School of Economics, University of Hyderabad, Hyderabad-500046, Telangana
Online published on 5 December, 2018.
This study examines farmers’ awareness level on crop insurance and its determinants for a sample of two purposively selected villages belonging to two ecosystems namely Chelmareddygudem which represents the irrigated ecosystem and the other village Yellareddygudem which represents the rainfed ecosystem of Nalgonda district of Telangana state, India. The study makes use of primary data which has been collected through the structured survey form. To analyse the determinants of farmers awareness on crop insurance, we employed the probit model. The survey data revealed that about 75% of the farmers among two sample villages were not aware of crop insurance. Coming to the weather-based insurance products, 95% farmers are not aware of it in both study villages. Similarly, 85–90% farmers are not aware of livestock insurance schemes. In the irrigated ecosystem, sources of agriculture finance, crop loss causes, claiming difficult, premium affordability are found significant determinants for awareness of crop insurance, but the significant determinants of farmers awareness on crop insurance in rainfed ecosystem are farmer family size, livestock value, sources of risk mitigation, bankers’ role.
