Impact of Crop Insurance Scheme in selected districts of Bihar: A micro level study.
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Date
2016
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Dr. Rajendra Prasad Central Agricultural University, Pusa (Samastipur)
Abstract
At micro-level investigations have been made to estimate the adopters and non- adopters of crop insurance scheme in East Champaran and Sheohar districts of Bihar. The study was based on primary data obtained from adopter and non-adopter of crop insurance. These districts were selected as the highest number of adopter of crop insurance were found in East Champarn district and lowest number of adopter of crop insurance in Sheohar district of Bihar. Further, twenty five adopters and twenty five non-adopter of crop insurance were selected randomly from each of the two selected district. In this way, altogether 100 respondents (50 adopter and 50 non-adopter of crop insurance) were selected for the investigation in the present study.
The study revealed that the large proportion of both adopter and non-adopter farmers belonged to the age group 45 years and above 40.00 per cent in case of adopter and 44.00 per cent in case of non-adopter. Majority of respondents were secondary education in both adopter and non-adopter categories i.e. 32.00 and 28.00 per cent respectively in both the districts as a whole. Income level, in both the districts, the adopter of crop insurance constituted more than the non-adopter of crop insurance irrespective of the annual income except for the highest income group (more than 150000), were found to be 14.00 percent in case of adopter and 32.00 per cent in case of non-adopter in both the districts as a whole.
It was also tried to know the willingness to pay insurance premium by adopters of crop insurance. It was found that only 8.00 per cent of the respondents were willing to pay crop insurance premium in East Champaran. Similar trend was observed in Sheohar district. It was also found that most of the respondents got credit from non-institutional source i.e. private money lenders who charged high interest. They did not go to the governmental institutions due to lengthy process and were time consuming. Satisfaction level of the respondent was also worked out and it was found that most of the marginal farmers of both the districts were un-satisfied (44.00 per cent) and among small this percentage was as high as (52.00 per cent). Overall satisfaction level of both the districts under study was equal (16.00 per cent).
It was also attempted to know which socio-economic variable play an important role in adoption and non-adoption of crop insurance. For this purpose discriminant analysis was carried out. The criteria for evaluation the relative contribution of each variable as discriminator between two groups are the values of standardized canonical co-efficient, structure co-efficient. It was found that among eight factors, five made positive impact and three negative to discriminate between adopter and non-adopter. The standardized co-efficient for awareness (b=0.847), satisfaction level (b=0.583) and income level (b= -0.329) are the highest contributors.
To find out the constraints to adoption of crop insurance, Garrett ranking technique was used and it was found that lack of capacity to pay premium was common in both districts at second most important. However, shorter period of time allowed by the banker for applying for crop insurance was rank first in East Champaran and in case of Sheohar district the rank first given to tedious and time consuming procedures for crop insurance.
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