Crop Insurance as a Tool for Inclusive Growth: A Conceptual Model

Abstract

Purpose: Agriculture provides food and sustenance to a major section of our population. India, being an agrarian country, nearly 48 per cent population is directly or indirectly dependent on agriculture farm activities. The share of agriculture in GDP has declined from 51.9% (1950-51) to mere 13.7% (1912-13) during a period of 62 years. Bad weather and low monsoon hit the crop yield, leads to impoverish, and indebtedness resulting to suicides mainly for small and marginal farmers. Government should adopt a holistic approach and integrate data from other department to work out loan and insurance schemes customized at individual level. The study aims to propose a working crop insurance cum loan model which will be strictly data driven using advance analytics and big data analytics.

Design/Methodology/Approach: The paper is conceptual in nature and uses secondary data to highlight the problem of current crop insurance model and to develop an effective crop insurance cum loan model.

Findings: The study find that presently, the schemes for farmers are more of government subsidies and dole out in time of calamity. The study proposes model for crop insurance, with that model we will have more data based state interventions in dealing with factors adversely affecting agriculture.

Originality/Value: The paper used secondary data collected from the article, journals, reports and websites. The finding proposes a working crop insurance cum loan model which will be strictly data driven using advance analytics and big data analytics.

Paper Type: View Point