Insurance for Fish Farmers: How PM-MKSSY Protects Aquaculture Against Disease and Disasters
The Government highlighted how the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) is helping aquaculture (fish farming) farmers buy insurance against crop loss.
India's fish production has doubled in about ten years: from about 9.6 million tonnes in 2013-14 to about 19.8 million tonnes in 2024-25. Inland fish production grew from 6.1 million tonnes to 14.74 million tonnes in the same period.
The Government pointed out that growth also brings more risk. Disease, floods and changing weather can destroy a whole crop cycle and push farmers into debt.
Under PM-MKSSY, eligible farmers get a one-time incentive of 40% of the insurance premium. For pond farms, this is capped at ₹25,000 per hectare and ₹1 lakh per farmer (up to 4 hectares). SC, ST and women farmers get an extra 10%.
Insurance products now cover shrimp, prawn, freshwater fish and cold-water species. Public sector insurers are selling them, and claims are to be settled within 30 days for shrimp and 45 days for other aquaculture.
As per the latest data shared, 316 applications covering about 730 hectares were received; 127 were approved, covering about 322 hectares, with about ₹40 lakh paid out through the National Fisheries Digital Platform.
Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)
The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) is a central government scheme for India's fisheries sector. It helps fishers, fish farmers and small fish businesses in four ways: it gives them an official digital identity, helps them get bank loans, helps fish farmers buy insurance, and rewards small businesses that improve quality and create jobs. It is a sub-scheme (a smaller scheme inside a bigger one) of the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
The news is about Component 1-B of PM-MKSSY. The government is showing how the 40% premium incentive, paid through the NFDP, is helping fish farmers protect their crop against disease and disasters, even though coverage so far is small.
Pradhan Mantri Matsya Sampada Yojana (PMMSY)
The Pradhan Mantri Matsya Sampada Yojana (PMMSY) is India's flagship scheme to develop the fisheries sector. It aims to raise fish production, reduce waste after the catch, build infrastructure like fishing harbours and cold chains, improve fishers' incomes and create jobs. It covers both marine fisheries (sea fishing) and inland fisheries (rivers, lakes, ponds, reservoirs). It is often called the engine of India's "Blue Revolution".
Aquaculture insurance under PM-MKSSY is part of PMMSY's plan to make fish farming safer as well as bigger. As PMMSY has pushed production higher, especially in inland ponds and tanks, the risk of losing a whole crop has also grown. Insurance is the tool meant to protect that growth.
- India's fish production: about 9.6 million tonnes (2013-14) to about 19.8 million tonnes (2024-25)
- Inland fish production: 6.1 million tonnes (2013-14) to 14.74 million tonnes (2024-25)
- PM-MKSSY: approved 8 February 2024; ₹6,000 crore; FY 2023-24 to FY 2026-27; Central Sector sub-scheme under PMMSY
- Insurance incentive: 40% of premium; ₹25,000 per hectare; maximum ₹1 lakh; up to 4 hectares; intensive units up to 1,800 cubic metres
- Extra 10% incentive for SC, ST and women
- Claim settlement: 30 days (shrimp), 45 days (other aquaculture)
- Applications: 316 received (about 730 hectares); 127 approved (about 322 hectares); about ₹40 lakh disbursed
- PMMSY: launched 10 September 2020; ₹20,050 crore original outlay
- India: 2nd largest fish producer in the world, about 8% share