Seafood Traders Seek Zero MDR On UPI Payments, Say Digital Charges Could Hurt Traditional Fishermen’s Livelihoods

Mumbai seafood traders are requesting the Central Government to grant zero or discounted Merchant Discount Rate (MDR) on UPI payments in the fisheries industry. They argue that high-value fish transactions face disproportionate financial burdens due to percentage-based charges, affecting the livelihoods of traditional fishermen.

Fisheries traders argue for a flat-rate MDR, similar to the agricultural sector, to avoid high operational costs impacting their income. The Akhil Maharashtra Machhimar Kriti Samiti (AMMKS) has requested Union Finance Minister Nirmala Sitharaman for relief for fishermen, cooperative societies, FFPOs, traders, fish vendors, and micro and small fisheries enterprises.

The organization claims that percentage-based charges on gross fish transaction values may not reflect actual fishermen earnings, considering substantial operational expenses like diesel, ice, crew wages, fishing gear maintenance, transportation, and more. Wholesalers also suggest the Rs 2,000 MDR exemption is inadequate, stating it inconveniences wholesalers and promotes cash transactions.

AMMKS seeks either zero MDR for fisheries transactions or inclusion in the Rs 5 flat-MDR category, along with a higher exemption threshold for small fishermen and fisheries enterprises.