Catching Bigger Dreams: Budget Boost of 38.45% for Department of Fisheries in FY 2023-24

India is the 3rd largest fish producer and 2nd largest aquaculture producer with a double-digit annual growth rate of 10.34% in FY 2021-22

Table of Content

1. Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY)
2. Creation of Primary Cooperative Societies
3. Increased Credit Target for Agriculture and Allied Sector
4. Digital Public Infrastructure and Agricultural Accelerator Fund
5. Impact on the Fisheries and Aquaculture Sector

As India marches ahead in various frontiers and makes its presence in the global stage across various sectors, Indian fisheries sector continues to grow at a very healthy pace. India has already become 3rd largest fish producer, 2nd largest aquaculture producer and 4th largest exporter of fish and fisheries products. The Union Finance Minister, Smt. Nirmala Sitharaman, recently announced a budget allocation of INR 2248.77 crore for the Department of Fisheries in FY 2023-24, marking an overall increase of 38.45% from the previous year’s budget of INR 1624.18 crore. This is one of the highest ever annual budgetary support for the department.

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

The finance minister also announced a new sub-scheme under PMMSY named Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), with a targeted investment of INR 6,000 crore. The objective of PM-MKSSY is to enhance the earnings and incomes of those engaged in the fisheries sector, including fishermen, fish vendors, and micro and small enterprises.

PM-MKSSY envisages focussed intervention to bring about formalization of the fisheries sector and this includes digital inclusion, facilitating access to institutional finance for capital investment and working capital, incentives to bring about system and institutions to reduce risk in aquaculture and fisheries incentivizing microenterprises operating in fisheries and aquaculture sector to work on value-chain efficiencies, incentivizing micro and small enterprises to establish supply chains for delivery of safe fish products to consumers, thereby expanding the domestic market and incentives for creation and maintenance of jobs for women in the sector.

Creation of Primary Cooperative Societies

The budget speech emphasized the creation of primary cooperative societies, including fisheries cooperatives at the panchayat level. This will formalize the sector and empower fish farmers and fishers to carry out their activities in an organized manner.

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Formation of co-operative societies at grass root level will formalise the sector and will empower fishers and fish farmers to carry out fish production and its post-harvest activities in an organised manner. With Rs 900 crore allocation for the Ministry of Cooperation for development of cooperatives, enhanced limits for loans, TDS limits and cash deposits and steps to be taken for building the national co-operative database are expected to make operations and financing easier for co-operatives in the sector and help the sector to grow faster. The above, in addition to the earlier announcement on, establishment of National Co-operative Export Society, National Co-operative Society for Organic Products and National Level Multi-State Seed Co-operative Society are expected to support the fisheries in the areas of seed and marketing.

Increased Credit Target for Agriculture and Allied Sector

The credit target for agriculture and allied sectors, including animal husbandry, dairy, and fisheries, has been increased to 20 lakh crore. This will improve the flow of institutional finance for the fisheries sector. Further the announcement to reduce import duty on certain inputs required for shrimp feed is expected to lower the cost of imports and the cost of production and as a result will boost and promote aquaculture exports. Reduction in basic customs duty on fish meal from 15% to 5%, on krill meal from 15% to 5%, on algal Prime (flour) from 30% to 15%, on fish lipid oil from 30% to 15% and on mineral and vitamin premixes from 15% to 5% for manufacturing of aquatic feed is expected to reduce cost of feed, promote domestic feed including and to substantially improve export competitive of Indian shrimps.

Digital Public Infrastructure and Agricultural Accelerator Fund

The proposed Digital public infrastructure and Agricultural Accelerator Fund will drive innovations in the fisheries value chain. Announcement of 3 Centres of Excellence in India for artificial intelligence is expected to galvanise the AI ecosystem in India and it offers great scope for improvement in fish marketing systems and for increased value realisation through accelerated implementation of block-chain based solution for traceability and quality.

The proposed Digital public infrastructure and Agricultural Accelerator Fund will intensify innovations around fisheries value chain. Overall, the budget 2023-24 will help ushering in a new phase of accelerated growth in the fisheries and aquaculture sector through enhanced flow of institutional credit, increased instruments for risk mitigation, incentives for expansion & deepening of the domestic and export markets and acceleration of innovations.

Impact on the Fisheries and Aquaculture Sector

The budget allocation and initiatives announced in the budget speech are expected to bring about a new phase of accelerated growth in the fisheries and aquaculture sector. This will be achieved through increased flow of institutional credit, risk mitigation measures, and incentives for expansion and deepening of domestic and export markets, and acceleration of innovations.

India is already the third largest fish producer, second largest aquaculture producer, and fourth largest exporter of fish and fisheries products. The sector provides sustainable livelihoods to over 28 million people and has been instrumental in bringing about sustainable improvement in the socio-economic conditions of the marginalized and vulnerable communities. The increased budget allocation and initiatives announced in the budget speech will further boost the growth of the sector.

(India CSR)