Fuel Subsidies to Marine Fisheries in India: An overview

The document identifies fuel subsidies as the most significant form of government support for India's marine fisheries, accounting for an estimated 32% of total support in FY 2019. These subsidies, provided exclusively by state governments, primarily benefit larger-scale operations and risk increasing fishing efforts beyond sustainable levels. The brief highlights regional variations among focus states—Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu—and suggests that India's experience with broader fossil fuel subsidy reforms, such as phased price hikes and providing clean alternatives, can inform the transition toward more sustainable support for small-scale fishers.

• Fuel subsidies are the most substantial form of government support for marine fisheries in India, representing approximately 32% of total sector support in fiscal year 2019.
• Fuel subsidies are provided solely by state governments through mechanisms such as sales tax exemptions, reimbursements, direct bank credits, or low-price retail outlets for diesel and kerosene.
• Between 2016 and 2019, fuel subsidies in four focus states (Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu) grew by 142%, though they decreased slightly between 2019 and 2021.
• There is significant regional variation in subsidy types: Tamil Nadu has the highest diesel subsidies, while Kerala provides the largest kerosene subsidies for small-scale fishers and provides no diesel subsidies despite having many mechanized vessels.
• Fuel subsidies often disproportionately benefit larger-scale fishing operations over low-income fishers; in Karnataka, vessels over 130 horsepower can receive up to four times more diesel support than those under 40 horsepower.
• Fuel subsidies risk environmental sustainability by increasing fishing efforts beyond sustainable levels, particularly in India's largely open-access marine fisheries.
• India's broader fossil fuel reform experience suggests that phased price increases and the provision of viable alternatives—such as LPG conversion kits or electric motors being tested in Kerala—can mitigate economic shocks and political opposition.

APA

Sharma, S., & Irschlinger, T. (2022). Fuel Subsidies to Marine Fisheries in India: An overview. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf

Chicago

Sharma, Shruti, and Tristan Irschlinger. Fuel Subsidies to Marine Fisheries in India: An overview. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf.

Wikipedia

{{cite report |last1=Sharma |first1=Shruti |last2=Irschlinger |first2=Tristan |title=Fuel Subsidies to Marine Fisheries in India: An overview |publisher=International Institute for Sustainable Development |date=July 2022 |url=https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sharma2022fuel, author = {Sharma, Shruti and Irschlinger, Tristan}, title = {{Fuel Subsidies to Marine Fisheries in India: An overview}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jul, url = {https://www.iisd.org/system/files/2022-07/fuel-subsidies-marine-fisheries-india.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }