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Crop Insurance in India: Key Issues and Way Forward

dc.contributor.authorAshok Gulati
dc.contributor.authorPrerna Terway
dc.contributor.authorSiraj Hussain
dc.date.accessioned2018-04-02T21:11:43Z
dc.date.available2018-04-02T21:11:43Z
dc.date.issued2018-02-28
dc.identifier.urihttp://hdl.handle.net/11540/8052
dc.description.abstractFarmers in India are exposed to large agriculture risks due to vagaries of nature. One of the most effective mechanisms to mitigate agricultural risks is to have a robust insurance system. Although crop insurance has been in the country since 1972, yet it has been beset with several problems such as lack of transparency, high premium, delay in conducting crop cutting experiments and non-payment/delayed payment of claims to farmers. Realizing the limitations of existing system of crop insurance, a new crop insurance scheme was launched on Baisakhi day, Pradhan Mantri Fasal Bima Yojana (PMFBY), from Kharif 2016. Although the overall area insured has increased by a modest 6.5 percent (from 53.7 million ha in 2015-16 to 57.2 million ha in 2016-17), the number of farmers insured has increased by 20.4 percent (from 47.5 million to 57.2 million), the sum insured has increased by 74 percent (from Rs 115432.4 crore to 200618.9 crore), and premium paid has increased by 298 percent (from Rs 5491.3 crore to Rs 21882 crore) over the same period. The scheme has faced several challenges during its first year of implementation which pertain to extension of cut off dates for registration resulting in high premium rates; delay in submission of yield data to assess damages as the system relies on thousands of Crop Cutting Experiments (CCE); lack of trust in the quality of such data as they are not being video recorded and delay in payment of premium subsidy by the state governments to the insurance companies, etc. The litmus test of any crop insurance program is quick assessment of crop damages and payment of claims into farmers’ accounts directly, and from that point of view, the first year of implementation of PMFBY has not been very successful. This paper recommends use of high technology and JAM trinity by linking land records of farmers with their Aadhaar numbers and bank accounts for assessment and faster settlement of claims. A portal linking Core Banking Solution (CBS) and crop insurance is need of the hour giving information on real time basis. India’s prowess in Information Technology should come handy to achieve this.
dc.languageEnglish
dc.publisherIndian Council for Research on International Economic Relations
dc.titleCrop Insurance in India: Key Issues and Way Forward
dc.typeWorking Papers
dc.subject.expertCommercial agriculture
dc.subject.expertAgriculture
dc.subject.expertSustainable agriculture
dc.subject.expertTrade Volume
dc.subject.expertAgricultural Trade
dc.subject.expertFood Security And Trade
dc.subject.expertRegional Trade Agreements
dc.subject.expertFood Security
dc.subject.expertAgriculture
dc.subject.expertAgricultural Trade
dc.subject.expertTrade
dc.subject.expertTrade Barriers
dc.subject.expertTrade Facilitation
dc.subject.expertSustainable agriculture
dc.subject.expertCommercial agriculture
dc.subject.expertTrade Negotiations
dc.subject.expertTrade Development
dc.subject.expertTrade And Development
dc.subject.expertRegional Trade Agreements
dc.subject.expertAgricultural Trade
dc.subject.expertAgriculture Trade Liberalization
dc.subject.adbAgroindustry
dc.subject.adbAgricultural trade
dc.subject.adbCommercial farming
dc.subject.adbAgroindustry
dc.subject.adbSustainable development
dc.subject.adbExport volume
dc.subject.adbExport Development
dc.subject.adbAccess to markets
dc.subject.adbAgricultural market
dc.subject.adbAgricultural economy
dc.subject.adbDistribution
dc.subject.adbAgricultural trade
dc.subject.adbAgricultural investment
dc.subject.adbAgricultural economy
dc.subject.adbAgricultural products
dc.subject.adbImport volume
dc.subject.adbExport volume
dc.subject.adbTariff negotiations
dc.subject.adbRegional integration
dc.subject.adbTrade regulations
dc.subject.adbAgricultural market
dc.subject.adbAgricultural economy
dc.subject.naturalAgricultural diversification
dc.subject.naturalAgricultural resource
dc.subject.naturalFarm produce
dc.subject.naturalLand capability for agriculture
dc.subject.naturalFood Supply
dc.subject.naturalRural land use
dc.subject.naturalTechnological innovations
dc.subject.naturalAgricultural innovations
dc.subject.naturalFarm supply industry
dc.subject.naturalNatural resource
dc.subject.naturalAdaptive natural resource management
dc.subject.naturalProduce trade
dc.subject.naturalPoor
dc.subject.naturalPrice Indexes
dc.subject.naturalIntegrated rural development
dc.subject.naturalCost and standard of living
dc.subject.naturalPopulation
dc.subject.naturalCrop improvement
dc.subject.naturalRice farming
dc.subject.naturalCrop
dc.subject.naturalFood industry
dc.subject.naturalPerishable goods
dc.subject.naturalFood
dc.subject.naturalAgricultural resource
dc.subject.naturalFarm produce
dc.subject.naturalNatural products in agriculture
dc.subject.naturalPlant products industry
dc.subject.naturalNew agricultural enterprises
dc.subject.naturalAgricultural industry
dc.subject.naturalForeign trade and employment
dc.subject.naturalPerishable goods
dc.subject.naturalConsumer goods
dc.subject.naturalAgricultural products
dc.subject.naturalAgricultural industry
dc.subject.naturalFood industry
dc.subject.naturalFood Safety
dc.subject.naturalCrop Insurance
dc.title.seriesWorking Paper
dc.title.volumeNo. 352
dc.contributor.imprintIndian Council for Research on International Economic Relations
oar.themeAgriculture
oar.themeTrade
oar.themeLabor Migration
oar.adminregionSoutheast Asia Region
oar.countryIndia
oar.identifierOAR-007641
oar.authorAshok Gulati
oar.authorPrerna Terway
oar.authorSiraj Hussain
oar.googlescholar.linkpresenttrue


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