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Crop Insurance: An Overview from Situation Assessment Surveys -Rakesh Kumar Mahato and Sanjukta Chakraborty

-Foundation of Agrarian Studies

Crop loss is a common characteristic of agricultural households in rural India. Various factors cause crop losses such as the abnormal behaviour of monsoon, i.e. excessive rainfall or drought, cyclones, lightning, storm, diseases, insects, animals, and so on. Crop insurance acts as mechanism to cope with the problem of crop loss, specifically to reduce the impact of income loss for the agricultural households.

This blog will draw a general picture of crop loss incurred and crop insurance availed by agricultural households in India using the Situation Assessment Surveys (SAS) and the village studies conducted by the Foundation for Agrarian Studies. For SAS, we focus on the latest two rounds of surveys (2012-13 and 2018-19) and on two crops – paddy and wheat, the two major crops cultivated by agriculture households in kharif and rabi seasons respectively (53 per cent of agricultural households cultivated paddy in July-December, 2018 and 41 per cent cultivated wheat in January-June, 2019).

Crop loss

According to Situation Assessment Survey (SAS), crop loss is defined as the damage in crop output of the major crops harvested by them due to natural calamities like inadequate rainfall/ drought, disease /insect/ animal, flood, and other natural causes. The Situation Assessment Survey (SAS), which were previously conducted for the years 2002-03 and 2012-13, has given the estimate of the crop loss faced by agricultural households for different crops for the first time in its 2018-19 report. The share of agricultural households reporting crop loss ranged from 22 per cent of households cultivating sugarcane to 70 per cent of households cultivating moong in July to December, 2018 (kharif season). For the rabi season (January to June, 2019), crop losses experienced by agricultural households ranged from 25 per cent in paddy to 64 per cent in moong.

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