Aquaculture in India has growth very rapidly in last two decades. The fresh water aquaculture accounts for nearly 95 percent of the total aquaculture. The production involves carp in fresh water and shrimps in brackish water. The technologies of induced carp breeding and poly culture in static ponds have given a big boost to business. This has attracted a lot of farmers and small scale businessmen towards this business. This requires investment and sometime it may not yield desired returns or complete loss of that. There are insurance policies for aquaculture. It is currently 4.5 percent and 7.5 percent of the sum assured.
As per the current practice, an only inland fishery is covered and not brackish water culture. Though it only accounts for 2.5 percent for agriculture farmers but they contribute significantly. Small farmers get a 10 percent subsidy on premium. This is shared between centre and state government. NFDB recently met insurers in this regard and formed a committee to look into it and take the issue forward. CEO of national fisheries said that it is important to fix the premium rates on par with agriculture to enhance fish production. Aquaculture requires high input cost of power, feed and chemicals.
There is low price realization and due to disease outbreak, it has severely hit farmers. The insurance companies use to cover it during its peak time but due to outbreak of diseases and lack of knowledge on control, they have now stopped promoting aquaculture insurance. As risk and uncertainty is high, premium rates are also high in comparison of other sector. The new scheme will focus upon improving credit flow to farmers, promoting good farming practices and focus on biosafety. Small and marginal farmers account for 90 percent of fishing community. This scheme will help them significantly and will increase their awareness level about the fishing practices.
6.6 million hectare including coastal and inland waters is available for aquaculture with a resource potential of 4.5 million tones and employment of approximately 14 million people. This provides a huge opportunity for insurance companies. There will be efforts to protect farmers from losses due to natural disasters like cyclone, floods and pest and diseases. It is very important to preserve and encourage fishing among farmers. It will help them to utilize their resources in a better way. Insurance schemes at a economical prices will help them to encourage to take on this business. Insurance companies can also gain a lot from this as it will not only help them in selling aquaculture insurance schemes but also other form of insurance policies as economical development of these farmers will led to a condition when these farmers will also look at other form of insurance and investment services.
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