Cabinet Approves New Fisheries Scheme

by

Cabinet Approves New Fisheries Scheme

Why in the news?

  • Recently, the Union Cabinet approved the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana, a sub-scheme under the Pradhan Mantri Matsya Sampada Yojana, for the micro and small enterprises operating in the fisheries sector.
  • The Cabinet also approved the extension of the Fisheries and Aquaculture Infrastructure Development Fund till 2026.

What are the Fisheries and Aquaculture Infrastructure Development Fund?

  • The Fisheries and Aquaculture Infrastructure Development Fund (FIDF) was first proposed by the Government of India in the 2018-19 Budget.
  • The estimated fund size is about 7522 crores, and it will attract private investment and technologies to help create and manage fisheries all around the country.
  • Objectives:

Create employment opportunities for over 9.40 lakh fishers and other entrepreneurs in the fishing and allied activity sectors.

Attract private investment to create and manage fisheries infrastructure facilities in both marine and inland sectors.

Achieve sustainable growth of 8% to 9% in fish production by 2022-23.

  • Nodal agencies:

National Bank for Agriculture and Rural Development (NABARD)

National Cooperatives Development Corporation (NCDC)

Scheduled banks

  • Impact of the extension: According to the Union government, the extension of the fund would intensify the development of fisheries infrastructure in the country.

This would include fishing harbors, fish landing centers, ice plants, cold storage, and fish transport facilities.

 

 

What is the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana?

  • The Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) is a Central sector sub-scheme under the Pradhan Mantri Matsya Sampada Yojana.
  • Implementation: The PM-MKSSY will be implemented as a Central Sector Sub-scheme under the Central Sector Component of the PMMSY.
  • Investment: The scheme includes investment of more than ₹6,000 crores between FY 2023-24 and FY 2026-27 across all States and UTs.
  • Objective: It aims to formalize the fisheries sector and support the development of micro and small sector enterprises in the fisheries sector.
  • Private finance: The remaining 50% would be from the beneficiaries or the private sector.
  • Public finance: 50% of the total amount i.e. ₹3000 crores would be from public financing options such as the World Bank and external financing such as the AFD external financing.
  • Targeted beneficiaries:
    • Any other beneficiaries included by the Department of Fisheries, Government of India
    • Fishers, aquaculture farmers, fish workers, vendors or other persons directly involved in the fisheries value chain.
    • Micro and Small enterprises
    • Partnerships (LLPs), Cooperatives, Federations, Self Help Groups (SHGs), Fish Farmers Producer Organizations (FFPOs), Startups engaged in fisheries and aquaculture.

How is the Fisheries sector significant for India?

  • The fisheries sector employs around 2.8 crore people within the country.
  • Over the past six years, the fisheries sector has grown annually by more than 10%.
  • Over 1.1% of the country’s GVA and about 6.72% of agricultural GVA are from the fisheries sector.
  • India is the world’s second major producer of fish via aquaculture and the 4th largest exporter of fish in the world.
  • India contributes around 7.7% of the global fish production.
  • As a result of rising demand, the aquaculture sector in India has grown at an average annual rate of 8%.

Challenges faced by the fisheries sector in India.

  • Economic challenges: The fishing community has struggled to access credit for vessel upgrades and technology adoption. The sector is dependent on traditional trading methods which are non-remunerative for fishers and aquaculture farmers.
  • Insufficient cold chain facilities: The fish industry uses only a small portion of the available storage capacity which impacts its quality during long-distance transportation.
  • Lack of technological development: The fisheries sector has been slow to adopt innovative and modern production techniques like mariculture and advanced monitoring systems. The sector also suffers from a shortage of consultancies, real-time information, testing facilities, and adequate investment in underserved areas.
  • Pollution: The discharge of harmful substances like plastics and other waste into water bodies has had devastating consequences for aquatic life.
  • Post-harvest Losses: Since fish is a highly perishable commodity, the sector experiences high wastage, especially during the monsoon season. Moreover, poor quality of products had led to an increase in their wastage due to their being rejected by importer countries.
  • Stock depletion: According to the FAO, nearly 90% of the global marine fish stocks have been fully exploited or depleted. It has also expressed concern that it may not be possible to recover the depleted stocks.

Conclusion

Cabinet approval for the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana and the extension of the Fisheries and Aquaculture Infrastructure Development Fund imply the government’s commitment to strengthening the fisheries sector. However, addressing challenges such as stock depletion, pollution, and technological gaps remains vital for sustainable growth and livelihood security in the sector.

 

Leave a Comment