Economic analysis of farm-level agricultural risks in coastal region of West Bengal in India

Abstract

Often farm-level agricultural risks and their impact, in terms of loss of production are not realized at the macro level, but have serious concern at the regional level. Yield losses are particularly detrimental at a local scale because saline soils are not uniformly distributed and threatened the continued existence of agriculture across coastal region of the country. Quantification of farm level agricultural risks and their ways of mitigation is important for making the production system profitable. Pest & diseases, salinity, lack of quality seeds availability, uncertain market prices of paddy, long dry spell and also sporadic presence of acid sulfate soils, were identified as the sources of various farm-level agricultural risks in the coastal area. Production loss was estimated as Rs. 3960, 7280, 29760 and 35700 per hectare for kharif paddy, rabi paddy, potato and tomato, respectively. Salinity and pest were major contributor for crop loss in rabi paddy whereas excess rain and lack of quality seeds were the major sources of crop loss for kharif paddy. Impact of these agricultural risks on farmers’ income and income inequalities indicated farm-level risks not only reduced farm income but also increased income inequality among farmers. Despite production risk due to different sources, agriculture continues to be major occupation and livelihoods in the region. Mitigating of farm-level risk need micro-management like regular weather advisory services, disease or pest attack forecasting because weather aberrations are more critical factors than climate change as far as farm-level production management are concerned. Crop diversification through cropping system intensification can be the suitable options for risk mitigation at farm-level and can increase farm income significantly, despite the prevailing risk.