Fish farmers seek low interest loans

POKHARA, April 19: 

As water flowing from the Annapurna range and Sardhikhola riverbank was underutilized, Indra Gauchan decided to cultivate Asala breed of fish on the river bank. With the help of his friends, he set up Kshetradip Annapurna Trout Fish Development and Research Pvt Ltd. Gauchan along with a team comprising agricultural experts had estimated that an investment of Rs 20 million would be enough to set up a fishery farm on Sardikhola.

Gauchan, however, said that their initial investment did not suffice. "We kept on increasing investment year after year, but at last did not have any money left to invest in the business," he said. A group of 17 farmers had started the fishery farm by cultivating Rainbow Trout since 2011. They invested an additional Rs 17.5 million as their earlier investment of Rs 20 million did not suffice. The company built 140 raceways for the fish in two different places. They have also invested their profits in the fishery farm.

Gauchan said it is futile to seek funding from banks and financial institutions (BFIs) for investment in their project. "BFIs think investing in fishery and other agricultural project is worthless," he said, adding, "Even if they agree to extend loans, the interest rate is too high."

KP Gautam, another investor, told Republica that they need additional Rs 15 million. "The BFIs do not accept fishery farm as collateral," he lamented.

Gauchan said that if they accept the bank´s loan at 18/20 percent interest, their production cost would go up. The company has leased two stretches of the river bank with total area of 140 ropanis for 30 years. They have to pay Rs 500 per ropani annually to the VDC in rent.

There are six other fishery farms in Sardhikhola VDC which cultivate Asala fish. Investors claim that the Kshetradip Annupurna is the biggest Trout fishery farm in the country. The Rainbow trout available in Nepal´s mountainous region are brought from Japan. Nepal´s Asala fish are known as Snow Trout.

"Since it is difficult to cultivate Asana in pond, Rainbow breeds are brought from Japan," Gauchan said. Kshetradip Annapurna has started production by importing fingerlings from Sindhupalchowk. The company, has, however, started production fingerlings on its own. The company targets to produce one million fingerlings annually to meet the local demand.

The company sold fish worth Rs 5.4 million last year and plans to increase production this year. "The money generated from the sales will also be invested in the fishery farm," Gauchan said.

Managing director of the company Karna Gurung said they plan to produce 25 to 30 tons of fish this year. Rainbow trout is sold at Rs 800 per kg. A fish is normally ready to be sold when it weighs 300 grams. It takes the fish 11 months to gain this weight.

Source: Republica