PM-MKSSY Bears 40% of Aquaculture Insurance Premium Cost

The Ministry of Fisheries, Animal Husbandry and Dairying set out on 28 September 2026 how the aquaculture insurance push under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) is meant to work. The scheme was cleared by the government on 8 February 2024, and insurance sits in its Component 1-B. Benefits move through the National Fisheries Digital Platform (NFDP) and reach the farmer by direct benefit transfer, so no middle layer handles the money. Disease, summer kill, pollution, cyclones and floods can wipe out a whole crop cycle, and a single failed cycle can push a small farmer into years of debt.

What a farmer gets

• A one-time incentive of 40% of the insurance premium for one crop cycle
• For pond aquaculture, Rs 25,000 per hectare of water spread area, capped at Rs 1,00,000 for up to four hectares, with farms below one hectare paid pro rata
• For cage culture, recirculatory systems, biofloc and raceways, the same 40% share with a ceiling of Rs 1,00,000 and a unit size limit of 1,800 cubic metres
• Scheduled Caste, Scheduled Tribe and women beneficiaries get a further 10% over what the general category is paid

How a claim moves

The farmer must inform the insurer as soon as an insured peril strikes and file the papers the policy asks for. The company then names a loss assessor, the damage is valued, and payment follows on that report, with the status visible on the insurer's portal. The whole settlement is to be closed within 30 days for shrimp culture and 45 days for other aquaculture. Four public insurers are at work so far - OICL, AICL, NIAL and UIIC - covering shrimp and prawn, freshwater fish and cold water species, and private insurers are being brought in.

The sector behind the scheme

Production has climbed from 9.6 million tonnes in 2013-14 to 19.8 million tonnes in 2024-25, a rise of over 106%, and exports from USD 5.08 billion to USD 8.46 billion in the same stretch. Frozen shrimp alone brings nearly two-thirds of seafood export earnings, and fisheries support the livelihood of over 30 million people.

Early numbers on the incentive

The one-time incentive has drawn 316 applications so far, covering 730.61 hectares. Of these 127 have been approved and paid, reaching farms over 321.74 hectares, with a disbursement of Rs 40.03 lakh. Globally, fisheries and aquaculture production touched a record 235 million tonnes in 2024.