Farmers Awareness and Perception towards Crop Insurance as a Risk Management Tool

The present study was conducted in Nagpur district. Collectively, 120 respondents were selected for the study and data was collected regarding awareness and perception of farmers about weather-based crop insurance scheme (WBCIS). It is revealed that majority of respondents aware about WBCIS (79.16%), about the sources of credit provided under WBCIS (75.00%), about the other crop insurance scheme (75.00%) and benefits of scheme provided by the government (74.16%). But majority of the respondents were not aware about WBCIS as risk management tool (93.34%), agency who is implementing this scheme (90.00%) and type of risk covered in this scheme (89.17%). Regarding perception of respondents towards crop insurance majority of them expressed that the scheme is very useful because it covers non-loanee farmers (75.00%) and all type of risks (68.33%). Most of the farmers felt that the scheme was not useful because benefits of farmers were decided on interpretation of company and complicated procedure that farmers were unable to understand (79.16%, respectively). Around 50% respondents found it useful because the scheme provides benefits for the losses of all crops. Extent of awareness and perception of majority of respondents were found at medium level. Most of the independent variables were found significantly correlated with awareness except credit availability and negative significance of age of respondents. Relationship of credit availability and age of farmers with their perception was non-significant, whereas others had significant correlation. To avoid the losses due to uncertainties, farmers had strategy to manage risk where majority of them adopt crop diversification (91.67%) followed by loan from banks (79.16%), sale of livestock (75.00%), loan from money lenders (66.66%) and loan from banks (62.50%). Most unlike strategy for farmers to manage risk was Government relief (95.84%), lease of sale of land (87.50%), sale of assets (83.34%) and hypothecation of assets (75.00%).