AN APPRAISAL OF IMPACT AND PROGRESS OF CROP INSURANCE PROGRAMME IN SAURASHTRA REGION
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Date
2005-04
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JAU, JUNAGADH
Abstract
The present study was carried out to examine the progress and impact of crop insurance scheme on output and input use; and problems of farmers related to it in Saurashtra region of Gujarat state. A sample of 192 farmers was selected purposively from the three talukas of Rajkot district which comprised of equal number of beneficiary and non-beneficiaries. The primary data on inputs use and output of selected crops were collected for the agricultural year 2002-03. Secondary data regarding crop insurance scheme were collected from General Insurance Corporation of India, Gandhinagar, Gujarat state for the period 1985-2003.
The compound growth rates were estimated by fitting the exponential function. The Cobb-Douglas production function was used to estimate production elasticity of individual inputs. The difference between the two sample means of inputs use was tested by 't' test.
The study revealed that the annual family income and consumption expenditure were found higher on beneficiary farms than that of non-beneficiary farms. The dominant districts covered under the crop insurance scheme were Rajkot, Surendranagar and Bhavnagar districts in case of cotton crop; Surendranagar, Bhavnagar and Jamnagar districts in case of groundnut and Banaskantha, Mehsana and Surendranagar districts in case of bajra.
Among the various agencies involved in crop insurance programme, Rajkot District Cooperative Bank (RDCB) played dominant role.
The growth rate of beneficiary farmers was found higher in Period II (38.94%) than that of Period I (1.44 %). Growth rate of sum insured and premium received was substantially high in Period II (22.90 % and 50.63 %) as compared to Period I (13.57 % and 13.28 %). The amount of claim paid increased more than four times in Period II (Rs.369.36 crore) as compared the Period I (Rs.78.71 crore) which was also reflected by very high growth rate in Period II (100.29 %) as compared to period I ( 8.96 %). This shows the increased recognition of crop insurance scheme. But it also signals to the government towards the burgeoning burden of funds.
On an average beneficiary farm, per hectare use of family labour, hired human and bullock labour were found higher by 20.16, 44.12 and 28.24 per cent in cotton, by 14.70, 6.73 and 6.54 per cent in groundnut and by 24.66, 34.41 and 0.27 per cent in bajra, respectively than on non-beneficiary farms. Relatively higher rates of change were observed for the inputs like hired human labour and chemical fertilizers on beneficiary farms as compared to other inputs.
On an average beneficiary farm per hectare yield of cotton, groundnut and bajra crop were found higher by 36.60, 20.50 and 64.20 per cent, respectively than that of non beneficiary farm.
The respondents of both the groups incurred loss in cotton and groundnut cultivation, whereas, incase of bajra only beneficiaries earned profit.
The regression analysis showed that human labour has contributed positive and significantly in both the categories of farms and for most of the crops. Beneficiary farmers were of the opinion that due to crop insurance scheme they were able to use higher quantities of inputs (75.00 %) and thereby obtained higher yield and returns (73.73 %) which has helped to maintain their credibility during bad years (54.17 %). They also suggested for compensation in cash (95.83 %) with amount of sum insured (79.17 %) and for timely payment (88.54 %). They also indicated that the premium rate is high (70.89 %) as compared to losses. The major defects indicated by beneficiaries were: delay in payment (95.83 %); improper base of fixing of compensation (100%) and crop insurance scheme should not be compulsory for borrowers.
The reasons quoted by non-beneficiaries for not participating in scheme were : they were not the members of village cooperative society / nationalized bank (71.88%) and they do not want to take risk for payment of premium (65.62 %).
In short the growth of crop insurance scheme in terms of number of farmers covered, area covered, premium collected, sum insured, claim paid etc., was found positive in Gujarat. It has affected positively to increase the input use and to minimize the loss of beneficiaries. Though, the crop insurance scheme has succeed in delivering its multifarious advantages to farmers, yet it requires to solve the problems of delay in payment, high rate of premium and proper base for estimation of loss.
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