The Ministry of Fisheries, Animal Husbandry & Dairying has detailed the implementation progress of the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) aquaculture insurance initiative, designed to address risk management for India's growing aquaculture sector. The scheme provides a one-time monetary incentive through Direct Benefit Transfer (DBT) covering up to 40% of insurance premium costs for eligible aquaculture farmers.
India's fisheries sector has demonstrated remarkable growth, with total fish production increasing from 9.6 million tonnes in 2013-14 to a record 19.8 million tonnes in 2024-25, making India the world's second-largest fish producer with an 8% global share. Aquaculture now accounts for 74% of total production, while inland production reached 14.74 million tonnes in 2024-25. The export sector has similarly expanded, with marine product exports growing from USD 5.08 billion in 2013-14 to USD 8.46 billion in 2025-26, with frozen shrimp constituting 66% of export earnings. The sector supports livelihoods for over 30 million people across coastal, tribal, and economically marginalized communities.
The insurance scheme addresses significant risks including disease outbreaks, summer kill, pollution, earthquakes, cyclones, floods, and other natural calamities that can devastate aquaculture operations. For pond-based aquaculture, the incentive is limited to ₹25,000 per hectare of water spread area, with a maximum incentive of ₹1,00,000 for up to 4 hectares. For advanced systems including Cage Culture, Recirculatory Aquaculture Systems (RAS), Bio floc, and Raceways, the incentive covers 40% of premium costs with a maximum incentive of ₹1,00,000 and eligible unit size of 1,800 cubic metres. Scheduled Caste, Scheduled Tribe, and women beneficiaries receive an additional 10% incentive over the general category entitlement.
Claim settlement requires immediate intimation to the insurance company upon occurrence of insured perils, followed by submission of documentary evidence. Insurance companies must appoint loss assessors and complete claim settlements within 30 days for shrimp culture and 45 days for other aquaculture activities. Four insurers are currently operational: Oriental Insurance Company Ltd (OICL), Agriculture Insurance Company of India Ltd (AICL), National Insurance Company Ltd (NIAL), and United India Insurance Company Ltd (UIIC), covering shrimp/prawn, freshwater fish, and cold-water species, with private insurers in the process of onboarding.
Implementation progress shows 316 One-Time Incentive applications received covering 730.61 hectares, with 127 applications approved and disbursed benefiting farmers over 321.74 hectares with total disbursement of ₹40.03 lakh. The government aims to build a durable and self-sustaining insurance market through coordinated efforts between central policy direction, state-level outreach, insurance product design, farmer adoption, and technical institutions supporting risk assessment and verification.