Fuel Subsidies to Marine Fisheries in India: An overview

This policy brief by the International Institute for Sustainable Development (IISD) examines fuel subsidies for marine fisheries in India, identifying them as the most significant form of government support for the sector. The document analyzes the distribution of these subsidies across focus states, their impact on sustainability and equity, and draws lessons from India's broader fossil fuel subsidy reforms to suggest paths for sustainable transition.

• Fuel subsidies represent the most substantial form of government support for India's marine fisheries, accounting for an estimated 32% of total government support to the sector in fiscal year (FY) 2019.
• Fuel subsidies are provided exclusively by state governments through mechanisms such as sales tax exemptions, reimbursements, or the sale of fuel at low prices via retail outlets. Some states, including Karnataka, have used direct bank credits to fishers, a method Tamil Nadu has considered adopting.
• There is significant variation in subsidy types across focus states: Tamil Nadu has the highest diesel subsidies, while Kerala provides the largest kerosene subsidies for small-scale fishers. Notably, Kerala provides no diesel subsidies despite having a relatively large number of mechanized vessels.
• Fuel subsidies in India often fail to reach the poorest fishers and may instead benefit larger-scale operations. In Karnataka, vessels over 130 horsepower can receive up to four times more diesel support than those under 40 horsepower.
• Fuel subsidies pose sustainability risks by increasing fishing efforts beyond sustainable levels in the absence of strict management, particularly in India's largely open-access marine fisheries.
• India's broader experience with fossil fuel reform shows that phased monthly price hikes and policy continuity helped limit economic and political disruption during the deregulation of diesel prices in October 2014.
• The reform of kerosene subsidies in other sectors succeeded by providing viable alternatives, such as grid electrification and clean cooking. In the fisheries sector, Kerala is testing alternatives like LPG conversion kits and the development of electric and hybrid outboard motor engines through the Parivarthanam scheme.

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} }