An Economic Analysis of Rainbow Trout (Oncorhynchus mykiss) Farming in Sikkim, India

Rainbow trout farming holds a long-standing tradition as one of the earliest forms of commercial fish production, primarily concentrated in the upper Himalayan region and the Western Ghats of India. It remains a crucial component of cold-water fisheries and has substantial untapped potential to serve as a means of livelihood in the resource-scarce Indian Himalayan region, thereby contributing to food security. While states like Jammu & Kashmir and Himachal Pradesh are leading the way in trout production, the northeastern state of Sikkim still offers opportunities for increasing its output. To assess the socioeconomic aspects, factors influencing production, and challenges faced by trout farmers in Sikkim, a comprehensive study was undertaken. The study involved gathering primary data from 30 trout farmers in Sikkim through structured interviews. The data collected was analysed using various statistical and economic tools, such as Benefit-Cost (B-C) ratio, multiple linear regression, and rank-based quotient. The findings unveiled a demographic profile where the majority of respondents were Hindu, married males, educated up to the primary level, and residing in joint families with monthly incomes ranging from ₹12,000 to ₹36,000. Two economic scenarios were considered: one with financial assistance in the form of subsidies and one without. Without subsidy, the total cost of trout farming amounted to ₹2.46 lakh per farm and ₹1.14 lakh per raceway. Variable costs comprised 67.67 percent of the total, with feed costs representing the largest component at 40.35%, followed by seed costs at 23.16%. In contrast, with subsidies, the total cost dropped to ₹1.59 lakh per farm and ₹0.73 lakh per raceway, with variable costs accounting for 72.57%. Seed costs remained the major expense at 35.90%, followed by feed costs at 31.58%. The economic viability of trout farming in Sikkim was substantiated by B:C ratios of 1.87 and 1.21 with and without subsidies, respectively, highlighting its profitability even without financial aid. However, the study also identified a major constraint: the availability of quality feed. This issue requires the attention of policymakers, who should consider solutions to improve feed quality and reduce its cost, possibly through the establishment of feed mills along the lines of those in the Kashmir valley. In conclusion, the study emphasizes the untapped potential of trout farming for income generation in Sikkim, underscoring the need for well-crafted policies and initiatives to harness this opportunity fully.