Analysing the effectiveness of crop insurance scheme as an adaptive strategy against climate change in Himachal Pradesh

Using the data from different altitudes of Himachal Pradesh, present study analyses the effectiveness of crop insurance scheme, which is not only restricted to simple comparison of costs and returns, but also incorporates the application of standard treatment effect model to analyse the selection bias, if any, prevalent in the model. The findings revealed that crop insurance couldn't bring much difference in the income of farmers. Only, little difference of 2.5% has been observed in tomato, mainly due to the credit that has helped them to invest more in quality inputs and thus, bringing higher returns. The study suggests for an effective improvement in the system to safeguard the interests of the farmers.