IDEAS home Printed from https://ideas.repec.org/p/ajy/icddwp/15.html
   My bibliography  Save this paper

Crop Insurance and Risk Mitigation: Experiences from India

Author

Listed:
  • Meenakshi Rajeev
  • Manojit Bhattacharjee
  • B P Vani

Abstract

Crop losses due to various reasons, particularly because of extreme weather situations, is a common phenomenon in agriculture and can prove to be catastrophic in the numerous rain fed fields of backward regions. It is against this backdrop that the development of sustainable mitigation strategies, one of them being crop insurance, comes into picture. It is worth noting in this context that agriculture insurance is under developed in developing countries and a World Bank study (2010) reveals that many state sponsored programs run inefficiently and do not aid the intended beneficiaries. The current paper thus looks into the imperfections of crop insurance schemes in India, by analyzing the scenario in the state of Karnataka. Karnataka is particularly important as it has substantial semi-arid/ arid regions with rain fed agriculture, which brings immense uncertainty. The paper finds that the supply side needs particular attention as the formulation of insurance schemes is not user friendly. In addition, certain socially and economically backward groups need special attention. Financial literacy and development of non-farm activities are found to be critical for the farmers to have proper risk mitigation mechanism. Since many developing and emerging nations share India’s experience of not being able to deliver an effective insurance product (Ifft, 2001), some of the insights from the current paper we hope will be useful for agricultural policy advisers and researchers across the globe.

Suggested Citation

  • Meenakshi Rajeev & Manojit Bhattacharjee & B P Vani, 2015. "Crop Insurance and Risk Mitigation: Experiences from India," ICDD Working Papers 15, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
  • Handle: RePEc:ajy:icddwp:15
    as

    Download full text from publisher

    File URL: https://www.uni-kassel.de/ub/index.php?id=39129&h=9783737600668
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Basu, Kaushik & Bell, Clive, 1991. "Fragmented duopoly : Theory and applications to backward agriculture," Journal of Development Economics, Elsevier, vol. 36(2), pages 145-165, October.
    2. Manojit Bhattacharjee & Meenakshi Rajeev, 2010. "Interest rate formation in informal credit markets in India: does level of development matter?," Global Development Institute Working Paper Series 12610, GDI, The University of Manchester.
    3. Deb, Uttam & Pramanik, Soumitra & Khan, Patan & Bantilan, Cynthia, 2015. "Revisiting Tenancy and Agricultural Productivity in Southern India: Insights from Longitudinal Household Surveys," 2015 Conference, August 9-14, 2015, Milan, Italy 211567, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meenakshi Rajeev & Manojit Bhattacharjee, 2017. "Augmenting Small Farmers Income Through Rural Non-Farm Sector: Role of Information and Institutions," Working Papers id:12084, eSocialSciences.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhattacharjee, Manojit & Rajeev, Meenakshi, 2014. "Is access to loan adequate for financing capital expenditure?: A household level analysis on some selected states of India," Working Papers 315, Institute for Social and Economic Change, Bangalore.
    2. Mukherjee, Soumyatanu, 2016. "Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 400-416.
    3. Roy, Santanu, 2000. "Strategic segmentation of a market," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1279-1290, December.
    4. Manojit Bhattacharjee & Meenakshi Rajeev, 2013. "Credit Exclusion of the Poor: A Study of Cultivator Households in India," ICDD Working Papers 8, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    5. Somasree Poddar & Sarbajit Chaudhuri, 2016. "Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 301-321, December.
    6. Faisal Buyinza & John Mutenyo & Anthony Tibaingana, 2018. "Factors Affecting Access to Formal Credit by Micro and Small Enterprises in Uganda," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(4), pages 405-424, October.
    7. Christophe Muller, 2005. "Poverty and inequality under income and price dispersions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 979-998, August.
    8. Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
    9. Magnus Hatlebakk, 2009. "Capacity‐constrained Collusive Price Discrimination in the Informal Rural Credit Markets of Nepal," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 70-86, February.
    10. Sushobhan Mahata & Rohan Kanti Khan & Ranjanendra Narayan Nag, 2020. "Economic Recession, Informal Sector and Skilled–Unskilled Wage Disparity in a Developing Economy: A Trade-Theoretical Analysis," Foreign Trade Review, , vol. 55(2), pages 168-188, May.
    11. Jain, Tarun & Sood, Ashima, 2017. "How does relationship-based governance accommodate new entrants? Evidence from the cycle-rickshaw rental market," Journal of Institutional Economics, Cambridge University Press, vol. 13(3), pages 673-697, September.
    12. Sarbajit Chaudhuri & Somasree Poddar Roychowdhury & Salonkara Chaudhuri, 2019. "Gender-based wage inequality and economic liberalism in the presence of endogenous supply of female labour," Indian Economic Review, Springer, vol. 54(2), pages 239-260, December.
    13. Chaudhuri, Sarbajit & Gupta, Manash Ranjan, 2013. "Endogenous Capital Market Imperfection, Informal Interest Rate Determination and International Factor mobility in a General Equilibrium Model," MPRA Paper 51157, University Library of Munich, Germany.
    14. Walter Garcia Fontes, 1993. "Price competition in segmented industries," Economics Working Papers 34, Department of Economics and Business, Universitat Pompeu Fabra.
    15. Sarbajit Chaudhuri & Asis Kumar Banerjee, 2005. "Credit-Product Interlinkage, Captive Markets And Trade Liberalization In Agriculture: A Theoretical Analysis In Agriculture: A Theoretical Analysis," Game Theory and Information 0510011, University Library of Munich, Germany.
    16. Nicolás Figueroa & Ronald Fischer & Sebastian Infante, 2008. "Loyalty inducing programs and competition with homogeneous goods," Documentos de Trabajo 249, Centro de Economía Aplicada, Universidad de Chile.
    17. Mukherjee, Soumyatanu & Zafar, Sameen, 2014. "Welfare implications of technological progress with segmented factor markets," MPRA Paper 58245, University Library of Munich, Germany.
    18. Hanan G. Jacoby & Rinku Murgai & Saeed Ur Rehman, 2004. "Monopoly Power and Distribution in Fragmented Markets: The Case of Groundwater," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 783-808.
    19. Rajeev, Meenakshi & Vani, B.P., 2014. "Uncertainty, risk and risk mitigation: Field experiences from farm sector in Karnataka," Working Papers 320, Institute for Social and Economic Change, Bangalore.
    20. Sinduja Srinivasan, 2014. "Impact of Public Works on Household Occupational Choice Evidence from NREGS in India," Working Papers WR-1053, RAND Corporation.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ajy:icddwp:15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ickasde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webadmin (email available below). General contact details of provider: https://edirc.repec.org/data/ickasde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.