Author(s):

Adeeth Cariappa AG and Lokesh GB

Abstract: Farmers are in the scourge of an agrarian crisis. The major risk mitigation tool available for farmers is ‘crop insurance’. Unfortunately the concept of crop insurance has been a failure in India as in the year of peak performance of a crop insurance scheme (PMFBY) only around 35 per cent of the total arable land area is insured. Results from the study in Karnataka shows that less than 50 per cent of economic loss of farmers was compensated by PMFBY. Regression analysis indicated that claim payment had a significant impact on farmers’ coverage but claim payment has been faulty. Thus to improve the crop insurance products of India, review of crop insurance products of USA, China and Philippines were done. Taking insights from these a revenue based crop insurance model has been suggested as in USA to cover both the shortfalls in crop yield and price to increase the welfare of Indian farmers.

Pages: 481-486  |  1102 Views  259 Downloads

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