As risk-management tools that work on the concept of pooling go, crop insurance is a failure
Farmers don’t know about it, or don’t have access to it, or find it too expensive to take it. Insurers don’t push it as they don’t make money on it. Governments have never crafted it to be the focal point of managing risk in the farming sector. As risk-management tools that work on the concept of pooling go, crop insurance is a failure, struggling for identity and ownership in the Indian farming ecosystem.
Farmers don’t know about it or don’t have access to it
According to Census 2011, India had 95.8 million farmers. But in the six farming seasons covering 2011 to 2013, only an average of 12.7 million took crop insurance. That’s one in about eight farmers. A 2012 sample survey shows such under-insurance is consistent across crops, and that lack of awareness of crop insurance and its availability are the main culprits.
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