Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana: Aquaculture Farmers to Receive Up to 40% Incentive on Insurance Premiums
Under the PM-MKSSY, aquaculture farmers are receiving financial assistance of up to 40% of premium costs to mitigate risks associated with natural disasters and diseases.
The Government of India has launched an aquaculture insurance initiative under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) to manage increasing financial risks in the aquaculture sector and provide security to farmers. The primary objective of this scheme is to protect small and marginal farmers from risks such as diseases, floods, and climate change, ensuring they can continue production even during economic crises.
Under Component 1-B of this co-scheme, approved on February 8, 2024, eligible beneficiaries are being provided an incentive of up to 40 percent of the premium cost for purchasing aquaculture insurance policies. This benefit is transferred directly to the farmers' accounts via Direct Benefit Transfer (DBT) through the National Fisheries Digital Platform (NFDP).
Specific incentive limits have been established under the scheme. For pond aquaculture, assistance is provided up to a maximum of 25,000 rupees per hectare of water spread area, with a total benefit cap of 1,00,000 rupees for a maximum area of 4 hectares. For advanced systems such as cage culture, biofloc, RAS, and raceways, a 40 percent incentive is also available, with a maximum limit of 1,00,000 rupees and a maximum unit size of 1,800 cubic meters. Additionally, beneficiaries from Scheduled Castes, Scheduled Tribes, and women will receive an additional 10 percent incentive compared to the general category.
The claim settlement process has been made time-bound. It is mandatory to settle claims for shrimp farming within 30 days and for other aquaculture activities within 45 days. Currently, Oriental Insurance, Agriculture Insurance Company of India, New India Assurance, and United India Insurance companies are providing this coverage. The government is also working to integrate private insurance companies into this ecosystem.
India has seen a significant increase in fisheries production. Total fish production, which stood at 9.6 million tonnes in 2013-14, has increased to 19.8 million tonnes in 2024-25. India has now become the world's second-largest fish-producing country, with approximately 8 percent of the global share. Exports of marine products have also grown, rising from 5.08 billion US dollars in 2013-14 to 8.46 billion US dollars in 2025-26.
Regarding the progress of the scheme's implementation, it was reported that a total of 316 applications have been received so far, of which 127 applications have been approved, and an amount of 40.03 lakh rupees has been distributed to farmers covering an area of 321.74 hectares.
