in Sri Lanka - including SLBSC - has increased considerably since The increase in crab production coincides with the end of the civil conflict in Sri Lanka and the resurgence of the fishery sector in the coastal districts that comprise the Northern Province (i.e., Mannar, Kilinochchi, Jaffna and Mullaitivu). As SLBSC is the main crab species caught by fishermen in the Northern Province, there are reasonable grounds to infer that the overall increase in national crab production is a consequence of increasing catches of SLBSC. Figure 2 Annual Sri Lankan crab production for all crab varieties 67) Production data from the four coastal districts that constitute the core geographical area of the SLBSC fishery (i.e., Puttalam, Mannar, Kilinochchi and Jaffna), further underlines the growth of the SLBSC in the northern districts (see Figure 3). Here too it should be noted that this data includes all varieties of crab. The data collected by DFAR extension staff indicates that crab production has increased in all four districts, with the largest increase taking place in Jaffna District. In 2009 crab production in Jaffna District was 240t. In 2012 crab production increased to 4,630t: an increase of 1,829%. The corresponding increases for Kilinochchi, Mannar and Puttalam were 146% 9, 162,000% and 198% respectively. 68) The accuracy of the monthly statistical reports compiled by the DFAR s extension staff, in the north and nationwide, is a concern. Despite these concerns, the production data is at least indicative of a considerable increase in crab production in off the northwest coast following the end of the civil conflict in No data was collected by DFAR from Kilinochchi in 2009 due to the security situation. 16

21 Figure 3 Comparative increases in crab production in four districts since ) Corroboration of the substantial increase in crab production can be found in the data compiled independently by the Customs Department for export crab products (see Figure 4). According to export destination data compiled by the Customs Department the crab fishery in Sri Lanka has increased by 165% in the three years following the end of the civil conflict. The value of crabs exported from Sri Lanka increased from around LKR 1,000 million (US$ 7.75 million) in 2009 to LKR 1,560 million (US$ million) in The increase in value of crabs exported from Sri Lankan (56%) is widely attributed to the increased catch and export of SLBSC 10. Figure 4 Export destinations and value (LKRs) of crab exports 1990 to ) Oral testimonies of senior representatives of the fishing communities further substantiate the crab fishery production data collected by the DFAR. In Kalpitiya (Puttalam District), the number of seafood companies purchasing SLBSC was observed to have increased considerably over the past 25 years. Earlier only one collecting centre was present in Kalpitiya and only one or two seafood companies were directly buying SLBSC. Now there are more than eight collecting centres and a dozen or more seafood companies are directly involved purchasing SLBSC. 10 The monthly Customs Reports compiled by the Department of Customs make no distinction between crab species. The mud crab Scylla serrata and the three spot swimming crab P. sanguinolentus are the other two main crab species caught / exported in Sri Lanka. 17

22 71) Over the last ten years the number of fishermen and fishing effort was perceived to have increased in Puttalam District. Although the total production is perceived to have increased, fishing communities expressed concern that the catch per boat has declined. There is also a perception of a downward shift in the size of SLBSC caught. According to local fishermen and traders, ten years ago most SLBSC caught were large crab (>200g). Now the majority of SLBSC caught are medium crabs (150 g 199g). 72) Changes in the SLBSC fishery in Mannar District have happened more recently. Only five years ago fishermen regularly used a stick to break the legs and claws of SLBSC entangled in their nets. At the time there was no dedicated fishery for SLBSC, which were part of the bycatch from various coastal finfish fisheries. As recently as 2008 there was no commercial demand for SLBSC. SLBSC were and are still viewed as poor peoples food. SLBSC are eaten locally, with only weak demand from regional or national markets. SLBSC are not a popular seafood product in Sri Lanka. 73) The national market for SLBSC is limited to hotels, targeting foreigners and middle class Sri Lankans. In Mannar District fishermen have switched to SLBSC fishing due to strong export demand for SLBSC from seafood companies. Before the arrival of the seafood companies, a kilo of very large SLBSC (>400g) was LKR kg 1 (US$1.52). Now the wholesale prices is above LKR kg 1 (US$3.81) for large SLBSC (>200g). Very large SLBSC (>400g) are still regularly caught in by fishermen in Mannar District, although there is no premium price for very large crabs. 74) The rapid increase and continuing strong demand from seafood companies is a key factor driving the expansion of the SLBSC fishery in Kilinochchi District and in Jaffna District. Elder fishermen in both districts related how as little as four years ago they would curse the sight of shoals of SLBSC. Nets would be hauled and reset elsewhere and crabs would be beaten from the nets at sea because there was no market for SLBSC in either district. As was the case in Mannar District, there was no dedicated fishery for SLBSC in either district prior to the end of the conflict (2009). In contrast to less than five years ago, now when fishermen sight a shoal of SLBSC they are pleased. When the net are hauled fishermen are careful when removing the crabs and are mindful to keep them alive. 75) The purchasing price offered by seafood companies is the driving factor behind the change in fishermen s attitude and behaviour towards SLBSC. Before the arrival of the seafood companies the local wholesale prices for a kilo of large SLBSC was LKR30.00 (US$0.23) in Jaffna and LKR5.00 (US$0.04) per crab in Kilinochchi. The same crabs are now sold for LKR500 to LKR600 kg 1 (US$3.81 US$4.57). 76) Elder fishermen did not report any changes in the size of SLBSC that are currently being caught in Jaffna District. Very large crabs (>400g) are still regularly harvested from the fishery. In Kilinochchi District some concerns were raised regarding the prospect of declining catches, now and in the future, if action is not taken to improve certain aspects of the fishery such as harvesting small crabs (<100g) and female crabs with eggs. 77) Externalities: The lagoon and near shore stake net fishery for prawns (Puthi Velai / Kattu Del); illegal trawling by Indian and Sri Lankan trawlers and irregular migration by fishermen from coastal communities are the key external issues affecting the SLBSC fishery, in the four districts covered by the assessment. 78) Stake Net Fishing: The prawn stake net fishery is the dominant fishery in Jaffna Lagoon and is common in shallow waters around along the entire length of the Sri Lankan shoreline of the Palk Bay. It is a concern to the SLBSC fishery because of the retained bycatch of very small SLBSC (< 80g) from the stake net fishery. Very small SLBSC are sold by stake net fishermen to local vendors for LKR50.00 kg 1 (US$0.38). Local traders retail the very small SLBSC for around LKR 150 kg 1 (US$1.14) to poor consumers in the surrounding villages. Although stake net fishing has been banned by the local authorities in Puttalam Lagoon and Portugal Bay (Puttalam District), it is the dominant fishery in shallow, inshore areas in Mannar, Kilinochchi or Jaffna. The catch and bycatch of the stake net fishery is landed live, thus inviting the opportunity for voluntary return. However, the economic costs incurred by stake net fishery are highly likely to militate against this option. 18

23 79) Indian Trawlers: The maritime agreement signed between GOSL and the Government of India (GOI) in 1974, demarcates the International Maritime Boundary Line (IMBL) between the two countries in the Palk Bay (see right). The agreement states that each country shall have sovereignty and exclusive jurisdiction and control over the waters, the islands, the continental shelf and sub soil thereof, falling on its own side of the aforesaid boundary (Article 4). Acknowledging the historic use of the Palk Bay and Islands, notably Kachchativu, by fishermen from south India and northern Sri Lanka, the agreement ensures that Indian fishermen and pilgrims will enjoy access to visit Kachchativu as hitherto, and will not be required by Sri Lanka to obtain travel documents or visas for these purposes (Article 5). The agreement goes on to stipulate that the vessels of India and Sri Lanka will enjoy in each other s waters such rights as they have traditionally enjoyed therein (Article 6). 80) Illegal fishing by Indian fishermen, in the Sri Lankan half of the Palk Bay has been an issue between the two countries since the Palk Bay were officially partitioned in South Indian trawlers owners, of which there are more than 2,000 harboured in Nagapatinam, Kodikarai, Thondi, Rameshwaram and Pampan, continue to claim that they have a right to fish on the Sri Lankan side of the IMBL. Throughout the civil conflict, control of the Sri Lankan side of the Palk Bay was highly contested by the government s security forces and the Liberation Tigers of Tamil Eelam (LTTE). Indian trawlers took advantage of the inability of the GOSL to effective patrol the area and the restrictions placed on Sri Lankan fishermen during the civil conflict. Sri Lankan fishermen were confined to fishing between 6 am and 6 pm. 81) An agreement reached between small scale Indian fishermen and Indian trawler owners, currently restricts Indian trawlers to operating for only three nights per week on both sides of the IMBL: Monday, Wednesday and Saturday. When they cross over into Sri Lankan waters, the much larger Indian trawlers, towing heavy bottom trawls, destroy northern Sri Lankan fishermen s much lighter fishing gears. The Indian trawlers also represent a very real threat to the safety Sri Lankan fishing boats. 82) Following the end of the conflict, northern Sri Lankan fishermen have become more vocal in disputing the legal right of Indian trawlers to fish on the Sri Lanka side of the Palk Bay. Recently a number of articles have appeared in the Sri Lankan press, advocating for the right of northern Sri Lankan to fish freely in Sri Lankan waters of the Palk Bay The GOSL has also stepped up direct action against Indian trawlers caught fishing in Sri Lankan waters in the Palk Bay. Since 2009, hundreds of Indian fishermen have been arrested and their boats impounded by the GOSL. 83) Illegal fishing by Indian trawlers, which target mainly prawns and sea cucumbers, is the most serious external issue affecting the SLBSC fishery. Bottom trawling causes widespread damage and destruction to the marine ecosystem and generates enormous amounts of bycatch, the majority of which is discarded by Indian fishermen. SLBSC are also harvested by Indian trawlers and landed in south India. Concerns about the extent of illegal, unreported and unregulated fishing (IUU) (Pramod, G., 2010) are beginning to be associated with the fishing activities of Indian trawlers in Sri Lankan waters of the Palk Bay. 19

24 84) Sri Lankan Trawlers: Bottom trawling in Sri Lanka is prohibited by the MFAR, in accordance with paragraphs 31 and Paragraph 32 of the Fisheries and Aquatic Resources Act of The Act entitles the Minister to ban or limit any fishing activity that is deemed to be detrimental to the marine ecosystem or the livelihoods of fishing communities, on the advice of the Advisory Committee to the Minister ) Ttrawling for resource that are then exported is also prohibited under Regulation No. 4. of the Fishing (Import & Export Regulations ( /16). The Act states that no person shall engage in any dredging at the sea bed or undertake trawling operations within Sri Lankan Waters in relation to any activities specified in this regulation for which a fishing operating licence has been issued. 86) In accordance with the directive of the Minister of Fisheries and Aquatic Resources and the regulation cited above, the DFAR does not issue boat or fishing licences for bottom trawling in Sri Lanka. The operation of Sri Lankan trawlers and the use of bottom trawls is thus illegal. 87) Despite the ban on trawling, around 300 or so trawlers (see right) continue to operate from harbours and anchorages in Kalpitiya (Puttalam District), Pesalai (Mannar) and Kurunagar (Jaffna District). Political patronage is believed to be the reason for the trawlers continued ability to operate. The Kalpitiya trawlers fish mainly for prawns, but also harvest cuttlefish and SLBSC from Portugal Bay. Jaffna trawlers also target prawns, cuttlefish, SLBSC and squid. Jaffna trawlers fish off the coast of Mannar and Kilinochchi, as well as the Jaffna coastline. 88) Although smaller than their Indian counterparts, Sri Lanka trawlers cause damage to the marine ecosystem: through the action of bottom trawling and as a result of the bycatch landed or discarded by the trawlers. Sri Lankan trawlers are also implicated in the damage and destruction of crab nets and are a threat to the safety of smaller Sri Lankan fishing craft. Sri Lankan trawlers operate on the same nights as the Indian trawlers, taking advantage of their larger counterpart s greater threat to the lives and livelihoods of small scale fishermen. 89) Migration: Migration by fishermen and women from coastal communities along the northwest coast, is also an external factor affected the SLBSC fishery. Regular and irregular migration from the north, by people seeking political asylum, has been a persistent feature throughout the 30 year long civil conflict in Sri Lanka. There are now large expatriate Sri Lankan communities, both Sinhalese and Tamil, in Canada, Australia, the United Kingdom, Norway and Switzerland. Since the end of the conflict there has been a rise in irregular migration to Australia, on aboard Sri Lankan multiday fishing boats. In 2011 over 5,000 people were arrested by Sri Lankan Navy, onboard multiday boats heading for Australia. More 1,300 Sri Lankans, Sinhalese and Tamils, had reached Australia and claimed asylum, as of July ) 40 fishermen from Jaffna had been arrested off the southern coast of Galle, in the week prior to the field survey in Jaffna District. Representatives of fishing communities and reports in the press suggest that the motivation for undertaking irregular migration is primarily economic, regardless of the risks involved. Despite the economic recovery associated with the end of the civil conflict, fishing communities are well positioned to engage with agents in the fishery sector, who continue to promote irregular migration as viable way out of social and financial hardships faced by fishing households in the north west of Sri Lanka. 11 pers., com. Nuwan Gunewardena, Assistant Director, Fishing Industries Division, DFAR 20

25 91) Alternative Fisheries: Fishermen in all four districts are not solely dependent on the SLBSC fishery for their livelihoods. Other economically important fisheries include jacks and trevallies (carangids), Indian Mackerel (scombroids), prawns and cuttlefish, needlefish (Belondae), silverbiddies (Gerres spp.,) rabbitfish (Signathus spp.,) emperor fish (Letherinds), mullet, sardinellas and trenched sardines. SLBSC fishermen switch gears and fisheries throughout the year, depending on the availability and wholesale value of different fisheries. c. Social Profile 92) The social profile of the SLBSC fishery includes an overview of the fishing communities engaged in the exploitation of the SLBCs and the organisation of fishermen and women at the village, divisional, district and national level. The social profile also examines the role of women in the SLBSC fishery and draws attention to the key issue of indebtedness faced by fishing communities and the role played by investment made by traders and seafood companies in individual SLBSC fishery operations. 93) Fishing Communities: Sinhalese, Tamil and Muslim fishing communities are engaged in the exploitation of SLBSC off the northwest coast of Sri Lanka. Fishermen representing all three communities are present in Kalpitiya and Wannathawiluwa (Puttalam District). Tamil and Muslim communities are found in Mannar and Kilinochchi districts. In Jaffna District the fishing community is exclusively of Tamil origin, as a result of the LTTE s forced expulsion of almost 30,000 Muslims from Jaffna District on 15 th October Following the end of the conflict, Muslim households have begun to return to their villages on peninsular. 94) An analysis of the consolidated data provided by the Statistical Unit of the MFAR suggests that as many as 20,000 fishing household may be dependent on the SLBSC fishery in the four the districts. Detailed district and divisional data are available with the DFAR offices at the district level and with the MFAR in Colombo. The Consultant was unable to obtain and analyse these data due to administrative procedures and the timeframe of the assessment. 95) Organisation: There are two parallel organisational structures representing the interests of fishermen and women in Sri Lanka: Fishermen s Cooperative Societies (FCS) and Rural Fisheries Organisations (RFO). FCS fall under the administrative jurisdiction of the Department of Cooperative Development (DCD). The DFAR s support and input to FCS is restricted to technical assistance and registration related to fishing and includes social welfare. 96) The subject of cooperative development falls under the Concurrent List of the 13 th Amendment to the Constitution and thus is shared subject between the central government and provincial administration s DCD. FCSs represent fishermen and women at the village level. In Mannar, Kilinochchi and Jaffna districts, divisional level federations of FCS represent the interests of fishermen and women at the divisional administrative level. 97) District level Fishermen Cooperative Society Unions (FCSU) represent the interests of fishermen and women at the district level. FCSU are present in Mannar, Kilinochchi and Jaffna districts. 21

26 98) RFOs fall under the administrative jurisdiction of the MFAR. RFO were established by the MFAR in 2008, however a legislative framework, gazette notification and regulation under the Fisheries and Aquatic Resource Act has yet to be formulated regularising RFO. District Fishermen s Federations (DFF) represent the interests of fishermen and women who are members of RFO at the district level. RFO were present in all fishing villages in the four districts visited during the assessment. DFF have been formed and presidents appointed in the four districts. 99) Often fishermen and women are members of both the village FCS and the RFO. The relationship between the FCSU and DFF was cordial in Mannar District and Kilinochchi District, but less so in Jaffna District. 100) Women & the SLBSC Fishery: Women feature prominently on two areas of the SLBSC fishery: post harvest processing and net cleaning. Women s main role in the SLBSC fishery is as daily or permanent employees with seafood companies processing SLBSC and other seafood products. Around 80% of the daily and permanent employees in seafood companies are women. Women are involved in the more pricewise food handling aspects of processing seafood products. Male employees are more likely to be involved in heavy lifting, packing, freezing and loading activities. Management and administrative staff make up around 5% of seafood company employees. Men and women are equally represented in management and administrative positions. 101) The number and type (i.e., daily or permanent) of staff employed by seafood companies varies considerably depending on the portfolio of seafood products processed by the company. Seafood companies that process a more diverse range of products are likely to employ more permanent staff, compared to seafood companies focusing on only two or three products. 30% to 60% of women employed in seafood companies processing a variety of seafood products are likely to be permanent staff, compared to 10% to 20% in seafood companies specialising in two or three products. 102) The five leading SLBSC seafood processing companies (see Section d. Economic Profile below) employ between staff 12. Another ten to fifteen companies buy and process SLBSC intermittently. Only one of the five leading SLBSC seafood processing companies has processing facilities located in the Northern Province. This company employs up to 450 daily or permanent employees, from coastal village in the proximity of the SLBSC resource. 103) All permanent staff employed by seafood companies are enrolled in the GOSL s main social security scheme, the Employees Trust Fund (ETF) and Employees Provident Fund (EPF). Several seafood companies have also enrolled daily workers in the EPF and the ETF scheme. However, not all daily workers engaged in processing SLBSC receive these benefits. 104) The relatively high prevalence of daily workers in the seafood industry reflects the uncertainty of the raw material. The strong seasonality associated with the SLBSC fishery and the fishery sector per se; the unpredictability of the weather and competition for SLBSC raw material means that the amount of SLBSC purchased can change quickly, during a short period of time. This unpredictability of raw materials necessitates a certain measure of flexibility on the part of the workforce engaged in processing SLBSC. 105) Permanent employees are paid a fixed month salary, often with various production and time bonuses. Daily workers are paid either a fixed daily rate or per piece. The piece rate is usually based on the amount of SLBSC processed per day. Salaries of both permanent and daily employees are paid monthly. 106) Working hours are either set (8 to 9 hours per day) or flexible, depending on the seafood company concerned. All working hours include breaks for tea and lunch. Free transport is often provided for daily and permanent workers, to bring them from their villages to the processing factory. No indication of overtime payments being paid was observed. Contracts for employees were also not observed in some instances, even for management and administrative staff. 12 Staff are eengaged in processing other types of seafood products, not only SLBSC. 22

27 107) Regulation and food safety issues associated with the seafood sector in Sri Lanka is undertaken by Fishery Product Quality and Control Division of the DFAR, under the MFAR. Regulations and safety issues are implemented in accordance with the directives set out in the Fisheries & Aquatic Resource Act (1996) and subsequent amendments thereof (Box A) 108) Staff from the Fishery Product Quality and Control Division of the DFAR inspect seafood processing facilities every four months. The Fishery Product Quality and Control Division is the primary regulatory authority for ensuring compliance with European Union Standards. The Sri Lankan Standards Institute is the secondary regulatory authority for all seafood quality control parameters including CODEX Hazard Analysis & Critical Control Points (HACCP) for food safety. HACCP must also comply with the Sri Lankan Food & Drink Administration compliance standards. At the local level, mini processing factories are checked and certified by Public Health Inspectors of the Divisional Secretariat and or Pradeshya Sabha and the Environmental Division of the District Secretary. 109) In view of the stringent food safety standards applied to all seafood processing facilities in Sri Lanka, daily and permanent employees engaged in processing SLBSC receive both intensive and extensive training on personal health and hygiene. These include company medical checks, sanitation, handing dipping, chlorination and the use of sanitizers. Several seafood companies provide daily and permanent employees with uniforms, boots and hair nets and separate changing facilities for male and female staff. Box A: Regulations regarding Food Safety Issues Associated with the Seafood Sector in Sri Lanka Regulation / Amendment Year / No. Description Fish Processing Establishment Regulations. Fish Products (Export) Regulations / /1 Requiring a license for those who wish to operate fish processing establishments Ensuring proper hygienic standards are maintained of all fish products intended for export Fish Product (Export) Regulation Fish Product (Export) Regulations (Amendment) 2000 An amendment to the Fish Product (export) Regulation of Amendment to the Fish Product (Export) Regulations of 1998 Fish Processing Establishment Regulations No. 1 Fish Products (Export) Regulations (Amendment) The Fishing (Import & Export) Regulations / / /16 Making it compulsory for those who operate fish processing establishments to acquire a license from the DG of fisheries and aquatic resources. An amendment to the Fish Products (Export) Regulations of 1998 and Requiring a license for persons who wish to collect, harvest, take, fish products or aquatic resources for import or export purposes. 110) Indebtedness: High levels of indebtedness incurred by fishing communities and the consequences of investments made by traders and seafood companies in individual SLBSC fishery operations, was a recurrent social issue in all four districts. According to ongoing research by a the Centre for Poverty Analysis (CEPA), 75% of fishing households in the north have some form of debt, of which 50% was derived from informal lenders, their employer or other family members. Concerns about the absence of savings and or the reluctance of fishermen to regularly save a portion of their income were common in all four districts. 23

28 111) Allied to this observation, fishermen and fishing households were often held to blame for their dependency on informal credit obtained from fish traders and seafood companies. Informal loans form fish traders or seafood companies are used to pre-finance the purchase of fishing gear at the commencement of a new fishing season. Informal loans are also used to meet expenses such as religious ceremonies and social celebrations and to meet unexpected situations such as illness and bereavement. 112) The positive aspects of readily available informal credit and investments in fishing operations by fish traders and seafood companies were broadly appreciated, the resulting bond between fishermen and fish trader, often going back generations, was often perceived as being detrimental to the long term financial interests of the fishermen. In Jaffna for instance, it was estimated that less than 10% of fishermen were independent operators: free of any financial obligations or bonds with fish traders or seafood companies. Only independent fishermen are free to sell their catch to the buyer offering the highest price each day. d. Economic Profile 113) The economic profile of the SLBSC fishery is derived from qualitative and semi quantitative data describing the daily catch of SLBSC; fishermen s expense related to SLBSC fishing operations; the structure and function of the supply chain for SLBSC; the grading systems used by traders and seafood companies and data describing crab products exported by Sri Lankan seafood companies. 114) Daily Catch: An average day s crab fishing, during the six to eight months of the crab fishing season yields around 20 kg to 40 kg of SLBSC per boat per day, for an FRP fishing craft operating five sets of crab nets, with each set containing 10 net pieces. During the peak fishing season, the average daily catch increases to 50 kg to 70 kg per boat per day, with catches of over 100 kg not uncommon among fishermen targeting SLBSC in deeper waters closer to the IMBL. Catches of around 150 kg to 180 kg per boat per day are considered exceptional. During the offseason the daily catch falls below 20 kg per boat per day, to around 5kg to 15kg per boat per day and can be as low as 2 kg to 5 kg in some locations. SLBSC are present in the fishery area throughout the year, but fishermen are unable to catch SLBSC when the sea is calm and the water clears, most likely because the crabs are able to avoid the nylon nets. 115) Daily Income: No attempt was made to collect information on fishermen s daily income during the field survey, because it is notoriously difficult to collect accurate information about individual incomes by directly asking anyone what they earn. Daily income was calculated indirectly by assuming that the average price paid per kg of SLBSC is LKR (see Grading Systems below). According to this assumption fishermen s daily income range from LKR 6, to LKR 12, during the fishing season, increasing to LKR 15, to LKR21, during the peak fishing season. Daily incomes of LKR 30, are not uncommon. An exceptional day s fishing would net a boat owner in excess of LKR 45, for a night s fishing. During the offseason daily income from SLBSC fishing falls to as little as LKR to LKR 4, per boat per day. 116) Fishing Expenditure: The cost of a single fishing trip depends on the type of craft used and the distance travelled to the fishing grounds. No expenditure is incurred by non mechanised traditional craft (i.e., oru, theppam, vallams) fishing 2 km to 3 km from the shore. Expenditure on fuel by mechanised traditional and FRP fishing craft ranges from LKR 2, to LKR 5, per fishing trip, with each fishing trip consuming 15 l to 40 l of kerosene and oil, at LKR 130 to LKR 135 per litre to reach fishing ground 6 km to 20 km from the landing centre. 24

29 117) Boat owners incur the additional daily cost of hiring fishworkers, at the rate of LKR 1, per day, which increases the cost of the fishing operation by LKR 2,000.00, if the boat owner does not engage in fishing. SLBSC fishing craft are operated by a fishermen and fishworker or by two fishworkers. The average cost of a single fishing trip, for mechanised SLBSC fishing craft, is thus in the region of LKR 3, to LKR 7, per day. 118) The cost of a set of 4½ nylon crab nets (i.e., 50 pieces of net, stitched into two or more sub sets ) is around LKR 80, A further LKR 20, is required to purchase poles, flags, weights and anchors. The life time of a nylon crab net set is around two to three months. Fishermen and boat owners expect to purchase a minimum of two crab net sets per season. A new FRP fishing craft retails for about LKR 150, and a similar amount or slightly more is required to purchase a new 8.8 hp or 9 hp outboard motor. The total investment required to commence SLBSC fishing, using a mechanised FRP craft is around LKR 450, ) The Supply Chain: A summary of the overall analysis of the value chain for the marine fisheries supply sector in Sri Lanka, conducted by USAID in 2008 is shown in Figure 5. Figure 5 Sri Lanka Marine Fisheries Value Chain Map (USAID 2008) 25

30 120) The structure of the local, national and international supply chain for SLBSC is shown schematically in Figure 6. The supply chain is initially dependent on a discrimination based on crab size. All crabs weighing less than 80 g and some crabs weighting less than 100g are sold to wholesale traders and retailers (motorcycle or bicycle vendors) who supply the local (i.e., district level) and regional markets for small sized SLBSC. These markets are mainly Tamil populations in hill country towns, as well as in Vavuniya, Batticaloa, Trincomalee and in Colombo. Bycatch from the stake net fishery and Sri Lankan bottom trawlers are important sources of very small crabs for the local market. SLBSC weighing more than 80g enter the national (i.e., Colombo) and international market (see Figure 6a). 121) The structure of the national and international supply chain for SLBSC for small, medium and large crabs comprises direct and indirect supply chains. Direct supply chains link fishermen with seafood companies, through collecting centres established by the seafood companies at the district level. Indirectly SLBSC caught by fishermen are sold to seafood companies through local traders. Local traders may in turn use mini collectors to aggregated catches, before selling these on to seafood companies. Traders may have either single or multiple trading relationships with seafood companies. Fishermen may also sell their catch to fishermen s organisations, which in turn sell the catch to seafood companies. The supply chains for SLBSC are different in each district, with the relative importance of the direct and indirect supply chains varying according to district. 122) The demand for SLBSC from seafood companies is driven entirely by international demand for SLBSC products. The national market for SLBSC is extremely small. It is restricted to a small number of top class hotels and restaurants and a very small number of Sri Lankan consumers. As a consequence, the national market supply chain from local traders to hotels, restaurants and Sri Lankan consumers - is not consider further in this report. 123) The largest number of seafood company owned collecting centres - 8 to 10 was present in Kalpitiya. Each collecting centre purchasing SLBSC directly from fishermen and boat owners. In Mannar, two or three seafood companies operate collecting centres for seafood, including SLBSC. No collecting centres have been established by seafood companies in Kilinochchi District and only one company was observed to have set up a collecting centre in Jaffna District. 124) Two local traders are responsible for the bulk of SLBSC purchasing in Jaffna District. The two traders supply raw material to several seafood companies. The two main local traders in Jaffna District also purchase SLBSC from fishermen and boat owners in Kilinochchi District. In Mannar District, two local traders are responsible for purchasing for the bulk of SLBSC purchasing in the district. The two traders in Mannar District supply raw material to several seafood companies. In Kalpitiya five or six local traders, together with as many as 20 mini suppliers purchase SLBSC from fishermen and boat owners. In Kilinochchi District, the FCS in Irainamadanagar purchases SLBSC from its members and supplies crab to a single seafood company 125) The Supply Chain Local Traders: Local traders operating in all four districts establish their trading relationship with individual fishermen and boat owners by means of a financial bond. The bond is a form of advance given to the fishermen or boat owner. It can also be seen as an investment made by the local trader into the fishing operation of the fishermen or boat owner concerned. At another level the payment of a bond between a fisherman or boat owner and a local trader may be viewed as financial obligation on the part of the local trader, in order to secure the right to purchase fish from the fishermen or boat owner concerned. 26

31 Figure 6 Schematic representation of supply chains for small, very small and very very small SLBSCs a. Small, Very Small and Very Very Small Crabs 13 Producers Traders Local Distributors Crab Catch SLBSC Fishermen Local Trader Regional Trader Regional Trader Local Vendors Local Vendors Local Vendors Bycatch Stake Net & SL Trawler Fishermen a b Local Vendors Local Trader Regional Trader Regional Trader Local Vendors Local Vendors Local Vendors Local Vendors Local Vendors b. Very Large, Large, Medium, Small and Very Small Crabs 14 Producers Traders Seafood Company Importer SLBSC Fishermen Company A Importer X SLBSC Fishermen Company B Importer Y SLBSC Fishermen Company C Importer Z Indirect Supply I SLBSC Fishermen a b Local Trader Company A Company B Company C Company D Importer X Importer Y Importer Z Importer U Mini Trader Company A Importer X Local Mini Trader Company B Importer Y Trader Mini Trader Company C Importer Z Indirect Supply II SLBSC Fishermen a b Mini Trader Mini Trader Mini Trader Local Trader Local Trader Company D Company E Importer U Importer V Indirect Supply III SLBSC Fishermen FCS Company F Importer W 13 See Table 7 for definitions of small, very small and very very small SLBSC. 14 See Table 7 for definitions of very large, large, medium, small and very small SLBSC 27

32 126) A typical bond would is likely to be in the region of LKR 100, to LKR 150, Due to the bond, the fisherman or boat owner undertakes to sell the catch to the trader. The bond between fisherman / boat owner and a local trader is life-long and may be generational. Fishermen who had been displaced due to the conflict and then returned to recommence fishing were still bonded to their local trader, despite having lost all their assets during displacement. 127) No interest accrues on the bond paid by traders to fishermen / boat owners. In order for a fisherman / boat owner to sell his catch to another trader, the original bond must first be repaid. It was estimated that as many as 80% to 90% of fishermen are bonded to local traders in Jaffna District. 128) The personal bond between fisherman or boat owner and trader is different from seasonal loans taken by fishermen or boat owners from fish traders. Seasonal loans taken at the start of the fishing season to buy fishing gear or during the fishing season to purchase new nets (or replace fishing gear damaged, lost or stolen) vary from LKR 100, to up to LKR 1,000, ) Seasonal loans are repaid by the fishermen / boat owners by means of deductions made by the local trader when purchasing the day s catch. LKR to LKR per kilo may be deducted daily from the day s catch, depending on the amount of seasonal debt outstanding. Interest is paid by fishermen and boat owners on seasonal loans taken from local traders to purchase fishing gear and other inputs. 130) The daily price per kilo for SLBSC (see Grading System below) is determined by the seafood companies purchasing SLBSC from the local traders. Local traders deduct between LK to LKR per kilo from the price set by the seafood companies as their commission, when setting the wholesale purchasing price for SLBSC from fishermen and boat owners. The commission taken by local traders is between 3% and 7% per kilo, depending on the size of the crab and the amount deducted. 131) No data or information was available describing the basis of the relationship between fishermen and boat owners who sell their catch directly to collecting centres operated by seafood companies how these companies are able to guarantee their supply of SLBSC, from the fishermen and boat owners who sell to them? Possible options include the payment of a bond between the fisherman or boat owner and the seafood company concerned and or the provision of seasonal loans. A further financial incentive may be the higher prices paid to fishermen and boat owners who sell their catch directly to seafood company collecting centres, as no deductions are made by local traders. The advantage for seafood companies of dealing directly with fishermen and boat owners is that the companies are better able to ensure the quality of the SLBSC purchased by fishermen and boat owners 132) The Supply Chain - Seafood Companies: Aplex Marine, Ceylon Foods, North Western, P N Fernando, Prawn Ceylon and Taprobane Seafood are the five principal seafood companies engaged in purchasing SLBSC, either directly from fishermen and boat owners or indirectly through local traders (See Table 5) 15. Another four or five smaller companies, together with perhaps 10 to 20 individual small scale exporters, also purchase SLBSC for export, from the four districts covered by the assessment. 15 Phillips Foods Lanka was briefly part of the SLBSC supply chain, but the company ceased operations and withdrew from Sri Lanka prior to commencement of the Assessment 28

33 Table 5 Key Seafood Companies Purchasing, Processing and Exporting SLBSC District Supply Chain Crab Product KAL MAN KIL JAF Seafood Company Alpex Marine X X X X Local Traders Fresh & Frozen Ceylon Foods X X X Local Traders Fresh & Frozen North Western X X X Local Traders Fresh & Frozen P N Fernando X X Direct Fresh & Frozen Prawn Ceylon X X X X Direct Fresh & Frozen Tabrobane Seafood X X X X Local Traders Fresh, Frozen & Canned Lotex Marine Resources X Direct? Fresh & Frozen? Nikasa X X X Local Traders? Fresh & Frozen? CAK Lanka X Local Traders? Fresh & Frozen? Kalpak X Local Traders? Fresh & Frozen? Pearl Island X Local Traders? Fresh & Frozen? 133) Out of the five leading SLBSC exporting seafood companies, only one has established processing centres in the Northern Province. Taprobane Seafood operates two processing centres, one in Mannar District and on in Jaffna District. Taprobane Seafood is also currently the private sector partner of crab processing centre owned by Irainamadanagar FCS in Kilinochchi District. All four of the other leading SLBSC exporting seafood companies transport SLBSC from the north to processing centre in Puttalam (North Western Province) or Gampaha District (Western Province). 134) Crab Products: SLBSC are exported by seafood companies as fresh, frozen and canned products. Fresh crab is either exported as head on or cut crab products. Cut crabs are processed by removing the top shell, guts and gills. The cut crab is then brushed clean and cut into two sections. The majority of fresh crabs exported are male, because only the male SLBSC is blue. Fresh crabs are exported on ice at temperatures ranging from 0 C to 5 C. Fresh crab has a shelf life of a few days. All exported frozen crab is cut crab. Frozen crabs are frozen to 40 C and packed in 1 lb boxes and 12 lb cartons ) Canned crab is a pasteurised product that involves picking the meat from boiled crabs. In contrast to both fresh and frozen crab products, only live SLBSC both male and female - are purchased the single seafood company exporting canned crab products. Live crabs are the boiled in village level cooking stations (see right) and allow to cool, before being transported to processing factories. Crab meat is graded according to type and size. Grades include colossal, jumbo, B jumbo, flower, lump, special, claw, B claw and finger. Canned crab products include fancy, special, jumbo lump, back fin lump white and claw. 136) Wholesale Price: The purchasing price paid to fishermen and boat owners by seafood companies, either directly through seafood company owned collecting centres or indirectly through local traders, varies throughout the season and from company to company. The wholesale purchasing price offered to fishermen and boat owners on any given day, is the result of a series calculations and assumptions, available only to the directors and senior managers of the respective seafood companies. 16 For the USA only? 29

34 137) The wholesale buying price set by each seafood company undergoes a series of mini adjustments as it passes through one or more local trader, before it becomes the wholesale price offered to the fisherman or boat owner. The final wholesale prices paid to the fishermen or boat owner dependent on the bond and seasonal loans owed by the fishermen or boat owner to the local fish trader. 138) As a general rule, seafood companies exporting fresh crab products offer a higher price for SLBSC than do seafood companies purchasing crabs for frozen crab products. Although seafood companies exporting canned crab products are unable to compete with fresh and frozen crab exporters on price, particularly during the offseason, canned crab product exports have an advantage in terms of handling large volumes of crab 17. Canned crab exporters are thus able to offer to purchase large volumes of crab at higher prices during the peak season, when demand for fresh and or frozen crab is less than the supply of raw material. 139) Two more general rules for setting the wholesale price of SLBSC are as follows: the price paid for large crabs is higher than that for small crabs and that the purchasing price for large males is higher than that for large females 18. To complicate matters further, each of the leading SLBSC exporting seafood companies has its own wholesale pricing index and grading system. A summary of the wholesale price indices and grading systems used by different seafood companies and local traders to purchase SLBSC from fishermen, boat owners and local traders is given in Table 6. Table 6 Grading systems, weight and prices paid for SLBSC in during the field survey Weight Range (g) Price Range (LKR / kg) Price Range (US$ / kg) Minimum Maximum Minimum Maximum Minimum Maximum Grade Very Large >250 g Large Male 200g 249g Medium 150 g 199g Small 100 g 149g Very Small 80g 99g Very Very Small 50g 79g ) Demand: Demand from seafood companies is driven by the international demand for SLBSC products. As was noted above, the SLBSC is a new fishery in Sri Lanka. Until very recently fishermen in the north did not fish directly for SLBSC, which were considered a nuisance or a menace if they became entangled in fishermen s nets. The growth of the SLBSC fishery is a consequence of the end of the civil conflict in Sri Lanka - and with it the lifting of fishing restrictions and increased access for seafood companies to northern seafood resources - coupled with the strong international demand for SLBSC product (see export destinations in the next section). 141) Different SLBSC products demand different grades of SLBSC. In general only very large, large and medium crabs are exported by seafood companies as head on and cut fresh crab products. Large, medium and small sized crabs are purchased by seafood companies exporting both frozen cut crabs and canned crab products. The demand for small sized cut frozen crabs is much less than for large and medium cut frozen crabs. 142) Seafood companies exporting canned crab will purchase all sizes crab, including small and very small crabs. However, as crab size decreases, the operating efficiency of workers picking crab meat for canned crab products declines. So, while the lack of competition to purchase small and very small crabs may be a bonus for seafood companies exporting canned products, additional labour costs are incurred in processing compared to the same weight of medium, large or very large crabs. 17 because of the shelf life of their product 18 due to the presence of eggs and ovaries 30

35 143) Export Destinations: As noted elsewhere in this assessment report, the data collected by the Department of Customs for Sri Lankan crab exports does not discriminate between the three main export species (i.e., P. pelagicus, S. Serrata and P. sanguinolentus). According to representatives of seafood companies exporting crab products, the main species exported is the SLBSC. Between January 2011 and March 2012 seafood companies exported 2, t of crab, with a value of LKR 2,220 million (US$ million) to 31 countries (see Table 07). 144) According to the Department of Customs the average export price of a kilo of crab was LKR (US$6.65) for fresh crabs; LKR (US$5.78) for frozen crab and LKR (US$4.36) for crab neither fresh nor frozen. The overall average exported export price for a kilo of crab was LKR (US$ 6.10), between January 2011 and March Table 7 Export destinations for SLBSC products January 2011 to March 2012 Export Destination Frozen Sri Lankan Crab Products (kg) Live or Chilled Not Live, Chilled or Frozen Grand Total 1 Singapore 482, , , ,060, % 2 United States 789, , , % 3 Canada 224, , , % 4 United Kingdom 110, , , , % 5 Korea 115, , % 6 Taiwan 81, , , % 7 Switzerland 28, , , , % 8 Netherlands 72, , % 9 Hong Kong 3, , , % 10 Japan 52, , % 11 China 43, , , % 12 Maldives 21, , , % 13 India 17, , % 14 Thailand 4, , , % 15 Philippines 5, , % 16 United Arab Emirates 1, , , % 17 Viet Nam 3, , % 18 Kuwait 2, , % 19 Cyprus 2, , % 20 Qatar , , % 21 Germany , % 22 Antigua & Barbuda % 23 Syrian Arab Republic % 24 Jordan % 25 France % 26 Saudi Arabia % 27 Denmark % 28 Malaysia % 29 Zaire % 30 Norway % 31 Belgium % Totals 2,064, , , ,842,

36 145) The leading market for Sri Lankan crabs was Singapore (37.20%), which imported roughly equal amounts of frozen ( t) and live or chilled crabs ( t). The USA was the second largest export destination for Sri Lankan crab products, importing t, equivalent to 27.58% of the total crab exported during the period. Ten other countries accounted for a further 28.67% of Sri Lankan crab exports: Canada (8.34%), United Kingdom (5.31%), Taiwan (3.79%), Korea (3.83%), Netherlands (2.76%), Switzerland (2.70%), Hong Kong (2.20%), Japan (1.77%) and China (1.77%). According to data complied by the Customs Department, frozen crab is the main Sri Lankan export crab product, accounting for over two thirds of the export volume by weight and value (see Figure 7). Figure 7 Relative contributions of crab products to total exports by weight (kg) and value (LKR) Crab Products by Weight (kg) Crab Products by Value (LKR) 146) Figure 8 shows the monthly export data for crab products between January 2011 and March The data suggests that the peak season for crab exports during this period, for both frozen crab and live and chilled crab products, was November Exports of frozen crabs were relatively higher in May, June and July of the same year. Figure 8 Relative Contributions of Crab Export Products, by Weight (kg) and Value (LKR) 32

37 e. The Ecology of the SLBSC Fishery 147) No data or information, either published or unpublished, is available describing the retained or discarded bycatch from the bottom-set gill net fishery for SLBSC. Chitravadivelu s 1993 paper describes the traditional box trap fishery (Parik Koodu) in Jaffna Lagoon. Unpublished papers by Sivanathnan, S., & de Croos M. D. S. T. (2013) and Nadaraja, T. describe the bottom-set gill net fishery, but neither study addresses the issue of fishery bycatch. 148) On the Indian side of the IMBL, bottom trawling is the principal fishing method used to harvest BSC. Thus, no comparable data is available from the studies of the Indian BSC fishery, which could be used to assess the ecology of the SLBSC fishery. 149) Direct observations and interviews with fishermen and traders were used to generate a list of common plants and animals landed as bycatch from the SLBSC fishery (see Table 8 below and right). Finfish species, representing in the region of 20 fish families were identified, either by direct observation or from the Tamil and Sinhalese names commonly used by fishermen in each district. Molluscs, particularly the woodcock murex (Murex scolopax) and the spider conch (Lambis chiragra) were commonly observed among the bycatch in Kalpitiya (Puttalam District). 150) Semi quantitative data collected during the field survey suggests that the average weight of bycatch landed by fishermen in the four districts ranges from one to three kilos for finfish and crabs and five to seven kilos of assorted molluscs, depending on the location. The majority of the finfish in the bycatch are retained: either sold or consumed by the fishermen. In Kalpitiya and in Jaffna districts, molluscs are broken open or boiled and the meat is extracted and sold. 151) According to fishermen, nylon nets generated more bycatch than monofilament nets. A negative correlation between mesh (of any type of net) and bycatch was also suggested. As the mesh size of the bottom-set gill nets increases, the amount of bycatch is alleged to decrease. 152) A number of ETP species are known to be present in the vicinity of the SLBSC fishery in Palk Bay and the Gulf of Mannar (Dayaratne P., et al). These include the dugong, the indo-pacific humpbacked dolphin and several species of turtle, sea snakes and shark. According to fishermen turtles are very rarely caught in bottom-set gill nets. The mesh size of bottom-set gill nets used to harvest SLBSC is fairly small and turtles generally feed in mid and surface water feeds (Lalith Ekanayake pers. com.,). Small sharks are occasionally appear in the by catch. 33

38 Table 8 Marine fauna and flora observed or reportedly caught in bottom-set gill nets, together with observations on endangered, threatened and protected species Common Name Latin Tamil Sinhala Notes Vertebrates Finfish Sardinellas Amblygaster sirm Sardinella albella Sudai Salaya Retained Jacks & Trevallys Caranx spp., Para Katta Paraw Retained Sting Rays Dasyatidae Thirrukai Maduwa Retained Emperor Fish Letherinus Vella / Vellai Meevetiya Rare. Retained Poochel - - Spiny Flatheads Platycephalidae Aerial - Common. Discarded Illishas Ilish spp. Vellel poovelle Puvalaya As bokka Discarded - Vellal - - Rabbit Fish Signanthus Othi Ora Nava Retained Needlefish Belonidae Mural Habarali Retained Milk fish Chanos chanos Palmeen - Retained Barramundi Lates calcarifer Goduwa Motha Retained Barracuda Sphyraena spp., Seela - Retained Silverbiddies Gerres spp., Thirali - Retained Bloch s gizzard shad Nematalosa nasus Koimeen Suthara Sudaya Retained Catfish Arius spp., Keliru; Angulouwa - Discarded Moonies Monodactylidae - - Retained Grouper Serranidae Kossa Kallawah Rare - Juveniles only Seahorse Sygnathidae - - Very Rare. Discarded Sprats Thryssa spp., Poruva Lagaa Retained Mullet Mullidae Manalai Godaya Retained Invertebrates Mulluscs Woodcock Murex Murex scolopax - - Common Kalpitiya Retained or Discarded Spider Conch Lambis chiragra - - Common Kalpitiya Discarded Spiral Melongena Pugilina cochidium - - Discarded Chank Turbinella pyrum Kalanda - Common Retained Other Bivalves Cockles Gafrarium tumidum Andra antiquate - - Retained Windowpane oyster Placina placenta - - Common Kalpitiya Discarded Crustaceans Other Crab Species - - Common Slipper lobster Scyllaridae Crab with a Cross On - - Common Echinoderms Starfish Rare Sea Urchin Rare Corals & Plants Coral Fragments Rare. Discarded Coraline Algae Rare. Discarded Sea grass Rare. Discarded 34

39 Common Name Latin Tamil Sinhala Notes ETP Species Sea Cows Dugong dugon - Mudu Ura Indo-Pacific Humpbacked Dolphin Spinner Dolphin Green Turtle Hawksbill Turtle Olive Ridley Turtle Sea Snakes Sousa chineusis Stennella longirostris Chelanis mydas Eretriochelys imbricota Ledidochelys olivacea 4 species Hydrophidae Kadal Puni - - Kesbewa Potai pambu Kadal sarai Nalla waliki pam Valaikkadia; Badakaha Mudhu Naya Sharks Elasmobranchs Sura Mora Kalpitiya Only. Not caught in bycatch Kalpitiya Only Not caught in bycatch Very Rare. Released Alive Turtles are protected species. Regulation is enforced. Hawksbill turtles have been known to feed on BSC Rare - Small mesh nets only Rare. Retained Small Sharks Only 153) A high diversity of critical marine habitats are located the vicinity of the SLBSC fishery, off the northwest coast of Sri Lanka. Critical marine habitats include islands, fringing mangroves, sea grass beds (see right: sea grass washed up along the shore by rough weather), coral reefs, sandstone reefs, sand banks and shifting shoals. 154) The bottom-set gill net for SLBSC was not observed to cause nor was it associated with any damage or destruction of critical marine habitats in the Puttalam Lagoon, Dutch Bay and Portugal Bay in the Gulf of Mannar or in the Palk Bay. 35

40 f. Management of the Fishery 155) The final section of this report describes the major findings from the field survey with regard to the management authority and regulations pertaining to the SLBSC fishery. This section includes a description of the field data collected to describe the procedures and measure that are in place to manage the fishery. The description of the major findings of the field survey concludes with look at the concerns about the SLBSC raised during the field survey, in the context of improving the existing management of the fishery. 156) Management Authority: The MFAR, in the person of the Honourable Minister of Fisheries and Aquatic Resource, is the principal authority for the regulation and management of all coastal and offshore fisheries in Sri Lanka. The legislative framework for the regulation and management of Sri Lanka s marine resources is embodied in the Fisheries and Aquatic Resource Act of , to which a large number of new regulations and amendments have been added over the past decade and a half. The legislative framework for the regulation and management of Sri Lanka s fisheries and aquatic resources is acknowledged to be comprehensive in terms of its scope and detail, as well as consistent with international norms aimed at achieving the sustainable exploitation and management marine resources. 157) The task of implementing the regulations and managing the exploitation of fisheries and aquatic resources in Sri Lanka resides with the Director General and staff of the DFAR. The DFAR comprises six divisions, each tasked with implementing or enforcing the directives of the MFAR, under the Fisheries and Aquatic Resource Act. The divisions of the DFAR are as follows: I. Fisheries Management Division II. Fisheries Industries Division III. Monitoring, Controlling and Surveillance Division IV. Fishery product Quality Control Division V. Finance Division VI. Administration Division 158) In addition to head office of DFAR in Colombo, there are 15 District Fisheries Offices (DFO) located around the island: one for each of the fourteen coastal districts and two for Puttalam District (i.e., Chilaw Fisheries District Office and Puttalam Fisheries District Office). Each DFO is headed by an Assistant Director and comprises a number of Fisheries Inspectorate Divisions. There are a total of 148 Fisheries Inspectorate Divisions under the 15 DFO, covering all of the fishing villages in the country. Fisheries Inspectors (FI) are responsible for the enforcement of fishery regulations and the implementation of the government s policies for the management and development of the sector. 159) The core responsibility of the DFO is the registration of fishing craft and issuance of fishing operation licences in accordance with the Fisheries and Aquatic Resource Act. Each fishermen and fishing craft is issued with a Certification of Registration of Fishing Craft and Fishing Operations Licence Book by the DFAR (see overleaf). This booklet includes details of all Operating Licences issues as well the details of the Registration of the Fishing Craft and Fishing Method(s) permitted. Documentary evidence is thus available describing each fisherman, fishing craft and each of the fishing gears used to harvest fish and other aquatic resources in Sri Lanka. 160) Regulations for SLBSC: There are no specific provisions or regulations pertaining to the exploitation of SLBSC resources in Sri Lanka. The general regulations that apply to the SLBSC fishery, including the registration of boats, engines and nets, are common to all fisheries in Sri Lanka. Similarly, the prohibition of monofilament gill nets, applies to all fisheries in Sri Lanka. The prohibition of mechanised trawling in Sri Lanka waters is pertinent to the SLBSC fishery, as it provides a legal basis for SLBSC fishermen s opposition to trawling by Indian and Sri Lankan trawlers in Sri Lankan waters Trawling is banned in Sri Lanka under a directive from the Minister of Fisheries and Aquatic Resources, while Clause 4 of the Fishing (Import and Export) Regulations 2010 (1665/16) prohibits dredging and mechanised trawling operations in Sri Lankan waters 36

41 161) Other gears and fishing methods that are prohibited in Sri Lanka, such as mechanised beach seine, use of mosquito nets, disco nets (trammel net purse seines), light course (purse seine with lights) are not directly relevant to the SLBSC fishery. 162) The Fishing Operating Licence issued by the DFO (see right), is based on the mesh size of the gear, rather than on the fishery in which the gear is intended to be used. So, although the Fishing Operating Licence is comprehensive in terms of the details pertaining to each licence issued, it is not specifically aimed at regulating or managing fishing effort in a particular fishery. A fishing operating licence entitles a fisherman to harvest a number of different species, including SLBSC, using the licensed gear. Details of the Fishing Operating Licence Type of Gear Amount of Gear permitted Specification of gear Fishing Area for permit Landing site Fishing season can include closed season Fishing time all day / half day Fishing groups permitted to be taken. 163) A number of new regulations have been introduced by the MFAR since 1996, to improve the exploitation and management of Sri Lanka s marine resources (see Box B overleaf). 164) During field survey it was observed that fishing for the Thresher Shark (Alopias vulpinus) has recently been prohibited in Sri Lanka (see right). The new regulation makes it illegal to catch, carrying, land, store, transport, selling, advertise the sale of or retail sell thresher shark. The regulations states that if a fishermen catches a Thresher Sharks it must be released. Fishermen caught landing Thresher Sharks will have their boats impounded and will receive a fine. 165) The DFO actively engaged in the enforcement of fishery regulations. Since 2011 the DFO in Jaffna has taken legal action against fishermen using monofilament, fishing with dynamite and catching and landing turtles, as well as taking action against illegal trawling activities by Sri Lankan and Indian trawlers. A total of 40 cases have been filed by the DFO and legal proceedings are ongoing. 166) The DFO in Puttalam District has been particularly active against the use of monofilament net in Puttalam Lagoon. However, despite these successes, the effectiveness of the DFAR s enforcement of fishery regulations is constrained due to limited human and physical resources and often undermined by political influence and pressure (see External Issues below). 37