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National Agriculture Insurance Scheme in Madhya Pradesh-Progress and Coverage


Govind Prasad Namdev, P.K. Awasthi, Ajay Khare, and N.K. Raghuwanshi



Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 1a
First page : ( 405) Last page : ( 412)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00097.4

National Agriculture Insurance Scheme in Madhya Pradesh-Progress and Coverage

Namdev Govind Prasad*, Awasthi P. K., Khare Ajay, Raghuwanshi N. K.
Jawaharlal Nehru Krishi Vishwa Vidyalaya, Jabalpur, Madhya Pradesh, 482004

*Corresponding author’s email:

JEL Codes Q12, Q13, Q18

Online published on 26 April, 2016.

The study is confined to whole of Madhya Pradesh, the objective function of the study was to evaluate the coverage and performance of the NAIS, its impact on production level and stabilization of farm income and identification of problems faced by farmers hindering popularity and implementing of the scheme. The relevant macro level parameters viz. number of farmers benefited, area covered, sum-insured, premium and claim compensated etc. were based on the secondary data available in annual progress report of the implementing agency covered a period from 2000 to 2011. NAIS provide good opportunities for farmers to deal with risk in agriculture. For the farmers willing to bear any risk to earn higher expected profits, insurance is viable option as it happens in case of soybean crop on sample holdings. There seems to be an increasing acceptance of this scheme in recent years, due to consecutive failure of monsoon. Seasonal crop weather watch survey on regular basis need to be conduct for proper implementation of the NAIS in the Madhya Pradesh. Until risk tools are better tailored to the need of Indian farmers and until/product become well informed about managing income risk, the Madhya Pradesh will face unnecessarily high level of financial stress in payment of the claims. The present scheme required an increase in premium and a reduction in the range of risks covered it is suggested to prepared block wise commercial crop statistics for the state from collecting the data from patwari records of revenue circle because such crops can be include under the purview of the scheme with higher premium rates. The defined unit area for paying indemnity should be a village or group of village as against tehsil/block, is being considered at present.

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