Files
Abstract
This paper attempts a social cost-benefit analysis of scientific versus traditional shrimp
farming in West Bengal, India. Using primary data, the paper shows that although
intensive or scientific shrimp farming yields high returns as compared to traditional
shrimp farming, when the opportunity costs and environmental costs of shrimp farming
including disease risk are accounted for, scientific shrimp farming loses its advantage. In
fact sensitivity analysis shows that if expected benefits were to fall short by 15% and
costs rise by a similar proportion, scientific shrimp farmers report higher losses than
traditional shrimp farmers. But large traditional shrimp farmers continue to report
positive net returns. These results are also most pronounced for small and marginal
scientific shrimp farmers. Further if the probability of disease risk is also accounted for,
scientific shrimp farming reports significant losses whereas traditional shrimp farming in
most cases shows positive net returns. In the light of the high social and environmental
costs, and risks, this paper questions the rationale behind promoting intensive or scientific
shrimp farming, especially among small and marginal holdings as an income-generating
activity or poverty alleviation measure. It also suggests that policy makers need to factor
in sustainability concerns while formulating policies to promote intensive shrimp
farming.