AWARENESS ABOUT IMPORTANCE OF CROP INSURANCE IN INDIA

Abstract

Crop insurance is an essential component of agriculture, particularly in India, where most farmers are small and marginal, with limited savings, which dilutes their ability to weather agricultural risks. The importance of crop insurance is to minimize the gap between income and consumption requirements during crop failure. This research aims to look into the possibility of a relationship between credit availability based on landholding size and crop insurance awareness. We examined data from the NSSO's 77th round Situation Assessment Survey on the size of landholdings. The findings suggest that the farmers who have access to financial services like, bank accounts and Kisan credit cards, are more aware of crop insurance. Large and medium farmers are likely to be aware of crop insurance compared to the small and marginal farmers and hence, are more likely to take up insurance which reflects the problem of adverse selection in the market for crop insurance.