Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana and FIDF

• 12 Feb 2024

For Prelims: Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana, Pradhan Mantri Matsya Sampada, Fisheries Sector, Kisan Credit Card, Fisheries and Aquaculture Infrastructure Development Fund.

For Mains: Fisheries Sector in India, Steps Taken to Improve the Fisheries Sector in India

Source: PIB

Why in News?

Recently, the Union Cabinet approved the "Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY) and has granted an extension to the Fisheries Infrastructure Development Fund (FIDF) for an additional 3 years until 2025-26.

• The extension aims to cater to the infrastructure needs of the fisheries sector, ensuring sustained development and growth.

What is Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana?

• About:
  • PM-MKSSY, a Central Sector Sub-scheme under the Pradhan Mantri Matsya Sampada (PMMSY) for formalisation of the fisheries sector and supporting fisheries micro and small enterprises with an investment of over Rs. 6,000 crores over a period of next four years from FY 2023-24 to FY 2026-27 in all States/Union Territories.
• Objectives:
  • Gradual Formalisation of the unorganised fisheries sector through self-registration of fishers, fish farmers and supportive workers under a National Fisheries Sector Digital Platform (NFDP).
  • Facilitating access to institutional financing for fisheries sector micro and small enterprises.
  • Providing a one-time incentive to beneficiaries for purchasing aquaculture insurance.
  • Incentivising adoption and expansion of safety and quality assurance systems for fish, and fishery products and maintenance of jobs.
• Intended Beneficiaries:
  • Fishers, Fish (Aquaculture) Farmers, fish workers, vendors, and other stakeholders in the fisheries value chain.
  • Micro and Small enterprises - proprietary firms, partnership firms, cooperatives, federations, startups, Fish FPOs (FFPOs) and more engaged in fisheries and aquaculture.
    • FFPOs also include Farmers Producer Organizations (FPOs).
  • Any other beneficiaries that may be included by the Department of Fisheries as targeted beneficiaries.
• Implementation Strategy:
  • Component 1-A: Formalisation of Fisheries Sector:
    • NFDP to be established to formalise the unorganised fisheries sector by creating a national registry of stakeholders.
    • Functions of NFDP: Training, financial literacy improvement, project preparation assistance, and strengthening of fisheries cooperative societies.
  • Component 1-B: Facilitating Adoption of Aquaculture Insurance:
    • Establishing insurance products for aquaculture, covering at least 1 lakh hectares, with a maximum incentive of Rs. 1,00,000 per farmer (farm size for the incentive is 4 hectares) and a 40% incentive for intensive aquaculture methods.
    • Scheduled Castes (SCs), Scheduled Tribes (STs) and Women beneficiaries receive an additional 10% incentive.
  • Component 2: Supporting Microenterprises to Improve Fisheries Sector Value Chain Efficiencies:
    • Improving value chain efficiencies through the provision of performance grants. Scale and Criteria for Performance Grants:
      • Microenterprises:
        • General Category: Grant capped at 25% of total investment or Rs. 35 lakhs.
        • SC, ST, Women-owned: Grant capped at 35% of total investment or Rs. 45 lakhs.
      • Village Level Organizations and Federations: Grant not to exceed 35% of total investment or Rs. 200 lakhs (whichever is lower).
  • Component 3: Fish and Fishery Product Safety and Quality Assurance Systems:
    • Incentivize fishery enterprises for safety and quality, fostering market expansion and job creation, particularly for women.
    • Grants:
      • Microenterprises: Same as the one in Value Chain Efficiencies.
      • Small enterprises: 25% of total investment or Rs. 75 lakhs (General Category), 35% of total investment or Rs.100 lakhs for (SC/ST/Women-owned).
      • Village-level orgs & Federations: Same as the one in Value Chain Efficiencies.
  • Component 4: Project Management, Monitoring, and Reporting:
    • Establishment of Project Management Units (PMUs) for managing, implementing, monitoring, and evaluating project activities.

Fisheries Sector in India:

• India's total fish output stood at 174 lakh tonnes in 2022-23. India is the third largest fish producer in the world, contributing 8% to total global fish production.
• Over a period of 10 years (2013-2023-24):
  • Fish production increased by 79.66 lakh tonnes.
  • Coastal aquaculture experienced robust growth during the period.
  • Shrimp production surged by 270%.
  • Shrimp exports more than doubled reflecting a 123% growth.
  • Employment and livelihood opportunities created for ~63 lakh fishers and fish farmers.
• Coverage per fisherman under the Group Accident Insurance Scheme (GAIS) rose from Rs. 1.00 lakh to Rs. 5.00 lakh, benefiting a cumulative total of 267.76 lakh fishers.
  • The extension of the Kisan Credit Card (KCC) to fisheries in 2019 led to the issuance of 1.8 lakh cards.
• Despite significant achievements, challenges persist in the sector, including its informal nature, lack of crop risk mitigation, absence of work-based identities, poor access to institutional credit, and sub-optimal safety and quality standards of fish sold by micro and small enterprises.

What is the Fisheries Infrastructure Development Fund (FIDF)?

• About:
  • It has been established by the Department of Fisheries (Ministry of Fisheries, Animal Husbandry & Dairying). FIDF complements schemes like PMMSY and KCC.
  • FIDF envisages the creation of fisheries infrastructure facilities both in marine and inland fisheries sectors.
• Implementation Mechanism
  • Concessional Finance: FIDF provides concessional finance to Eligible Entities (EEs) through Nodal Loaning Entities (NLEs) namely the NABARD, National Cooperatives Development Corporation (NCDC) and all scheduled Banks.
    • EEs under FIDF include state governments, cooperatives, fisheries cooperative federations, NGOs, women entrepreneurs, private companies, and more.
  • Interest Subvention:
    • Indian Government offers up to 3% per annum interest subvention.
    • Repayment period spans 12 years, including a 2-year moratorium for providing the concessional finance by the NLEs at the minimum interest rate of 5% per annum.

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. Other than poaching, what are the possible reasons for the decline in the population of Ganges River Dolphins? (2014)

1. Construction of dams and barrages on rivers
2. Increase in the population of crocodiles in rivers
3. Getting trapped in fishing nets accidentally
4. Use of synthetic fertilisers and other agricultural chemicals in crop-fields in the vicinity of rivers.

Select the correct answer using the code given below:

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4

Ans: (c)

Q. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? (2020)

1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5

Ans: (b)

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Mains

Q. Defining blue revolution, explain the problems and strategies for pisciculture development in India. (2018)