The Indian fisheries sector has expanded rapidly over the past decade, emerging as a critical pillar of the nation's blue economy. According to a official factsheet released by the government, total fish production surged from 9.6 million tons in the 2013-14 financial year to 19.8 million tons in 2024-25. Over the same period, inland fisheries production increased from 6.1 million tons to 14.74 million tons, highlighting the remarkable progress achieved within this agricultural domain.
Protecting Fishery Farmers Against Risks
To safeguard this rapid growth in production and shield fish farmers from diseases, floods, and climate-related hazards, the government launched the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana in 2024. The insurance initiative under this scheme is emerging as a vital protective mechanism for cultivators. Benefits under this program are disbursed through the National Fisheries Digital Platform, ensuring that financial assistance reaches beneficiaries directly through Direct Benefit Transfer into their bank accounts.
Involvement of Public Insurance Companies
At present, four public sector insurance companies participate in this scheme: Oriental Insurance Company Limited, Agriculture Insurance Company Limited, New India Assurance Company Limited, and United India Insurance Company Limited. These firms provide comprehensive insurance coverage for shrimp, prawn, freshwater fish, and cold-water species. Furthermore, the government is actively working on integrating private insurance companies into this framework to widen accessibility.
Affordable Premiums and Financial Assistance
The primary objective of the scheme is to make aquaculture insurance affordable for farmers by providing financial assistance for insurance policies purchased for a single crop cycle through direct benefit transfers. Eligible beneficiaries under the program receive up to 40 percent incentives on insurance premiums. For pond-based aquaculture, this assistance is capped at 25,000 rupees per hectare, with a maximum limit of 1 lakh rupees for an area up to four hectares. Farmers managing plots smaller than one hectare receive proportionate benefits.
Encouraging Initial Results
Early outcomes of the scheme have been highly encouraging. A total of 316 applications covering 730.61 hectares have been received so far. Out of these, 127 applications have been successfully approved and financial aid has been disbursed, benefiting fish farmers across 321.74 hectares with a total payout amounting to 40.03 million rupees.
Inclusion of Modern Aquaculture Technologies
The government has also incorporated modern aquaculture systems into the fold of this insurance scheme. Advanced technologies such as cage culture, recirculatory aquaculture systems, biofloc, and raceways are eligible for a 40 percent subsidy on insurance premiums. The maximum assistance in this category is capped at 1 lakh rupees, with the eligible unit size set up to 1,800 cubic meters. Additionally, Scheduled Castes, Scheduled Tribes, and women beneficiaries receive an extra 10 percent incentive compared to the general category.
Claim Settlement Process and Timelines
According to the factsheet, whenever a risk event covered by insurance occurs, the farmer must immediately notify the insurance company. Necessary documentation is subsequently submitted, and the insurer appoints specialists to evaluate the extent of the loss. The claim is settled and paid based on this assessment report. Throughout the process, the insurance company provides regular status updates via its portal. Additionally, strict deadlines have been established for claim settlements; claims related to shrimp farming must be resolved within 30 days, while other aquaculture activities have a stipulated window of 45 days.
Strengthening the Broader Blue Economy
The overarching goal of the government extends beyond merely subsidizing insurance premiums; it aims to foster a robust and self-sustaining market for aquaculture insurance across the nation. Achieving this requires collaborative efforts between the central government, state administrations, insurance providers, cultivators, and technical institutions. These initiatives under the scheme are expected to make India's fisheries sector more secure, sustainable, and competitive while injecting new strength into the national blue economy.
