Journal article / Borrowing Behaviour of Small-scale Fishers in Kerala

Parappurathu, Shinoj, C. Ramachandran, K. K. Baiju, and Antony Kurisunkal Xavier. ‘Formal versus Informal: Insights into the Credit Transactions of Small-Scale Fishers along the South West Coast of India’. Marine Policy 103 (May 2019): 101–12.

Abstract (edited): This paper closely scrutinises the diverse credit transactions undertaken by small-scale fishers along the southwest coast of India, based on a field-level survey in Kerala. The study describes alternative modes of fishery credit delivery in the state, and explores the tangled interlinkages of formal and informal credit contracts.

Further, empirical assessment of the borrowing pattern of small-scale fishers is conducted by taking the case of ring seiners, who constitute an important segment in the local fishery. The main determinants of their borrowing behaviour from institutional credit sources are identified using a fractional logit regression approach.

The findings point to the continuing dominance of the informal financial sector over the institutional credit sector. In the light of the findings, measures such as reforming the fish auction system, linking insurance with formal credit, further strengthening fishery co-operative societies, and exercising stringent state control to curb exploitative lending practices are suggested.

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Reposted from Kerala Scholars eGroup

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