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Weather Risk

This document discusses weather risk in Indian agriculture and crop insurance schemes. It notes that weather is a major production risk for Indian farmers, as around 65% of agriculture depends on rainfall. Two national crop insurance schemes aim to provide financial support to farmers impacted by weather disasters and promote progressive farming. However, the schemes have issues like delayed claims payments and need improvements to rainfall estimates and insurance mechanisms.

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yogendra_rajavat
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28 views1 page

Weather Risk

This document discusses weather risk in Indian agriculture and crop insurance schemes. It notes that weather is a major production risk for Indian farmers, as around 65% of agriculture depends on rainfall. Two national crop insurance schemes aim to provide financial support to farmers impacted by weather disasters and promote progressive farming. However, the schemes have issues like delayed claims payments and need improvements to rainfall estimates and insurance mechanisms.

Uploaded by

yogendra_rajavat
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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We all know India is an agriculture based country.

In this paper author wants to describe the weather risk associated with agriculture and how to handle these risks. Risks that affect agricultural financing can be broadly grouped as systemic/correlated risks and idiosyncratic/independent risks. Major systemic risks include production risks (farming practice, weather, pests, etc), price risks, and political risks (export bans, price caps, debt write offs, etc). But among these all risks weather risk is major one. Weather is an important production factor in agriculture. Weather includes rainfall, temperature, humidity and other natural hazards like floods, droughts, hailstorms etc. This research indicates that in India natural hazards affect 1.42 million hectare crop area annually. This research aims to examine the performance of agriculture insurance schemes in India. Crop failure can lead to economic downfall and make it difficult for farmers to repay existing loans. In India almost 65% agriculture is based on natural factors particularly on rainfall. In India attention has been paid towards weather risk management in agriculture through introducing agriculture insurance schemes like 1) National crop insurance scheme (India) with main Objectives to provide insurance coverage and financial support to the farmers in the event of natural calamities, pests & diseases. To encourage the farmers to adopt progressive farming practices high value in-puts and higher technology in Agriculture. To help stabilize farm incomes, particularly in disaster years. 2) National Agricultural Insurance Scheme (NAIS) Type : Central Sector Scheme Objectives : (i) To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests and diseases. (ii) To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in agriculture. (iii) To help stabilize farm incomes, particularly in disaster years. But there are some problems in crop insurance schemes like the claim payments are delayed in many states due to the delays in the payments by the state government. The research concludes that there is a need of increasing the accuracy and timeliness of crop estimation methods. The problems in rainfall insurance scheme need to be urgently attended.

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