Financial Performance, Profitability and Break-even Analysis of Inland Fish Farming in West Godavari District of Andhra Pradesh, India

Abstract

Inland fish farming contributes substantially to food security, rural employment, and farm income, particularly in major aquaculture-producing regions such as Andhra Pradesh. However, rising input costs and production risks necessitate a systematic assessment of profitability, financial performance, and break-even conditions at the farm level. This study assessed the financial performance, profitability, and break-even position of inland fish farming in West Godavari District, Andhra Pradesh. Primary data were collected from 90 inland fish farmers selected through a multistage sampling procedure during the 2021–22 agricultural year using a pre-tested structured interview schedule. The per-hectare cost and return analysis revealed that the total cultivation cost was Rs.5,97,042.94, comprising variable costs of Rs.4,07,025.85 (68.17%) and fixed costs of Rs.1,90,017.09 (31.83%), with feed accounting for the largest share of the total cost. The financial performance, evaluated using the benefit-cost ratio (1.22), operating ratio (0.56), fixed ratio (0.26), rate of return (0.22), expense structure ratio (0.47), and gross revenue ratio (0.82), indicated that inland fish farming was economically profitable and financially viable. Break-even analysis further confirmed its economic feasibility, with a break-even output of 4,325.45 kg per hectare, a break-even price of Rs.81.30 per kg, and a margin of safety of 41.09 per cent. Overall, the findings indicate that inland fish farming in the study area covered production costs and generated positive returns under the prevailing production and market conditions.