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LATEST NEWS UPDATES | Crop insurance can tackle bad harvests - Shanthu Shantharam

Crop insurance can tackle bad harvests - Shanthu Shantharam

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published Published on Apr 23, 2015   modified Modified on Apr 23, 2015
-Livemint.com

Weather and prices continue to haunt modern agriculture and farmers, only 20% of who are covered by crop insurance in our country

Two risks that have haunted modern agriculture for decades are weather and prices. Indian farmers have been one of the worst victims of the vagaries of nature and prices. They badly need protection, but less than 20% of them are covered by crop insurance. Insurance is an instrument that is designed to cover risks that can cause significant losses, however frequently or infrequently they occur. Somehow, the Indian psyche cannot seem to accept paying the insurance premium that would be foregone should no adverse event take place, that it’s a price to pay for cover against potentially catastrophic losses. In other words, it is the cost of doing business. Indians, therefore, forego insurance coverage by assuming that such a catastrophe will not visit them. That is one of the reasons why a huge majority of Indians are not covered for loss of life, motor accidents and health emergencies.

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Livemint, 22 April, 2015, http://www.livemint.com/Opinion/XoJ53yHSodApYgclHJRyMM/Crop-insurance-can-tackle-bad-harvests.html


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