IMPACT OF NATIONAL AGRICULTURE INSURANCE SCHEME IN RISK MINIMIZATION

GOVIND PRASAD NAMDEV¹*, P.K. AWASTHI², AJAY KHARE³, N.K. RAGHUWANSHI^4
1Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, MP, 482004
²Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, MP, 482004
³Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, MP, 482004
⁴Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, MP, 482004
* Corresponding Author : gnamdev58@gmail.com

Received : 03-03-2016     Accepted : 12-04-2016     Published : 07-07-2016
Volume : 8     Issue : 23       Pages : 1453 - 1459
Int J Agr Sci 8.23 (2016):1453-1459

Keywords : Crop Insurance, Impact, Madhya Pradesh, Risk minimization and Uncertainty
Academic Editor : Arpit Suryawanshi, Brajesh Kumar Namdev
Conflict of Interest : None declared
Acknowledgements/Funding : None declared
Author Contribution : None declared

Indian agriculture dependent on monsoon, which is always uncertain, it leads to operating risk in crops cultivation. Natural calamities may effect on the yield from agriculture sector. To cover the risk, which may occur in future, there, is need to some provision and crop insurance is only mechanism available to safeguard against production risk in agriculture. For fulfilling this need the Government of India has made experiments & efforts by introducing various schemes of crop insurance. Since the year 1999-2000, National Agricultural Insurance Scheme has been launched by National Agricultural Insurance Scheme Corporation of India. His research paper has made attempt to study the Impact of National Agriculture Insurance Scheme in risk minimization. The family type of sample respondents under different size group overall type of individual family occupied greater percentage than joint family in both the categories. Young farmers were 33.33% under beneficiary category, which is more than under non beneficiary category. Similarly, percentage of old respondents was higher (22.66%) under beneficiaries than non-beneficiaries (16%). The maximum difference in actual and expected yield was noted on large farms (580 Kg/ha) followed by medium farm (550 Kg/ha) for beneficiaries category. On the other hand, the lowest yield gap of 150 Kg/ha was recorded on medium farms followed by large farms for non-beneficiaries. Amongst non-beneficiaries 56 % farmers of medium size group adopted the technology at high level while moderate adoption was observed by 60 % farmers of large size group. On an average the cost of cultivation of beneficiary farmer was 33191/- as compared to non-beneficiary farmers ( 28967/-). The maximum and minimum benefit cost ratio of 1.94 and 1.53 was noted for small and large farmers in beneficiaries. In case of non beneficiaries it was again highest for small size group (1.86) followed by medium (1.66) and lowest for large size group (1.34). The probit regression analysis that education and news are not so effective to create awareness about crop insurance schemes/products. Diversification index influenced the premium paid by the farmers negatively. On an average the cost of cultivation of beneficiary farmer was 33191/- as compared to non-beneficiary farmers ( 28967/-). Increase in cost of cultivation is due to additional expenditure on improved seed, fertilizer, irrigation, plant protection measures and premium. It is suggested that sincere effort be made by the extension personnel to motivate the farmers to adopt improved production technology to minimize the yield gap.