PM-MKSSY Aquaculture Insurance: Covering India's Fish Farmers Against Crop Loss
PM-MKSSY provides aquaculture insurance incentives of up to 40% of premium, with claims settled in 30-45 days, as India's fish output hits 19.8 million tonnes.
India's fisheries sector has expanded rapidly over the past decade, with total fish production rising from 9.6 million tonnes in 2013-14 to a record 19.8 million tonnes in 2024-25. Aquaculture now accounts for more than 74% of that output, spanning freshwater carp ponds, brackish water shrimp and prawn farming, cage culture, and a growing range of cold-water and marine species. Inland production alone climbed from 6.1 million tonnes in 2013-14 to 14.74 million tonnes in 2024-25.
The sector supports more than 30 million livelihoods across fishing, farming, trading, processing and transport, with a large share drawn from coastal, tribal and economically marginal communities. Seafood exports reached USD 8.46 billion in 2025-26, up from USD 5.08 billion in 2013-14, with frozen shrimp alone contributing nearly 66% of export earnings.
Yet this growth carries risk. Disease outbreaks, summer kill, pollution, cyclones, floods, earthquakes and other natural calamities can destroy an entire crop cycle. For small and marginal farmers operating on thin margins and often reliant on informal credit, a single failed cycle can trigger a debt spiral. Insurance does not prevent such losses, but it cushions farmers against financial distress.
To address this, the Government approved the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) on 8 February 2024. Under Component 1-B, a one-time incentive is provided through Direct Benefit Transfer for the purchase of an aquaculture insurance policy for one crop cycle, delivered via the National Fisheries Digital Platform.
The incentive covers up to 40% of the insurance premium. For pond-based aquaculture, support is capped at ₹25,000 per hectare of water spread area, subject to a maximum of ₹1,00,000 for up to four hectares, with farms under one hectare eligible on a pro-rata basis. For advanced systems such as cage culture, Recirculatory Aquaculture Systems, biofloc and raceways, the 40% incentive applies up to ₹1,00,000, with a maximum eligible unit size of 1,800 cubic metres. Scheduled Caste, Scheduled Tribe and women beneficiaries can receive an additional 10% over the general category incentive.
Claim settlement begins with immediate intimation to the insurer, followed by submission of documentary evidence. A loss assessor is then appointed to evaluate damages, and payment is processed based on the assessment report, with status updates available on the insurer's portal. Settlements must be completed within 30 days for shrimp culture and 45 days for other aquaculture activities.
Four insurers — OICL, AICL, NIAL and UIIC — currently offer coverage for shrimp and prawn, freshwater fish and cold-water species, with private insurers in the process of joining. Under the One-Time Incentive component, 316 applications covering 730.61 hectares have been received so far. Of these, 127 applications covering 321.74 hectares have been approved and disbursed, with total disbursement of ₹40.03 lakh.
The scheme's wider impact will depend on farmers' confidence that claims are assessed fairly and settled without delay, making consistent improvement in claim handling central to its success.