The purpose of this paper is to assess the productivity of different inputs in capture fishery along the coast of Orissa during 1985-'86. Specifically the paper provides the information regarding:

(i) Costs and returns of different craft-gear combinations, (ii) productivity of capital and labour both in volume (kg) as well as value (Rs.) and (iii) to fit the production function in fishery economy and (iv) recommendation for policy prescription.

Field survey shows there is a greater diversification of craft-gear use pattern between south and north Orissa. Results exhibit that eventhough there was not a strong degrees of correlation, there was a positive relationship between capital intensity and capital productivity in value terms. A positive relationship was also found between capital intensity and labour productivity, there was also a positive relationship between capital and labour productivity.

Factor productivities are an important measure of the cost-effectiveness. Different functional forms were tested in order to find out an appropriate production function in capture fishery. Data shows that linear production function given us the best (on the basis of R' value) functional form. Attention has been drawn in order to avoid inefficient use of labour and capital in due course, because of its indiscriminate use. Rational exploitation and conservation must go hand in hand in order to ensure optimum sustainable yields which will bring perpetual benefit.