In this backdrop the purpose of the current paper is to discuss the details of some
of the risk-related issues based on a primary survey conducted in the state of
Karnataka.
However, before moving on to the results from the survey, the paper also presents
an analysis of unit record data from National Sample Survey Organisation (NSSO)
59th round data on Situation Assessment Survey of the Farmers. This exercise
provides a state wise picture of crop insurance adoption in addition to examining the
determinants of the same by the farmers using a probit regression analysis.
In this backdrop, the paper unfolds as follows: The next section briefly discusses
the findings from the NSSO Situation Assessment of Farmers Survey to highlight
risk and mitigation-related issues. Section 3.2 elucidates the field survey details, and
in this context, discusses the sampling techniques and basic sample characteristics.
The next three sections discuss different types of risks faced by the farmers, based on
the field survey. Findings on mitigation strategies particularly that of insurance are
taken up in the penultimate section. A concluding section follows at the end.
2 Risk and Mitigation: Findings from NSSO Survey
Union ministry of Agriculture wanted to have a comprehensive assessment of the
situation of farmers in the country at the beginning of the millennium. The purpose
was to understand various aspects concerning farmers, which include farmers’ levels
of living, income and productive assets they possessed, farming practices and preferences they had, availability of resources, their awareness on technical developments
and access to modern technology in the field of agriculture, etc. To provide information on these aspects to the ministry of agriculture, NSSO, as a part of 59th round,
conducted the Situation Assessment Survey of farmers (SAS), the period of survey
being January–December 2003. Though the survey provides rich macro-level data,
there is not much analysis of unit record household level data (see also Bhattacharjee
and Rajeev 2010; Rao and Tripathi 2001; Gothaskar 1988) from this survey.
The survey was limited to only the rural areas of the country, and the respondents were members of farmer households. A farmer household is defined as one
which has at least one member as farmer, possessing some land, and is engaged in
agricultural activities on any part of the land during the preceding 365 days. In all
51,770 households were surveyed in the central sample. Only seven states participated in the state sample, and Karnataka is not among them (NSSO 2003).
In order to ensure profitable production especially in case of agriculture, risk
management undoubtedly is critical.
Consequently, working group on risk management in Agriculture (Government
of India (2007)) has dealt with this issue in detail. The group classifies the sources
of risk into following components:
(a) Production risk
(b) Price or market risk
Climate Change and Uncertainty in Agriculture …
243
of the risk-related issues based on a primary survey conducted in the state of
Karnataka.
However, before moving on to the results from the survey, the paper also presents
an analysis of unit record data from National Sample Survey Organisation (NSSO)
59th round data on Situation Assessment Survey of the Farmers. This exercise
provides a state wise picture of crop insurance adoption in addition to examining the
determinants of the same by the farmers using a probit regression analysis.
In this backdrop, the paper unfolds as follows: The next section briefly discusses
the findings from the NSSO Situation Assessment of Farmers Survey to highlight
risk and mitigation-related issues. Section 3.2 elucidates the field survey details, and
in this context, discusses the sampling techniques and basic sample characteristics.
The next three sections discuss different types of risks faced by the farmers, based on
the field survey. Findings on mitigation strategies particularly that of insurance are
taken up in the penultimate section. A concluding section follows at the end.
2 Risk and Mitigation: Findings from NSSO Survey
Union ministry of Agriculture wanted to have a comprehensive assessment of the
situation of farmers in the country at the beginning of the millennium. The purpose
was to understand various aspects concerning farmers, which include farmers’ levels
of living, income and productive assets they possessed, farming practices and preferences they had, availability of resources, their awareness on technical developments
and access to modern technology in the field of agriculture, etc. To provide information on these aspects to the ministry of agriculture, NSSO, as a part of 59th round,
conducted the Situation Assessment Survey of farmers (SAS), the period of survey
being January–December 2003. Though the survey provides rich macro-level data,
there is not much analysis of unit record household level data (see also Bhattacharjee
and Rajeev 2010; Rao and Tripathi 2001; Gothaskar 1988) from this survey.
The survey was limited to only the rural areas of the country, and the respondents were members of farmer households. A farmer household is defined as one
which has at least one member as farmer, possessing some land, and is engaged in
agricultural activities on any part of the land during the preceding 365 days. In all
51,770 households were surveyed in the central sample. Only seven states participated in the state sample, and Karnataka is not among them (NSSO 2003).
In order to ensure profitable production especially in case of agriculture, risk
management undoubtedly is critical.
Consequently, working group on risk management in Agriculture (Government
of India (2007)) has dealt with this issue in detail. The group classifies the sources
of risk into following components:
(a) Production risk
(b) Price or market risk
Climate Change and Uncertainty in Agriculture …
243