The cheer that is often visible in the coastal villages in the period immediately after the lifting of the trawl ban, is missing this time around. For the fisher folk, who are slowly recovering from the after-effects of demonetisation, a double whammy has come in the form of cuts in kerosene subsidy and the Goods and Services Tax (GST).
The Central government had recently issued orders to State oil companies to raise the price of subsidised kerosene by 25 paise every fortnight until the subsidy is eliminated. According to fishermen here, there is a severe shortage of kerosene now to use in their boats.
“Till a few years ago, we used to get 300 litres of kerosene at subsidised rates per month through Supplyco. This supply is from the Central pool. This has been reduced considerably over the past few years, to 240 litres and then to 160 litres and now less than 100 litres. But even that is not available for us now. Sometimes we get a maximum of 50 litres, which is not at all sufficient for fishing for a month. We have to depend on the black market now,” says Antony, a fisherman here.
High rates
According to Shanghumugham ward councillor Solomon Vettukad, the dependence on the black market is not feasible for the fishermen as the rates are too high.
“They get subsidised kerosene at the rate of ₹38 to ₹40. But, in the black market, this goes up to as high as ₹100, which is not feasible for a majority. But still they depend on it. It’s a mystery how kerosene is available in such large quantities in the black market when there is a shortage everywhere else,” he says.
The GST has had a major after-effect in the fishing sector, as several items which had zero tax under the VAT system has been taxed under the GST. This includes, fishing hooks, rods, tackles, ropes, and twines, which are now taxed at 12%.
Another major blow was the increase in tax on outboard motors from 14% to 28%.
Bleak scenario
According to Tony Oliver, a representative of the All Kerala Outboard Engine Fishworkers’ Federation, the cost of launching a new fishing boat has increased at least by ₹10,000, from ₹1.3 lakh to ₹1.4 lakh. All the fishermen here say that the scenario is bleak for them, unless drastic measures to increase the supply of kerosene and reduce the GST rates are taken.
