Farmers Perception Towards the Crop Insurance in Chengam Taluk in Tiruvannamalai District

Abstract

Crop insurance is a financial tool for reducing the impact of a loss in agricultural income by accounting for a wide range of factors that affect crop production. Crop Insurance is a comprehensive yield-based policy meant to compensate farmer’s losses arising due to production problems. It covers pre-sowing and post-harvest losses due to cyclonic rains and rainfall deficit. These losses lead to reduction in crop yield, thus, affecting the income of farmers As such it is a risk management alternative where production risk is transferred to another party at a cost called premium.

The weather-based crop insurance uses weather parameters as proxy for crop yield in compensating the cultivators for deemed crop losses. It provides a good alternative both to farmers and government. Farmers get aviation insurance by making quick payments to the government at low administrative cost. Rain insurance is a specific form of weather insurance. Weather insurance is not yield insurance when there is crop insurance. Both situations, growers pass on the danger of yield to another party for the premium. The need for insurance for agriculture cannot be overstated in their current state a very risky economic activity because it is dependent the weather conditions. Therefore, designing and implementing an appropriate insurance plan for agribusiness is a very complex and challenging task.