ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Crop Insurance in India

Crop insurance is a vital component of agriculture, especially in a country such as India, where the majority of farmers are small and marginal with low savings that reduces their ability to weather agricultural risks and fluctuations. Programmes extending insurance cover for crops in India have long been in operation, but have not been able to include the majority of the agricultural sector within their ambit. Analysing the 70th Round Situation Assessment Survey data, collected by the National Sample Survey Office, the performance of crop insurance at the household level is examined and factors that determine its adoption are identified using an econometric analysis. The Pradhan Mantri Fasal Bima Yojana is then analysed by looking more closely at the structure of the scheme.

Are Gold Loans Glittering for Agriculture?

Credit is essential for small and marginal farmers in India, whose low incomes limit savings, making them more vulnerable to several risks. Priority sector lending norms have channelled more formal credit to this sector. The interest subvention scheme for short-term crop loans makes formal credit more economical for farmers. However, there are issues of accessibility, most notably arising out of difficulties in presenting documentation, giving rise to a prevalence in the use of gold/jewellery as collateral. Loan data from three districts in Karnataka has highlighted some important lessons. The use of gold tends to exclude poorer farmers from availing all the benefits of the scheme, and poses issues of accessibility to formal credit. Digitisation of land records and farmer information, coupled with reduced recognition of gold loans in priority sector lending can be valuable to the Indian agriculture sector.
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