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