Insuring the Blue Revolution: How PM-MKSSY Is Transforming Risk Management for India's Aquaculture Farmers

Key Highlights:

• The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), approved in February 2024, includes an aquaculture insurance initiative.
• This initiative aims to mitigate financial risks for aquaculture farmers from diseases, floods, and climatic variability.
• It provides a one-time monetary incentive of up to 40% of the insurance premium cost for one crop cycle.
• SC, ST, and women beneficiaries receive an additional 10% incentive on top of the general category incentive.
• Incentives are disbursed directly to farmers through Direct Benefit Transfer (DBT) via the National Fisheries Digital Platform (NFDP).
• India's fish production reached a record 19.8 million tonnes in 2024-25, making it the second-largest fish producer globally.
• Aquaculture accounts for over 74% of India's total fish production, supporting livelihoods for over 30 million people.

Detailed Insights:

• The aquaculture insurance under PM-MKSSY addresses the affordability barrier for farmers to secure risk coverage.
• For pond-based aquaculture, the incentive is capped at ₹25,000 per hectare, up to a maximum of ₹1,00,000 for 4 hectares.
• For advanced systems like Cage Culture and Recirculatory Aquaculture Systems (RAS), the maximum incentive is ₹1,00,000 for up to 1,800 cubic metres.
• Claim settlement is streamlined, with a target of 30 days for shrimp culture and 45 days for other aquaculture activities.
• Four public sector insurers (OICL, AICL, NIAL, UIIC) currently offer coverage, with private insurers also onboarding.
• The scheme aims to build a durable and self-sustaining market for aquaculture insurance through stakeholder collaboration.
• India's seafood exports grew from USD 5.08 billion in 2013-14 to USD 8.46 billion in 2025-26, with frozen shrimp being a major contributor.

Key Concepts Involved:

• Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY): A government scheme approved in 2024 to formalize the fisheries sector and provide risk mitigation, including aquaculture insurance.
• Aquaculture: The farming of aquatic organisms such as fish, crustaceans, molluscs, and aquatic plants in controlled environments.
• Direct Benefit Transfer (DBT): A system where government subsidies are directly transferred to beneficiaries' bank accounts, reducing leakages.
• National Fisheries Digital Platform (NFDP): A digital platform used for the delivery and management of benefits under fisheries schemes.