Economic performance and marine policy implications of mud spiny lobster mariculture in Tropical Sea Cages, North-Eastern Arabian Sea, India: An empirical study in marine economics

Abstract

Lobsters are one of the premium ocean resources and a highly sought-after seafood commodity globally. The increasing demand for spiny lobsters in both domestic and international markets has led to a growing interest in mariculture as a means of meeting demand. Capture-based mariculture (CBM) by the coastal communities is the only way to cater the existing demand. However, there is scant published information and continued ambiguity on the viability of spiny lobster aquaculture in the Indian subcontinent and a similar gap exists in countries engaged in lobster fattening. Thus, to bridge the gap between the viability information and CBM stakeholders, we examined the profitability and economic performance of mud spiny lobster, Panulirus polyphagus, production in open sea farming systems, specifically sea cages. Our analysis focused on economic indicators such as input costs and return value. We found that the estimated annual revenue for a single operation was USD $3605.04, with an internal rate of return (IRR) of 33% and a net present value (NPV) of USD $1226.17, demonstrating profitability. Despite this, certain bottlenecks such as limited seedstock and feed availability and cost concerns, disease management issues, regulatory complexities, market demand fluctuations limit the expansion of the industry beyond a certain threshold. This study provides useful information for enterprise building and developing better strategies for building food security and supporting traditional communities-oriented commercial lobster farming in India, and potentially in other lobster farming nations as well.