A CRITICAL STUDY ON IMPACT OF WEATHER BASED CROP INSURANCE SCHEME ON CHILLI FARMERS OF GUNTUR DISTRICT OF ANDHRA PRADESH
KrishiKosh
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Title |
A CRITICAL STUDY ON IMPACT OF WEATHER BASED CROP INSURANCE SCHEME ON CHILLI FARMERS OF GUNTUR DISTRICT OF ANDHRA PRADESH
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Creator |
SRAVANA VARALAKSHMI, K.P.
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Contributor |
RAGHUNADHA REDDY, G
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Subject |
livestock, biological phenomena, yeasts, concentrates, yields, animal husbandry, research methods, lactation, fungi, nitrogen
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Description |
Andhra Pradesh is one of the leading states in implementing crop insurance schemes in the country. WBCIS has been implemented successfully in the state since 2009. An economic assessment of WBCIS which is being implemented in the district since five years for red chillies assumes importance. Hence the present study has taken up to analyse the following research objectives. OBJECTIVES OF THE STUDY: 1. To study the status of implementation of WBCIS in Andhra Pradesh. 2. To study the impact of WBCIS on insured and uninsured farmers. 3. To assess the factors influencing farmers willing to pay for WBCIS in chilli. 4. To analyse constraints faced by the farmers and insurance companies. Multi-stage random sampling design was employed to select a representative sample of 120 farmers from six selected villages of three mandals in Guntur district of Andhra Pradesh. Primary data was collected from chilli farmers through well structured interview schedule. Secondary data was collected from Agricultural insurance company of India Ltd. (AIC), Chief Planning Officer (CPO) of Guntur. Statistical tools used in data analysis were trend analysis, compound growth analysis, Loss ratio, Break-even ratio, Arithmetic mean, frequencies, percentages, cost concepts, Cob-Douglas production function analysis, binary logistic regression analysis and Garrett ranking technique. The study concluded that the farmers do not have in-depth awareness about WBCIS. The coverage of non-loanee farmers in the state is very low as compared to loanee farmers. Hence non-loanee farmers are required to encourage for participation in WBCIS. The financial viability of scheme is considerably good in Guntur district. The compound growth rates were found to be positive for area and number of farmers in both seasons. There is no significant change in the acreage under chilli due to weather based crop insurance scheme. More number of farmers was in the age group of 31-40 years (35.83 per cent). Insured farmers were more educated (73.34) than uninsured farmers (58.34). Among the total 70 per cent were small farmers with 1.96 ha. There is no much difference in the farming experience among both the groups in study area. The awareness about the crop insurance was primarily driven by the age and level of education followed by size of land holding and experience in the farming significantly. The proportion of variable cost in the total cost was 67.5 per cent under insured category and 65.83 percent under uninsured category. This implies that both categories have same input usage pattern. The kharif 2013-14 yielded good productivity. But the price realized was lower especially in case of uninsured sample farmers because they were subjected to distress sales to repay their debts finally led to low gross returns compared to insured sample group. So that government should focus on to cover all farmers under insurance scheme rather than getting the loans from non institutional sources. The average income was higher in case of insured farmers. Cost-Benefit ratio was observed more with uninsured farmers because of less cost of cultivation, but the net profits obtained are higher in case of insured farmers. The total variable cost incurred by the insured farmers is Rs. 190905/ha but the scale of finance fixed was only Rs.137500/ha. The total sum insured for chillies under WBCIS is Rs.75000/ha. This means that even when a farmer faces total crop failure, he receives only Rs 75000/ha as compensation. Neither the variable cost nor the scale of finance covered with that sum insured amount. Cost of the labour, fertilizers and value of farm assets were positive and significant at five per cent level in both insured and uninsured chilli cultivators. The farm size, value of assets and holding of insurance policy were found significant in pooled estimates. The sum of elasticities indicated increasing returns to scale in all farms. It means that gross value of chilli increases proportionately with an increase in the variable factors. The sign of the coefficient obtained in this analysis is positive, thereby showing that the insured farmers were more efficient in the bundle of resource use than the uninsured farmers. Insured farmer would generate more output and greater net profit by reorganizing their present level of resource use, compared to uninsured farmers. Age of household head, educational level, farm size, family size, access to credit, tenure status, livestock, awareness about weather insurance and farm income are the significant factors influencing willingness to take insurance by the farmers. All the insured farmers unanimously opined that the compensation amount was inadequate even though the scheme was an effective solution to answer natural calamities. Conducting the awareness building programmes is being opined by 83.33 per cent farmers. As 56.67 per cent beneficiaries opined that they have apprehensions regarding efficient performance of reference weather stations. About 53 per cent of the insured group suggested for reduction in the premium and demands for increasing government contributions in this regard. All beneficiaries suggested that there should be timely payment of compensation amount whereas 40 per cent suggested that crop insurance scheme should not be compulsory for the borrowers and also sum insured amount should cover cultivation expenses. A transparent disclosure about the full details of the scheme like premium collected, sum insured, procedure of claim settlement, recordings of weather phenomenon, etc., opined by 35 per cent of the farmers. Another suggestion opined by 33.33 per cent, while deciding the compensations better to have unit area as individual farmers or group of farmers or maximum of one village which will give favourable benefits to the than reference unit area as a whole. The large scale awareness building programmes should be initiated in collaboration with local banks and local administration for creating in-depth awareness and benefit perceptions of the scheme among farmers in the state to encourage them to participate. |
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Date |
2016-12-22T10:43:20Z
2016-12-22T10:43:20Z 2014 |
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Type |
Thesis
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Identifier |
149P.
http://krishikosh.egranth.ac.in/handle/1/92065 |
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Language |
en_US
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Relation |
D5079;
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Format |
application/pdf
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Publisher |
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
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