Prospects Of Crop Insurane As A Risk Management Tool Among The Banana Farmers Of Kanchanpur District, Nepal

Out of 60 household literacy percentage of study area was found to be 80% which is above the national average. Major occupation of sampled household was agriculture (63.33%) which is nearly equal to the national scenario. Nearly 50% of total land was covered by banana cultivation. Between selected site of study, Punarbas municipal farmers were more likely to adopt insurance than Krishnapur municipal. Almost all insured farmer was aware about insurance before adopting crop insurance but only 3/4th of noninsured farmer were aware about insurance and government policy related to insurance. Insured farmer motivation towards adoption of insurance was due to awareness provided by the insurance company and capacity to paying premium while some farmers were reluctant to adopt insurance due to untimely payment of claim and no faith in insurance company. The 80% of total insured farmers were reimbursed after bearing loss. While taking about continuity insurance if the government reduce the subsidy scheme, more than 90% insured farmers were willing to continue crop insurance but less than 1/4th of insured farmers were ready to continue insurance after complete withdrawal of subsidy scheme. About 60% of banana farmers will read to pay 3% premium rate if the government reduce the subsidy or without subsidy support. Adoption of insurance (100%) and price setting before harvesting (56.67%) were the main strategy to recover the loss by insurer farmers whereas crop diversification, crop management practices and price setting before harvest were the main strategy to minimize the loss by the non-insurer farmers.