The Indian government has launched a new initiative to bolster the fisheries industry with the introduction of the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY). This is a Central Sector Sub-scheme which operated under the prevailing Pradhan Mantri Matsya Sampada Yojana (PMMSY).
PM-MKSSY has an estimated budget of ₹6,000 crore will run for 4 years from FY 2023-24 to FY 2026-27. It is designed to resolve key challenges in the fisheries industry through 4 core components.
Component 1-A focuses on facilitating access to government programs for fisheries microenterprises. By resolving their working capital requirements, the government aims to bring smaller players into the formal economy.
Component 1-B aims to encourage farmers to adopt aquaculture insurance. By recognising aquaculture risks, the scheme provides 2 types of insurance products for farmers. This includes a basic insurance plan covering yield losses caused by non-preventable perils (including natural calamities). It also includes a comprehensive insurance plan for diseases.
The scheme has set an incentive amount at 40% of the premium paid by farmers. This includes a ceiling of ₹1 lakh for 4 hectares of Water Spread Area or ₹25,000 per hectare per farmer. For intensive aquaculture systems, the incentive remains at 40% of the premium, with a ceiling of ₹1 lakh per farmer for an 1800 m3.
Notably, women beneficiaries and Scheduled Tribe/Scheduled Caste will receive an additional incentive of 10%, thereby promoting financial inclusivity.
Component 2 aims to support microenterprises in improving value chain efficiencies. By enhancing post-harvest management practices, the fisheries industry can substantially reduce their waste generation. By implementing effective processing and marketing strategies, they can also enhance their profitability.
Component 3 emphasises the expansion and adoption of product safety and quality assurance systems in the fisheries industry. This is important to ensure consumer safety and enhance the competitiveness of Indian fisheries products in international markets.
In September 2024, the Indian government launched the National Fisheries Digital Platform (NFDP). It aims to create a comprehensive database for all industrial stakeholders by establishing a work-based digital identity for aquaculture farmers. It will offer institutional credit facilities, strengthen fisheries cooperatives, and incentivise aquaculture insurance.
The PM-MKSSY is poised to transform India’s fisheries sector by addressing numerous challenges pertaining to financial access, insurance, and quality assurance, among others. The scheme can enhance the livelihood of millions of Indian fish farmers and enhance the industrial growth rate.
The growing focus on adopting digital solutions through the NFDP will streamline processes, promote greater efficiency, and ensure better transparency. The additional incentives for women and SC/ST beneficiaries highlight the government’s continuous commitment to ensuring inclusive growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Mar 13, 2025, 1:36 PM IST
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