PM-MKSSY (Pradhan Mantri Matsya Kisan Samridhi Sah Yojana) 2024

The Indian fisheries sector supports over 16 million livelihoods through thriving yet unorganized marine and inland fishing economies flanked by an enormous processing and export industry. However, issues like credit barriers, inadequate infrastructure and technology bottlenecks have hampered fishing incomes and productivity.

The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana approved by the union cabinet in early 2024 promises comprehensive transformation on this front through integrated formalization, financing and incentivization across fisheries value chains. With a Rs 6,000 crore budget till FY 2027, this ambitious restructuring scheme intends to upgrade efficiency, sustainability and welfare.

Sector Snapshot

Presently valued around Rs 2 lakh crore (~USD $28 billion) including overseas trade, India’s fisheries sector has witnessed steady boom at over 10% annual growth between 2013-2022 through soaring production touching 15 million metric tonnes and multiplying seafood exports nearing USD $8 billion now.

This thriving industry centering small fishermen already provides sustenance to over 7% of the country’s population while catalyzing lakhs of complementary jobs in ancillary activities like shipbuilding, transportation, processing etc. along porous coastlines.

Yet glaring gaps limit actualization of output and welfare potential within the world’s second largest fish producer as brought out by PM-MKSSY’s objectives.

The Roadblocks to Overcome

Behind the high stakes potential, multiple bottlenecks hinder fisher welfare and productivity currently:

1. 92% comprise small scale artisanal fishers lacking resources for advanced equipment or boats with 87% still deploying traditional non-motorized vallams restricting fishing capacities.

2. Negligible access to formal credit forces dependence on greedy middlemen and loan sharks charging steep interest rates, trapping families in debt cycles.

3. Absence of a robust cold chain network post-harvest hampers produce preservation causing losses up to 25% worth ₹50,000 crore due to spoilage. Such wastage also lowers prices, compels distress sales etc.

4. Poor landing and marketing linkages compel immediate sales at the dock itself at prices dictated by brokers without alternative market linkages.

The Solutions Proposed

The PM-MKSSY strategically alleviates the above limitations through comprehensive relief:

Insurance Cover

By creating a Fisheries and Aquaculture Infrastructure Development Fund (FIDF) worth ₹7,500 crore facilitating coverage up to ₹1.5 lakh per fishing vessel crewed by 2-12 and ₹1 lakh per fisher annually against personal accidents, vessel damage, disasters etc. This safety net is mandatory for availing other scheme benefits like boats.

Fleet Modernization

The scheme funds 40% subsidies on procuring advanced vessels, marine engines and fishing equipment like on-board cold storage. Bigger boats over 20 meters long get 30% funds subject to limits. Such upgrades alongside tech training enables higher catches through extended fishing trips, onboard preservation etc realizing higher earnings.

Post-Harvest Infrastructure

Cold chain and wasted processing infrastructure projects also qualify for government financial support through subsidies to set up ice plants, freezing plants, cold storages etc for preventing post-harvest losses from perishability during storage and transport. Existing facilities also qualify for modernization funds to obtain globally accredited quality standard certifications. This further minimizes wastage losses while facilitating export potential.

Institutional Credit System

The FIDF pooled equity massively enables lending for poverty alleviated self-reliant fishing collectives by reconciling capital costs. Eligible fishers get access term credit upto 70% of vessel/infra costs at just 4-5% interest to be repaid over 10 years including 5-year EMI moratorium. This affordability promises

Revolutionary ownership transformation.

Digital Formalisation of Fishing Enterprises Through the online NIDHI portal, over 40 lakh micro and small fisheries enterprises can formally register with ease transparently outlining enterprise details, banking information, government identifications etc. This integration aids administrators in tracking progress and flow of benefits while providing participants access to formal credit and insurance facilities earlier out of reach.

Way Forward

In entirety, the multi-pronged PM-MKSSY umbrella holistically elevates fisher welfare through solutions converging insurance cover, modernized tools, strengthened post-harvest linkages right up to digital formalization – constructing an integrated value chain. Although the Rs. 6,000 crore scheme presently spans just 5 years, the foundations and incremental production capacity augmentation laid can catalyse the blue revolution for long-term transformation. With growing global appreciation for India’s sustainable marine fisheries, matsya kisans also gain rightful recognition as food producers stewarding water biodiversity through this re-envisioning.