PM-MKSSY Component 1-B: What the Aqua Insurance Incentive Offers
The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) — a Central Sector sub-scheme under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) running from FY 2023-24 to FY 2026-27 with an estimated outlay of ₹6,000 crore — provides a one-time incentive to aquaculture farmers who purchase aquaculture insurance (PIB, 2 April 2025). Under Component 1-B of the scheme:
- One-time incentive of 40% of the insurance premium cost, for aquaculture insurance purchased for one crop cycle (one crop only).
- For farm-based aquaculture up to 4 hectares of water spread area (WSA): ceiling of ₹25,000 per hectare; maximum incentive of ₹1,00,000 per farmer.
- For intensive systems — cage culture, Recirculatory Aquaculture Systems (RAS), biofloc and raceways: 40% of the premium, with a maximum incentive of ₹1 lakh and a maximum eligible unit size of 1,800 m³.
- Beneficiaries belonging to Scheduled Caste (SC), Scheduled Tribe (ST) and Women categories get an additional 10% over the incentive payable to general categories.
| Farm type | Incentive | Ceiling | Maximum |
|---|---|---|---|
| Pond/farm aquaculture (up to 4 ha WSA) | 40% of premium | ₹25,000 / hectare | ₹1,00,000 per farmer |
| Intensive systems: cage culture, RAS, biofloc, raceways (up to 1,800 m³) | 40% of premium | — | ₹1,00,000 per farmer |
| SC/ST and Women beneficiaries | Additional 10% over the general-category incentive | ||
Basic vs Comprehensive Insurance: What’s Covered
Two types of aquaculture insurance products are available under PM-MKSSY (PIB, Rajya Sabha reply, 12 March 2025):
- Basic Insurance — covers yield losses from non-preventable perils: summer kill, pollution, earthquakes, cyclones, floods and other natural calamities, riots, malicious acts of third parties including poisoning, and crop loss from structural damage to farms.
- Comprehensive Insurance — covers all perils under Basic Insurance plus additional perils from diseases.
The incentive addresses the core affordability barrier: the benefit reaches farmers through Direct Benefit Transfer (DBT) via the National Fisheries Digital Platform (NFDP), where the Aquaculture module is live.
Insurers and Species Covered
Four government-owned insurers are currently operational under the scheme — OICL, AICL, NIAL and UIIC — offering coverage across shrimp, prawn, freshwater fish and cold-water species, with private insurers also being onboarded to strengthen the insurance ecosystem (IANS report, 28 September 2026).
The timing matters: NFDB Chief Executive Vijay Kumar Behera has urged aqua farmers to make use of the scheme, flagging climate-related risks including El Niño to aquaculture yields (The New Indian Express, 30 September 2026). India is the world’s second-largest shrimp producer, with Andhra Pradesh alone contributing over 70% of national output.
Progress So Far
Uptake is gathering pace. As reported on 28 September 2026 citing a government factsheet: 316 applications covering 730.61 hectares have been received; of these, 127 applications have been approved and disbursed, benefiting farmers across 321.74 hectares, with a total disbursement of ₹40.03 lakh.
How to Apply
- Step 1: Register and enrol on the National Fisheries Digital Platform (NFDP) portal — registration is mandatory to access any benefit under PM-MKSSY.
- Step 2: Purchase an aquaculture insurance policy (Basic or Comprehensive) from an empanelled insurer for your crop cycle.
- Step 3: Submit your application for the one-time incentive through the NFDP portal’s Aquaculture module; the incentive is paid via DBT.
Fish farmers seeking scheme support should contact their State Fisheries Department or the National Fisheries Development Board (NFDB), Hyderabad, for guidance on the NFDP registration and application process.
Sources: PIB Release ID 2117744 (2 Apr 2025); PIB Release ID 2110678 — Rajya Sabha reply by MoS (Fisheries) George Kurian (12 Mar 2025); IANS “How PM-MKSSY is insuring India’s Blue Economy” (28 Sep 2026); The New Indian Express (30 Sep 2026). Figures verified as of 21 October 2026. PM-MKSSY implementation period FY 2023-24 to FY 2026-27 — scheme currently active.