Determinants of Land Leasing Decisions in Shrimp Farming in West Bengal, India: Implications for Government Policy

Using primary data collected from 208 shrimp farming households in West Bengal, this study found that demographic and economic factors influence land-leasing decisions in both traditional and scientific shrimp farming. The Tobit model results indicate that the household’s land holding size is positively related with extent of leased in land in traditional shrimp farming; the relationship was negative in the case of scientific shrimp farming. This signifies that the market does not facilitate land leasing for traditional shrimp culture among households with small landholdings but does so in the case of scientific shrimp farming. Moreover, the household head’s age had a negative relationship with extent of land leased out in both traditional and scientific shrimp farming. This indicates that existing institutional arrangements in shrimp farming in West Bengal have not been successful in motivating young rural people to undertake shrimp farming themselves instead of leasing out land for shrimp culture. Aquaculture policies should address this matter.