In a significant move to revolutionize the fisheries sector in India, the Union Cabinet has approved the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY).
This Central Sector Sub-scheme, falling under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), aims at formalizing the fisheries sector and supporting micro and small enterprises with a substantial investment of over INR 6,000 crores over the next four years, from FY 2023-24 to FY 2026-27.
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The Union Cabinet has approved the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), with an allocation of over INR 6,000 crores to revolutionize India’s fisheries sector. Falling under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), the scheme emphasizes formalization, supports micro and small enterprises and introduces collaborative funding from public finance, the World Bank, and the private sector. Focused on a National Fisheries Digital Platform, aquaculture insurance, and performance grants, PM-MKSSY aims for sustainable growth, job creation, and development in the fisheries industry.
The sub-scheme, to be implemented as a Central Sector initiative, will have an estimated outlay of INR 6,000 crore, with 50% funded by public finance, including contributions from the World Bank and the AFD external financing. The remaining 50%, amounting to INR 3,000 crore, is expected to come from the beneficiaries and the private sector, showcasing a collaborative approach to foster growth in the fisheries sector.
Intended beneficiaries
The Sub-scheme has the following major components
Component 1-A: Formalization of the fisheries sector
The plan aims to formalize the unorganized fisheries sector by creating a National Fisheries Digital Platform (NFDP). This platform encourages the registration of fish producers, workers, vendors, and processors, including microenterprises, at the national level. Financial incentives will drive stakeholder participation. NFDP will serve various functions, including disbursing financial incentives, providing training, improving financial literacy, and supporting project preparation. Additionally, it aims to strengthen existing fisheries cooperative societies.
Component 1-B: Aquaculture Insurance Adoption
The proposal seeks to create a robust market for aquaculture insurance by providing a one-time incentive for farmers. This incentive, at 40% of the premium cost, with a maximum limit of INR 25,000 per hectare, aims to cover at least 1 lakh hectares of aquaculture farms during the project period. Special incentives are offered for SC, ST, and women beneficiaries. The goal is to stimulate the aquaculture insurance market, encouraging innovation in insurance products.
Component 2: Enhancing fisheries value chain efficiencies
This component focuses on improving value chain efficiencies in the fishery sector through performance grants. Microenterprises are incentivized to engage in production, job creation (with priority for women), and value chain enhancements. Performance grants are capped at 25% of the total investment for the General Category and 35% for SC, ST, and Women-owned microenterprises. Village-level organizations have a higher cap at 35% of total investment or INR 200 lakhs.
Component 3: Safety and quality assurance systems
Incentives are proposed for fisheries micro and small enterprises adopting safety and quality assurance systems. The aim is to expand the market for fish and fishery products, creating and maintaining jobs, especially for women. Performance grants are structured similarly to Component 2, with a focus on investments in infrastructure, disease management, and standards certification to ensure the supply of safe fish.
Performance grant disbursement criteria for components 2 & 3:- Disbursement criteria include the number of jobs created and maintained, with additional incentives for jobs held by women. Investments made in value chain efficiency (Component 2) and safety systems (Component 3) are eligible for grants, disbursed after completion, up to 50% of the eligible grant.
Component 4: Project management, monitoring, and reporting
Under this component, Project Management Units (PMUs) will be established to manage, implement, monitor, and evaluate project activities. This ensures effective oversight and reporting for successful project execution.
By strategically addressing formalization, insurance, value chain efficiencies, and safety standards, the comprehensive plan aims to transform and enhance the fisheries sector, fostering sustainable growth and job creation.
Conclusion
The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) marks a pivotal moment for India’s fisheries sector, aiming to formalize operations and support micro and small enterprises over the next four years. Emphasizing a collaborative funding approach, the scheme focuses on creating a National Fisheries Digital Platform, transitioning to performance-based incentives, and addressing key challenges like aquaculture crop losses.
With a vision to enhance export competitiveness, empower women, and foster job creation, PM-MKSSY represents a holistic strategy for sustainable growth and development in the fisheries sector.
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