Risk Mitigation and Crop Insurance in India: A Performance Analysis (Report‪)‬

Abstract The study examines the nature and scope of crop insurance as a 'speciality insurance' and carries out a performance analysis of the area yield and weather-based crop insurance schemes presently being implemented in the country. The study finds that despite its avowed drawbacks and continuing failure to make a major headway in the penetration of insurance, the multi-peril area yield programme is favourably placed in terms of equity. The study discusses the technical and infrastructural challenges confronting the weather-based crop insurance products, hailed as a promising financial innovation in the recent times. The study points out that though the role of crop insurance as a critical risk mitigation tool has been widely appreciated, there has been inadequate policy intervention to overcome its inherent shortcomings. Critically analysing the issues confronting the crop insurance programmes, both yield- and weather-based, the study points out that these shortcomings need to be successfully addressed so as to make crop insurance an effective risk mitigation tool for farmers in different parts of the country.