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Coping with Drought in Rice Farming in Asia: Insights from a Cross-Country Comparative Study

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  • Pandey, Sushil
  • Bhandari, Humnath
  • Ding, Shijun
  • Prapertchob, Preeda
  • Sharan, Ramesh
  • Naik, Dibakar
  • Taunk, Sudhir K.
  • Sastri, Asras
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    Abstract

    Drought is a major constraint affecting rice production especially in rainfed areas of Asia. Despite its importance in rice growing areas, the magnitude of economic losses arising from drought, its impact on farm households and farmers' drought coping mechanisms are poorly understood. This paper provides insights into these aspects of drought based on a cross-country comparative analysis of rainfed rice growing areas in China, India and Thailand. The economic cost of drought is found to be substantially higher in eastern India than in the other two countries. Higher probability and greater spatial covariance of drought and less diversified farming systems with rice accounting for a large r share of household income are likely to be the main reasons for this higher cost of drought in eastern India. Farmers deploy various coping mechanisms but such mechanisms are largely unable to prevent a reduction in income and consumption, especially in eastern India. As a result, welfare consequences on poor farmers are substantial with a large number of people falling back into poverty during drought years. The overall implications for technology design and for policy improvements for drought mitigation and drought relief are discussed in the light of the empirical findings of the study.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25553.

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    Date of creation: 2006
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    Handle: RePEc:ags:iaae06:25553

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    Related research

    Keywords: Drought; Economic cost; Coping mechanisms; Poverty; Crop Production/Industries; D1; I3; Q1;

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    1. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," World Bank Research Observer, World Bank Group, vol. 17(2), pages 141-166, September.
    2. Rosegrant, Mark W. & Cai, Ximing & Cline, Sarah A., 2002. "Water and food to 2025," 2020 vision briefs 13, International Food Policy Research Institute (IFPRI).
    3. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, 01.
    4. Morduch, Jonathan, 1994. "Poverty and Vulnerability," American Economic Review, American Economic Association, vol. 84(2), pages 221-25, May.
    5. Joseph W. Glauber, 2004. "Crop Insurance Reconsidered," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1179-1195.
    6. Kerr, John, 2002. "Watershed development projects in India: an evaluation," Research reports 127, International Food Policy Research Institute (IFPRI).
    7. Gautam, Madhur & Hazell, Peter & Alderman, Harold, 1994. "Rural demand for drought insurance," Policy Research Working Paper Series 1383, The World Bank.
    8. Gulati, Ashok & Meinzen-Dick, Ruth Suseela & Raju, K. Vengama, 2005. "Institutional reforms in Indian irrigation:," Food policy statements 42, International Food Policy Research Institute (IFPRI).
    9. Pal, Suresh & Byerlee, Derek R., 2003. "The Funding And Organization Of Agricultural Research In India: Evolution And Emerging Issues," Policy Papers 11870, National Centre for Agricultural Economics and Policy Research (NCAP).
    10. Hansen, James W., 2002. "Realizing the potential benefits of climate prediction to agriculture: issues, approaches, challenges," Agricultural Systems, Elsevier, vol. 74(3), pages 309-330, December.
    11. Abedullah & Sushil Pandey, 2007. "The Value of Rainfall Forecasts in the Rainfed Rice Areas of the Philippines," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 12(2), pages 69-81, Jul-Dec.
    12. Skees, Jerry & Hazell, P. B. R. & Miranda, Mario, 1999. "New approaches to crop yield insurance in developing countries:," EPTD discussion papers 55, International Food Policy Research Institute (IFPRI).
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