Agricultural Economics Research Review
  • Year: 2017
  • Volume: 30
  • Issue: 2

Rainfall Induced Production Risk in Coffee Crop and Mitigation Strategies Adopted by Farmers: An Economic Analysis§

1Department of Agricultural Economics, University of Agricultural Sciences, GKVK, Bangalore-560065, Karnataka

2Former Professor, Department of Agricultural Statistics, University of Agricultural Sciences, GKVK, Bangalore-560065, Karnataka

*Author for correspondence Email: bvchinnappareddy@gmail.com

§This paper is based on the MSc (Ag) thesis entitled “An Economic Study of Risk Proneness and Mitigating Strategies Adopted by Coffee Plantation Farmers in Chikmagalore District of Karnataka ”submitted by the first author under the guidance of second author, to the University of Agricultural Sciences, GKVK, Bangalore

Abstract

The study analyses the rainfall induced risks in coffee production and mitigating strategies adopted by the coffee growers in Chickmagalore district, Karnataka. Results show a high variability in production of Robusta variety than of Arabica variety. The major mitigating strategy adopted against production risks by coffee farmers include sprinkler irrigation, and more use of nitrogenous fertilizers. Use of crop insurance as the risk mitigating strategy is limited to a small proportion of farmers. Yet, the reward for risk taking by coffee growers is higher than the cost of mitigation.

Keywords

Rainfall induced risk, risk mitigating strategies, coffee, risk-reward