Weather Vagaries and Fruit Growers Willingness to Pay for Fruit Crop Insurance in Kashmir Valley: An Exploratory Study

¹Rajiv Gandhi Chair in Contemporary Studies on Livelihood and Food Security, Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir, Shalimar Srinagar, India.

²School of Agricultural Economics and Horti-Business Management, Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir, Shalimar Srinagar, India.

³Centre of Central Asian Studies, University of Kashmir, Hazratbal Srinagar, India.

⁴Department of Environmental Studies, The Glocal University, U.P., India.

⁵Department of Management Studies, University of Kashmir, Hazratbal Srinagar, India.

*Corresponding author: Arshad Bhat

Published: September 8,2021

Abstract

Pradhan Mantri Fasal Bima Yojana, a crop protection scheme along with the government of Jammu and Kashmir was launched to save the farmers/fruit growers from the unexpected events occurring due to bad weather on subsidised rates. The study was conducted to know the approach and behaviour of fruits growers regarding the insurance scheme and the amount they are willing/ready to pay for saving the crop/fruit against such untoward events. Contingent valuation through willingness to pay method was used to assess the impact of such scheme in a dominant fruit growing area district Shopian of Kashmir valley where most fruit cultivation is irrigation based. Present study was carried out on a sample of 400 fruit growers from 8 community blocks consisting of 8 villages and 50 samples from each village. The results of the study revealed that fruit growers are willing to pay Rs. 309 per kanal of land as premium to save the fruit from damages.

References

[1] Abebe, H. T. and A. Bogale. (2014). Willingness to pay for rainfall-based insurance by smallholder farmers in Central Rift Valley of Ethiopia: The Case of Dugda and Mieso Woredas. Asia Pacific Journal of Energy and Environment, 1(2): 121-57. doi.org/10.15590/apjee/ 2014/v1i2/53750.

[2] Aditya, K. S., M. Khan, and A. Kishore. (2018). Adoption of crop insurance and impact: insights from India. Agricultural Economics Research Review, 31(2): 163-74. doi.org/10.5958/0974–0279.2018.00034.4.

[3] Ali, A. (2013). Farmers’ Willingness to Pay for Index Based Crop Insurance in Pakistan: A Case Study on Food and Cash Crops of Rain-fed Areas. Agricultural Economics Research Review, 26(2): 241-48. doi.org/10.22004/ ag.econ.162145.

[4] Bardsley, Peter, Abey, Arun, and Davenport, Scott. (1984). The economics of insuring crops against drought. Australian Journal of Agricultural Economics, 28(1): 1-14.

[5] Barnett, B. J., Skees, J. R., and Hourigan, J. D. (1990). Examining Participation in Federal Crop Insurance. Staff Paper No. 275, Department of Agricultural Economics, University of Kentucky.

[6] Bastian, C. (1999). Crop Insurance as a Tool, Risk and Resilience in Agriculture, University of Wyoming, Cooperative Extension Service, pp. 1-7, available at: www.uwagec.org/rnrinag/RnR%20Section%202/Crop%20Insurance%20as%20a%20 Tool.pdf.

[7] Bielza Diaz-Caneja, M., Conte, C. G., Gallego Pinilla, F. J., Stroblmair, J., Catenaro, R., and Dittmann, C. (2009). Risk Management and Agricultural insurance Schemes in Europe, European Commission, Joint Research Centre, Institute for Protection and Security of Citizen, Luxembourg.

[8] Birthal, P. S. and J. Hazrana. (2019). Crop diversification and resilience of agriculture to climatic shocks: Evidence from India. Agricultural Systems, 173: 345-54. doi.org/ 10.1016/j.agsy.2019.03.005.

[9] Birthal, P. S., J. Hazrana, and D. S. Negi. (2019). A multilevel analysis of drought risk in Indian agriculture: implications for managing risk at different geographical levels. Climatic Change, 157(3-4): 499-513. doi.org/ 10.1007/s10584-019-02573-9.

[10] Carter, M. R., F. Galarza, and S. Boucher. (2007). Underwriting area-based yield insurance to crowd-in credit supply and demand. Savings and Development, 31(3): 335-60. EconPapers.repec.org/RePEc:pra:mprapa:24326.

[11] Enjolras, G., Capitation, F., and Adinolfi, F. (2012). The demand for crop insurance: Combined approaches for France and Italy, Agricultural Economics Review, Vol. 13, No. 1, pp. 5-22.

[12] Gardner, B. L. and Kramer, R. A. (1986). Experience with crop insurance programs in the United States. In: Crop Insurance for Agricultural Development: Issues and Experience, John Hopkins University Press, Baltimore.

[13] Gine, X., L. Menand, R. Townsend, and J. Vickery. (2010). Micro insurance: a case study of the Indian rainfall index insurance market (report No. 5459). The World Bank, Washington D.C., USA.EconPapers.repec.org/ RePEc: wbk:wbrwps:5459.

[14] Gollier, C. (2003). To insure or not to insure? The Geneva Papers on Risk and Insurance Theory, 28(1): 5-24. link.springer.com/content/pdf/10.1023/ A: 1022112430242.pdf.

[15] Gustafsson-Wright, E., Asfaw, A., and van der Gaag, J. (2009). Willingness to pay for health insurance: An analysis of the potential market for new low-cost health insurance products in Namibia. Social Science and Medicine, 69(9): 1351-1359.

[16] Hazell, P. B. R., J. Anderson, N. Balzer, C. A. Hastrup, U. Hess, and F. Rispoli. (2010). The potential for scale and sustainability in weather index insurance for agriculture and rural livelihoods. World Food Programme (WFP), Rome, Italy. https://documents.wfp.org/stellent/groups/ public/documents/newsroom/wfp281391.pdf?_ga =2. 1 4 3 5 5 6 5 9 8. 2 5 9 4 7 5 3 3 5. 1 5 9 4 8 7 6 8 2 7 – 948204335.1594876827.

[17] Just, R., Calvin, E. L., and Quiggin, J. (1999). Adverse selection in crop insurance: Actuarial and Asymmetric Information Incentives. American Journal of Agricultural Economics, 81(4): 834-849.

[18] Liesivaara, P. and S. Myyra. (2014). Willingness to pay for agricultural crop insurance in the northern EU. Agricultural Finance Review, 74(4): 539-54. doi.org/10.1108/afr-06–2014–0018.

[19] López-Feldman, A. (2013). Introduction to contingent valuation using Stata. In Mexican Stata Users Group Meetings 2013 (No. 12). Stata Users Group. https:// mpra.ub.uni-muenchen.de/41018/2/MPRA_paper_41018.pdf.

[20] Musser, W. N. (1998). Risk management overview. Paper presented at Mid-Atlantic Risk Management Regional Conference, Williamsburg, VA, 6-7 August.

[21] Patrick, G. F. (1998). Managing Risk in Agriculture. North Central Region Extension Publication, No. 406.

[22] Qureshi, N. W., M. Krishnan, C. Sundaramoorthy, A. K. Vasisht, S. Baba, N. R. Kumar, and R. Sharma. (2013). Truncated growth and compromised sustainability: The case of lake fisheries in Kashmir. Agricultural Economics Research Review, 26(Conference Number): 57-66. http://purl.umn.edu/158508.

[23] Santeramo, F. G., B. K. Goodwin, F. Adinolfi, and F. Capitanio. (2016). Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme. Journal of Agricultural Economics, 67(3): 639-657. https://doi.org/ 10.1111/1477–9552.12155.

[24] Singh, R. (2013). Agricultural Livelihoods and Crop Insurance in India. Working paper, Deutsche Geselschaft fiir internationale Zusammenarbeit (GIZ) GmbH: New Delhi. http://www.ruralfinanceandinvestment.org/sites/default/ files/Agricultural%20Livelihoods%20and%20Crop%20Insurance%20in%20India.pdf.

[25] Smith, V. H. and Glauber, J. W. (2012). Agricultural Insurance in Developed Countries: Where Have We Been and Where Are We Going? Applied Economic Perspectives and Policy, vol. 34, no. 3, pp. 363-390.

[26] Smith, V. H. and Watts, M. (2009). Index Based Agricultural Insurance in Developing 573 EP 2014 (61) 3 (561-573) Crop Insurance–Risks and Models of Insurance Countries: Feasibility, Scalability and Sustainability, Monograph published electronically by the Bill and Melinda Gates Foundation, November 2009, available at: www.yumpu.com/en/document/view/16834278/index-based-agriculturalinsurance-in-developing-countries-.

[27] Hardaker, J. B., Huirne, R. B. M., and Anderson, J. R. (1997). Coping with Risk in Agriculture. CAB International, New York.

[28] O’donoghue, E. J., M. J. Roberts, and N. Key. (2009). Did the federal crop insurance reform act alter farm enterprise diversification? Journal of Agricultural Economics, 60(1): 80-104. doi.org/10.1111/j.1477–9552. 2008.00166.

How to cite this paper

Weather Vagaries and Fruit Growers Willingness to Pay for Fruit Crop Insurance in Kashmir Valley: An Exploratory Study

How to cite this paper: Arshad Bhat, S. A. Wani, Abid Sultan, Showkat A. Itoo, M. A. Kachroo, Abid Qadir, Aamir Qureshi. (2021) Weather Vagaries and Fruit Growers Willingness to Pay for Fruit Crop Insurance in Kashmir Valley: An Exploratory Study. International Journal of Food Science and Agriculture, 5(3), 524-529.

DOI: http://dx.doi.org/10.26855/ijfsa.2021.09.024

International Journal of Food Science and Agriculture

Journal Menu

Volumes & Issues

Current Issue

More Articles

Weather Vagaries and Fruit Growers Willingness to Pay for Fruit Crop Insurance in Kashmir Valley: An Exploratory Study

Abstract

References

How to cite this paper